18 March 2006

The number of travellers buying air tickets online is growing by the day. Belson Coutinho, Manager (Marketing) E-Commerce & Global Distribution, Jet Airways, says there's been a big increase in online purchases of air tickets in the past year. According to Sachin Bhatia, Co-Founder & Chief Marketing Officer, Makemytrip.com, approximately 10,000 air tickets for domestic travel are being sold online every day!

A survey of Internet users and their shopping habits done by the Internet & Mobile Association of India (IAMAI) and Cross-Tab Marketing Services also gives an indication of the growing preference for buying tickets online. The study found that while 29% of users had purchased air tickets online, 49% said they were likely to do so in the future. Ms Preeti Desai, President, IAMAI attributes this growth to a number of factors, "There is no urban bias in terms of Internet penetration with just 51% of the 38.5 million Indians Online coming from metro cities. The proliferation of airlines and the servicing of greater non metro routes coupled with the promotion of the e-payment gateway as the preferred payment mode will further propel airline tickets being sold online'.

For airlines, the Internet has provided an opportunity to sell tickets directly to consumers. In fact, no-frills budget airlines like Air Deccan are able to offer rock-bottom prices since they sell directly to consumers online and save on commissions paid to agents.

According to Belson the key points of online purchase are airline sites and travel portals. "However, airline web sites seem to be the preferred point for online purchase in India," he says. Bhatia estimates that 75% of the tickets sold online are from the airlines' web sites. "12% of online air ticket sales are happening through non-airline sites," he says.

"While most travel agents in India do not have online solutions, a few new players have started online portals in India which connect to the GDS (international reservation systems) and have either partnered offline travel agents for fulfilment or have become agents themselves," adds Belson.

So what features must a web site selling air tickets have to attract custom? According to Belson, it must have a mix of "usability, ease of navigation, multiple search criteria, user-friendly display of results, refreshing design that makes reading pleasant and defined sections for specific information/ messages". Bhatia feels that it's important to have as many options as possible, covering all domestic carriers, so that consumers choose whichever airline they find convenient. "The results should be easily sortable by price, airline and time. Most importantly, it should show only available flights, since people visit the site not to see flight schedules but to actually transact," he adds.

The consumer must, says Benson, be able to manage his search and purchase in easy and simple steps without having to call the airline office. According to him, security of data is the key factor that will bring the user back for repeat purchases.

While Benson feels it is generally the business traveler who uses the online tool for his travel plans, Bhatia says 70% of those who book tickets on the Internet are leisure and VFR (visiting friends and relatives) travellers.

"Holiday travellers now surf and compare fares before booking online and their number is increasing. One will see online bookings increasing during vacations or festive seasons. It is important to note that overseas travellers rely heavily on the web to book tickets for travel within India," says Benson.

Some companies now allow air tickets to be booked over the mobile phone. However, the idea hasn't caught on yet. Benson feels what's needed is an end-to-end solution where a user can book a ticket, pay and get his ticket instantly instead of just allowing him to make a booking and asking him to pick up the ticket from the airline office.

Adds Bhatia: "The trick is in making a simplistic interface and also understanding the profile of the customer so that you show only relevant searches (given the limitation of the medium) to transact on. MakeMyTrip.com is soon launching this feature with a couple of operators."

Says Benson: "The most important feature that will persuade a user to book tickets using a mobile is the security of his data, including the credit card number entered on the mobile."

There are compelling reasons for airlines and travel agents to go online. "The focus for all airlines is to increase their online share. This will not only increase their distribution channels and reduce costs, but will also enable consumers to manage their travel any time and from anywhere. Technology will play a key role in making this happen. Companies are investing in it and continue to do so to gain competitive advantage," says Benson.

"Our estimate shows that 15% of all air tickets sold for domestic travel are already being sold online. The innovations will be in providing a gratifying user experience and making the buying process as convenient as possible," says Bhatia.