WestBridge backs Travelguru to become the 'Google of the travel industry'

8 February 2006
MUMBAI, INDIA

BY OUR CORRESPONDENT

VC fund WestBridge Capital Partners and Travelguru join hands to  build  Indian online travel market leader.

WestBridge Capital Partners, India's leading venture capital fund and Travelguru, pioneering technology-enabled travel solutions company, will come together to build a market leader in India's online travel market.

Commenting on the implications of such a conjunction, Mr. Ashwin Damera, co-founder and CEO of Travelguru, said, "In a scenario where there are not just multiple airlines but where fare structures are dynamic and focused on making travel affordable, a service of this nature brings all options to the customer. Imagine traveling to Delhi and having to choose from over 100 hotels to stay in. With a service like this, Travelguru simplifies the customers' decision-making process and adds tremendous value. To cite some global examples, in the US, nearly 50 per cent of all airline tickets sold are sold online, and sites like Expedia and Orbitz sell a major portion of this. Even in China, Ctrip sells nearly half a million hotel room nights a year. Travelguru will replicate the userexperience and value proposition of these established sites for the Indian traveler."

Calling it the "Google of the travel industry" is perhaps not too far fetched as customers will be able to make bookings across 300 airlines and 55,000 hotels in India without unnecessary complications and delays.

Referring to the changing nature of the aviation industry in India where options in terms of fares and airlines are fast increasing, KP Balaraj, Managing Director, WestBridge, commented that, "India's travel industry is expected to be a $32 billion market by 2008. The future of the internet and the manner it will change people's habits is undoubted – one of the largest gainers from e-commerce is travel, accounting for over 50 per cent of global e-commerce activity. The Indian traveler today is more informed, wants more for less and is constantly looking for value. We believe that the many travel choices and cheaper prices on Travelguru will give consumers the best value for their money."

Referring to the potential of Travelguru, he added, "WestBridge Capital has a strong reputation of partnering with entrepreneurs and management teams to create market leaders in India. We have been very impressed with what the Travelguru team has accomplished to date, and are looking forward to working with them closely to build Travelguru into a market leader in the travel services industry."

Adding that difficulties for customers in a crowded travel marketplace were increasing, Ganesh Rengaswamy, co-founder of Travelguru said, "We already have partnerships with more than 400 hotels across India. Our strategic alliances with several domestic and international airlines have ensured that Travelguru enjoys a key advantage on price and availability and we are adding to this portfolio everyday. By providing rich hotel related content such as details on nearby attractions, hotel photographs, room facilities and distance form airport/railway stations, we will empower customers to make decisions that are right for them."

The other co-founder and CEO of Travelguru Mr.Ashwin Damera also pointed out that user-friendly online services were available in countries like the US and China and promised that the Indian traveler would get a similar standard of service. He said, "In a scenario where there are not just multiple airlines but where fare structures are dynamic and focused on making travel affordable, a service of this nature brings all options to the customer. Imagine traveling to Delhi and having to choose from over 100 hotels to stay in."

Indian travelers can visit the Travelguru website ( www.travelguru.com ) or call the company's toll-free number (1 600 22 4878) from anywhere in India to plan their travel. Additionally, travelers who book their travel with the company 
can benefit from the inaugural promotion which offers an international holiday for two to any of these cities - New York, Paris, London or Singapore along with accommodation in the world's finest hotels - Dorchester, Ritz Carlton or The Four Seasons. The offer is valid till February 15, 2006.