Online travel portals going places beyond the Internet

Stiff competition being the mother of all innovation, travel portals have been constantly innovating over time to survive and thrive, and increasingly moving beyond the Internet medium to reach out to customers and make some much needed conversions. Online travel companies are extending their services offline with tie-ups with retail chains and mobile versions.

And the results are showing. According to PhoCusWright, a travel industry research firm, travel portals in India did business to the tune of $800 million (of the total $15.5 billion travel market in the country) in 2006. The firm expects this to increase to $2 billion by 2008.

In a country with over one billion people, whose population is projected to exceed that of China’s by 2045 according to the United Nations, the market potential ultimately surpasses that of the US. and Europe combined. Moreover, in a statement issued by financial service provider Visa, airline ticket customers formed 40 per cent of online shoppers in India in the six months to June 30, 2006.

Interestingly, all the industry players report a conversion rate of well below 10 per cent for the Indian online travel market. It is estimated that most players have a conversion rate between 6 per cent and 8 per cent.


exchange4media.com, India