Inbound remains ‘offline’ for OTAS?
The outbound and domestic has been a big hit with online travel agents ( OTAS), while most of them seem wary of aggressively pursuing the inbound space. finds out from the brave-hearts of the OTA space, who are inclined to create a niche in inbound, while
VIVEK SETHI All
the leading online players in India believe that the future of travel will rest on online channels, as
OTAs face stiff competition from the existing specialised and focussed players in the inbound space
the propensity to purchase travel online is maturing with the ever- increasing number of travellers in India. While an increasing number of travellers are becoming accustomed to shop for domestic and outbound products in India; a major challenge is being felt on the inbound front. But, all said and done, travellers in the mature markets are far more internet savvy and accustomed to online travel purchase, that makes all the leading OTAs look gleefully at attracting inbound travellers to India.
“The Indian online travel industry has witnessed huge growth and evolution in the past few years. The numbers of Indian travellers have increased enormously with a constant upgradation owing
The no. of Indian travellers have increased due to the rising disposable incomes & affordable holiday options
to the rising disposable incomes, affordable holiday options and the aspirational value perceived with travel. Indian travellers are increasingly seeking a richer experience and holiday is taken as an opportunity to explore and experience,” said Vikram Malhi, Country Head, Expedia India.
“For foreign tourists, India has also risen as a relatively cheaper destination, as their cost in terms of rupee fell by nearly 22 per cent on back of recent rupee depreciation. Naturally, the lower costs lure travellers towards India, which even otherwise is a popular destination. In fact, Expedia in India stands as the largest inbound travel operator. According to the Department of Tourism, close to 6 million tourists visited
The total Inbound to India is a very small number when compared to the size of the country and the various different sights
India last year. An increase in the rate of arrival as compared to last year, has already been spotted and inbound tourism is expected to be on a constant rise through 2012,” Malhi added.
Here Rajesh Magow, Co- Founder, COO & CFO, MakeMyTrip adds that MakeMyTrip has been catering to the US-India NRI market since 2000. “Our outbound business makes for 10 per cent of our total business. With increasing number of Indians showing interest in travel and experiencing other cultures, out- bound has been a big focus of OTAs. The majority of holidays and hotel bookings on MakeMyTrip are driven by Indian tourists planning their domestic or outbound holidays or from NRIs for their annual visits to India,” he added.
But before a rosy inbound picture can be posted for the OTAs, there are various formidable challenges.
We through Yatra Exotic Routes take care of all travel requirements for a host of international agents and operate as a DMC
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As Parikshit Sawhney, Managing Director, Fore Representations & Travels, “The total inbound to India is a very small number when compared to the size of the country and the various different sights that the destination has to offer.”
“It has got to do with many factors including hotel and transportation, which makes India an expensive destination as compared to competing Asian destinations like Malaysia, Thailand or even China. Further, OTAs are inherently online and inbound is purely offline. It requires customised handson service and super interaction with the clients, to ensure service delivery of the
With more Indians showing interest in travel and experiencing other cultures, outbound has been a big focus of OTAs
highest standards on the ground. Hence, it is more about the nature of OTAs versus the nature and volume of the inbound business in India,” said Sawhney.
Further, Ankush Nijhawan, Co- Founder & Chief Executive Officer, Travel Boutique Online highlights risks posed by volatile environment of our country like strikes, bandhs etc, which make inbound travel a very risky affair. “Lack of infrastructure is also detriment for tourists visiting India. OTAs also face stiff competition from the large and existing specialised and focussed players in the inbound space, who have been active in the business for the last so many years,” he adds.
Yatra.com here has an innovative practice, wherein it avoids taking pains of acquiring clientele in overseas market, as it finds it easier to service its overseas destination management partners.
“The cost of acquiring local customers directly and building a brand in local markets overseas would be expensive thereby, leading to lower revenue and not a profitable business case. We however, through Yatra Exotic Routes do take care of all travel requirements for a host of international agents and operate as a DMC here. And we have experienced that this part of business has more than doubled in the last 3 years,” said Pratik Mazumder, Head - Marketing & Strategic Alliance, Yatra.com.