Dhamija Strikes $15 M Deal With Aol

Dinesh Dhamija, the UK-based travel agent and Internet star, has struck a $15 million deal with America Online, Europe (AOL Europe).

Dhamija's fledgling travel agency Ebookers.com will be the only travel agency advertised on AOL-owned Internet service providers including America Online Europe, CompuServe and Netscape.

Says Dhamija: "This is unquestionably the most significant alliance we have negotiated to date. To sign an exclusive pan-European deal with a company of the calibre and stature of AOL Europe further strengthens the ebookers.com brand."

Dhamija's ebookers has replaced Xpedia, the US-based travel agency owned by Microsoft which was America Online's `preferred travel partner' until now.

 

Ebookers, which listed on the Nasdaq and Frankfurt's Neuer Markt in November 1999, will pay $15 million to AOL Europe in two tranches. The payment is conditional on an agreed number of hits. Ebookers is expected to hold a second IPO to finance the deal.

The multi-million dollar agreement will cover a swathe of Europe including Britain, Germany, France, the Netherlands, Switzerland, Sweden, Austria, Belgium and Luxembourg.

Ebookers has already bought travel agencies in Sweden, Norway, Germany and a string of European countries to service its clients. It is scouting for agencies in Italy, Spain, Denmark and the Netherlands.

The web-based travel agency raised $60 million in November 1999. Half of the money is being used to buy travel agencies in Europe.

Andreas Schmidt, president and chief executive of AOL Europe, said "This relationship will offer our members the unparalleled breadth and value of fares and services they want, providing them with ease of access to a wealth of travel information and services to meet all their travel needs."

Ebookers handled more than 10,000 passengers last month, which represents an increase of more than 600 per cent on the passengers it served in January last year.