Fosun venture capital invests in Israeli booking site Splitty
Chinese investment firm Fosun RZ Capital led a $6.75 million series A investment round in Splitty, a hotel booking startup based in Israel.
Chinese investment group Fosun keeps broadening its travel portfolio. Fosun's corporate venture capital arm, Fosun RZ Capital, said it had led a $6.75 million Series A investment round in Splitty, a hotel booking startup based in Israel.
“Fosun will definitely invest more in travel,” said Wilson Jin, chairman of Fosun RZ Capital.
In December Fosun's majority-owned travel company, Fosun Tourism, which includes Club Med, spun out as a separate public company that claims to be the largest leisure tourism resort group in the world by revenue.
In March 2017, Fosun RZ invested in Ixigo, which has since become the largest price-comparison travel search brand in India. It’s reported to be participating in a Series C round in Ixigo, too. It has invested in Shijie Bang, a Beijing-based travel agency specializing in outbound international services for Chinese travelers.
The venture capital unit helped Fosun’s insurance company invest in MakeMyTrip, India’s largest online travel agency, which is similar to China’s Ctrip — which has, in turn, also invested in MakeMyTrip.
Splitty combines multiple hotel bookings at different rates under one reservation. A customer presents a single voucher when they check in. Hoteliers may be of two minds about Splitty. They want to maintain a high level of occupancy, typically above 65 percent, because high occupancy makes the best use of their fixed costs. However, they don’t want to sacrifice too much of their average daily rate or their profit margin to woo guests.
Splitty also has business-to-business services. El Al, for instance, uses Splitty to help its employees book hotel rooms. (El Al backs Splitty via Cockpit, its corporate venture arm.) The startup offers to distribute to global distribution systems and travel agents, its inventory via a data feed. For airlines it offers a white-label hotel booking tool. For hoteliers it offers a widget that can be embedded on any hotel’s booking engine on its direct website.
Meanwhile, Fosun continues to collect assets around three themes — what it calls happiness, wellness, and wealth. Unlike formerly acquisitive companies HNA Group, Dalian Wanda, and Anbang Insurance, Fosun continues to report profits and keep a clean bill of health from Chinese regulators. It is considering acquisitions in North America.
* This story originally appeared on Skift, a content partner of ChinaTravelNews.