Flights, hotels, packaged holidays bought on the go likely to grow at a staggering rate: Study
The report said ‘price conscious’ Indian travellers do extensive researchmumbai Updated: Mar 02, 2017 15:52 IST
Flights, hotels and packaged holidays bought on the go are projected to grow at a staggering rate, said a study released on Thursday. The study — conducted by Euromonitor International for Criteo, a performance marketing technology company — showed travel sales on mobile phones are set to rise at 67.1% CAGR (compound annual growth rate) between 2017 and 2020.
The report pointed out that better disposable incomes and several nearby countries offering visas on arrival have whetted Indians’ appetite for vacations. The amount spent on leisure trips is likely to increase at 9.9% CAGR, the report added.
“The Indian travel landscape is changing rapidly, and has seen significant growth in the past decade. With the rise of online travel agencies (OTAs), an increase in domestic flights and mid-budget segment hotels, Indian travellers have started spending heavily on leisure and travel,” said Dushyant Sapre, commercial director, Criteo India. He added that the trend of weekend trips and seasonal travel has become popular among Indians. “Tech-savvy millennials primarily search for the best travel packages and in-destination activities through their mobile phones and OTA mobile apps.”
Travel bookings made on cell phones are not always impulse purchases observed during flash sales. The report said ‘price conscious’ Indian travellers do extensive research. Almost six of 10 travellers browse travel websites over the weekend. About 80% of people from all age groups prefer to browse and search for travel products and services at home, it added.
Millennials (54%) and baby boomers (44%) most often use smartphones to browse travel products and services online, said the report. It added that on average, a person took 6.7 trips in the past 12 months, spending about Rs55,176 a trip. Debit and credit cards were the most popular modes of payment, it added.