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Google is not the only juggernaut that small players should be afraid of, e-commerce giant Amazon wanted a piece of cake too and has launched its flight search and booking on its platform in India.
The service is only for domestic flights powered by local online travel agency Cleartrip. Currently, details are still scarce about Amazon’s latest venture but the company is expected to reveal more information about the service early next week.
The integration works through the Amazon Pay section in the site, where members can select services ranging from utility bills to gift cards. A “Flights” button is now featured alongside and takes users to the white label version of the OTA’s existing flight functionality. Carriers such as AirAsia, IndiGo, Air India and GoAir are shown in the search results. A 15% cash back offer is currently in play and is redeemed when users complete the booking.
Second attempt
This is not the first time that Amazon dives into the travel space. In 2015, the online retail juggernaut launched and closed Amazon Destinations service in a span of five months.
Prior to the launch of the flight booking platform, talks of Amazon introducing a hotel booking and launching the flight booking site first came a surprise.
In an article earlier this year CNBC cited investment bankers, Morgan Stanley, who said Amazon’s move to the travel industry could give it a baseline USD 600 million profit on an annual basis, but this is only for the hotel booking business.
Analyst Brian Nowak said: “Online travel has proven to be immune to Amazon disruption so far. But as we have seen with other categories, that doesn’t mean Amazon won’t try again, and they should. Amazon’s focus on selection/service, pricing, and frictionless payment that drive conversion and stronger user economics also translate directly to travel.”
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