Latitude Consolidated (ASX:LCD) is jettisoning into online travel sector with the acquisition of Yatango Pty Ltd, which has executed agreements with global travel industry leaders Expedia (NASDAQ:EXPE) and Sabre (NASDAQ:SABR).
These agreements provide a strong endorsement of the commercial potential of Yatango Travel by two global travel industry giants.
Expedia in 2015 recorded US$53 billion in gross booking with revenues of US$5.9 billion.
Sabre facilitates the marketing and sale of 400 airlines, 175,000 hotel properties, 200 tour operators, 50 rail carriers, 27 car rental outlets and 16 cruise lines to more than 425,000 travel agents.
The agreements provide Yatango with global travel inventory, which
enables Yatango to provide a full travel database for flights and hotels, which is searchable through the Yatango Travel platform.
This will accelerate Yatango's expansion into the online travel market, which is estimated to be worth US$1.3 trillion in 2014.
It will also fast-track commercialisation of the “Yatango Travel” offering.
The phenomenal growth in the sector has forecasters predicting US$10.8 trillion by 2018.
Currently, online bookings account for 35% of the total bookings market, and growing.
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