Lastminute.com has initiated a joint venture in the UAE, rebranding the startup MenaStar as lastminute.ae. This move is part of the company’s strategy to capitalize on the Middle Eastern tourism boom. It marks their second joint venture in the region, with competitors including Booking.com and Expedia. Lastminute.com aims to enhance market presence and refine its operations through local insights and strategic partnerships.
Lastminute.com has expanded its international footprint by launching a joint venture in the United Arab Emirates, investing in a startup originally named MenaStar, which has been rebranded as lastminute.ae. This venture aims to leverage the increasing tourism demand in the Middle East, further strengthening Lastminute.com’s presence in the region.
This joint venture marks Lastminute.com’s second collaboration in the Middle East, following the establishment of lastminute.co.il in Israel with Issta Lines Group in 2021. The company faces stiff competition from established players, including Booking.com, Expedia, and Rehlat, among others, in the flights and travel booking market.
A spokesperson for Lastminute.com indicated that the company holds a minor stake in the UAE joint venture, which is managed independently by the local partner. The spokesperson emphasized the importance of gaining insights from this operation at the initial stage. “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.
Lastminute.com is broadening its market reach through various strategies, including joint ventures and B2B partnerships, while also facilitating dynamic packages on Booking.com. Based in Amsterdam, the company predominantly operates within Europe, bolstering its status as a leader in dynamic package offerings. In the first half of 2024, Lastminute.com further solidified its expansion by launching operations in Iceland, Mexico, and Chile.
The previous CEO, Luca Concone, remarked, “Our B2B segment in general facilitates geographic expansion,” during an August earnings call, noting that it allows the company to explore new markets with minimal financial risk. This approach helps refine their marketing strategy before committing to a direct-to-consumer model in those regions.
Despite facing financial challenges in early 2024, Lastminute.com showed a recovery in the third quarter, with all key financial metrics reflecting improvements. The company remains optimistic about its growth potential and strategic partnerships moving forward.
Lastminute.com, a prominent player in the travel industry, primarily operates in Europe, where it excels in dynamic package offerings combining flights and hotel accommodations. As the travel market evolves, the company seeks to diversify its geographic footprint and capture emerging tourism markets, particularly in the Middle East, which has seen a surge in visitors. Joint ventures and strategic B2B partnerships are crucial components of Lastminute.com’s expansion strategy, enabling entry into new markets with reduced financial risk.
In conclusion, Lastminute.com is pursuing strategic growth through its joint venture in the UAE, capitalizing on the region’s burgeoning tourism sector. The partnership with a local startup is indicative of the company’s adaptability and commitment to understanding market dynamics. As it continues to expand globally while managing financial performance, Lastminute.com positions itself to enhance its competitive edge in the travel industry.
Original Source: skift.com
