Air India plans To Enter the Fast-Growing Leisure Travel Business with Packaged Holidays

Air India, the debt-striken national carrier, is to try its hand in holiday packages business to boost its share in the fast-growing leisure travel segment. The airline has invited  bids from across the globe to select a service provider for this purpose.

As per the tender document held up by the flag-carrier Tuesday, Air India invites technical and commercial proposals only from reputed and experienced  travel companies, for the technology platform, content, marketing and management of web-based booking of holiday packages.

Other than the international carriers, most domestic airlines, including the budget transporters, also designed customized holiday packages for their clients to round up extra income, besides its  regular ticket deals.

Air India is more interested in offering an one-stop shop for holiday packages, which would include flights, hotels, transport and sightseeing options. The selected bidders are expected to provide the technology, content and operation of Air India holiday packages, including developing, hosting and managing the website of its new business stand-up.

The contract will be valid for three years from the commencement of the launch of the Air India holiday product and it will have to come into force within 5-7 weeks of its grant.

In this regard a Delhi-based travel firm, Stick Travels’s chairman Subhash Goel said, “The move is welcoming. All over the world, airlines do offer such services which fetch them good revenues other than the ticket deals. Such activities will promote not only the destinations, but the flights as well.”

The bid document is read as, the applicant/bidder who ever quotes the highest guaranteed income for the three year would be granted the contract. The arrangements/ agreements for competitively priced hotel inventory and related ground services including return airport transfers/ local transfers, meals, sight-seeing and travel insurance, all will be the bidder’s look out.

Further the document says, Air India will offer inclusive tour fares for the holiday package. The selected bidder will assemble the package components with an all inclusive price tag, and host it for sale on the holiday packages website to direct customers and airline’s authorised agents.

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