I had the pleasure of being introduced to Siteminder in Australia during its early days, and it was just as impressive a product then as it is today. Siteminder started in "Oz" on the premise that the channel managers of the time (cough cough Rate Tiger cough cough) were clumsy, buggy, and simply not meeting expectations. Many of their customers will attest that Siteminder created a better product. The company began with smaller properties, including hostels, BnBs, and boutique hotels in Australia. The XML specs for hostels weren't that different from those for hotels, so it only took a few tweaks on their side, along with their booking button, to make it work. The hostel industry in Oz embraced it with open arms. Even today, they hold over 40% of the market share. Indeed, the hostel industry (which they refer to as the Backpacker industry) played a significant role in providing the revenue streams that allowed Siteminder to flourish and become more appealing to hotels. Currently, they are becoming a major player in the hotel SaaS sector. They opened offices in London and Dallas, secured a $30 million venture capital injection, and are taking the market by storm. It is only a matter of time before they get acquired. So here is a list of the best acquisition candidates:
Sabre:
Sabre just sold off Travelocity to Expedia, and if that clears, they will have the capital to pursue something creative. Siteminder essentially offers an alternative to the GDS, and as more companies embrace channel managers over GDS, Sabre loses revenue. Acquiring Siteminder could strengthen their market position. It might be more than just a coincidence that Siteminder chose their U.S. headquarters to be in Dallas, home of Sabre.
Oracle:
Oracle acquired Micros for a large sum and could be looking to expand its services offered to hotels. Micros's hotel PMS system has been deepening its partnership and integration with Siteminder over the years. Acquiring Siteminder could lead to a more robust product for them to compete with Sabre's Synxis and other out-of-the-box SaaS solution brands.
Travelport:
Like Sabre, Travelport uses GDS with their Roommaster and WorldSpan products, and the world is moving away from GDS. Revenue managers will emphasize bookings on other channels to cut back on their GDS fees whenever possible. Siteminder would strengthen their protection and market share in the industry.
Priceline:
Priceline has been adding more SaaS companies to their team over time, such as Buuteeq and Hotels Ninjas. This enables them to generate revenue as more guests shift toward direct bookings. Additionally, having these products helps properties distribute on Priceline's channels (Booking.com, Agoda, Priceline). Finally, Priceline could be seeking to establish some form of low-budget PMS capabilities, and a channel manager would be extremely helpful in completing their solution. Siteminder would be the perfect company for them to finalize their hotel services model.