Debt-ridden national carrier Air India is planning to enter the holiday packages business to enhance its share in the fast-growing leisure travel segment. The airline has floated global bids for selecting a service provider for this purpose.

Besides international carriers, most domestic airlines, including the budget carriers, also offer tailor- made holiday packages to their customers to rake in additional non-ticket revenue.

Air India invites technical and commercial proposals only from reputed and experienced IATA-accredited /non-IATA travel companies, for the technology platform, content, management and marketing of web-based booking of holiday packages, according to the tender document floated by the flag-carrier Tuesday.

‘One-stop shop’

As per the document, Air India will offer a one-stop shop for holiday packages, which would cover flights, hotels, transport and sightseeing options. The selected bidder will provide the technology, content and operation of Air India holiday packages, including developing, hosting and managing the website of its new business vertical.

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 commence services within 5-7 weeks of the awarding of the contract. “It is a very good move. The airlines world over offer such services which fetch them good revenue other than the ticket sales. Besides promoting destinations, it also promotes flights,” Subhash Goel, chairman of the Delhi-based travel firm Stick Travels said.

According to the bid document, the applicant/bidder who quotes the highest assured revenue for the three year would be offered contract. The bidder will have to have own arrangements/ agreements for competitively priced hotel inventory and related ground services including return airport transfers/ local transfers, meals, sight-seeing and travel insurance.

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

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