Press release

Despegar Agrees to Acquire 100% of Viajes Falabella and Enters into Long-Term Strategic Alliance with Falabella Financiero

Sponsored by Businesswire, Corp. (NYSE: DESP), (“Despegar”), the leading online
travel company in Latin America today announced it has entered into an
Agreement with Falabella Financiero, a subsidiary of Falabella, through
which both companies plan to establish a 10-year commercial agreement in
Chile, Colombia, Peru, and Argentina, the term of which could be
extended. Included in the transaction is the transfer of 100% share
ownership of Viajes Falabella’s operations to Despegar.

The acquisition of Viajes Falabella in Chile, Colombia, Peru and
Argentina, together with the license to use the Viajes Falabella brand
name has been agreed for a total consideration of US $27 million. The
transaction assumes the transfer of these operations free of any
financial debt.

According to Viajes Falabella, during 2018 the company recorded revenues
and EBITDA of approximately US$ 50 million, and US$ 3.5 million,
respectively. Approximately 65% of its revenues are derived from tourist
packages reinforcing Despegar’s strategy of offering higher value-added
products oriented to enhancing the travel experience of its customers.

With this agreement, clients of both companies will have access to an
enhanced travel and tourism product and service offering, through an
omnichannel service model (online, call center and physical stores). In
addition, customers will be able to access exclusive discounts, earn
double CMR Points Falabella’s loyalty program, both at Viajes Falabella
and Despegar, as well as an expanded product offering in exchange for
CMR Points at Viajes Falabella.

Mr. Damian Scokin, CEO of Despegar, noted: “We are delighted to have
entered into this Agreement with Falabella which will allow us to
further strengthen our position as the leading travel company in Latin
We are acquiring a business with a successful track
record and attractive growth opportunities, fully aligned with our
business strategy of focusing on higher-margin packages, hotels and
other travel products. Moreover, the commercial alliance will also allow
us to further enhance our wide array of customer financing alternatives.”

The CEO of Falabella Financiero, Juan Manuel Matheu commented: “This
alliance will allow us to integrate a better value proposition into our
digital ecosystem, significantly improving the travel offering and the
digital experience of our CMR Puntos program, making available to our
customers the best tourist product content in the market. In addition,
Falabella Financiero will contribute to Despegar our payment processing
capabilities, financing and the region’s most recognized loyalty

Viajes Falabella will maintain the brand, its network of physical stores
and its digital platforms, to enhance the supply of products and
services of Despegar.

The transaction is subject to customary closing conditions for
transactions of this type, including approval of the relevant antitrust

A conference call to discuss the transaction is scheduled to take place
today, Monday, April 15, 2019 at 5:30 pm ET, followed by a question and
answer session for the investment community.

Mr. Alberto López-Gaffney, Chief Financial Officer
Marcelo Grether, Head of Strategy and Business Development
Javier Kelly Grinner, Investor Relations

To participate, please dial
1-866-270-1533 (U.S. domestic)

Passcode: Despegar Update Call

Webcast: click
| Replay: click


Despegar is the leading online travel company in Latin America. With
over two decades of business experience and operating in 20 countries in
the region, Despegar accompanies Latin American travelers from the
moment they dream of taking a trip until they share their memories of
that trip. Thanks to the strong commitment to technological development
and customer service, Despegar offers a tailor-made experience to more
than 18 million customers.

Despegar’s websites and leading mobile apps, offer products from over
300 airlines, more than 520,000 accommodation options, as well as
approximately 1,100 car rental agencies and approximately 240
destination services suppliers with more than 8,700 activities
throughout Latin America. The Company owns and operates two
well-recognized brands, Despegar, its global brand, and Decolar, its
Brazilian brand. Despegar is traded on the New York Stock Exchange
(NYSE: DESP). For more information, please visit

About Falabella Financiero

Falabella Financiero is the subsidiary of Falabella, which, through its
business units (CMR Falabella, Banco Falabella, Seguros Falabella and
Viajes Falabella), makes available to customers a comprehensive offering
of financial products and services.

The company has developed an omnichannel service model, adding digital
attention processes to its physical channels, which has allowed it to
position itself as the leader in financial digitalization in Latin

The company operates across five countries: Chile, Peru, Colombia,
Argentina and, since 2017, in Mexico, with an emphasis on regional

Forward-Looking Statements

This press release includes forward-looking statements. We base these
forward-looking statements on our current beliefs, expectations and
projections about future events and financial trends affecting our
business and our market. Many important factors could cause our actual
results to differ substantially from those anticipated in our
forward-looking statements. Forward-looking statements are not
guarantees of future performance. Forward-looking statements speak only
as of the date they are made, and we undertake no obligation to update
publicly or to revise any forward-looking statements.