Chasing growth

TRAVEL: Travel companies on acquisition spree to grow.

Consolidation is picking up pace in the Indian travel market space. What happened in many international markets a few years ago is now a trend in India as well.

One can trace this consolidation binge back to the acquisition of SOTC by Kuoni in 1996, after which it acquired Sita in 2000 and Tour Club in 2001.

Its latest acquisition of Distant Frontiers "fills the gap of a premium holidays brand in the portfolio," says Himmat Anand, CEO, SITA.

Distant Frontiers is an upmarket leisure and incentive travel company with committed business from markets like France, Switzerland and UK.

The other major partnership in India was the 50:50 joint venture between international travel major TUI and the fast growing Le Passage to India (LPTI) last year.

After its success with inbound tourism, LPTI has recently acquired an outbound company ""Select Holidays "" and with TUI's support, will spread its wings in both directions now, inbound and outbound.

Cox & Kings is also believed to be looking for an outbound travel company.

Industry members feel acquisitions in this business, like in may others, help companies get more buying power as well garner a bigger share of the market.

For international companies trying to get a foothold in the Indian market, mergers, joint ventures and acquisitions are a good way to get ready-made business infrastructure to grow on. Others use the route of acquisitions to expand into niche areas of the travel business.