CDS Groupe has just announced its integration into the Cytric solution from Amadeus. Why was this essential?
Ziad Minkara - CDS must respond to its integration into the world of online booking tools. We are publishers of totally agnostic solutions that can be integrated into any online booking tool. Of course, there are the traditional players like Neo or Concur, but there are also until recently, we lacked the brick Cytric of Amadeus. Another major player, whose position has been strengthened since the demise of Traveldoo. This partnership was very important, and comes on top of our integration with the Amadeus GDS, and the Amadeus Value Hotels offer, announced at the beginning of the year. Others could follow, as Amadeus is investing heavily in mobility.
Do these partnerships strengthen CDS's position?
Ziad Minkara - Our strategy since leaving Covid has been to create a solid group in France and Europe. To strengthen our position in the French market, over the last five years we have initiated transforming our distribution model. While 55% of our specialist business travel tools are still used directly by our corporate customers, 45% are now used by travel agencies. That's almost equal parity. Agencies need Concur, Neo or Cytric for their very large accounts, but also, in parallel, an easy and agile tool for their domestic customers, hence our Goelett product, which is managed by a sister company. But we have also developed other partnershipsfor example with Cegid Notilus. Depending on their strategy, our customers can choose either to entrust everything to an agency that uses our products, or to integrate us into their ecosystem by adding connectors with other solutions.
Who are your main partners in the hotel industry, which is at the heart of your booking offer?
Ziad Minkara - We have strategic partnerships with hotel chains such as The Originalsdistribution agreements with the Accor and Louvre Hôtels groups, as well as with Booking.comwhich remains our leading supplier. CDS is one of its main resellers worldwide. While Booking has withdrawn from direct distribution to businesses, they continue to do so indirectly with us, who distribute the Genius 2 offer whatever the online reservation system.
The other big news from CDS is your recent foray into the German market. What are your growth targets in Europe?
Ziad Minkara - Building on our determination to be the leader in France, our strategy is now to move into similar markets in Europe. For example, we have opened offices in Italy and BelgiumIn Germany, where there's a major player called HRS, we started working with accounts such as Puma, Whirlpool and Calzedonia. On the German market, where there is a major player called HRS, we competed for acquiring a local player, Corporate Rates ClubThe sellers' choice was CDS. The idea in Germany is to have a sister structure to CDS. They currently have 100 employees in Germany and Croatia, and manage 200 million euros of business, including accounts such as the Deutsche BahnBMW and Merck.
Are you targeting other countries for future expansion?
Ziad Minkara - Before the pandemic, we were mainly active in the French market, with around fifty employees. Today, we have 300 employees in five countries: France, Italy, Germany, Croatia and Poland. Now we're looking for partners in Spain and EnglandA market that will offer us a new dimension. We're working on it.
How do you intend to conquer this new market, through a takeover or by opening an office?
Ziad Minkara - All scenarios are open. We have the option of opening an office there, as we did in Italy, or making an acquisition, as we did in Germany. But, given that the UK market is trusted by travel agenciesWe could also establish ourselves through a partnership with a travel agency or an agreement with an established player. One thing is almost certain, it will be in 2024. It's on our roadmap.
Will your Group continue to expand its presence in Europe in the future?
Ziad Minkara - Our ambition is to be the benchmark player in Europe as an integrator of dedicated business travel solutions. In other words, we are an independent group, French and proud of it, but European in scale, able to address the needs of companies at local, regional and international level. We are number one in France and number two in Germany thanks to the acquisition of Corporate Rates Club. Our ambition over the next three years is to achieve a hotel business volume of one billion euros, compared with 800 million euros today.
