Online travel agencies set to increase market share: Study
28 Mar 2007
New Delhi: According to a travel industry report, online travel agencies are all set to triple their market share even as traditional brick and mortar establishments are projected to see their share of the tourism market decline dramatically from 32 per cent in 2005 to a mere 10 per cent in 2008.
The report by Pacific Asia Travel Association (PATA) says India's fragmented travel supply market and sophisticated online retail and shopping experience is pushing out travel consultants to help travellers plan their trips.
According to reports, the online travel market in India is set to see its value rise manifold over the next two years, due to two major developments — the rise of low-cost budget airlines and the emerging middle class.
According to estimates, the online travel market, which was an estimated $295 million in 2005 is projected to grow to $2 billion by 2008.
The domestic travel market has also been boosted by growing investments in tourism infrastructure, growth of banking infrastructure facilitating online payments, and the success of Indian Railways' online booking.
Boosted by the growing trend towards independent travel, the online booking will increase from just two per cent in 2005 to more then 10 per cent in 2008, it says.
