Submarino acquires Travelweb, to launch Submarino Travel in early 2006

Brazil's pure-play online retailer Submarino S.A. has announced the acquisition of 100% of the stock capital of Travelweb Ltda, an online travel agency.

The price paid for the acquisition was R$ 2.2 million. Travelweb offers basic air, hotel, car and vacation packages through the Internet.
   
Submarino is set to enter a new market, as the company is currently negotiating technology, content and supplier agreements in order to launch Submarino Travel in early 2006 with a broad offering. "It is also our intention to continue to operate in parallel the www.rumbo.com.br website," said the company. Travelweb operates using the Rumbo brand name under the URL www.rumbo.com.br, under a technology license and brand licensing agreement with Rumbo. Rumbo is a leading Spanish online travel agency owned by Telefonica (telecom) and Amadeus (global travel distribution system).
   
On acquisition, Submarino stated: "The Travelweb acquisition brings to Submarino an experienced team, supplier relationships and basic customer service infrastructure."
   
The Brazilian travel market is estimated at approximately R$ 20 billion with very limited online penetration. "In Brazil, online travel did not develop as other segments of e-commerce primarily
because airlines and hotel chains had not developed systems for online ticketing. Additionally, pioneering online travel agencies struggled to control online fraud. Today, all Brazilian major airlines are offering online travel directly to their customers and the fraud protection methodologies are much more advanced," stated the company.