Ibibo Group and MakeMyTrip, by many measures the top two online travel agencies in India, announced a merger — ending an expensive competitive pricing and discounting race.
First, some context. While the merger of Ibibo and MakeMyTrip is a large consolidation by Indian standards, even the combined business, valued at $1.5–1.8 billion (depending on whose estimates you read) does not make much of a dent on the global stage.
That said, the Indian market is still growing, and this merger positions the combined group as a formidable global player.
From the rhetoric around the deal, it appears the transaction was primarily led by the companies themselves, rather than by investors and bankers.
To me, as an outsider, this shows an immense amount of maturity amongst the management teams of the two companies. They knew what they needed to do in order to be able to win the market together.
What does this deal mean for us as consumers, suppliers, and start ups in the travel industry?
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