Q: What is your take on the Zonal acquisition by Volaris? With over 700 employees and a presence in more than 16,000 sites across the UK, it seems like a major move to consolidate their leadership in the hospitality VMS sector. Also, do you think artificial intelligence could significantly impact negatively or positively the product roadmap for this type of business?
5i Research Answer:
We have some comments on CSU's deals posted this morning. The acquisition looks good but also fairly typical for CSU. The AI question remains debatable. We do not think customers are going to make wholesale switches to AI-solutions. But at the same time, CSU's subsidiaries need to use their knowledge of customers and embedded products to utilize AI themselves to make their solution better, cheaper and stickier. We have no doubt they will do this, but right now investors are simply worried about AI cannibalizing the businesses they are in.