Color us puzzled. BSE listed Residency Projects and Infratech Ltd (RPIL) has acquired Bonvoyage.in, a site that looks like an online travel agent, complete with Flights, Hotels, Packages (no adventure packages in Shimla?), Cars (no cars on rent in Delhi?), Service apartments, Homestays etc, for an undisclosed amount. (BSE notice)
Bonvoyage, which RPIL calls a ‘leading Bangalore based online travel portal’ is being merged into Valuemart Travel Solutions, a subsidiary of RPIL, and is targeting a turnover of Rs 10 crore this financial year, and Rs 100 crore in three years. The statement also informs us that Bonvoyage was jointly promoted by Rajendra Singh Bhati and Sanjay Bhan, who have over twenty years of experience in the travel and hospitality industry.
RPIL, according to its website, is a retail solutions firm “offering B2C solutions, RFID Solutions, Smartcards and Web based solutions for Retail & Financial services sectors.”
We’ve never heard of BonVoyage, and although that is no barometer for prominence, if it is targeting a turnover of Rs 10 crore this year, it’s hardly in a position to be called ‘leading’. It is perhaps a little too late to launch an Online Travel Agent; sure, the market for travel will grow with time, but existing OTA’s are well entrenched and well capitalized to grow the market. Even the business of disrupting the OTA model via a travel meta search business has been addressed. So there doesn’t appear to be a significant case for launching an OTA, leave alone acquiring one. What do you think?