Travelocity Global had sold its travel and hotel booking site Travelguru.com to Yatra Online, in line with its promoters’ strategy to focus on the core business, Travelo-city’s managing director in India, Himanshu Singh, told Business Standard.
Online travel portal Travelocity Global is fully owned by Sabre Holdings, which develops and markets airline global distribution systems (GDS) and other marketing solutions for airlines and hotels.
Travelocity’s decision to sell Travelguru was prompted by intense competition in the hotel distribution space and lower than expected sales and revenue growth for the company, according to travel industry sources. “Travelguru was unable to match up with other portals which were expanding their hotel distribution business,’’ a source said.
Singh, however, denied that weak result was the reason for exit. “Travelguru was the clear market leader in hotel distribution. Those (lower sales or competition) were really not concerns for us,’’ he stated.
“We created phenomenal value for Travelguru after acquiring it in 2009 and now our promoters are exiting it in line with the strategy to focus on the core business in India that is GDS and solutions for airlines and hospitality,’’ Singh said.
“Sabre Holdings is committed to India. As a travel commerce company we have the largest footprint in India and we will continue to grow,’’ he added.
Roshan Mendis, president of Travelocity North America, said in a statement the company would work with Yatra.com team on a transition plan and have an arrangement to source India hotel content for Travelocity Global.
Yatra.com said in a statement Travelguru was India’s largest hotel distribution network offering access to 6,500 hotels in India and 72,000 hotels around the world. Travelguru was set up in 2004 and had funding from private equity funding worth $15 million from Sequoia Capital and Battery Ventures in 2006.
