India's OTAs Target Long-Tail Lodging With Array of Deals

With rising demand for low-cost accommodation in India, online travel agencies (OTAs) are stepping up the competition. That means offering steep discounts via such means as flash sales and rebates, especially through mobile apps. A new Phocuswright report, India Online Travel Overview Ninth Edition, presents market sizing and projections for India's online travel market, with coverage of online versus offline bookings broken out by segment and channel. 

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"Consumers have come to know OTAs as a prominent discount and deals channel. More technology savvy than hotels, OTAs are luring travelers with offerings and deals via their mobile apps, which also address the last-minute, walk-in traveler segment," says Phocuswright's research analyst, Asia Pacific, Chetan Kapoor. "Not surprisingly, mobile has become the central platform for OTAs to distribute hotels." 

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While OTAs are mindful that discounts are a short-term ploy to beat competition and boost demand, many are also working towards consumer loyalty by offering rebates that can be used against future bookings. There too, OTAs are outsmarting hotel suppliers' loyalty programs. By having a time-bound rebates program, OTAs are hoping that customers travel more and ultimately spend more on their channel versus supplier-direct channels. OTAs will continue to be a major distribution channel for hotels, accounting for four out of five online dollars spent on hotel bookings by 2020. 

Purchase Phocuswright's India Online Travel Overview Ninth Edition: Air Growth Erupts, Mobile Drives Hotel Sales for the tools and analysis you need to take advantage of this incredibly fast-growing market.

Phocuswright's India Online Travel Overview Ninth Edition is included in the Asia Pacific and Global Edition Research Subscriptions. Learn more about gaining access to Phocuswright's research publication libraries HERE.