Tourism Breaking News
IBS Software has reached an agreement to acquire the ground-breaking hotel and travel technology provider Above Property Services (APS). The $90 million transaction will further solidify IBS Software’s position in the hospitality market and strengthen the brand, to underpin an ambitious expansion of its reach in the hospitality industry. The strategic acquisition will enable IBS Software to provide the only unified platform in the hospitality industry for seamlessly managing the entire customer journey from booking to fulfillment for the global hotel chain, resort, and gaming markets. The move will significantly expand the company’s offering with the addition of cutting-edge CRS (Central Reservation System), PMS (Property Management System) and RMS (Revenue Management System) solutions. With this acquisition IBS Software adds Call Center and Demand-side (stored and third-party inventory) solutions to its already established booking engine and distribution platform used by over 36,000 hotels worldwide, including many of the world’s largest and best-known hotels and resorts.
APS was founded in 2012 by Aaron Shepherd, an industry pioneer who developed a number of the world’s leading hospitality PMS and CRS solutions. The company was established to completely reinvent hotel software from the ground up, offering a revolutionary cutting-edge unified platform optimized for the hotel enterprise sector. A typical hotel organization requires multiple core software platforms to capture bookings and provide services, requiring multiple vendors and integrations. Each system needs unique logins, user interfaces, training requirements, upgrade paths, pricing and contract terms, breeding inefficiency – especially considering 80% of the data in each application is redundant and has to be replicated or synchronized.
Over the last decade, APS’s platform has created a new standard for speed, flexibility and stability for travel and hospitality CRS, PMS and RMS – empowering businesses to transform how they connect with guests and drive revenues, while significantly streamlining operations.
Aaron Shepherd, Founder and CEO of APS, added: “IBS Software and APS both recognize the crucial need to accelerate next-level transformation in travel and hospitality to create unparalleled value for its clients. It is this shared vision that has inspired our collaboration. APS has successfully developed the only unified cloud-native microservices platform that frees operators from the limitations of legacy, monolithic technologies, providing flexibility, speed, and the ability to scale infinitely. Today’s news gives APS customers the stability and resources of a large, multi-national travel leader and will give IBS Software clients and partners access to the most modern and comprehensive modular solution in the industry, ushering in a new era of growth and propelling them to new heights. I personally, am delighted to be joining IBS Software and very excited to be part of this evolution as an industry leader, with the acquisition of APS.”
Peter Krebs, Head of Travel & Hospitality Solutions at IBS Software, commented: “There is an unmet need in the hospitality industry to simplify how rooms and other services are sold. Too many businesses are being held back by legacy technology that prevents them from living up to their potential. It’s vital they have the tools they need to be effective in a rapidly changing marketplace. We were blown away by the capabilities of the ground-breaking APS platform and the value it delivers to travel businesses, providing them with the power to simplify their tech stack to instantly create new services and offers. We are very excited to bring Aaron Shepherd and his entire team onboard, and with this IBS Software and APS will be uniquely placed to offer the only unified platform for the global hospitality chain and enterprise market. We couldn’t be more excited about what we can achieve together.”
V K Mathews, Founder and Executive Chairman of IBS Software, said: “APS is a true disruptor in the travel tech industry. Led by Aaron Shepherd, a visionary in the sector, the team has executed flawlessly on its vision to streamline complex processes in the hospitality businesses to deliver integrated, end-to-end services that differentiate and improve the customer experience. This acquisition will significantly enhance IBS Software’s offerings in hospitality, expanding our market reach and win market share in multiple segments, including medium to large hotel chains as well as luxury, resort and gaming customers.”
According to a recent h2c Global Hospitality Distribution Study, the CRS is the leading distribution system for 89% of large hotel chains and 60% of medium-sized hotel chains, with 20% of hotel organizations planning to replace their CRS within three years. Through this transaction, IBS Software will substantially extend its total addressable market and capitalize on the growing demand.
Steffan Berelowitz, Head of the Hospitality Business at IBS Software, will lead the development and expansion of the hospitality business, working closely with Aaron Shepherd.
The transaction is subject to customary closing conditions.
