In early September, Phocuswright published its India
Total Market Report, which provides a comprehensive view of India’s travel
market, including detailed market sizing and projections, distribution trends,
analysis of major travel segments and key developments. Below, PhocusWire dives
deeper into the mobile-first approach that travel brands are taking in India.
India is one of the largest smartphone-using countries in the
world, and an ever-growing number of consumers are making purchases through
mobile platforms. This trend is leading travel brands to heighten their focus on
mobile and dedicate more resources to improving the smartphone user’s
experience.
India’s mobile gross bookings rebounded quickly in 2021 to surpass
pre-pandemic levels and emerge as the channel to recover the fastest, according
to the recent Phocuswright analysis, “India
Travel Market Report 2021-2025.”
Mobile bookings are projected to reach $17 billion by 2025, accounting
for 73% of all online bookings. The growth will fuel a speedy post-pandemic
recovery for online travel agencies, according to the report.
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“More Indians are using mobile phones than ever before. They have
easy access to inexpensive, reliable broadband data and a propensity for making
digital transactions – factors driving the shift from offline to online-led
distribution,” say Phocuswright analysts Deepak Jain and Virenda Jain.
“Plus, the country’s younger demography favors online distribution
channels, making it the mainstream channel for travel bookings,” the analysts
add.
Intense competition among smartphone manufacturers and tech
innovations are keeping smartphone prices low, driving up use, the Phocuswright
report reveals.
Also, unified payments interface (UPI), which connects multiple
bank accounts to apps, has “democratized access to banking services” and
“revolutionized digital payments,” Phocuswright finds. From April 2021 to March
2022, Indian consumers made more than 46 billion transactions through UPI,
worth more than $1 trillion.
OTA bookings on mobile devices are forecast to triple by 2025,
reaching $10.3 billion and accounting for nearly 80% of all OTA bookings. The upward
trend underscores a decisive shift in consumers’ travel planning and booking
behavior.
“This will create fertile opportunities for the Indian OTA
ecosystem to invest in further boosting their mobile presence and offerings,” the
Phocuswright report says.
Airline supplier-direct bookings from mobile platforms will
account for nearly 60% of online direct air bookings by 2025.
In the hotel segment, the mobile share of online supplier-direct
bookings is expected to remain muted, only reaching 11% by 2025.
Meet travelers where they are
Noreen Henry,
chief revenue officer for travel marketing platform Sojern, says the rise in
mobile bookings in India will fuel a wave of new
international travel from India for two reasons:
First,
more people have access to desirable travel offers due to the prevalence of
smart phones.
Second,
because smartphones tend to not be shared devices, “brands can respond with
personalized travel offers for that specific individual,” Henry says.
To
keep up with competitors, at a minimum “companies must ensure their mobile
websites adjust to the size of the user’s screen and are easy to navigate and
read,” Henry says. She points to Google, which prioritizes mobile-optimized
websites.
On
mobile apps, travel companies can leverage push notifications to remind
customers about upcoming traveling dates, allow them to add a boarding pass or
hotel booking to their mobile wallet or even notify them at the airport when
their plane is boarding, according to Henry.
She
recommends providing an “easy-to-access chat function with a quick response
time for last-minute travel questions.”
Travel
companies should target customers with “timely, personalized messages” where
they are, including social media apps and news sites.
Simplified mobile display
With
the growth of mobile, India-based EaseMyTrip’s focus – and marketing budget – has
shifted from desktop to mobile, says Prashant Pitti, the OTA’s co-founder. The
growth of mobile bookings will make EaseMyTrip “accessible to even more users,
penetrating the most remote places” as travelers “depend less on their local
travel agencies.”
The
digital-first approach means that brands like EaseMyTrip will invest heavily in technology to develop
more personalized and targeted marketing. User experience is critical because
it determines whether someone ultimately buys a product or not, according to
Pitti.
All our campaigns and marketing efforts are mobile responsive, so our customers have an excellent user journey.
Prashant Pitti - EaseMyTrip
On smartphones,
EaseMyTrip displays only the tabs that are “useful to the user.” This helps to
“clear the clutter” and simplify the booking process, Pitti says.
EaseMyTrip
uses different marketing tools for different platforms, for example, running mobile
ads, SMS marketing, email marketing optimized for mobile, and app campaigns
optimized for the mobile user only.
“All
our campaigns and marketing efforts are mobile responsive, so our customers
have an excellent user journey,” Pitti says.
The
company analyzes mobile-specific data to understand the customer’s persona and buying
patterns and develop a mobile-specific strategy, for example by “retargeting
the same mobile users.”
However,
says Pitti, “desktop will not lose its relevance. A large part of ticket
bookings still happens on desktops. Most users still prefer consuming content
on a desktop due to their large screen size and will continue to do so. Most
software is optimized only for desktops – that will remain.”
Social
media marketing
At the India-based OTA Yatra, more
than 83% of traffic is mobile – not a surprise given that
India is largely a mobile-first country for Internet usage, according
to Manish Hemrajani, the OTA’s vice president, corporate development
and investor relations. India “leapfrogged” the desktop straight to mobile, he
says.
“Ever
since the advent/adoption of the Android platform back in 2009, the focus
especially in India … has been on optimizing the user experience on the small
screen/mobile platform,” says Hemrajani.
Yatra
redesigned its entire app from the ground up in 2017 and has been making
incremental improvements to the platform ever since. The OTA’s mobile traffic largely
comes through the mobile app versus through a search engine.
I see Meta becoming an increasingly important aspect from a U/X standpoint for OTAs.
Manish Hemrajani
Air,
bus and rail tickets are relatively easy for OTAs to sell because they are selling
a grid of seats, according to Hemrajani. Hotels, on the other hand, are unique
in every way: location, proximity to restaurants and entertainment, room
layout, views, size and customer reviews.
“This
is where OTAs or dedicated travel apps really shine,” says Hemrajani. “OTAs are
now able to further enhance UX with 3D layouts of hotel rooms, and in some
case Meta platforms are in development where one could virtually explore the
product before making a booking. I see Meta becoming an increasingly important
aspect from a UX standpoint for OTAs.”
Yatra
takes a mobile-first approach to marketing. The company’s top aim is to
strengthen brand recall to compel more customers to install the app and use to
book travel.
“Toward
that end our marketing efforts are heavily focused on social platforms such as
Instagram and Facebook. We currently have 2.4 million followers on Facebook and
107,000 followers on the Instagram platform,” says Hemrajani.
India Travel Market Report 2021-2025
This report provides a comprehensive view of
India’s travel market, including detailed market sizing and projections,
distribution trends, analysis of major travel segments, key developments and
more.