Travelocity acquires Zuji

Company eyes growth in China, India

BY A CORRESPONDENT
February 11, 2006

US-based Internet travel service firm Travelocity has acquired Asian travel portal Zuji for $34 million. Zuji currently has operations in Australia, Hong Kong, Korea, New Zealand and Taiwan. Following the acquisition, Travelocity hopes to spread operations to China and India. The ownership change of Zuji will not affect its operations, websites, customer bookings and supplier relations, said a Zuji official.

Till now, Travelocity and affiliates held 13.6% in Zuji. The rest of Zuji was owned by Abacus International, AGC Holdings and a consortium of 15 regional airlines. With the acquisition, Zuji becomes 100% owned by Travelocity.

Travelocity CEO Michelle Peluso said: "it is a natural progression for Travelocity to take full ownership of Zuji and the purchase positions us nicely for future growth in the fast-growing Asia-Pacific region. This acquisition, coupled with our acquisitions in Europe last year, demonstrates how we are continuing to expand the Travelocity network globally."

Zuji may also be expanded beyond Asia Pacific. Travelocity also plans to improve the capabilities and scope of Zuji's travel partner network.