Global online booking platform Hostelworld has announced a strategic investment of US$3 million ($4.44 million) in Tipi Pty Ltd.
The Australian start-up provides technology solutions exclusively to the hostel market, enabling guests to check-in and download their keys prior to arrival.
The minority share investment is in line with Hostelworld’s strategy to partner with innovative technology businesses within the hostel market which improve its user experience for both hostel guests and hostel owners and differentiate the brand from traditional online travel agencies.
As part of the investment, Hostelworld will support Tipi in achieving its growth plans and provide smart technology solutions to its global hostel customer base.
Tipi customers will also have access to Hostelworld inventory, allowing them to make their next booking after check-out and move seamlessly between the two platforms.
As a result of the partnership, Tipi will have a presence in London and Dublin.
Tipi CEO Jack Bowcott said: “We are delighted to be partnering with Hostelworld. They are the go-to platform for hostel travellers and have a key focus on investing in the best technology for the hostel market.
“We started Tipi Pty Ltd with the mission of making hostels smarter and guests happier. This investment brings us one step closer to achieving this objective, with the opportunity to bring our smart technology to a wider audience of hostels.
“We are extremely excited to partner with Hostelworld and work together to deliver on our ambitious global growth plans.”
Gary Morrison, CEO of Hostelworld, said: “I’m pleased to announce our partnership with Tipi Pty Ltd, which will enable our hostel partners to provide a sophisticated and integrated digital check-in solution, which we believe is a compelling differentiator for our hosteller customers.
“The investment is in line with our strategy to invest in innovative technology businesses to improve the experience for our hosteller customers and drive efficiencies and ancillary revenue for our hostel partners, positioning us as a market leader in the hostel sector.”