Despegar acquires Mexico’s Best Day Travel Group for $136M

Argentina-based online travel agency Despegar is boosting its position in Mexico with the purchase of Best Day Travel Group for $136 million. According to a release, Best Day had revenue of $140 million in 2019 and EBITDA of $8 million, with 70% of its sales coming online. Despegar says this makes the transaction the largest in the Latin American travel intermediary space in terms of revenue and will allow it to increase its revenues by 25%. Approximately 75% of Best Day’s revenue is generated in Mexico, with the remainder coming primarily from Brazil, Argentina, the United States and Canada. The majority - 95% - of its revenue comes from the sale of packages, hotels and other travel products sold direct to consumers online and through call centers and at more than 200 kiosks.