Page 51 - India's 10 Best Tour Arranging Companies For 2019
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they make the final decision b. Address customer perception issues by
based on cost. They actively expanding customisation beyond premium
share travel experiences via travellers into the mass segment.
word of mouth and online c. Use consumer tech to penetrate mass
channels. segments, reach non-transactors by building
• Occasional travellers an offline presence and provide access to new
visiting friends and users.
relatives spent $6 billion in d. Find innovative and economical ways to
2018. Most of them research package the experience, to increase both
online, but only around 60% adoption and retention.
book online. They prioritise e. Create a robust digital back end to respond to
convenience for the family customer needs across the purchase journey.
and work within a budget.
They believe online terms and The travel spend in India is expected to grow at 13
conditions are restrictive. per cent to a total of $136 billion by 2021. New users
To meet the expectations perceive that online channels are geared towards
of all travellers, companies more frequent flyers and experience-oriented
must overcome some customers’ perception that travellers and existing traveller’s research online but
online channels are geared toward the frequent flyer the lack of trust in payments and booking experience
and experience-oriented traveller—the premium make them end up booking offline.
If travel players tap these online users through
traveller cohorts. Meanwhile, the mass cohorts are personalised marketing, messaging and travel plans,
underpenetrated: Of the 160 million non-transacting they can further augment online travel bookings.
active Internet users in India, less than 5% of online This can be done by adopting digital technologies to
travellers are from Tier-2 or Tier-3 cities. There is also influence customers early in the journey. The report
opportunity among existing users who tend to distrust indicates a 12 per cent growth in transportation
online channels when it comes to payment and terms ($50 billion) and 13 per cent growth in lodging ($21
at the booking stage. Their online engagement drops billion) and consumption, which includes spends on
after the research phase, as many still prefer to book shopping, recreation and food, to grow at 13 per cent
offline. ($65 billion) over the next three years.
Adapting to the needs of online consumers will take As more people come online, smartphone
time. Businesses can shift their approach to the penetration improves and use of digital payments
market in the following ways: goes up, the report predicts that Indian travellers
a. Improve the booking and payment experience would spend an additional $24 billion on online travel
to alleviate consumer concerns and increase bookings over the next three years, a growth from 25
trust and adoption. percent in 2018 to 35 per cent in 2021.
