Travelguru.com which initially started as a flight booking platform but later repositioned its core focus from Flights to hotel booking has now taken a step futher to ‘cut costs’ and further sharpen its focus on hotel bookings by tying up with iXiGo.com to power it flight search and booking.
What kind of tie up is this?
iXiGo was earlier in the news for its partnership with NDTV Travels and powering their flight search and booking as well. Though in the travelguru partnership its a no branding deal as no where in the new travel engine there is a logo or mention of ixigo on the travelguru website (try searching for flights and see the results). So there is zero branding benefit that ixigo is getting from this deal except for the traffic hits via travelguru as the platform is being pulled from http://travelguru.ixigo.com/.
What does this mean in transaction numbers?
Also the other benefit for iXiGo is that it shall drive more transactions now and drive users directly to airline websites. Aloke Bajpai has stated in the release that he believes this partnership will help them garner more than Rs. 18 crores (~ US $4M) worth of flight transactions every month. Just recently Aloke was quoted in an interview with WATBlog stating that they are doing 10 crores in transactions so in effect this partnership adds about 8 crore worth of transactions a month to ixigo. In short it almost doubles their transactions. There is no disclosure on the monetary benefit to travelguru from this but im sure given the volumes of transactions there would be a revenue share.
Elimination of OTA’s in process?
This ofcourse will make most airline companies happy as the booking is redirected to their sites and not to the OTA’s. A case of what we called earlier as eliminating the OTA’s by iXiGo. Even recent findings from global market research firm PhoCusWright, which suggest that growth of referral- and ad-based revenue is challenging the dominance of traditional bookings-driven business models in online travel. So iXiGo has eliminated one OTA in the flight search and booking business by partnering them. Now it will be interesting to see how the other OTA’s fare given this tie up.