Online travel portals going places beyond the Internet
Stiff competition being the mother of all innovation, travel portals have been constantly innovating over time to survive and thrive, and increasingly moving beyond the Internet medium to reach out to customers and make some much needed conversions.
Stiff competition being the mother of all innovation, travel portals have been constantly innovating over time to survive and thrive, and increasingly moving beyond the Internet medium to reach out to customers and make some much needed conversions. Online travel companies are extending their services offline with tie-ups with retail chains and mobile versions.
And the results are showing. According to PhoCusWright, a travel industry research firm, travel portals in India did business to the tune of $800 million (of the total $15.5 billion travel market in the country) in 2006. The firm expects this to increase to $2 billion by 2008.
In a country with over one billion people, whose population is projected to exceed that of China’s by 2045 according to the United Nations, the market potential ultimately surpasses that of the US. and Europe combined. Moreover, in a statement issued by financial service provider Visa, airline ticket customers formed 40 per cent of online shoppers in India in the six months to June 30, 2006.
Interestingly, all the industry players report a conversion rate of well below 10 per cent for the Indian online travel market. It is estimated that most players have a conversion rate between 6 per cent and 8 per cent.
Nikhil Rungta, Head of Marketing, Yatra.com, believes that good service, value additions and promotional schemes will help in increasing the conversion rates in the industry. “Previously, it was value for money, but today it’s money for value. Customers are increasingly looking for more value rather than discounts these days. And most importantly, people are now willing to pay money if we show value,” he pointed out.
In terms of extending services beyond the Internet, Rungta claimed that Yatra.com was the first online travel portal to have mobile applications for booking tickets through mobile phones. “We have been trying to increase our value of services to our consumers with services like mCheck (mobile payment) and Cash on Delivery. In this endeavour, we have also tied up with Reliance Web World for selling the tickets,” he further said.
Hari V Krishnan, VP – Product and Marketing, Travelguru.com pointed out that his travel portal was more focussed towards hotel booking business rather than flight ticketing business, as the former was a high margin, low volume business as compared to the ticketing business, which was a low margin, high volume business. Speaking about the conversion rates for the company, Krishnan gave approximations that while the hotel business gave high double digit conversions, the flight ticketing business gave below 10 per cent conversions. “In my personal experience, there seems to be a lot more conversions through our call centres,” he remarked.
Addressing the issue of retaining consumers given the increasing number of online travel sites, Krishnan feels that pushing people through offline methods are useful. “In Tier II and III cities, as the Internet penetration is not that high, pushing people through offline modes is useful. We have tied up with Café Coffee Day and other retail chains, and in Karnataka we had pioneered SMS-based ticketing,” he explained.
Sandeep Murthy, CEO, Cleatrip.com, observed that the Indian customer’s mindset was that of a bargain seeker and would certainly compare products on sites before making a purchase decision. “The key to customers coming back to you is to provide a fantastic online experience and make this search for travel simple. Also, the differentiator lies in the level of service delivered, access to exclusive product/deals,” he added.
“We have 80,000 visitors daily on our site, of which 30 per cent are unique visitors,” claimed Murthy. He believes that with the simplicity, quick and high quality service, innovative deals and offers, and comprehensive availability of booking options helps the company in retaining its customers.
Commenting on Cleartrip’s offline activities, he explained, “Our perspective of offline distribution is to ensure we are strategically placed in the midst of qualified traffic, which is in keeping with our tie-up with the Future Group to be present in the Big Bazaar outlets. On the mobile front, at this point the phone will only be used to search for travel and we have created a unique travel product on the mobile that delivers best deals across all airlines through an SMS search.”
Although Indiatimes Travel and Makemytrip.com are quite well-known in this space, they couldn’t be reached for comments despite repeated attempts.
The indicators are all there to make this burgeoning industry expand its tentacles further beyond the Internet domain. Only time will tell the extent of this progress, but one thing is certain, due to this efforts, the consumer surely is spoilt for choices.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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Swapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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