New Delhi: Online travelling companies Cleartrip and Yatra have a lot of reasons to sweat out before their competition after MakeMyTrip announced that it was merging with online travel entity Ibibo.
Albeit the size of this massive deal has not been disclosed, it is expected that this mega entity will control fifth of the airline ticket booking market. After the deal, reports claimed that the joint owners of Ibibo – Naspers and Tencent – will be the single largest shareholder in MakeMyTrip.
Soon after the merger was announced, the share price of MakeMyTrip soared by 44% on the Nasdaq. Before the deal, analysts estimate that the value of Ibibo stood around $400-700 million.
While MakeMyTrip has a strong footing in airline ticket booking platform, which was also the focal strength of Ibibo, the merger will expand MakeMyTrip’s reach into the bus ticket booking platform as Ibibo acquired redBus in 2013.
“MakeMyTrip is strong in the air-ticketing and branded 5-4-3 star hotel-booking space, while Goibibo is strong in the budget accommodation space. One of the strategies that could play out is: A lot of bus travellers that redBus has would prefer accommodation offered by our recently launched brand Rightstay that includes villas, cottages, bungalows and apartments. You will see a lot of such interesting synergies unfolding going forward,” founder of MakeMyTrip, Deep Kalra, said.