Business & Economy Startups Asian online travel agency Zuji ceases operation

Asian online travel agency Zuji ceases operation

Author

Date

Category

- Advertisement -

Hailed as Asian pioneer in online travel agency, Zuji was launched back in 2002 and now has gone out of business

Zuji, one of the first names to take a plunge in online travel agency business, has ceased operation. It is reported by Skift that Zuji failed to pay debt to airlines and missed out on renewing travel agency licenses in Singapore and Hong Kong, leading to its doom.

Zuji translates to “footprints” in Mandarin, and was in business since 2002. Singapore Tourism Board’s record shows that the company’s license has ceased since January 1, and January 9 according to the Commerce and Economic Development Bureau.

Also Read: Indonesian fashion e-commerce site Sale Stock changes its name to Sorabel

- Advertisement -

Earlier, it is reported, Zuji’s websites in both markets showed “New site coming soon” message all December. Now, it has returned error message.

There’s no report on the amount the company owed to airlines. A source from the Travel Industry Council in Hong Kong reported that it had received a total of US$32,000 worth of refunds case.

Zuji was a product of 16 Asia Pacific airlines that collaborate to create an online travel agency. The airlines include All Nippon Airways, Cathay Pacific Airways, China Airlines, EVA Airways, Garuda Indonesia, Hong Kong Dragon Airlines, Japan Air System, Japan Airlines, Malaysia Airlines, Northwest Airlines, Philippine Airlines, Qantas Airways, Royal Brunei Airlines, SilkAir, Singapore Airlines and United Airlines – and Travelocity who was owned by Sabre Corporation.

All 16 airlines are said to have invested from US$50 million to US$100 million (2001 figures). At that time, online travel was a boom in Asia and China, and these top airlines tried to find ways to cut distribution costs and bypass travel agencies.

At that time Zuji’s product development plans included what it said to be the “roll-out of a state-of-the-art” air booking engine and tours and packages capability. Scott Blume was the first CEO of the company in January 2003, and was optimistic about Zuji’s chance of leading the industry.

Also Read: Mobile-based food order-ahead startup Eatsy secures US$550K from East Ventures

However, the company ended up being acquired by Travelocity in 2006, sold to Webjet in 2013, who then sold it to Uriel Aviation Holdings in 2016.

The International Air Transport Association gave a confirmation that Zuji has been terminated from its billing and settlement plan, the clearing house for payments between travel agencies and airlines.

Photo by Yeray Sánchez on Unsplash

The post Asian online travel agency Zuji ceases operation appeared first on e27.

Source: E27Follow us on Social Media

Send in your scoops to news@theindependent.sg 

- Advertisement -

A room in Khatib advertised for S$550/month turns out to be a partitioned space

  Singapore – A member of the public took to social media to inquire if it was reasonable to pay S$550 a month for a partitioned space advertised as a room for rent in Singapore. One Fvyn Hedkandee took to Facebook on May...

Covid-19: Lawrence Wong warns SG now on ‘knife’s edge’, community cases can go either way in coming weeks

Singapore—Striking a sober note in Parliament on Tuesday afternoon (May 11), Education Minister Lawrence Wong conveyed that Singapore is now at a crucial point with regard to the Covid-19 pandemic. “I think it’s very important for us to understand that we are...

A ‘mistake’ to appoint ex-PAP minister Khaw Boon Wan chairman of new entity after SPH restructuring: netizens

Singapore – Netizens expressed concern over the news that former Cabinet minister Khaw Boon Wan will chair the board of the new not-for-profit entity following Singapore Press Holdings' (SPH) restructuring. That, according to them, will be "a mistake." Minister for Communications and...
Follow us on Social Media

Send in your scoops to news@theindependent.sg 

Theindependent