Over 8 mn Indians to book hotels online by 2016 says Google report

An estimated 8.4 million Indians are likely to book hotels online by 2016, up from 3.5 million in 2014, a report compiled by Google India has said. The report is based on a research conducted by TNS. The online hotel booking industry is estimated to be worth $1.8 billion (Rs 11,226 crore) in 2016, from the current $0.8 billion (Rs 4,989 crore). The report revealed a greater share of women (50 per cent) research and book hotels online compared to men (41 per cent).

The report revealed that 57 per cent of users, who research online but book hotels offline, prefer relaxation trips.

Around 36 per cent of users who research online and book hotels online prefer luxury leisure trips.

A greater share of women (50 per cent) research and book hotels online compared to men (41 per cent).

TOP REASONS FOR BOOKING HOTELS ONLINE | Create infographics

While only 29 per cent of users book hotels online, the base of total number of users who research for hotel information online and book offline is very high. Around 83 per cent of users who research for hotels online are comfortable transacting online and do an online transaction once a month.

Speaking about the findings of the research, Vikas Agnihotri, Industry Director, Google India, said, “The research findings reveal the high growth potential for online hotel bookings in India. While the overall user base of people looking for information on hotels online was very high, the conversion is still happening offline. We hope the report will provide meaningful insight to the industry and help overcome the gaps that exist in their offerings and grow the sector to its full potential.”

In terms of demographics, users in the age group of 35 – 44 are the most savvy when it comes to booking hotels online, displaying the highest numbers. The report revealed the growing usage of mobile phones as the preferred choice of device for accessing the Internet in India. On Google search, hotel searches from mobile saw 30x growth from 2011 to 2014. Payment for hotels still seems to be a majorly offline activity, as two-third of Indian travelers prefer to pay offline while half of them pay directly at the hotel..

Findings also revealed that short duration trips are on the rise in India, as leisure travelers prefer more than 2 or more trips in a year, with 64% respondents preferring short trips of less than 5 days.

Budget accommodation is the most popular with users in India, with 49% users booking budget hotels, 32% users book economy hotels and 19% users book luxury hotels. Friends emerged as the most preferred travel companions at 37% followed by family at 31%.

In terms of barriers for booking hotels online, safety and trust were the top deterrents.

Respondents cited low trust in online portal offerings. Complicated terms and conditions, concerns about online cancellation policies, better rates and discounts available offline and personalised service were cited as the other reasons for users to book hotels offline.