This online travel business targets the high-growth and under-penetrated Latin American internet market. The company is headquartered in Miami, FL, with offices in Colombia. The LATAM website offers more than 120,000 hotels worldwide and also offers services with the largest car rental companies in the United States (Hertz, Alamo, Avis, Budget, National, Dollar, & Thrifty). The Company has 46 websites that include approx. 150,000 individually designed landing pages with unique content in English, Spanish and Portuguese and web locations in 46 cities and/or countries across U.S., LATAM and Europe. The website generates revenue by attracting traffic to its portals and monetizing it principally from the sale of car rentals with current efforts of expanding into hotel bookings. The target end-market is LATAM consumers traveling mainly to North America.
The ownership group is interested in selling the entire Company with 46 websites and proprietary software technologies its created that principally target the high-growth LATAM, Mexico and Caribbean markets, with 711,633 visitors in 2017 representing growth of 45.5% over 489,208 visitors in 2016. Founded in 2011, the business currently has 50 employees, 12 of which are competitively priced South American software developers and designers, 7 marketing experts and 17 customer service representatives. These employees could be efficiently integrated into your existing company to streamline operations, lower costs and increase your LATAM workforce. The company is expanding rapidly, with calendar year 2017 revenue of nearly $8 million, representing more than 91.2% year-over-year growth rate over 2016. Projected to reach $12.2 million in 2018 for a year-over-year growth rate of 52.7% over 2017. EBITDA in 2017 was nearly $1.4 million for YoY growth of 423.1% with an EBITDA margin of 17.3%. 2018 EBITDA is conservatively expected at $1.9 MM.
The business participates in the LATAM online travel business sector, which as of 2015, was projected by Wall Street research to have penetrated total gross bookings by 35%, highlighting the second lowest penetration rate of any market on a global basis and implying much room for growth in the region. The forecast annualized growth rate in LATAM from 2010 to 2015 was 23.5%, the highest in the world of any geographic category.
2017 was a year of transformational change for the Company in that it launched its Software Licensing business: Signed one client for a $600,000 contract. Closed a second contract February 22, 2018 with the world-renown car rental brand Dollar/Thrifty to have the business run and maintain all its online operations for LATAM, Mexico and the Caribbean. Management conservatively expects monthly revenue of $30,000 to $50,000 from this recent deal with potential upside given based on % of gross revenues run through the platform.