Sify acquires US-based Globe Travels

Sify has announced acquisition of US-based Globe Travels, engaged in issuance of e-tickets in the India-US travel space, for an undisclosed sum.
 
A company statement said that the acquistion marked Sify's entty 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 had an average of over 25,000 people per day visiting its website, resulting in revenues of over $11 million (about Rs 50 crore) in 2005.

With a customer base of 1 lakh in the US, Globe Travels is accredited by the International Air Transport Association (IATA) and has GSA contracts with 26 airlines that includes 11 key carriers catering to the Indian segment. 

The company sees potential for the growth of online travel & ticketing arrangements in India as the country is considered 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 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% or $ 152 million is expected in the travel and travel related sectors. Airline ticket sales online are expected to account for $ 88 million, railway ticket sales will follow with $ 63 million. 

The growth of online sales of air tickets has been given a further impetus by the IATA deadline of December 07 for 100 per cent online ticketing in India, with the airlines promoting online tickets with special fares and benefits, as well as alliances. 

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.