Hotel technology solutions provider Cendyn, an innovator in CRM, sales and revenue strategy for the hospitality industry, and Pegasus, a provider of hotel reservations, revenue and distribution solutions as well as digital marketing services, have entered into a merger agreement. By merging into a single company, the new entity will provide hoteliers with a platform to increase their direct booking channel and enhance the guest experience via touchpoints.
“With many hoteliers struggling with resources and profitability, this merger provides a lifeline for those looking to build on seed revenue through their direct channels,” a joint press release announcing the merger said.
This merger comes on the heels of the 2019 merger of Cendyn and Rainmaker, a provider of hotel revenue management solutions. With the acquisition, Cendyn has become a leading solution provider in the hotel revenue management space, along with mega companies such as Infor, IDeaS and Duetto, providing the next generation of AI-powered solutions designed to improve room rates and increase guest spending across the entire hotel. . The merger of Cendyn and NextGuest, a New York and Munich-based hotel CRM and digital marketing solutions provider, was completed in February of this year.
In 2019, Pegasus merged with Travel Tripper, bringing the two companies’ industry-leading solutions into one platform and enhancing service and support across its global customer base. With more than 30 years of experience in global distribution, Pegasus is reported to serve hotels in 120 countries from eight offices around the world in New York, Scottsdale, Las Vegas, London, Paris, Frankfurt, Tokyo and Hyderabad.
Financial details of the merger were not disclosed. Nor was it the name under which the combined companies would operate (although Cendyn, arguably with more name recognition, might be a more likely candidate). The transaction is expected to close before the end of the year, under usual closing conditions.
At the heart of this merger is Cendyn, Starling, and Pegasus’s CRS customer data platform, which collectively provides hoteliers with access to a true check-in system for profiles and rates for each guest. Leveraging the alignment of these key data points puts hoteliers at the forefront of personalization to enhance the direct booking experience.
Last month, Cendyn unveiled the next generation of loyalty solutions, dubbed eLoyalty. Designed specifically for hotels, the solution supports multiple types of programs, including number of stays, number of nights, member ratings, birthdays and “moments of surprise and joy”. eLoyalty is designed to provide hoteliers with a scalable, fully configurable loyalty solution regardless of hotel type or brand.
Cendyn is best known for its Hospitality Cloud, which delivers a full suite of software services to the industry, aligning marketing, sales and revenue teams to improve their strategies and drive performance and loyalty across their business units. With office headquarters in Boca Raton, Florida, And offices around the world in GermanyAnd SingaporeAnd Thailand, And JapanCendyn reportedly serves clients in 143 countries. In 2019, Cendyn secured an investment from private equity firm Accel-KKR, which holds a controlling stake in the company, to help expand its marketing and sales solutions and grow its customer base.
According to the latest press release, the merger of Cendyn and Pegasus will provide hoteliers with a platform to maximize their direct booking channel, enhance their direct booking channel and enhance the guest experience “across every touchpoint.”
“We are very excited about this combination with Pegasus. As our industry recovers from the pandemic, the merger of these companies brings scale and stability to our customers, providing hoteliers with a vertically integrated technology platform that enables them to meet a wide range of hospitality needs.” Tim SullivanCendyn, CEO and President, in a statement. “The seamless integration of these solutions reinforces our commitment to personalizing and optimizing the guest journey as well as enabling hoteliers to maximize their direct booking channel.”
“At Pegasus, we have strived to enable hoteliers to provide their guests with the best direct booking channel experience, while ensuring comprehensive inventory distribution. The combination of Cendyn and Pegasus takes this to the next level enabling unprecedented personalization of the guest experience, not only during the search and booking phase but Throughout the customer lifecycle as well.” Gautam LolaCEO of Pegasus Corporation. “Above all, we will see longer-lasting and more profitable relationships between hoteliers and their guests.”