IndiGo Airline and Travelport agree partnership

India’s largest airline IndiGo has struck a partnership with Travelport that will give them access to 180 countries.

Travelport, a global distribution service (GDS) provider, will allow domestic travel agents to make airline bookings and will be gradually rolled out to global agents from 2017.

Previously, budget airlines did not subscribe to GDS due to the high costs but this has recently changed with AirAsia, EasyJet, RyanAir and Tiger, as well as full-service Indian airlines Air India, Jet Airways and Vistara, all signing up with GDS providers.

Already boasting the largest market share in India, the deal by IndiGo is the natural step to develop its distribution strategy.

Due to the deal, IndiGo has access to a global presence across 68,000 portals without spending any money at all, opening up a number of options for travellers.

“We will increase our presence on overseas routes among destinations that are in the A320 range,” said Aditya Ghosh, IndiGo’s president.

IndiGo has a 42% share of the Indian aviation market and analysts expect it to grow further as it adds capacity at a rapid pace.

According to Mr Ghosh, the arrangement with Travelport will also help the airline to offer its ancillary services to a larger number of clients.

“What happens now is for booking an ancillary service, the passenger has to come to the airline portal. There were also a lot of products that were not available to travel agents. Those now become available for the passenger through Travelport,” he said.

Ancillary revenues are an important avenue of income for budget airlines like IndiGo, as competition continues to see prices drop.

Experts believe India is set to be in the top six business travel markets by 2019 and trade activity is forecast to grow to almost 10% in 2017.

If you’re thinking of travelling abroad this year, be sure to organise your long-haul travel insurance in advance.

Date Created: 28 November 2016

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