Yahoo Japan, Softbank, JTB to sell online travel

TOKYO (CBS.MW) -- Yahoo Japan and Softbank E-Commerce Corp. unveiled a joint venture Tuesday with the nation's leading travel agency Japan Travel Bureau Inc. (JTB) to offer travel services online.

The new company, Tavigator Inc., will be set up at the end of April with initial capital of 100 million yen ($943,000) and will launch services in May.

"Travel-related e-commerce is one of the fastest-growing businesses in the world and we believe it will become a 1.2 trillion-yen business ($11.3 billion) by 2004 -- that's18 percent of total e-commerce," Kazuhiko Kaneko, chairman of the new firm, told a press conference.

JTB, the main stake holder, will own 42 percent of Tavigator. Yahoo Japan, an affiliate of Softbank and Yahoo Inc. of the U.S. (YHOO) will own 30 percent. Softbank E-Commerce's stake will be 10 percent and other Softbank group companies will hold the remaining 18 percent.  

Two months after starting domestic services in May, Tavigator will begin offering overseas travel services from July using Yahoo Japan's Web portal, the companies said.

The Tokyo-based e-venture will also handle other travel-related services such as discounted airline tickets, car rentals, insurance and -- can't miss this part in Japan -- souvenirs.

Masayoshi Son, the Internet billionaire chairman of Softbank, said Tavigator will seek to list shares along with other group companies.   

Shares of Softbank closed down 500 yen at 75,000 before the announcement. Yahoo Japan stock tumbled 6.5 percent to 53 million yen a share, down 3.7 million, on Tokyo's over-the-counter market. Yahoo Japan is 51.2-percent owned by Softbank. Yahoo of the U.S. holds a 34.2-percent stake.

Mariko Ando reports for CBS MarketWatch from Tokyo.