Lastminute.com has launched a joint venture in the UAE by investing in a startup now called lastminute.ae, aiming to leverage tourism growth in the region. This venture follows a previous one in Israel and will compete with established travel platforms. Local expertise is underscored as crucial for success, and despite earlier financial challenges, the company is poised for recovery and growth.
Lastminute.com has expanded its international footprint by establishing a joint venture in the United Arab Emirates (UAE), investing in a flights-focused startup that has been rebranded as lastminute.ae. This strategic partnership aims to capitalize on the burgeoning tourism industry in the Middle East, reflecting the company’s commitment to growth in the region.
This marks Lastminute.com’s second joint venture in the Middle East, following the launch of lastminute.co.il in Israel in partnership with Issta Lines Group in 2021. The new venture is expected to face significant competition from established players such as Booking.com, Expedia, and Wego, among others, in the fast-evolving travel market.
According to a spokesperson from Lastminute.com, the company has only made a modest investment in the UAE joint venture, with operations being managed independently by the local partner. At this initial stage, the insights gained from local operations will be vital for the company’s strategy moving forward.
Corrado Casto, the operations director at Lastminute.com, emphasized the importance of local expertise in his statement, remarking, “We have learned that local knowledge on everything from traveler intent to how people want to pay is crucial for launching in a new region.” This underscores the company’s emphasis on adapting to local market conditions.
Lastminute.com is pursuing global expansion through joint ventures, B2B partnerships, and facilitating dynamic packages on Booking.com. While headquartered in Amsterdam, the company considers Europe its core market, boasting significant leadership in the dynamic packages sector. The company has also made successful expansions into Iceland, Mexico, and Chile in the first half of this year.
In previous communications, then-CEO Luca Concone mentioned that their B2B segment supports geographical expansion by allowing for market testing with minimal risk prior to full entry. He noted, “Our B2B segment in general facilitates geographic expansion,” highlighting these partnerships as crucial for market exploration before committing to direct consumer marketing efforts.
Despite experiencing financial challenges in early 2024, Lastminute.com managed to recuperate by the third quarter, reporting improvements across all key financial metrics, signaling a robust rebound in its business operations.
Lastminute.com is a leading online travel agency focused on providing dynamic packages that combine flights and accommodations. With a significant presence in Europe, the company is actively pursuing opportunities in emerging markets. The UAE joint venture exemplifies its strategy to expand in regions with rapidly growing tourism sectors. The collaboration emphasizes the importance of local market insights and expertise in navigating competitive landscapes.
In summary, Lastminute.com’s latest joint venture in the UAE represents a strategic move to enhance its international presence amidst a growing tourism boom. The company emphasizes the importance of local knowledge while expanding its operations. By leveraging partnerships and exploring new markets, Lastminute.com aims to solidify its position as a leader in the travel industry despite facing fierce competition and previous financial pressures.
Original Source: skift.com
