Lastminute.com has launched a joint venture in the UAE, rebranding a local startup as lastminute.ae to tap into the growing tourism market. This is the company’s second joint venture in the Middle East, facing competition from other major travel platforms. The initiative reflects a strategy focused on local market understanding and broader geographic expansion, following recent growth in other regions.
Lastminute.com has announced a new joint venture in the United Arab Emirates, investing in a startup originally named MenaStar, which has rebranded as lastminute.ae. This strategic move aims to capitalize on the burgeoning tourism market in the Middle East, marking the company’s second partnership in the region following the establishment of lastminute.co.il in Israel in 2021.
The entry into the UAE market comes with significant competition, including established players such as Booking.com, Expedia, and Cleartrip. Although lastminute.com holds a minority stake in the new venture, local partners are leading operations independently. Corrado Casto, the operations director, emphasized the importance of understanding local nuances in traveler behavior and payment preferences.
Lastminute.com utilizes multiple avenues for geographical expansion, including joint ventures, business-to-business partnerships, and by offering dynamic packages via Booking.com. Headquartered in Amsterdam, the company primarily operates within Europe, where it leads the dynamic packages market, recently extending its services into Iceland, Mexico, and Chile.
The firm faced financial challenges at the beginning of 2024 but showed signs of recovery in the third quarter, with improvements across key financial metrics. This resilience reflects the effectiveness of its expansion strategy and adaptability in addressing market demands.
The recent joint venture of Lastminute.com with a UAE startup underscores the company’s strategy to expand its international presence, particularly as the Middle East emerges as a significant tourism destination. The firm has previously entered other markets such as Israel, indicating a consistent approach to growth through partnerships. This move not only illustrates Lastminute.com’s commitment to understanding local markets but also highlights its strategy to compete against established travel giants in the region.
In summary, Lastminute.com’s new joint venture in the UAE is a calculated step aimed at leveraging local expertise to enhance its presence amidst rising tourism in the region. By forming strategic partnerships, the company seeks to expand its geographical reach while making informed decisions based on market insights. Overall, despite recent financial difficulties, Lastminute.com’s adaptive strategies indicate a positive outlook for future growth.
Original Source: skift.com
