It’s time for Round 2 between the online and the offline travel agents. And the winner’s not hard to guess...
With growth guaranteed for online travel agents, the offline players are in for a ruder shock. siddharth nahata explains how online giants are killing competitors with shrewdly designed organic growth plans
In round one, online travel portals like
MakeMyTrip (MMT) and Yatra surpassed everyone’s expectations and knocked-off offline travel agents in a single blow. Like the Spartans who had put a million strong Persian army to the test in Hollywood flick 300, online players too did somewhat similar. What seemed a fight against destiny, travel portals proved every critic – from industry pundits to offline travel agents – wrong. Now, it’s the start of round two and the champions of round one are rolling up their sleeves to put up another immaculate performance. We’ll see how...
As they say, destiny favors the brave, the online players by all means stand in a sea of opportunities. The ‘small’ big boys are dreaming big and quite fittingly so. The industry turnover is growing at an unbelievable 50% y-o-y and is expected to touch a piping hot $2 billion by 2008. Estimations for 2010 put it at an even more astounding $6 billion from the current $1.3 billion! Currently, online travel bookings account for 11% of the travel market and this pie too is set to increase to 25% by 2010.
Deep Kalra, CEO & Founder, MMT reveals mega-plans to 4Ps B&M as he says, “We intend to become India’s largest travel company by 2009. Our strategies are well in line with our goals. We plan to drive growth through Holidays – both domestic and international.” The turnover for MMT for the year ending March 2008 was $250 million, up 80% from last year. This year too, the champion has set a hard line target of accomplishing a growth rate of over 80%. On the other hand, a relatively late entrant Yatra.com has managed quite superbly to capitalise on the ‘late mover advantage’.
With growth guaranteed for online travel agents, the offline players are in for a ruder shock. siddharth nahata explains how online giants are killing competitors with shrewdly designed organic growth plans
In round one, online travel portals like
MakeMyTrip (MMT) and Yatra surpassed everyone’s expectations and knocked-off offline travel agents in a single blow. Like the Spartans who had put a million strong Persian army to the test in Hollywood flick 300, online players too did somewhat similar. What seemed a fight against destiny, travel portals proved every critic – from industry pundits to offline travel agents – wrong. Now, it’s the start of round two and the champions of round one are rolling up their sleeves to put up another immaculate performance. We’ll see how...As they say, destiny favors the brave, the online players by all means stand in a sea of opportunities. The ‘small’ big boys are dreaming big and quite fittingly so. The industry turnover is growing at an unbelievable 50% y-o-y and is expected to touch a piping hot $2 billion by 2008. Estimations for 2010 put it at an even more astounding $6 billion from the current $1.3 billion! Currently, online travel bookings account for 11% of the travel market and this pie too is set to increase to 25% by 2010.
Deep Kalra, CEO & Founder, MMT reveals mega-plans to 4Ps B&M as he says, “We intend to become India’s largest travel company by 2009. Our strategies are well in line with our goals. We plan to drive growth through Holidays – both domestic and international.” The turnover for MMT for the year ending March 2008 was $250 million, up 80% from last year. This year too, the champion has set a hard line target of accomplishing a growth rate of over 80%. On the other hand, a relatively late entrant Yatra.com has managed quite superbly to capitalise on the ‘late mover advantage’.
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