Yello Travel announced on August 19, 2014 that it had secured $6 million in investments on $100 million valuation from DS Investment Advisory and Mertiz Investment. Yello Mobile also added that it has further investment in planning.
Established in May of 2014, Yello Travel is a subsidiary of Yello Mobile, which has since 2012 been carrying out a significant number of M&A deals with app developers. One of Yello Mobile’s biggest M&A was in July with a Korean travel agency called ‘Yeohaeng Baksa’ (translated Dr. Travel).
With the rapidly growing tourism industry in South Korea, Yello Travel aims to dominate the market with the mindset that small companies can grow if they work together. In 2012, 11.1 million tourists visited South Korea, making the country the 20th most visited country in the world, and directly contributing KRW26.7 trillion to the economy together with domestic tourists.
Yello Travel aims to attract tourists by providing an all-inclusive mobile travel platform through vertical integration of sector leaders in the travel industry. For example, it has partnered with ‘Jeju.com’ the eponymous tourism office for the popular leisure destination, and ‘Jeju Mobile,’ post-payment platform for the island destination that allows tourists to defer payment for services until after their visit. With these two services on one platform, users can conveniently search, reserve, and pay for their Jeju holiday all at once. In addition, Yello Travel works with Korea’s biggest travel planning sharing platform ‘TourScrap’, a resort total market agency called ‘Mogit’, and a lodging booking site ‘Wooripension’.
“The current package and offline-focused travel industry is experiencing a turning point as the online and mobile market is expanding, and innovation is needed accordingly,” claims Sang Hyuk Lee, CEO of Yello Mobile. He hopes that Yello Travel, which consists of leading companies and experts in different sectors, will develop into a company that will add new value to the domestic travel and leisure market. As people become more inclined to do everything on their mobile devices, Yello Travel’s strategy to create a all-in-one platform for tourists may prove to be a successful decision.