Lastminute.com has launched a joint venture in the UAE, rebranding a startup as lastminute.ae to tap into the Middle Eastern tourism boom. This is the company’s second regional joint venture, following one in Israel. The endeavor aims to gather local insights amidst intense competition from major travel platforms.
Lastminute.com has expanded its international footprint by launching a joint venture in the United Arab Emirates, partnering with a flight-focused startup originally named MenaStar, which has since rebranded to lastminute.ae. This collaboration comes as the region experiences a surge in tourism, and both parties aim to leverage this growth.
This venture marks lastminute.com’s second attempt to establish a presence in the Middle East; the first being lastminute.co.il in Israel in collaboration with Issta Lines Group in 2021. The new UAE operation will face stiff competition from established players such as Booking.com, Expedia, and Musafir.com.
According to a spokesperson for lastminute.com, the investment in the UAE joint venture is modest, and the local partner will manage the operation independently. The spokesperson emphasized that the primary benefit from this stage of the venture would be the insights gained regarding consumer behaviors in the region. “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,” stated Corrado Casto, Operations Director at lastminute.com.
To facilitate its global reach, lastminute.com utilizes a combination of joint ventures, B2B partnerships, and dynamic package offerings in collaboration with Booking.com. The company, headquartered in Amsterdam, considers Europe to be its primary market where it positions itself as a leader in dynamic travel packages. Notably, in the first half of this year, lastminute.com also made inroads into markets like Iceland, Mexico, and Chile.
During an earnings call in August, then-CEO Luca Concone discussed their geographic expansion strategy, which allows testing in new markets with reduced risk. “Our B2B segment in general facilitates geographic expansion,” he noted. He added that this model permits the evaluation of market viability before dedicating resources to direct consumer marketing efforts.
Despite experiencing financial difficulties earlier in 2024, lastminute.com demonstrated resilience, showing improved financial performance by the third quarter.
The article discusses lastminute.com’s strategic endeavor to grow its international presence through joint ventures, specifically focusing on its latest partnership in the UAE with a startup in the travel sector. This development forms part of a broader strategy to respond to the growing tourism market in the Middle East and reflects on the company’s commitment to leveraging local insights for successful entry into diverse markets. Additionally, it highlights previous expansions and the challenges faced within the highly competitive online travel agency landscape.
Lastminute.com is enhancing its global presence with a strategic joint venture in the UAE, aiming to capitalize on the booming tourism sector in the region. This move follows its previous expansion efforts in Israel. As the company navigates significant competition, it aims to gather valuable local insights to inform future operations, while reinforcing its broader strategy of expanding through partnerships and testing new markets.
Original Source: skift.com
