A new Technavio report presents segmentation of the retail travel services market in India by mode of booking (offline and online), and by services offered (hotel accommodation, domestic flight, rail ticket, domestic bus, rental taxi/cab, holiday package). It includes an analysis of emerging trends and some of the key challenges within the market. The report also outlines the leading players in the market, including Cox and Kings, MakeMyTrip, and Yatra.
Technavio presents an in-depth analysis of the Retail Travel Services Market in India, which is estimated to grow at a CAGR of nearly 15% between 2015 and 2019 with a rise in disposable income, which has resulted in an increase in leisure travel in the country.
The new industry analysis from Technavio presents an insightful breakdown of the travel services market in India highlighting its growth potential through key drivers and trends.
The travel services market in India can be classified as offline and online, where the offline segment dominates the market, accounting for a share of around 55% because the larger Indian population residing in tier II and tier III cities is still reluctant to book tickets online due to lack of knowledge about the internet and fear of fraudulent sites. However, the online segment is expected to boost the travel services market in India, reaching over US $34 billion by 2019 in terms of revenue. This dynamic shift is attributed to increased penetration of internet and growing consumer concentration towards m-commerce.
Travel Services Market in India by Mode of Booking 2019
Source: Technavio Research
The hospitality sector is expected to witness continuous growth; as per Technavio’s market research analysts, hotel booking through online mode is higher than offline and has accounted for around 68% in 2014 primarily driven by factors such as same day or last minute booking through mobile and rise of short duration trips.
“Growing consumer interest towards m-commerce is one of the key game changers of this market as 76% of the aggregate online population in India is using mobile internet. Travelling companies are offering incentives through huge discounts, cash back proposals and gift vouchers to book online, besides encouraging to download their mobile apps. Also, the rise of mobile wallets and electronic cash is widening the customer base of m-commerce companies,” says Sriram Mohan, Lead Analyst, Consumer Goods and Retail, Technavio Research.
Major vendors dominating this market include Cox and Kings, MakeMyTrip, SOTC, Thomas Cook and Yatra. To stay competitive, the leading players are increasingly striving to provide innovative services to the consumers within this market. Also, these travelling companies are adopting user-friendly interfaces such as time saver quick book, easy navigation, and better connectivity to encourage online travel booking and adding convenience to customers.
A more detailed analysis is available in the Technavio report, Retail Travel Services Market in India – Forecast and Trends 2015-2019. We can customize reports by other regions and specific segments upon request.
Other Related Reports:
- Global Travel Agencies Market 2015-2019
- Travel Insurance Market in the APAC Region 2014-2018
- Global Business Travel Market 2014-2018
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