Mumbai: 24 August 2005

Fasten your seat belts!

More and more Indians are using the Internet to plan their travel. For travel companies and marketers, online is where the action will be.

The Indian travel sector is booming like never before. Low-fare airlines, improving infrastructure and higher disposable incomes are encouraging Indians to indulge their wanderlust.

Around the world, travel is one of the most surfed categories of information online. So popular has the concept become in the West that today most people use online travel sites. According to one estimate, two-thirds of travelers in the US who used the Internet used it to make travel plans. And some 32.1 million US households are expected to use it to book their vacations this year.

In India, too, the Internet is increasingly becoming a great resource for travel planning. In a recent survey by IOA, travel-related categories featured among the most popular. Consider these findings from the survey
39% of respondents had bought railway tickets online and 48% are likely to buy them in the near future
29% had bought airline tickets online and 46% are likely to buy them in the near future
20% had bought hotel rooms and 31% are likely to buy them in the near future
Clearly people are ready to buy travel products online. This is surely a great opportunity for travel marketers as well as companies.

Says Sachin Bhatia of Makemytrip.com, "Travel selling is actually tailored for the Internet. In the bricks and mortar world one typically buys travel over the phone without actually touching or feeling a product. Internet offers the same selling process, but only better and faster without any human intervention. For example, the options that a flights search engine can throw up cannot be replicated by any agent or even a battery of them."

Agrees Manish Vij of Quasar Media: "No medium can match the vast pool of information that Internet can deliver for researching a destination or planning before traveling. Travel companies can use this huge opportunity to catch the right person at the right time and convert an information seeker (who is likely to be inclined to travel or buy travel products) into a customer."

The medium makes it easy for travel marketers to sell their products in a very cost effective manner. "The nature of travel products is such that there are new deals every day for the same flights, destinations etc and it is only on the internet that one can disseminate this information," says Sachin. He believe that popular travel products like flights, car rentals, cruises and short vacations will move completely to the Internet in the next 3 to 4 years.

It is vital, therefore, that travel companies have an online presence. Don't just put your company brochure online. Use the interactivity of the Internet to provide travel planners and information about destinations. Indian travelers love packaged travel, so companies with strategic tie-ups and those that provide end-to-end packaged solutions will have an edge.

Since an online presence allows companies to lower infrastructure and manpower costs, you can offer good bargains. Discounts are an integral part of the travel industry. Most potential travellers visit web sites to get the best deals possible. Another way to encourage users is by providing innovative pricing, through auctions etc.

Online travel sites must go beyond basic requirements to provide tangible benefits to buyers. One of the biggest drawbacks of online travel shopping is that a potential customer has no agent to talk to, discuss his plans and find out the best options. So great content, customer service and good interactivity is of paramount importance. Good images of destinations covered, user reviews, travelogues will help make the process an easier one for online users. Says Sachin: "As a category travel is sold a lot on word of mouth. This is where online reviews, resort ratings, travelogues help browsers narrow down their options and choose a vacation that suits them."

Online advertising offers a great way for travel sites to attract visitors and for travel companies to build their brand. Says Manish: "Search engine marketing, affiliate marketing and contextually targeted pay-per-click advertising are some of the most cost effective ways of reaching out to customers."

Search engine advertising allows travel companies to reach a global audience and target only those users who may be potential customers for their products. Contextual advertising makes it possible to target travelers at niche sites or when they are reading travel-related content. Many travel companies are using traditional forms of online advertising such as banners, contests etc at highly-trafficked sites during strategic periods to increase their brand's presence.

The number of Internet users in India is expected to be 100 million by 2007. Going by trends around the world, a large number of these will be looking for travel-related information and products. The Internet has great potential to become a great travel bazaar.
 

 
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