Lastminute.com has launched a joint venture in the UAE with MenaStar, now rebranded as lastminute.ae, to tap into the Middle Eastern tourism boom. This is the company’s second venture in the region following its partnership in Israel. The company faces stiff competition but emphasizes the importance of local market insights for success.
Lastminute.com has expanded its international footprint through a joint venture in the United Arab Emirates, partnering with MenaStar, a startup specializing in flights that has now rebranded as lastminute.ae. This strategic move aims to capitalize on the burgeoning tourism sector in the Middle East.
This marks lastminute.com’s second foray into joint ventures within the Middle East, following the establishment of lastminute.co.il in Israel with Issta Lines Group in 2021. However, the competitive landscape for lastminute.ae appears formidable, as established players such as Booking.com, Expedia, and Cleartrip, among others, already dominate the region.
According to a company spokesperson, lastminute.com held a modest investment in the UAE joint venture, which the local partner is managing independently. They underscored the importance of gaining insights from this venture, particularly regarding local consumer behavior and payment preferences. “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 enhance its global outreach, lastminute.com employs a three-pronged strategy comprising joint ventures, B2B partnerships, and dynamic packages via booking platforms like Booking.com. Headquartered in Amsterdam, the company claims leadership in dynamic package offerings across Europe and has recently expanded into Iceland, Mexico, and Chile.
Despite facing financial challenges during the first half of 2024, lastminute.com reported a recovery in the third quarter, with all major financial statistics showing positive trends. The company’s B2B initiatives are designed to facilitate market expansion without incurring significant risks, thereby allowing to evaluate market viability preemptively.
Lastminute.com is a prominent online travel and leisure retailer headquartered in Amsterdam. The company has a significant market share in Europe, especially in dynamic travel packages. As the travel industry rebounds post-pandemic, there is a growing competition in various regions, notably the Middle East, which presents significant opportunities for tourist services.
In conclusion, Lastminute.com is strategically enhancing its international presence through joint ventures, first with MenaStar in the UAE and previously with Issta Lines in Israel. The company is focusing on leveraging local insights to adapt to new markets while navigating a competitive landscape. Though initially encountering financial challenges, its recent performance indicates potential for growth and successful market adaptation.
Original Source: skift.com
