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Net In Shining Armour: Online Travel Companies Are Expected To Do Sales Of Over $10 Billion Next Fiscal
Representative image. (Tim Boyle/Getty Images)
Online Travel Agencies (OTAs) like MakeMyTrip, Yatra and Cleartrip are expected to bring in sales of over $10 billion in FY 19 (2018-19), reports Business Standard. This is the first time that the industry will cross the figure, signalling a growing appetite for air travel among Indians.
While some players like Paytm and Ixigo are estimated to made bookings of over $5 billion (Rs 360 billion) in the first six months of the financial year (April - September), the second half is expected to witness better prospects. This is due to increased demand for flights and hotels and packages on account of festivities.
“The growth is essentially coming from a significant increase in internet access. The highly under-penetrated hotels market is opening up and we continue to push for category expansion. This growth is highly sustainable and will continue to grow at a similar pace with the expansion of the industry and the reach of internet,” said a MakeMyTrip spokesperson.
As of 2017, India had approximately 238.34 million 4G subscribers and 105.83 million 3G subscribers with data connections. India’s mobile data consumption has increased substantially and is one of the highest in the world. India’s online hotel market is expected to expand to $4 billion with 31 per cent penetration at a CAGR (Compounded Annual Growth Rate) of 25 per cent.
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