Sify acquires Globe Travels

Sify has announced that it has acquired US-based Globe Travels, a company engaged in issuance of e-tickets in the India-US travel space, for an undisclosed sum.

A company statement said the acquisition marked Sify's entry into online travel business, particularly e-ticketing, the category with highest revenues and fastest growth in online e-commerce.

Founded in 1993 by Herman and Vanitha Noronha, Globe Travels has an average of over 25,000 hits. It garnered a revenue of over $11 million (about Rs 50 crore) in 2005.

With a customer base of one lakh in the US, Globe Travels is accredited by the International Air Transport Association (IATA) and has GSA contracts with 26 airlines, which include 11 key carriers catering to the Indian segment.

The company sees potential for growth of online travel & ticketing arrangements in India as the country is considered to be one of the fastest growing airline markets in the world in terms of new airlines and the number of aircraft on order.

According to the Internet & Mobile Association of India (IMAI), the number of Indian internet users is slated to grow from the current 38.5 million to over 100 million by 2007-08. As the number of internet users grow, the number of people making travel arrangements online is expected to increase substantially in future.

IMAI has projected a total of $ 262 million in online transactions for 2005-06, of which 57.85 per cent or $ 152 million is expected to come from the travel and travel-related sectors.

Online airline ticket sales are expected to account for $ 88 million, followed by railway ticket sales with $ 63 million.

With 3300 iWay cyber cafes across 153 cities and 2 lakh home broadband customers, Sify expects to emerge as a leading player in the online travel space.