Travel portal Yatra.com is scouting for acquisitions in the outbound holiday packages space.
Said to be eyeing Kuoni’s travel management company HRG Sita
KOLKATA: Travel portal Yatra.com is scouting for acquisitions in the outbound holiday packages space.
Industry buzz is that Yatra is looking at buying Kuoni’s travel management company HRG Sita. Travel firms Carlson Wagonlit and Thomas Cook are also said to be in the race for the company.
According to industry estimates, HRG Sita could be valued at about Rs 1,000 crore.
Though the portal has not lined up an acquisition war chest, Dhruv Shringi, co-founder and CEO of Yatra.com, told DNA Money that the quantum of the investment would depend on the size of the acquisition.
Yatra.com, promoted by Reliance Capital, TV 18 and Norwest Venture Partners, has been investing $10 million per annum for the last two years from internal accruals. Its new acquisitions will also be funded by internal accruals and promoters’ funds, Shringi said.
He added that currently, international holiday packages contributed merely 10% to the portal’s turnover. Through acquisitions, Yatra is aiming at a significant jump in this figure by 2010, he said.
Yatra is also targeting to grow its turnover to $250 million by the end of calendar 2008 from $118 last year.
Though Shringi refused to comment on its takeover plans for HRG Sita, he, however, added that there is a lot of opportunity in the outbound holiday segment, which is dominated by offline players.
“Customers want to research their holidays and need an interface with the travel expert. And that’s why we want to invest in this space,” Shringi added.
The outbound holiday segment is growing at 18-20% per annum. In comparison, the inbound sector is only edging up at 5-10% a year due to infrastructure constraints. “This is a high-cost destination with low-cost infrastructure,” said a travel industry source.
The present focus is also on enhancing its product portfolio as well as increasing the number of its “retail lounges”, from the present seven to 50-70 in this calendar.
According to Shringi, these are high-street located, company-owned stores with a coffee shop atmosphere where prospective customers can interface with travel experts in an attempt to “redefine the travel experience”.
m_madhumita@dnaindia.net
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}