Friday, December 28, 2018

Increase in House Income Coupled With Smart Phone Penetration to Drive Online Travel Services Market in India : Ken Research

According to study, “Online Travel Services Market in India (2018-2023)” some of the major companies that are currently working in the online travel services market in India are Cox & Kings Limited, Thomas Cook (India) Limited, Ibibo Group Private Limited, Cleartrip Private Limited, Oravel Stays Private Limited, Expedia Corporate Travel Online India Private Limited, Yatra Online Private Limited, MakeMyTrip (India) Private Limited, International Travel House Limited, RedBus.in. These key players provide differing costs, rates & locations for accommodations, transportation and tour packages etc.
Online travel service is an electronic service used for booking ticket of passengers via internet, also called e-travel services or web-based travel services. It is made-up of e-commerce websites, which provide convenient booking to customers. These websites provides full or 360 degree view of photographs, audio tours, video blogs and video reviews. It is a convenient and easy method to provide a quick, convenient, to book their traveling needs and requirements.
The corporates and businesses contribute to a majority of online travel bookings of flight and hotel bookings in India. Corporate, small and medium enterprises account for majority of share in the domestic flight bookings while individual customers have also increased considerably over a period. The market for online travels have registered a growth primarily based on increase in household incomes, rise in ecommerce and smartphone penetration, and the Government’s attempts to ease out on-arrival visa policies in other countries etc.
On the basis of booking mode, the online travel services market is segmented into online travel agencies (OTA) and direct travel suppliers. An OTA is a tour website that focuses in the sale of travel products to customers. On the basis of platform, the market is segmented into desktop and mobile. On the basis of age group, the market is segmented into 22-31 age, 32-43 age, 44-56 age and above 56 age. The applications are split in the market based on the demand for the online travel services include travel accommodation, transportation and vacation packages.
Online travel services are illustrated by strong competition. It includes various online portals and search vendors such as traditional travel agencies, private shopping websites and travel suppliers.
The market of online travel services is mainly driven by increasing internet penetration rate. Increasing e-commerce & m-commerce services, increasing digital media, favorable demographics, increase in disposable income, growing youth, rising adoption of social media, rising demand-pooling business models and government regulations are growing extensively which led to the growth of the market.
Apart from advantages, some of the restraint factors are industry practices, limited penetration, low operating margins, tech infrastructure, poor industry practices, payment processing issues and cultural barriers etc. Some of new opportunities are expansion of start-ups, social network domain, exploitation of mobile platforms and scope in sports & medical tourisms. In addition, some challenges are nullification of commission on air tickets and high market competition.
It is predicted that air tour package segment will become major segment due to availability of greater number of offers and deals. Online air travel agencies or websites offers travelers information about airline schedule, air fares and online bookings & reservations. In upcoming years, it is estimated that online travel service market will be grown due to high degree of convenience, emergence of artificial reality (AR) and growing middle-class population.
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