There was a time when I used to hear people say that it will take ages for the internet to penetrate Indian market. This is because at that point in time, most Indians preferred to buy products and services in a very conventional way. I believe many of them still follow the same buying pattern. While I do make online purchases today, I myself prefer to buy many things offline, products that I can see, feel, touch in person, so that I get that sense of satisfaction. You may call me old-fashioned, but I need to know what I am buying, after all I work really hard to earn my income and I want to spend it wisely and correctly. Millions of Indians feel the same way, but in last 5-7 years things have changed. Indian markets have grown considerably with the help of internet boom happening across the country. The metro cities of India sum up only 1/4 of the nation’s population, while the remaining 3/4 population still lives in the rural area, but there has been a tremendous growth of online companies that provide services and products entirely online. Travel is just one such segment where you can see a dramatic change.
Although, that does not mean that online booking has completely taken over the scenario, but the fact is that online booking websites are growing exponentially and there are more entrepreneurs that are coming up with apps and sites that cater to travelers across India. You can go across India, including metro cities like Mumbai, New Delhi, Chennai and Kolkata and you will still find long queues of passengers filling up reservation forms for trains, some getting in touch with their favorite travel agent that can help them get the seats on time, but there is a new breed of travelers that love to install apps and book tickets through their smartphones and even on the internet. This new breed prefers not to wait in long queues and waste time and still get the seats for their travel. The most surprising fact about the internetisation of the travel segment is that most rural areas still do not have adequate 3G penetration and majority of the users are reluctant to give away their credit/debit card information online.
As per the latest research data provided by Phocuswright, online channels account for 39% of travel booking and the numbers are growing. Many new online firms and apps have come up market their service aggressively on various channels in an attempt to reach to the masses. These ads mainly target those who are reluctant and hesitate to download apps or go online and do the transaction. The advertisements generally focus on the simplicity and effectiveness of the online site or app that the company has rolled out. The concept has worked for sure as we can see more and more apps and online sites rolling out launching new services that simplify the entire travel experience.
The easy availability of smartphones at affordable price tag is also considered to be a major factor that has boosted the tourism industry across India. Many Indians today have access to information at their fingertips allowing them to browse and gather more information before they travel. It also provides them with the option to search for different destinations they’re interested in. An average Indian traveler who usually travels to religious/spiritual places or to meet relatives, today can search for more places to satisfy his or her hunger for adventure and to explore the country. While India is still behind compared to the United States and China in terms of numbers, there is a steady internet penetration as the number of smartphone users continue to grow.
Online travel websites and apps also provide travelers with options to get the best deals’ which helps them to make better choices. Similarly, bus and railways have come up with their own websites and apps that allow users to find information and book their tickets well in advance in a user-friendly way.
Hotels and restaurants are not too far behind as there are several websites and apps that allow travelers to find the nearest hotels, restaurants, bars and lounges at their convenience. Even small and medium-scale hotels and lodges are now using the internet platform to reach out to the customers. Online websites and apps have also made it easier for the travelers to provide their feedback and share experiences allowing travelers to make better decisions based on past reviews. It has also allowed hotel owners and restaurant proprietors to interact directly with their customers in real time and stay informed about the satisfaction level of their services.
The internetisation of the tourism industry in India has seen tremendous growth in the past few years and it will continue to do so, as more small and big players join the bandwagon. There are private companies that are trying to reap heavy benefits from untapped markets and make profits while offering a convenient option for travelers across India like never before.
18 comments
Now that the process has begun, I would imagine that it will expand and at a very fast pace.
Certainly Dan. New players are disrupting the trends with innovative ideas.
I always try to purchase something at my local shops. But unfortunately even store clerks have been recommending buying through internet, since they don’t carry the product. This has resulted in not only bankruptcy and empty stores …even malls have been closing down. I believe the internet is the biggest reason why so many countries are in an economic crisis.
Here in India, malls are on the rise. They’ve been here since last 15 years and there are more consumers that love to buy from malls. However, internet shopping is gradually picking up, so malls have time to experiment and lure more customers for the time being.
While it took a long while for us to feel comfortable with online services, Sharukh, we have begun using it more. Holiday shopping is too expensive with all my extended relatives living far away when I have to also package and ship the gifts. As well, we have planned many trips solely using online booking services including hotel and car rentals. We both still prefer shopping at independent retail shops when we can because it has become so difficult for the “little man” in business to stay afloat with the mega stores and cheaper and cheapened products available and the public being far less savvy with their spending. We had our own optical shop once and understand this. But to be assured the best prices for travel, we prefer to do it ourselves and can read reviews and comparison shop before making our arrangements. Things in the world have indeed changed a lot! Great post.
Thank you Cheryl for your comment. I think internet has worked for many of us, but it has also raised the competition to another level, ruining lot of traditional businesses. However, in India we say – Change is Constant, and so we have to keep evolving.
Reblogged this on Passionate Ambika and commented:
Very informative write-up on Tourism Industry in the digital era.
well that was a f***** informative blog. you nailed it. i read ur blog post twice. its very nice. moreover i liked the way you have taken the entire topic into consideration from a fresh perspective.
its indeed a path breaking write-up. Keep writing. Keep Inspiring.
Ambika, your comments inspire me to push my limits and cover new innovative topics. Thanks so much for an inspirational comment.
Well said. Things have changed and are still changing. I have seen friends who go to a mall to try out stuff and then come back home and order it online. That’s how the online retail is revolutionizing things around us.
Well, I have been impacted to a large extent – A lot of my stuff gets done online and I kind of value the time that I get.
Informative post!
Thanks Parul for your comment. I usually browse websites and then buy the same product from the store.
Really? You get it cheaper online!
I’m a completely different breed of customer. For me quality and satisfaction matters. Yes, we get cheaper deals online, but I want to see, touch, feel the product before I buy it.
So, touch and feel in the store and get back home – click and order 🙂
No, I buy it from the store. Online shopping occasionally only
Fascinating insight into how traditional consumerism is adapting to moderm technology in India. Considering the phenomenal economic growth of India and Asia as whole this embracing of internet shopping and other services doesn’t surprise me… I quite like the personal touch when it comes to shopping and browsing but the ease and convenience of the net can’t be ignored. With so many physical outlets closing thectrendctowards ever increasing online trade will definitely continue for some time. Great post Sharukh..
Thanks Paul for your kind words. India is not just what media shows so I thought let me also bring out other side of how travel is changing here. Glad to hear that you liked it.
This is so different from the India I knew ten years ago 😊