eyefortravel - Travel Distribution India '06

‘Systems need to be user-friendly’

Dhruv Shringi Founder and Executive Director, Yatra

Says Dhruv Shringi, founder and executive director of Yatra, in conversation with Reema Sisodia

What according to you is the future of travel distribution in India?

It may sound clichéd but the future for travel is definitely very bright, whether online or offline. Online travel business will definitely witness tremendous growth and the trends and the market dynamics are pointing towards the same. But there is definitely room for everyone. The demographic set-up of the country reveals a young population base that is technology-savvy and use the Internet extensively. The use of credit cards are also quite popular amongst this age bracket, which is the future spending class of the country.

It is also important to keep in mind that online business needs to be extremely user-friendly. There needs to be convenient forms of payments and one also needs to keep a watch on new developments which can come in the form of quasi-paper. The initial years will be challenging, but the future is bright. Traditional players would also need to redefine their working model and move from being merely travel agents to being travel consultants. The future of online travel distribution will depend on how online companies enable customers to migrate online.

How long do you think will the online business take to firmly establish its position in India?

It has already made a beginning and if you look at the market today, it is driven by online travel. The low-cost carriers and the Indian railways have fuelled the online business. Today we are just touching the tip of the iceberg and the scaling up for the coming three to four years would be tough. But the boom will surely happen. Internet usage is improving and technology is gaining popularity. Although the credit card is not being used to its full potential, the demographics of India will encourage it in time. E-ticketing is being well accepted and m-commerce will catch up in the future as well.

How does the Indian online travel market differ from that in other countries?

India has a mixed bag of travellers - frequent travellers and first-time travellers. Hence the customer base is different. In Europe or for that matter in the West, air travel is the most preferred means of transport while in India, air travel is still considered niche, although the low-cost carriers have done their bit in changing mindsets.