Vacation rental platform
RedAwning
has acquired the business and client base of channel manager Lexicon Travel Technologies.
Terms of the deal have not been disclosed.
Lexicon's customers and partners can now join the California-based platform, which offers reservation, marketing and distribution services to property managers.
Tim Choate, CEO of RedAwning, says: "We are delighted to join forces with the impressive team at Lexicon and expand our platform to hundreds of new clients with thousands of properties."
He adds that the transition to RedAwning's platform will be easy for new clients as it already supports the same property management systems and channels as Lexicon.
Joel Inman, founder and CEO of Lexicon, says: "After we made the decision to sell our business, we looked for a company that would create true synergies with our existing value proposition. As I got to know the RedAwning platform, I realized they have already solved many of the technical challenges Lexicon has been facing."
Inman adds that RedAwning's technology provides "higher conversion with essentially zero manual work."
RedAwning claims its platform outperforms bookings per client across thousands of listings on each channel by 37% on average when compared to Lexicon's clients managing the process themselves.
Speaking to PhocusWire on the acquisition, Choate says that Lexicon is one of the largest channel managers in the U.S., serving 125 clients and 16,000 property units.
He adds that Lexicon's 10 employees are joining RedAwning including the leadership team.
On prospects for the vacation rental sector next year, Choate sees further growth.
"Supply will go up and grow and faster than demand in some channels. What will be interesting is that when we look at indirect channels we're already seeing over-supply and there will probably be more stories coming out about over-supply in certain areas.
Earlier this year RedAwning announced that select properties from its platform would be available for Marriott Bonvoy members to book via Homes & Villas by Marriott International.
He adds that higher mortgage rates and the slowing economy is likely to drive more people to rent second homes.