Uplink

‘We will take Indian suppliers to the world’

Travelocity's India managing director Himanshu Singh tells Express TravelWorld about the key differentiators that are likely to put Travelocity in the box seat in the online distribution revolution that is currently sweeping the Indian travel market.

Himanshu Singh Managing Director Travelocity India

Various figures are floating regarding potential of online travel in India. What as per your projections are realistic figure for Internet usage and potential of online travel business in India?

The online travel in India is expected to cross the USD 1 billion mark in financial year 2006-07, growing from USD300 million in 2005. While the first phase (2004-05) of online growth was driven by Indian Railways, clearly the second phase growth has been led by Low Cost Carriers (LCCs), who today channelise over 60 per cent of their business through their own web sites. Thus supplier direct airline sites today are the most successful, but Online Travel Agent (OTAs), who today account for less than seven per cent of the total online travel market are fast gaining ground and we expect their share to be at 25 per cent by 2008. Entry of global players like Travelocity, will act as a huge catalyst in building awareness of the OTAs, increasing domestic as well as online outbound business, which today is very small. While travel search companies, including global brands, have entered India, so far there has not been much impact.

What do you see as your USP? In terms of your product portfolio, what do you think gives you a cutting edge when it comes to serving the customers?

Travelocity, a Sabre company as an international leader in online travel has been a pioneer since its launch a decade ago. Our robust technology platforms, strong global and local supplier relationships and spirit of customer championship have helped in evolving products and offerings that are best in class globally. For Travelocity India, we will reveal our product suite at launch, but believe the combination of a global trusted brand, regional support and in-country management of the site, products and merchandising is critical to our success, and differentiator against many local and anticipated competitors.

What are the challenges encountered in integrating traditional travel agents to the Internet? What do you think are the major challenges for online travel companies in India as the volumes grow in the time to come?

The key challenge for local OTAs would be their technology platforms, mid and back office systems. We also believe delivering consistently a great value proposition and good customer service would be challenging. This is where a company like Travelocity with its global experience and expertise, coupled with a localised offering will be able to differentiate.