Yatra Online recently announced its acquisition of Globe All India Services (Globe Travels), a corporate travel services provider, for $15.25 million in cash. This move is part of Yatra’s shift towards the more profitable business travel market, as competition in the consumer travel space intensifies. With consumer revenue dropping, Yatra is focusing on expanding its corporate client base.
Yatra had set aside up to $20 million from its India IPO proceeds for acquisitions like this. Globe Travels brings 360 corporate customers and annual gross bookings of $90 million to Yatra’s assets, strengthening its market position in the corporate travel segment. Through this acquisition, Yatra aims to gain access to new geographies, increase market penetration, and enhance its service capabilities to maximize revenue growth.
During a recent earnings call, Yatra’s CEO, Dhruv Shringi, highlighted the company’s focus on the corporate travel segment due to its robust growth, despite challenges in the consumer segment. With a newly onboarded team ramping up operations, Yatra sees potential in the meetings, incentives, conferences, and events (MICE) segment. The company is optimistic about the future demand for corporate travel in India, based on the projected GDP growth for fiscal 2025.
Globe Travels, a corporate travel and car rental company based in Kolkata, is expected to expand Yatra’s corporate client base by 40% and add 360 new customers. This acquisition will diversify Yatra’s client portfolio with minimal overlap and broaden its reach across various industries. With Globe Travels’ annual gross bookings of $90 million and strong financial performance, Yatra anticipates immediate boosts to its financials and further margin expansion as synergies are realized.
Yatra plans to capitalize on cross-selling opportunities in hotels and expense management through this acquisition, providing more tailored and comprehensive travel solutions to its clients. The company sees potential in integrating its Corporate Self Booking Platform with Globe Travels to enhance operational efficiencies and value creation. By deepening its presence in key verticals and markets, Yatra aims to strengthen its corporate travel and MICE capabilities with this strategic move.
Overall, Yatra’s acquisition of Globe Travels aligns with its strategy to enhance its offerings in the corporate travel segment and capitalize on the growing demand for business travel in India. With a focus on increasing market share, expanding its client base, and offering more personalized travel solutions, Yatra is positioning itself for success in the competitive travel industry. As the company navigates challenges in the consumer travel space, this shift towards corporate clients could drive future growth and profitability for Yatra.
