Introduction:
Fareportal is a global travel technology company known for offering one-stop-shop solutions for travelers. Established in 2002, the company provides end-to-end travel booking services and technology solutions to major players in the travel industry such as airlines, hotels, and car rental agencies. With its headquarters in New York, Fareportal has expanded over the years and has offices across the world, including India, the Netherlands, Ukraine, and the Philippines.
Funding and Investors:
Fareportal has had a total funding of $320 million, with the latest funding round being in 2018, where they raised $150 million from venture capitalists. Some of the notable investors who have backed the company include Guggenheim Partners, Baird, and the Ontario Teachers’ Pension Plan Board.
Company Performance:
Fareportal has been a major player in the online travel booking space, with its flagship product, CheapOair, being a household name among travelers. In recent years, the company has been aggressively pursuing expansion opportunities, launching new platforms and expanding its reach in emerging markets. However, despite these efforts, the travel industry has been hit hard due to the COVID-19 pandemic, forcing the company to make some tough decisions.
Layoffs
On March 26, 2020, Fareportal made the difficult decision to lay off 200 of its employees in its Indian office located in Gurugram. The move was a result of the collapse of the travel industry, which forced Fareportal to take drastic cost-cutting measures to stay afloat.
According to industry reports, Fareportal was not the only travel company that was affected by the COVID-19 pandemic. Many other travel companies, including Expedia and Booking.com, were also forced to lay off thousands of their employees due to the sudden halt in travel. Companies in the travel industry are expected to continue facing challenges in the months and years ahead as the world attempts to deal with the COVID-19 pandemic.
Statement from the Company:
In response to the layoffs, Fareportal released a statement saying that it was a difficult decision but one that was necessary to ensure the long-term viability of the company. The company also stated that it was providing support to its affected employees, including severance packages, healthcare benefits, and job placement assistance. The company also emphasized that it was looking for ways to adapt to the changing business environment and was investing in new products and technologies.
