Consolidation: The next stage in Indian travel industry

India being one of the most potential tourists’ markets, is currently in the limelight of many global travel companies. Major multinationals, travel suppliers, airlines, hoteliers are focusing on India. However, India has large number of small unorganised travel players, hence consolidating with the big companies would prove beneficial for business prospects. Indian travel market is in need for investments while international investors are looking for potential markets for better returns. According to FCm Travel Solutions, 2009 is a year of consolidation with increasing number of companies turning to Travel Management Consultancies (TMCs) and consolidation strategies to achieve cost reductions.

Consolidation: Getting active in Indian skies
Consolidation in India started with acquisition of Air Sahara by Jet Airways followed by Kingfisher Airlines taking control of Air Deccan in 2007. The main idea behind these acquisitions was to establish market leadership and achieve pricing power. But the concept of consolidation entered the Indian ground and attracted many investors to consider it.