The Google India – BCG Report research finds that consumers use a mix of online and offline sources of information during their booking journeys. However, only 12% of the consumers prefer to use offline sources for research. 57% of the consumers believe that online travel portals give them better deals, while 41% find it more convenient to book online.
The services like travel ticket, flight, bus, cab and hotel booking are only a click away from users. And there are numerous options available for users. So, a travel portal has to ensure that it is equipped with the options and easy to get users coming back for their booking needs.
Current Status Of Online Travel In India
The growth in the Indian online travel space has been fuelled by many key drivers. These include the increase in household incomes, rise in e-commerce and smartphone penetration, and the Government’s attempts to ease out on-arrival visa policies in other countries etc.
However, with increased competition, high cash burn rate, and reduced margins, the companies in this sector have now been divided into two segments. Traditional players which majorly started with an online ticketing service and then bloomed into different verticals.
MMT, goibibo, Yatra, iXigo, ClearTrip etc. are known as the change makers in the Indian online travel, moving the sector to another level of maturity. The MMT-Ibibo group deal worth $720 Mn towards the end of 2016, was listed as a key factor to increase the predicted overall market size of the online travel market in India. With approval from the Competition Commission of India (CCI) in March 2017, the combined entity will now be valued at around $2.2 Bn, snatching more than 45% of the overall market share.
As shared by Pratyush Kukreja, COO and co-founder, YuMiGo Web Services Pvt. Ltd., in an earlier interaction with Inc42, “MMYT-Ibibo combined, not only has better costs but also can out-discount any competition now. The suppliers (hotels, airlines, flight distribution systems) will be squeezed further for margins; and there is no number two player now by a wide margin. So, the suppliers have no one else to go to if MMT-Goibibo-combined start to twist some arms.”
Around the same time, Yatra, another veteran of the Indian online travel market, merged with a US-based Nasdaq-listed American company Terrapin 3 Acquisition Corporation (TRTL). The deal was done at a valuation of $218 Mn, giving Yatra an additional $80 Mn to compete with its rivals.
Different roles In Travel Industry
The Ministry of Tourism has a scheme for granting approval to hotel projects from the point of view of this suitability for international tourists. A classification committee set up by the Ministry classifies the functioning hotels under the star system into six categories from star one to five star deluxe. Similarly, the Ministry has a scheme of approving Travel Agents, Tour Operators, Adventure Tour Operators, and Tourist Transport Operators, the idea being to encourage quality, standard and service in these categories so as to promote Tourism in India. This is a voluntary scheme open to all bonafide agencies.
- Travel Agents
A Travel Agent is one who makes arrangements of tickets for travel by air, rail, ship, passport, visa, etc. It may also arrange accommodation, tours, entertainment, and other tourism-related services.
- Inbound Tour Operators
An Inbound tour operator is one who makes arrangements for transport, accommodation, sightseeing, entertainment and other tourism-related services for foreign tourists.
- Tourist Transport Operators
A Tourist Transport Operator Organization is one, who provides tourist transport like cars, coaches, boats etc. to tourists for transfers, sightseeing and journeys to tourist places etc.
- Adventure Tour Operators
An Adventure Tour Operator is one who is engaged in activities related to Adventure Tourism in India namely, water sports, aero sports, mountaineering, trekking and safari of various kinds, etc. In addition to that, he may also make arrangements for transport, accommodation, etc.
- Domestic Tour Operators
A domestic tour operator is one who makes arrangements for transport, accommodation, sightseeing, entertainment and other tourism-related services for domestic tourists.
Some names of Market Players:
- Expedia, Inc.
- Priceline Group Inc.
- TripAdvisor LLC
- Ctrip.Com International, Ltd.
- Hostelworld Group
- Hotel Urbano Travel and Tourism Sa
- Trivago Gmbh
- Thomas Cook Group plc
- MakeMyTrip Limited
- Alibaba Group
- Elong, Inc.
- TUI Group
- Tuniu Corporation
- AirGorilla, LLC
- Hays Travel limited
- Airbnb, Inc.
- Yatra Online Private Limited, India
Traditionally, travel agencies’ principal source of income was and continues to be, commissions paid for bookings of car rentals, cruise lines, hotels, railways, sightseeing tours, tour operators, etc. A fixed percentage of the main element of the price is paid to the agent as a commission. Commissions may vary depending on the type of product and the supplier. Commissions are not paid on the tax component of the price. Travel agencies also receive a large variety of bonuses, benefits, and other incentives from travel and tourism-related companies as inducements for travel agents to promote their products. The customer is normally not made aware of how much the travel agent is earning in commissions and other benefits. Other sources of income may include the sale of insurance, travel guidebooks, public transport timetables, and money exchange.
What Espay offers for Travel Solutions
Espay is the best travel portal development company in India that has been offering b2b travel portal for many years. If you are emerging your travel business or get-in for the first time in e-business, we are here to aid your travel portal related requirements. The software is designed and developed with the mixture of cutting-edge technology and world-class quality. With our module, your customers can easily get all the information regarding your different travel solutions.
The team at Espay is passionate about Travel Portal development. We bring innovative ideas and the latest technology to give your business a frame for this market competition. We are already delivering many groundbreaking API integration services on a domestic level. Espay is a perfect room to get top-quality solutions on the field of travel booking services.
Features of travel portals
The travel API provider or hotel API provider provides some important features along with the travel portal:B2B/B2C/B2E portal: – Mostly the travel portal offers everything includes Business to business, business to customers and business to an employee. This means anyone can avail the complete travel portal service.
- Payment gateway: – People can find flexibility in payment gateway while using the portal. Apart from Debit & Credit card and net banking, UPI is also available nowadays.
- Admin control: – If agents are doing the travel booking online, they can get full admin control panel.
- Easy to manage: – You are able to manage all your packages with the help of travel white label solutions,
- Application available: – Travel technology solution provider mostly provide application along with the website. So, with the use of the application, you can easily operate this portal.
- Corporate markup: – Travel agents plus travel portal development company plus all related networking get benefits in the world of corporate.
Contact Espay now to start or upgrade your own travel portal.