Thursday, July 23, 2009

iXiGo.com generated INR 3 Billion revenues for domesetic airline industry

One of the most prominent travel meta-search player iXiGo generated direct airline sales of INR 300 crores and helped airlines to save distribution costs up to INR 15 crores. In addition to this, as bookings were made on airline's own website, iXiGo has also enabled airline partners generate ancillary revenues of almost INR 5 crores.

According to Mr. Aloke Bajpai, Founder and CEO of iXiGo.com, "Distribution costs form the third biggest expense item on the P&Ls of airlines in India after fuel & personnel expenses. The data points we have aggregated suggest that the meta-search model's growth in India is reducing distribution costs through efficient online customer acquisition, at a fraction of existing distribution channels, and is helping accelerate ancillary revenue generation"

iXiGo provides unbiased results for the search query and enables the user to compare the results. It also saves commission and booking fees for travelers as they remove middleman from the channel by routing the bookings directly to the airline website.

With entry of more meta-search players, distribution space in the online travel industry has become more competitive.

Source: Business Wire India (http://www.businesswireindia.com/PressRelease.asp?b2mid=19574)
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