: Cleartrip won’t be the only victim of the Covid-19-triggered economic slump in the travel sector #IndiaNEWS A 14-year-old online travel company in India has fallen victim to the Covid-19-triggered

Cleartrip won’t be the only victim of the Covid-19-triggered economic slump in the travel sector #IndiaNEWS
A 14-year-old online travel company in India has fallen victim to the Covid-19-triggered economic slump – and it might be the first of several.On April 15, e-commerce giant Flipkart said it will acquire Cleartrip, a Mumbai based-based flight and hotel booking portal, for an undisclosed amount. Some media reports have pegged the deal at around million (Rs 299 crore). In 2019, Cleartrip had posted a revenue of 0 million and registered gross bookings to the tune of .5 billion.“This is a distress sale but not so surprising as most travel firms have faced unprecedented stress due to Covid 19,??? said Anindya Ghose, Heinz Riehl Chair professor of business at New York University’s Stern School.Flipkart plans to retain all employees of Cleartrip and let the company function as a separate entity. So far, Cleartrip has been doing well in the air travel space but trailing when it comes to cabs, hotels, and holiday packages. The acquisition could help the company make strides in all these categories. “Flipkart had indicated its interest in travel when it had first partnered with MakeMyTrip in 2018 and then switched to ixigo,??? Ghose said.Interestingly, Cleartrip is Amazon’s partner for flight ticket bookings in India. “It will be interesting to hear Amazon’s reaction as they compete with Walmart/Flipkart,??? Ghose added.Rise and fallFounded in 2006...Read more

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