Blue Star Innovation Partners has acquired a majority stake in TravelNet Solutions (TNS), one of the largest software providers in the vacation rental industry. TNS’s platform includes Track Hospitality Software, Atlas Digital Commerce, and resortsandlodges.com.
Operating out of the Dallas Cowboys World Headquarters at The Star in Frisco, Texas, Blue Star Innovation Partners (Blue Star) is an investment capital fund run by serial entrepreneurs and experts in innovation and disruption who co-manage and invest alongside Jerry Jones’s family.
According to Ryan Bailey, CEO at TNS, this investment “will help us develop products and services faster, hire more staff, and pursue our market goals more aggressively.”
The entire TNS leadership is staying on, and the company intends to add multiple positions to its team, including a chief product officer and additional support management and personnel to better serve its customers. Bailey emphasized the need to train support teams that are fluent in workflows and how they differ across regions.
The investment will also be used for M&A to acquire “other solutions that compliment our current products and services.”
Bailey predicts TNS will be a “unicorn” in this decade (valued over $1 billion). He added that he believes the short-term rental industry has the potential to see several B2B SaaS platforms reach that milestone over the next ten years.
According to inside sources, there was an enormous amount of interest from potential private equity investors in TNS and its growth in the industry over recent years and revenue at TRACK alone topping $20 million.
Ryan and his brother Charles founded the company 20 years ago, adding, I’m more passionate than ever before about out industry. We’re going to stay hungry, stay humble, and keep straight on our vision.”
According to Ryan Bailey, “We consolidated the cap table significantly.”
For example, VTrips, which acquired a stake in TNS through its purchase of Southern Resorts, cashed out of its position with this investment. “As a result of this transaction, Vtrips is no longer a shareholder of TNS,” said Steve Milo, CEO VTrips. “However, we remain a very happy customer and are truly excited by their partnership with Blue Star and the resources they can provide to TNS.”
TNS sent the following message to its clients earlier today:
Dear Valued Customers,
I want to share exciting news about the next chapter in the evolution of TravelNet Solutions. Blue Star Innovation Partners, a Texas-based investment firm, is making a significant investment that will help us develop products and services faster, hire more staff, and pursue our market goals more aggressively.
My brother Charles and I started TravelNet Solutions 20+ years ago intent on helping resorts and independent lodging companies simply capture bookings via the internet. From our humble beginnings to today, we have always been fortunate to have amazing people, clients and partners who do extraordinary work.
So what does this mean for you and other customers who have placed their confidence in us?
It’s all good news. I remain as CEO and the rest of my leadership team remains in place. The same people who currently answer your questions, troubleshoot problems, and facilitate communication will still be there. The integration partners that give our platform its flexibility will hold fast.
There are no organizational shake-ups or service disruptions on the horizon. Our mission is the same as it has always been: Transforming how hospitality works. Of course, you will see some differences over time. Most importantly, this investment helps us better serve you with things like faster product development and more responsive support.
We are thrilled to share this announcement with you, but the real purpose of this letter is to say thank you. Some of you have been with us since we were the scrappy new kid on the block, while others are relatively new to the TNS family. Your faith and trust has made us into a successful company, and I thank you for believing in us. The best is yet to come.
Warm regards,Ryan Bailey, CEO