Competition – Tourism & Travel Market in India
The travel and tourism market in India is projected to grow at a CAGR [Compound Annual Growth Rate] of 7.5% by 2023. As India being a “Developing Country”, there is a great rise in the infrastructural departments as well as there is a stupendous rise in the standards of living. Apart from this technology wise the country is more advanced and also Digitalization has brought upon all types of functions like Engineering, Information Technology, Electricals, etc. The Travel companies that are need to survive in the market need to cope up with the technology as well as with the consumer mindsets towards the adaptation of these technologies.
Millennials – Target segment – Travel Industry influence
Due to the higher demand of Information Technology in India, lot of FDI happened in the recent 15 years, which eventually resulted in more domestic and international travelling, also the lifestyle of Citizens completely changing and this is happening in the millennial segment. The millennial population is very high in India and they contribute the major in the Economy through spends but not too much spends as Indians always prefer for calculative spends. This influenced the Travel market as well and all the local & International travel companies are more conscious on pricing and quality for the consumers pull.
As per the Global Travel and Tourism Competitiveness index in the year 2017, India has jumped 12 places ahead and India is ranking 40th place among 136 countries and this is purely due to the rise in the domestic tourism and international tourism where major contributors are millennials.
Distinctiveness – Stands out of the crowd
Brands like MakeMyTrip.com and OYO understood the current market and adapted the technology as a medium with a simple interface in order to attract the millennials and disrupted the ongoing face to face travel agency enquiries and deals. MakeMyTrip.com made an alliance with IRCTC (Indian Railways) for train ticket bookings and lot of low cost carriers as well. As the internet trend was growing, the company was also growing parallel. Over a period of time, there were more new entrants and started offering more number of discounts both in the local and International travels. One innovative way what MakeMyTrip.com did is they observed the seriousness in the growth of IT Industries and made alliances with more number of IT Companies for bulk and official ticket bookings for travel, later on all types of industries are targeted and rapidly signing the alliances and providing them with best of services without any lag and not compromising on the quality as well. Oyo eventually targeted medium level house owners and made strategic relationships with Airtel [Telecom service provider] for providing free wifi in the hotels where most of the middle level hotels doesn’t have those facilities.
Thomas cook was following the very old traditional methods like Sales consultants, tour managers and guides and still stick with their higher costing and lag in more number of tie ups in middle level hotels as their target segment is niche customers only. The understanding of millennials growth is very low and they preferred to be a niche company which provides services for the niche people.
ANNAMALAI Vigneshwar
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