Private equity fund manager Calculus Capital invests £3.5m in Avvio, a leading provider of website booking engine software to hotels in Ireland, the UK and Europe.
Founded in 2002 and based in Limerick, Dublin and London, Avvio provides advanced booking conversion software, which is supported by best-in-class digital marketing and design services for hotels, hotel groups and serviced apartments.
Led by CEO and founder Frank Reeves, Avvio now employs 40 people and serves over 350 clients in 7 countries. Notable clients include the Dalata Hotel Group, Ireland’s biggest hotel operator. The investment by Calculus Capital will allow the firm to accelerate its roll out in the UK, expand its marketing efforts and continue to evolve its booking conversion technology.
Avvio applies a rigorous, scientific approach to booking conversion and usability, constantly innovating methods to increase revenues for clients via the most cost-effective channel – the hotel’s own website. At a time when hotel industry profitability is under serious threat from high-commission Online Travel Agents (OTAs), Avvio’s software and services directly impact the hotels’ bottom lines as bookings are shifted from OTAs back to the direct channel.
Avvio’s portfolio of unique innovations in booking engine software, conversion-analytics and personalisation guarantee unprecedented website conversion rates. In addition Avvio offers performance based services in online marketing, website design and yielded distribution, helping to maximise its clients’ revenue and profitability through effective use of the online channel. All of Avvio’s clients have a performance account manager who works with them on a daily basis to understand the KPIs of booking conversion through the direct online channel – the cheapest way for hotels to secure bookings.
Avvio’s cloud platform – Convert 5.0 – evolves in an agile way with new features released every six weeks. System improvements take account of the dynamic nature of today’s travel consumer, the evolution of new channels – such as mobile and online advertising with real-time room availability – and apply a rigorous approach to user interface design and personalisation, thus ensuring that conversion rates are constantly improving. Avvio’s conversion platform currently transacts c. £10m of direct hotel bookings per month and hotels partnering with Avvio have seen their direct bookings increase by over 400%.
Richard Moore, Investment Director, Calculus Capital said:
“We are very excited to be investing in Avvio. The true power of the Avvio platform comes from the combination of the hosted software with expert client service. The Avvio platform has the potential to transform the revenue and profits of hoteliers worldwide and we look forward to helping its expansion both in the UK and abroad.”
Frank Reeves, CEO, Avvio said:
“We look forward to working with Calculus Capital as we take Avvio to the next level. With a long list of clients already enjoying the significant increase in direct revenue that our platform and client services can bring, the time is right for us to take our offer to a wider audience.”
Calculus Capital’s track record in the technology sector includes its investments in AOMi, a cloud-based back office workforce optimisation software company, Money Dashboard, an online personal financial management service and Quai, a platform BPO provider to the savings and investment industries.
Stephen Moore, Managing Director of Princelet Partners, acted as the corporate finance advisor to Avvio.