Online Travel Industry in India – the story so far

The online travel market, as we all know is overcrowded. Here is a quick recap of the existing players, what they do and their funding status:

OTA (online travel
agency)
Funding Investor Extra plugs
FlightRaja (now called Via) $5 million NEA Indo US ventures (owned by Vinod Dham) Domestic + International flight ticketing, bus ticketing, hotel reservations.
MakeMyTrip $10 million SAIF Capital Partners Domestic flight ticketing, hotel bookings – bundled/packaged service.
Yatra $5 million Reliance Capital, Norwest VC, TV18 Domestic flight ticketing, hotel bookings – bundled/packaged service.
TravelGuru $10 million Sequoia Capital India (Sequoia Capital and WestBridge Capital Partners) Domestic ticketing, hotels, cruises, holiday packages, corporate travel
Cleartrip $3 million KPCB, Sherpalo Domestic booking, hotels, place information
Arzoo Sabeer Bhatiya’s factory! Domestic + International flight ticketing, Holiday package, car rentals
Rediff Faresearch Rediff meta search engine.
Yahoo Farechase Y! meta search engine – though not too sure why Y! is not promoting this in India.
Zoomtra * meta search engine.
Ghumo * meta search engine (for flight/train and hotel bookings)
iXiGo self funded meta search engine, read our review here.
ezeego1 Cox & Kings probably the most relevant meta search engine.
Travelocity India N/A Sabre Holdings Initial focus on hotel bookings.
Travel Chacha * Domestic + International booking, car rentals, hotel bookings, Packaged deals
TripMela * Focuses only on travel related deals
Meratrip * Main focus is on travel related deals
Airdeccan.net AirDeccan has a tie-up with TravelGuru for hotel bookings.
Indiatimes Indiatimes Travel booking for partner sites

‘*’ = lack of information on investors (if you have any info, please let me know).
Few interesting info (via livemint)

  • Travel portals in India did business of $800 million (of the total $15.5 billion travel market in the country) in 2006. This is expected to increase to $2 billion by 2008.
  • In 2006, India attracted 4.43 million foreign tourists; the same year, around 350-400 million domestic tourists are estimated to have traveled around the country
  • Air passengers in the country increased from 22.788 million in 2005 to 32.172 million in 2006.
  • Flightraja is already profitable and does business of Rs1 crore a day.
  • On an average, commission from air tickets which account for the bulk of the business are the lowest and range from between 2% and 9%.
  • For hotel bookings, the commission is much higher and varies between 8% and 25%

Who said Internet will kill the intermediaries? They are flourishing and are going strong!

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