Deep Kalra, CEO of makemytrip.com

In the early days of the Internet, several web entrepreneurs had the idea of making travel easier and more accessible to the individual traveller. It is acknowledged to have been a bright idea, and yet it bombed. Looking back, the players who exist in the online flight reservations market today say that happened because it was an idea that was before its time.

That the time is just right now cannot be disputed. “Internet penetration in the country, low cost airlines that have made flying more accessible to the common man and the ease with which people use plastic money have all contributed to the growth of the online reservations market,” says Deep Kalra, founder and CEO of travel website makemytrip.com, one of the oldest players in this market.

According to Ashwin Damera, founder and CEO of another popular online travel website, travelguru.com, the increasing number of young and upwardly mobile professionals who value work-life balance is also contributing to the growing trend of planning travel online. “Customers are realising that the Internet offers them a transparent, real-time and hassle- free environment to plan, discuss and book their travel,” says Damera.

From a handful of online travel agents operating until last year, such as makemytrip.com and yatra.com, it seems today that there is a new competitor almost every quarter. In the last one year, websites such as travelguru. com, cleartrip.com and flightraja.com give the consumer a vast amount of choice when it comes to purchasing airline tickets, and indeed in planning their entire travel itinerary through hotel bookings and car rentals.

It is a piece of the airline e-ticketing pie that everyone is eyeing eagerly. According to industry estimates, the airline e-ticketing market is expected to capture 30 per cent of the total consumer spend on air tickets with an estimated 7 million passengers taking to the skies by 2007.

Ashwin Damera, CEO of travelguru.com

Also, online travel transactions are growing steadily. According to a recent IAMAI study, the average number of online travel transactions has increased nearly fourfold in two years, from 207,000 a month in 2003-04 to 795,000 in 2005-06. “With the kind of growing online user base and growth in the overall travel industry, there is room for more players in the short run,” says Damera. At the end of the day, the consumer is the one who will benefit and in the long run, only the four or five serious players will co-exist, he believes.

What draws consumers online? Is it discounts or convenience? Most online travel agents believe it is a combination of both, though in individual cases, one or the other may be dominant. A recent study done by travelguru. com indicates, for instance, that almost 80 per cent of the customers plump for the mid-priced ticket rather than the cheapest one, indicating that convenience is a big factor. “The power of information and indeed decision-making, will shift from the travel agent to the online customer,” believes makemytrip.com.

The discerning Indian traveller likes to feel that the choice rests in his or her own hands, says Vinay Gupta, CEO of the recently launched Flight Raja (www.flightraja. com) whose USP is ticketing through SMS and an integration between their online and offline services. “Instant gratification is a big factor for today’s consumer, and to see the choices of the various flight options available to you and selecting the one most suitable gives the consumer direct choice,” says Gupta.

As for competition, it’s not only between the various websites themselves but also several other players. There are brick and mortar travel agents like Thomas Cook and SOTC (incidentally, these have also started to sell flight options on their websites), and there are the airline websites. “We are not only competing with each other and offline agents but with the likes of airdeccan. com and spicejet.com,” says Gupta.

For consumers, the advantage of booking flights on comprehensive travel websites is definitely the power of comparison. Often superior discounts also count. Recently, Travelguru had an offer for almost 50 per cent discount on all flights of Air Sahara, an offer not available even on Air Sahara. Currently, the site offers great deals on Jet Airways with discounts of up to 50 per cent across 150 Jet flights.

Tie-ups between the websites and other players also get translated into benefits for the individual customer, such as a recent tie-up between makemytrip and Visa that gave fliers 20 per cent cash back on Kingfisher tickets. With the growth of the industry and increased awareness and competition, discounts will only climb upwards, say the experts.

India is in the midst of a travel revolution driven by low-cost airfares. With domestic aviation booming with growth rates of 25 per cent year on year for the last few years, the Indian customer has really never had it better.

Route Map

The Pujas are just around the bend, and if you really aren’t looking forward to manoeuvring your way through endless traffic snarls and hordes of revellers, how about giving the swirling waters of the river Teesta in Sikkim a shot! Yes, a white water rafting
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camera charges.

The rafting season begins from September and continues till April next year. For further details, call

Sinclairs at 2280 1317-20.