Captured screen from Yanolja's website (Yanolja)
Korean travel platform operator Yanolja announced the opening of its first US office in Manhattan, New York, on Wednesday. The move aims to accelerate its North American travel solutions business, coinciding with growing anticipation for the company's potential listing on the US stock market this year.
Since its inaugural overseas branch opened in Singapore in 2019, Yanolja has rapidly broadened its local presence in key countries. The firm currently operates 50 overseas offices across 27 countries spanning Asia and Europe and now the United States.
Yanolja has established research and development centers in five countries so far: Korea, India, Israel, Turkey and Vietnam. The total number of overseas staff is approximately 1,300, accounting for more than one-third of its total workforce.
While Yanolja's sales continue to stem predominantly from its existing travel accommodation offerings, its expansion into overseas businesses underscores substantial growth potential in cloud services — a global solution service based on information technology, artificial intelligence and big data.
"We initially began as an online travel agency, so domestically, many perceive us as a business-to-client service. But on the global stage, our primary focus lies in the business-to-business cloud solutions service, which we now invest more in and generate a higher profit margin within our global sales." a Yanolja official said.
The official added that business clients in around 190 countries have adopted Yanolja's cloud solutions model, a data-driven digital infrastructure that connects to all travel needs, ranging from accommodation to dining and outdoor activities. "Our current aim is to refine and customize this model to meet the unique needs and cultural nuances of each country."
When it comes to overseas business, Yanolja posted 39 billion won ($29 million) in sales and 15.9 billion won in operating profit in the third quarter last year. Among them, the cloud service turned the first quarterly profit of 9.2 billion won.
Established in 2005, the company has aggressively acquired more than 10 companies linked to travel and accommodations services between 2016 and 2022, including HotelNow, LeisureQ and Interpark.
In 2021, Softbank's 2-trillion-won investment laid the groundwork for the expansion of its new business ventures. Last year, Yanolja recruited Alexandre Ibrahim, a seasoned capital market expert with 20 years of experience from the New York Stock Exchange, as chief financial officer.
"With the establishment of the new US office, Yanolja anticipates gaining a competitive advantage in channeling and providing solutions within the North American market, which plays a pivotal role in the global travel industry," the CFO said.
Recently, Yanolja secured a 4.5 percent stake in the Korean travel agency Mode Tour, signaling its intent to develop synergy in overseas travel products for Korean travelers. On Tuesday, the firm signed a business partnership agreement with Interpark Triple and Mode Tour.
According to industry sources, Yanolja is currently gearing up for its IPO, with Goldman Sachs and Morgan Stanley as deal advisors. The company aims to launch its initial public offering either on the New York Stock Exchange or Nasdaq within this year.
Meanwhile, Yanolja is likely to receive a listing valuation of at least 10 trillion won, while its valuation in the local over-the-counter market is currently at around 5.3 trillion won.
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