MTS announces the acquisition of a 100% stake in Bronevik Online LLC and Bronevik Company LLC (Bronevik Group, one of the market leaders in online hotel booking). The acquisition is aimed at developing a new business line, MTS Travel, in the tourism industry.
MTS has started to develop its new business line through MTS Travel LLC, a recently registered wholly owned subsidiary. MTS Travel will offer a service for booking hotels, other accommodation and tickets; provide tourist and excursion services; arrange the rental and leasing of vehicles, as well as the rental of recreation equipment; and organize sports activities.
MTS President and CEO Viacheslav Nikolaev commented: “Tourism, business travel and hospitality in Russia are developing dynamically, and we expect these markets to grow rapidly in the coming years. For this reason, we are carving out a separate business vertical called MTS Travel—which will complement other areas of our business—in order to develop it in an integrated manner through one of the leaders in the Russian online hotel booking market. We expect that the combined expertise of MTS and Bronevik as well as the acquired companies’ access to big data technologies and artificial intelligence alongside MTS’s sales channels and financial opportunities will enable us to offer customers qualitatively new services for booking and accommodation as well organizing recreational activities and travel opportunities.”
Bronevik Group was founded in 2008 and today is one of the market leaders in online hotel booking, transfer and related services. It develops private and business tourism by providing accommodation booking services in Russia, neighboring countries and beyond. The Group works directly with accommodation facilities, including in the most remote regions of Russia. The Group’s database includes more than thirty five thousand accommodation facilities in more than three thousand communities.