eyefortravel - Travel Distribution India '06

‘LCCs have revolutionised online booking’

Sanjay Kumar Vice President (Marketing and Planning), SpiceJet

Sanjay Kumar, vice president (Marketing and Planning) at SpiceJet, tells Reema Sisodia that the only direction the online business is going on the popularity charts is upwards, adding that the main challenge now is to spread awareness among customers

What according to you is the future of travel distribution in India? What are the key trends and predictions to watch out for?

The future of travel distribution will be driven by technology and the cost savings that it will bring. The current ratio of 75:25 between indirect and direct distributions will be reversed in favour of direct distribution. This may not happen in immediate terms but certainly should happen in the next five years.

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

With the launch of low-cost carriers, travel bookings have shifted from the traditional way to online. This phenomenon is only going to increase as more and more low-cost carriers enter the market. Online booking allows not only an easy booking process but also the convenience of booking anytime from any place. In addition, certain other modes of booking such as mobile bookings, etc will require some more time before they can become the preferred mode.

What is your perception about traditional booking tools?

Traditional booking tools will still be there for more than one reason but it will continue to lose importance in terms of usage. There still are customers who prefer human interaction for booking their travel options. Even people who are not comfortable using their cards online will follow the traditional channel.

How has the entry of low-cost carriers affected online travel in India?

We have already seen their impact in terms of online bookings. From a virtually zero base, we have over 45,000 seats being booked online daily through various sites. This is further going to increase as more and more customers are getting used to booking online. Low-cost carriers have opened up the direct selling channel in a big way and other full service airlines are beginning to follow.

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

M-commerce is still in its infancy and it will take some more years before it can become a popular way of doing business.

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

Like in other parts of the world, e-commerce business in India will continue to grow. In terms of its sheer size, the market has huge opportunities and a much larger potential market. The main challenge is to spread awareness and educate customers about it. Also, accessibility is another key area.