New Zealand-based travel management company Serko Ltd (ASX & NZX: SKO) has renewed its partnership with Booking.com, signing a five-year contract which will see the continuation of their collaboration on the Booking.com for Business platform, which facilitates travel bookings for businesses and business travellers alike.
The two companies first began working together on Booking.com for Business in 2019, with Serko facilitating the use of its travel management software program Zeno – launched the previous year – for use by US giant Booking Holdings in the creation of Booking.com for Business, which went live in 2020.
Serko chief executive officer and co-founder Darrin Grafton said the renewal decision was a boost both for his company and also a reflection of the achievements made thus far by the partnership arrangement.
“This renewal is a significant milestone for Serko – providing a strong foundation for future global growth and scale,” he said.
“The progress made has directly driven material revenue growth for Serko under the partnership’s revenue sharing model.
“Together we have completed a substantial migration of existing users, seen registered companies exceed 600,000 and completed room nights increase 65 per cent in the past financial year.”
The renewal partnership includes a revised revenue share arrangement through which the revenue share will continue at the same ratio for current volumes, with a new tiered system for higher incremental volumes.
This new model has been introduced in order to allow for significant volume growth at the current commission levels.
Serko has been trading at $2.86c.