‘Scaled-up’ Skyscanner takes China shilling for step-change

Comment Martin Flanagan

Stunning business success story Skyscanner is not in that category which elicited Chancellor Philip Hammond’s dismay in his Autumn Statement: successful enterprises that need a takeover by a much bigger company in order to “scale up”.

The Edinburgh-based travel search website disrupted the travel industry in favour of raw consumer purchasing power years ago; it is already a business of scale.

Skyscanner has become a byword in business circles for high regard, with an impressive geographical footprint. It has about 60 million monthly active users, is available in 30 languages, has 800 staff and ten worldwide offices.

But the £1.4 billion takeover deal announced by Chinese tech giant Ctrip. com still makes sense. Ctrip.com’s deep pockets will accelerate Skyscanner’s global expansion. Scottish management stays in place, and there will be cross-pollination of expertise between the two, with Ctrip. com already China’s largest online travel service. The deal gives Ctrip.com greater global reach, given the Scottish group’s strength in Europe, and its growing presence in the Americas.

It is also the latest example of China’s drive into Britain, from high-tech to nuclear to entertainment. That probably also still has some way to run. pubs up 2.3 per cent, sales in its more traditional taverns up 2.7 per cent, and beer volumes up 13 per cent.

Perhaps the best testimony to the changes wrought by chief executive Ralph Findlay are that Marston’s average profit per pub in its transformed pub estate are up 50 per cent since 2012.

The direction of travel is clear, with Findlay saying that 70 of Marston’s pub estate have dedicated pizza kitches, while 60 have rotissering chicken restaurants.

It is paying off, with the group – 13 pubs in Scotland and another four to open in 2017 – ahead of the drinks sector average performance for the third consecutive year.