Demonetisation effect: Online travel sales rise in 2017

Mobile travel sales, a subset of online sales, to residents grew by 58% in terms of current value sales

Over the past few years online travel sales have seen a sharp increase as a growing tribe of millennials and urban travellers rethink the way they travel according to Euromonitor International. “Furthermore, demonetisation helped to grow online travel sales during the year 2017. Railway bookings through Paytm became common, as even consumers in second-and third-tier cities started to switch to the online channel,” said Shabori Das, senior research analyst at Euromonitor International  

• Online travel sales to residents up 13 per cent in retail current value terms in 2017, expected to reach Rs 1.4 lakh crore

• Growth driven by millennials and the urban residents who view travel as a lifestyle choice, rather than an annual family holiday 

• Almost all travel agents and tour operators had an online presence in 2017 

• Metasearch engines remained popular among seasoned travellers. Portals like Sky Scanner, Ixigo.com and Ezeego.com were among the most popular 

• Mobile travel sales, a subset of online sales, to residents grew by 58 per cent in terms of current value sales. Growth was driven by the increased use of smartphones in the country, and growing availability of applications and mobile websites by all intermediaries and direct suppliers

• Car rental direct mobile sales to residents registered the fastest retail current value sales in 2017, supported by the increased demand for self-drive car rental in India 

• The mobile channel is increasingly perceived as more convenient, also extra discounts make it more popular 

• Smartphones remained the most dominant device for mobile travel sales 

• Mobile applications were more popular for searching and browsing information before travelling. However, actual bookings were often made through the online channel

• In addition to bookings, mobile devices were popular for boarding purposes in India. Whether on airlines, trains or buses, many travellers preferred to use mobile or m-tickets or a copy of their e-mail confirmation for boarding purposes

• In terms of online travel sales to residents, an 8 per cent retail value CAGR (compound annual growth rate) at constant 2017 prices is projected for the forecast period 2017-22

• A 27 per cent retail value CAGR at constant 2017 prices is expected for mobile travel sales to residents over the forecast period 2017-22

Source: Online travel sales to residents in India, Euromonitor International