Travel gateways experience boost in revenues

In summer 2007, many Indian online travel Websites have experienced an increase in revenue, which reached to almost 30-50 percent. This increase is primarily attributed to the following factors: sudden increase in the aviations land area, lower airfares, more income to spend, and the growing interest of Indians to go abroad, in addition to the rising value of rupee as well as the escalating temperatures.

 

In 2007, the travelguru Website reached their highest monthly revenue of Rs 22 crore during the summer season, an increase of 144% from the revenue incurred in 2006, which only amounted to Rs 9 crore.

 

Another well-known travel site, makemytrip, is also hoping to expand its revenues, from Rs 550 crore in 2006 to Rs 1,200 crore in 2007, a rise of 118%, while the 2006 launched travel site, Yatra, has envisioned a 40% increase in revenues during the summer season.

 

The online travel business already attracts several new big companies, such as Travelocity and Expedia, which operates worldwide.

 

Currently, online travel is the fastest rising segment within the e-commerce story.

The local online travel industry is nearly around $800 million (about Rs 3,100 crore) and would bring in suppliers like hotels, carriers and online travel agents.

 

According to PhoCusWright report, by 2008, online travel industry is expected to increase to $2 billion (about Rs 8,200 crore), this includes the 2.2% revenue from the local travel market.

 

These amounts are likely to increase more with the massive expansion in the online consumer market.