BUSINESS

Yatra to take off with low-cost carrier

By P R Sanjai in Mumbai
August 03, 2006 02:32 IST

Anil Dhirubhai Ambani Group-backed online and call centre-based travel service company Yatra.com is planning to tie up with a leading domestic low-cost airline for availing of better fares.

"Though not a normal transaction-based relationship, it will be a close partnership which will enable us to give the best and cheapest airfares for our customers," Dhruv Shringi, co-founder and board member of Yatra, said.

However, Shringi declined to name the airline saying that it would also tie up with the state government-promoted e-governance initiatives to enhance its reach to masses.

Yatra.com, which has Norwest Venture Partners and TV 18 Group as other promoters apart from ADAG, launched its operations recently.

Shringi said the portal had tied up with Reliance Webworld centres. "Yatra is promoting the hybrid model, which includes the online and call centre-based services. This will be a multichannel service portal," he said.

"We are scouting for investors for this project though it does not require any capital on an immediate basis," he said.

Harshal Shah, vice-president, Reliance Capital, said the portal would also explore possibilities of an initial public offering as it picks up market share.

"The prospects of the online travel market is robust in India. The country will witness tremendous growth like China," Shah said. Yatra.com offers services such as domestic hotel options, air travel options and special holiday travel packages.

Yatra, through its links with over 1,000 domestic hotels in more than 150 citiesĀ  across India, offers special deals for travellers. The portal is also focussing on budget travellers by offering a significant number of hotels in the 'under Rs 1,000 per room night' category.

Yatra.com also does last minute booking of flights up to three hours before their departure.

"This is particularly beneficial for business travellers, as majority of air travel in the country is booked within three days prior to departure," company executives said.

P R Sanjai in Mumbai
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