The Reasons Behind RedBus’s Sudden Launch For A Hotel Booking.

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The Reasons Behind RedBus’s Sudden Launch For A Hotel Booking.

The Bangalore-based company that has served as one of India’s most  one-stop shop for bus tickets, RedBus, has ventured into the travel accommodation space with the beta launch of a hotel booking service.

According to a report done by the NextBigWhat, inventory for the newly launched service will come from Goibibo, the in-house hotel booking management service from ibiboGroup. This particular company, which currently owns a wide range of e-commerce related services expanding  from payments to car classifieds, had purchased RedBus during the previous year for an estimated amount of $130 million.

Stratagem.

This recent move shouldn’t bee much of a surprise to people, asking “Would you like a hotel room with that bus ticket?” should become the traveling industry,”would you like fires to go with that burger?’ Although CEO of ibiboGroup, Ashish Kashyap, had commented to the NextBigWhat that the company has an ever deeper strategic interest in mind when it formed an overlap between these two venture:

From a demand side, Goibibo.com and redBus have very low overlapping transacting audience. Goibibo.com reaches out metro centric audiences, while redBus has deep penetration beyond metros. From a supply point of view, inGoibibo.com is the core system which is used by both Goibibo.com and redBus.in. At the end of the day this drives liquidity for the hotel owners.

To put it simply, Customers who use Redbus, but not Goibibo, will now be able to access more easily, and vice versa.

The travel and tourism industry within India has managed to generate a total of RS 6.63 billion (approxiamtely $110 million) during 2013, and that figure is set to grow around 7.3 percent sometime this year.

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Kevin C is passionate for tech world wide. He was apart of Qbox media and currently is apart of a UX firm based in Hong Kong.

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