Being a part of the evolution

By Dhruv Shringi
Co-founder & CEO, Yatra.com

With many initiatives taking place for upgradation of infrastructure like roads and airports, India's tourism sector is poised for significant growth. The last two years have witnessed the most heartening developments in the aviation sector.

The availability of larger and more fuel-efficient aircraft have reduced operating costs, upgraded on-board seating capacity and have raised the standards of comfort and safety. Also, direct long-haul flights have reduced flying time.

In the interim, Indian hotels have never had it so well. High occupancies and higher yields have encouraged larger investments, although there is still a shortage of room, particularly in the metros. The relaxation of rules on FDI is further attracting investment in the country's hospitality sector. The industry is also becoming conscious of quality and hotels and resorts are now providing experiential packages. In time, hotels will work hand-in-hand with tour operators to meet the demand for customised holidays.

There have indeed been some new ventures in the online travel space recently and there will be more players coming into the market in the near future. The present scenario will only help the common man by empowering him to choose from the various travel options available in the market to make appropriate travel decisions. With the growth of internet penetration and rising disposable incomes, I would say the timing is only appropriate for more such OTAs to enter the market. And although we might see some consolidation similar to global practices, the ones that offer the best value for consumers will continue to grow.

There is a huge challenge for us ahead both in terms of macro and micro factors. Firstly, to enable more people to log on to OTAs, they need to be educated about the value that we offer to them. Presently, only four-five per cent of the population are using such services.

Secondly, we as Indians need to feel the value of something even before we have consumed it, be it a product or a service, which is why we still go to the corner travel agent that offers limited choices or wait in queues to book tickets. We need to set aside such myths. Travelers who have used our services will continue to do so, but the challenge is to get new users.

Thirdly, co-ordination between various players and multiple travel modes across the country is a challenge. Sometimes people are promised something and delivered something else, especially in far-flung destinations. Trust is the key word here. OTAs help break down such barriers by offering only tested and credible services. They also provide a convenient and transparent platform for comparing services of different supplier and provide maximum choice to customers. This process of empowering the customer is what will ultimately be the OTA's USP.

India will turn out to be the most sought-after destination by 2010 and would witness substantial activity in cruise tourism, eco-tourism and medical tourism.

Time-share will also gain popularity. Such a speedy growth of the travel and tourism industry will create new openings for trade players. In order to tap these and to productively offer new customised services, the industry will require a huge number of proficient and trained management professionals. It will need more employees in key sectors like accommodation, transportation, events, F&B, retail and wholesale travel products and media. We should not lose track of expansions in these sectors as only then can we take the country's travel commerce to greater altitude by the next decade.