Travelguru.com acquires Desiya.com, plans Rs 5 crore ad spend

Travelguru.com acquires Desiya.com for $ 25 million and it will spend Rs. 5 crore on a TV, print and online campaign in March 2008

Travel portal Travelguru.com has acquired Delhi-based B2B hotel booking site Desiya.com for $25 million. Ashwin Damera, founder and CEO, Travelguru, confirmed the acquisition, saying, “The acquisition will help Travelguru to broaden its hotel inventory as Desiya also focuses on hotel bookings.” Damera adds that Desiya caters to B2B clients such as travel agents while Travelguru caters to B2C clients. “Now, we will get access to business clients as well,” he says.

Under the acquisition agreement, Desiya will become a subsidiary of Travelguru and it will function as a company with an independent management. However, the inventory of hotels will be shared between the two portals.

Following the acquisition, Travelguru.com is planning to strengthen its brand in the Indian market. It is planning to launch a new TV, print and online campaign in March 2008. Damera says, “Starting March, we will spend a total of Rs 5 crore in three months to promote the Travelguru brand, out of which Rs 1.5 crore will be spent on online marketing.” Currently, Travelguru uses search marketing and banner advertising for its online promotions, though it had launched a TVC earlier this year.

The travel portal is also planning to acquire offline travel companies, though no talks have happened yet. Travelguru is funded by US-based Battery Ventures and Sequoia Capital Partners India.