US based online travel firm Travelocity Global has announced that it has acquired a 100% stake in Travelguru, one of India’s largest hotel distribution networks, for an undisclosed amount.

The industry sources pegged the acquisition size between Rs 45 crore to Rs 50 crore.

However, Mr. Roshan Mendis, Regional Vice-President of Travelocity Asia Pacific, has made it clear that the Travelguru will remain a distinguish entity with co-founder and CEO Ashwani Damera continuing to head its operations.

Mr. Mendis also added that the acquisition will complement the company’s online business and help it access more than
4,000 hotels in India.

In a statement to media, Mr. Damera said, “I was excited with the deal and would want to replicate the story in other Asian countries.” However, Mr. Damera did not disclose the turnover or any other financial details of Travelguru.com to the media.

As anticipated by Mr. Mendis, in 2012 the total online travel market in India will be $11 billion and out of which $2.5 billion will come from online travel agents. The total online market in India was $657 million in 2008.

An industry analyst said, “The deal clearly indicates that you need to have a presence in the entire value chain of flights, car and others. However, the deal does not make any sense to Travelocity as it could have created this hotel base organically.”