India’s online travel portal Yatra.com has acquired Travelguru, the Indian arm of US travel services provider Travelocity Global for an undisclosed amount.With this acquisition Yatra.com will become India’s largest provider of hotel bookings.
Travelguru will continue to operate as a separate entity under its existing brand name. Travelguru is an online aggregator for hotel distribution network with access to over 6,500 hotels in India and 72,000 hotels, according to the PTI release.
The move from Yatra comes in order to increase revenue and provide steep competition to other online booking portal services.
This is Yatra’s fourth acquisition in last 18 months. The travel company acquired, ticketing services provider Travel Services International in October 2010, MagicRooms in June 2011 and entertainment portal Buzzintown in January 2012.
Yatra is backed by several investors which include Norwest Venture Partners, Reliance Capital, Network18, Intel Capital and Valiant Capital Partners.
Dhruv Shringi, Co-founder and CEO, Yatra.com, said, “Getting Travelguru into our fold opens up our portfolio. 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”, reports a PTI release.
In April 2011, the online travel portal had received a funding of Rs 2 billion from venture capital firms Valiant Capital Management, Norwest Venture Partners (NVP), and Intel Capital.
This year in March, actor Salman Khan bought a small stake in Yatra and also became the face of the portal.
Yatra.com is facing some pressure on its revenue from airline ticket reservations due to current slowdown in the airlines sector. Yatra.com is trying to increase its revenue from other sources through different acquisitions.
Recently, ecommerce portals Flipkart and Snapdeal shut down LetsBuy and Esportsbuy respectively after acquiring them. Will Yatra follow the footsteps of these ecommerce players in near future?
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