Ashwini, who cut his teeth with Thomas Cook in India and expanded the network to Asia, said it has been difficult for travel agents to adapt to the digital landscape and the ensuing changes in consumer behaviour.
“There are new business models evolving,” he said. He remains convinced however that the travel and tourism industry “is always at the leading edge of business revolution”.
“Not only is it the biggest industry but it’s also cutting edge – look at how big the online travel industry is and has become.”
To cash in on the opportunities in the digital space, Ashwini with four other partners started up Via in 2006. Formerly Flightraja, Via received the first injection of funds, roughly US$5 million, from a company called NEA one-and-half years ago.
“The company grew substantially and to support the growth, we received a second round of funding earlier this year – US$10 million from Sequoia Capital,” said Ashwini.
Via describes itself as the largest technology based travel services company in India and claims to have “silently revolutionised the travel domain in India and brought in value added changes that benefit the customer and the business channels”.
On its website, Via claims a turnover of Rs1000+ crore and a growing network of 15,000 agents spread across India.
Armed with the new funds, Ashwini said Via was working on expanding its offerings from the initial domestic rail and air content to domestic and international hotels as well as cross-border air travel and international flights out of India.
The company was also expanding to the Philippines – where it’s invested in Bid Traveller, a company that was a finalist in the WIT Start-Up Pitch last year – and the Middle East.
Via announced an invesment of US$15,000 in Bid Traveller at the WIT Conference last year when CEO Vinay Gupta spoke at the event and met the two Philippine entrepreneurs behind Bid Traveller, Julius and Rose Buenconsejo.
Ashwini said pilot projects had been implemented in the two regions.
Mercury Travels, on the other hand, is very much in the traditional brick-and-mortar space. It is one of India’s leading travel companies offering outbound holidays, destination management, corporate travel services, conferences and incentive management and foreign exchange services.
It is partly owned by Oberoi Hotels and its associate companies include Mercury Himalayan Exploration, which acted as the incubator of Via, and EIH Ltd, which owns and manages hotels and luxury cruises under the Oberoi Hotels & Resorts and Trident brands.
“We are in the high touch luxury business and we hand-hold our customers. There is still a big market of these customers,” said Ashwini.
“I believe the world is divided into two customer segments – those who are cash rich, time poor and those who are time rich and cash poor. Via caters to the latter while Mercury Travels looks after the former.”
Himalayan Exploration meanwhile looks after the youth market. “When you are young and fearless, you want to do stupid things,” laughed Ashwini.
Ashwini believes that travel agents who reinvent themselves and their business models have a wonderful future. “There is enough scope for every travel agent to reinvent themselves. It’s a wonderful future if you can adapt.”
Mercury Travels, for instance, reinvented itself. “We took an insignificant lousy brand and repositioned it. We recognised that we needed technology. We started off with 30 computers and branches that were not connected at all. Now we have over 500 computers, linked for voice and data.
“We also expanded the brand domestically and internationally and now we have offices in New York, London, Frankfurt, Buenos Aires, Hamburg and a representative in Tokyo.
“Domestically, we grew from six to seven branches to 23.”
He said the company operates a click-and-brick model or what he says is a “high-tech, high-touch” model. “We have customers who range from the individual who wants speed and flexibility to someone who spends a lot of money and wants to speak to somebody.
“We want to be the single point of service for our customers,” said Ashwini. “We are knowledge-based experts and that is what our customers pay for – information such as which suite at the Ritz-Carlton Singapore will offer the best view and we get you that suite.”
Featured image credit (businessman walking into airport with luggage): Ockra/iStock
