Air Deccan ties up with Travelguru to offer budget travel solutions

BANGALORE: Air Deccan (AD) India’s second largest airline announced a strategic tie up with Travelguru, (TG) an online travel portal to provide budget hotel bookings and holiday packages. The tie up will provide AD passengers the option of selecting and making confirmed reservations in 2,500 hotels including over 1,500 budget/ economy hotels, through its website The hotels are located in 160 cities across India including all destinations that AD flies to.

TG claims that the hotels included offer a wide range of facilities such as free airport transfer, breakfast and other value adds, making this a single window service for all travel solutions. AD claims that their passengers are assured the best available hotel rates along with instant confirmation of the booking. Passengers will have online access to both AD and TG contact centers for speedy and accurate response to their queries.

The deal announced today is one more initiative towards ancillary revenue generation (revenue generated form income other that seat charges), for AD, whose Captain Gpinath dreams of having people to fly for free, the revenues for the airlines to be generated by ancillary income.

For TG, this means that 8 million passengers that AD will fly this year are potential customers.

“Travelguru focuses on help customers find the best options for their travel. Besides, smart airfare options and deals, Travelguru's biggest differentiator is its strong leadership position in Hotel & Vacation Packages offerings. Travelguru offers instantly book able stay options within over 1500 hotels across 160 cities n India and 70,000 hotels across seven continents, the largest any online travel company can do currently, ” said TG co-founder and CEO Ashwin Damera.

“Another differentiator in the true sense is transparency to a consumer and true real time booking experience. At Travelguru, we display all rates on flights and hotels inclusive of all applicable taxes. We only show available rooms and flights that the customer can actually view and book instantly, making his interaction with Travelguru real time whether it is online or offline through our call centre. We have chosen to stay away from the most frequently followed book on request model that other portals tend to follow, some have now started following a hybrid model.”

TG with revenues of around US$25 million recently received funding amounting to US$15 million from Sequoia and Battery ventures, a US based VC company. Damera says that his company spent around US$5million annually towards marketing and promotion, most of which is focused on the internet. Contract look after the creative work and MPG the media buying for TG.

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