TUI Group acquires tours and activities online agency Musement

Musement, one of Europe's modestly funded online travel agencies for tours and activities, is now part of the TUI Group.

The Italy-based startup was bought by the vertically-integrated travel giant this week for an undisclosed fee, although sources suggest the fee paid for the five-year-old business is in the "mid-range, double-digit" millions.

To date, Musement has raised $16.5 million in investment over the course of a number of rounds up to Series C.

It claims to have 1,100 cities worldwide offering 35,000 tours, activities and attractions.

Musement will sit within the TUI's Destination Experiences division - a part considered a "growth area" within the group.

TUI paid €110 million to acquire the Destination Management division of Hotelbeds earlier this year, giving it customer transfers, in-destination products for tour operators and customer tours.

TUI had previously bought U.K.-based consumer-facing tours and activities startup Isango in February 2013 for an undisclosed fee.

Isango was part of the portfolio of brands that were sold to Cinven and CPPIB and, despite the departure of the remaining tours-related services back to TUI, will remain at Hotelbeds.

TUI claims the ramping up of its Destination Management services will allow it to offer customers a wider range of products, many of them as part of bespoke trips draw on the wider portfolio.

It says in a statement: "If a traveller wishes, for instance, to visit the Vatican’s museums on a specific date and time and be accompanied by a French-speaking guide, the holidaymaker’s wish has to be matched with the offer of a guide with corresponding skills – in a fully automated and completely seamless manner for the customer.

"In future, Musement’s online platform will contribute these technical requirements and competences to the group."

The acquisition is also being touted as an opportunity for small operators to reach a wider audience of consumers -TUI reports 20 million customers annually.

Fritz Joussen, CEO TUI Group, says: "We are aiming to provide the most highly personalised experiences possible to our 20 million customers. This will require a stronger digitalisation of our
business.

"For me, digitalisation and personalisation are inextricably linked and constitute the key success factors for the future of tourism. With the acquisition of Musement, we are taking a further crucial step in this direction."