Travelocity, the US-based leading travel portal is planning to foray into India by launching the company's associate portal Zugi. Zugi takes care of the company's interests in the Asia-Pacific region, said industry sources.
The portal has access to over 400 airlines, 60,000 hotels and 50 car hire companies across the globe. It offers complete travel solution, including flight packages rates, hotel rates, details on transportation, cruise information, information on leading holiday destinations within India and abroad and travel insurance for both the inbound and outbound travel.
Australia-based Zugi was acquired by Travelocity in early 2006 for $34 million. Currently Zugi has a presence in Australia, Hong Kong, Korea, New Zealand, Singapore and Taiwan. It also has plans to enter China.
On the deal, Michelle Peluso, chief executive officer, Travelocity, had said, "It is a natural progression for Travelocity to take full ownership of Zugi and the purchase positions us nicely for future growth in the fast-growing Asia-Pacific region. The company intends to expand its presence into China and India."
Prior to the acquisition, Travelocity and its affiliates held only 13.6 per cent stake in Zugi. The remaining stakes were held by Abacus International, AGC Holdings and a consortium of 15 airline companies in the Asia-Pacific.
Makemytrip.com is the only successful travel portal in India today. Recently, US-based venture capitalist Norwest Venture Partners, Reliance Capital and CNBC TV 18 started another travel portal, yatraonline.com, which will be operational during late 2006.
"There is good potential for trade portals today in India on account of better internet penetration and increased awareness on information technology. Besides tourism is also growing in good double-digits every year," said Norwest's general partner Promod Haque. Hotels, airlines and tour companies are already swearing by this potential.
"Already 3.85 million tourists have visited India during 2005, which is likely to go up to 4.5 million in 2006. Over 5.5 million Indian tourists visited overseas in 2005, which is likely to cross 5.5 million in 2006," said Makemytrip.com promoter Deep Kalra.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
