| | |
Online travel portal yatra.com is taking competitor makemytrip.com head-on. The country's second largest travel portal company has acquired hotel & holidays booking website ‘travelguru.com’ and hopes to bridge the gap with market leader makemytrip in the hotel booking segment, reports Farah Bookwala of CNBC-TV18.
Online travel portal yatra.com is taking competitor makemytrip.com head-on. The country's second largest travel portal company has acquired hotel & holidays booking website 'travelguru.com' and hopes to bridge the gap with market leader makemytrip in the hotel booking segment. CNBC-TV18's Farah Bookwala reports.
Much like its brand ambassador Salman Khan, yatra.com's CEO, Dhruv Shringi, is a man of action. After making three acquisitions in the past 18 months, the online travel portal has now acquired hotel and holiday booking website, travelguru.com from Travelocity Global.
So from July 1, travelguru will operate as a 100% subsidiary of yatra.com. The acquisition has been made in cash and has been funded through the company's interal accruals and while the management refused to disclose the exact size of the deal, sources have pegged it at around USD 20 million. The acquisition could also to translate into strong financials for the company.
The management is expecting the hotel segment to double over in next one year. Further, this deal will also help yatra.com increase its customer base by a million to six million. Infact, the management of yatra.com is most upbeat about the synergies expected to flow over the next year from this acquisition.
Dhruv Shringi, co-founder & CEO, Yatra.com, says that getting travelguru into our fold opens up our proftofolio. They have relationships with 6,500-7,000 hotels and that relationship will now flow to Yatra. Our game plan is that by the end of the fiscal year, we're up to 8,500 and by the end of next fiscal year, we'd be at 12,000 hotels, which would give us access to 80% of the properties in the country.
This in turn could propel yatra.com to the number one position in the hotel distribution and facilitation segment
“On the hotel side, at the moment, yatra and travel guru both, on a standalone basis would be the third and fourth player in the market. By combining both, we can become a significant number one in the market,” says Shringi.
And it seems yatra's acquisition journey is far from complete with the company now eyeing further acquisitions in the holiday segment. Network18 is one of the founder shareholders in yatra.com.
Also watch the accompanying video.
ADS BY GOOGLE
video of the day
Convinced on PSU banks; see new Nifty peak by Jan: Quantum