eyefortravel - Travel Distribution India '06

‘Alternate distribution channels will thrive’

Raj Halve Chief Commercial Officer GoAir

Alternate distribution channels will survive and thrive, because they appeal to different customer segments, feels Raj Halve, chief commercial officer of GoAir in an interview with Reema Sisodia

How do you think will the market react to the various booking options now available in India?

India is a unique market and different customer segments will approach different mediums for bookings. Alternate distribution channels will thrive because they will appeal to different customer segments. The Indian consumer base is varied - from technology-friendly consumers to senior citizens unfamiliar with the Internet. There are the price-sensitive travellers who are comfortable with the Internet while some corporate clients may still seek out the travel agent. Then there are those who don't want to part with their credit card numbers online and book through the agent. I believe that online bookings and the traditional system complement each other.

But yes, the online business will definitely see an upswing, especially due to the low-cost carrier invasion. Over time, pure vanilla bookings will move online while more elaborate holiday packages will require personal touch.

How will low-cost carriers impact the online booking business in India?

These carriers will definitely contribute towards the growth of online business in India, especially when it comes to pure vanilla bookings. In the coming years, 90 per cent of transactions will take place online. Today it is approximately 65 per cent.

What according to you is the future of m-commerce?

M-commerce is definitely the buzzword for the future; it will make transactions easier, convenient and quick. But its penetration at present is at a nascent stage and it will take a while for a technology like m-commerce to be accepted by travellers. There is a small percentage of the so-called innovators who are extremely technology-friendly. But they are miniscule in number. India is still a pre-paid market in terms of mobile usage and it will take a while for the silent majority to jump on to it. It is imperative for airlines to evaluate leading edge technology which benefit customers in some unique form or another. However, one has to be careful for not being carried away by technology for technology sake.