Advantages And Disadvantages Of Rakuten Travel

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Rakuten Travel
Rakuten Travel, Inc., a 100% subsidiary of Rakuten, operates Japan 's largest online hotel reservation website with over 1.8 million room nights booked per month. Having access to more than 20,000 domestic and 15,000 international hotels, Rakuten Travel provides both leisure and business travellers a variety of accommodation choices to meet all of their travel needs. Rakuten Travel and All Nippon Airways (ANA) formed a joint venture in August 2006 to promote and sell dynamic packages which will allow customers to freely combine domestic flights with hotel accommodations.
“We aim to expand our business outside the home country, especially in Asia, thanks to sound economic growth and increased internet use,” said Yoshi Yamada,
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The website will include Thai and other Asian languages in addition to the existing English, Chinese, Korean and Japanese.
Rakuten Travel will get a commission fee or revenue share from each transaction.
The service has 27,000 hotel options in Japan in its stable and 61,000 globally (including 1,000 hotels in Thailand).
Mr Yamada said 90% of Rakuten’s travel revenue stems from local customers in Japan.
“We aim for revenue from customers outside Japan to account for half the total by 2018,” he said.
To achieve its goal, Rakuten is promoting the use of its website for tourists flying to Japan.
Mr Yamada said China and South Korea will still be Rakuten’s major markets, while Southeast Asia will become a new revenue source.
The dilemma
Japanese online retailer Rakuten Inc. may enter India in the next six to eight months, and is seeking a strategic alliance to tap rapid growth in the country’s Rs.62,000 crore e-commerce market, said three persons familiar with the company’s plan. Rakuten is exploring the possibility of starting a travel and hospitality portal in India, said one of the three persons, an executive with a large consulting
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From this partnership Rakuten plans to boost its online travel site and enter into new business to gain advantage over the likes of Amazon.com Inc. Rakuten will own an 18 percent stake in the new airline, while Noevir Holdings, a conglomerate that owns an aircraft-leasing business, will own 9 percent. Octave Japan Infrastructure Fund will own 19 percent, and the sports company Alpen will own 5

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