How is India different from the rest of the world in terms of online hotel sales?

As per an article published in Economictimes.com in January 2016, online hotel sales constitute only about 25% of hotel sales in India. However this number is growing very fast with the OTAs focusing heavily on hotels.

In the online space, hotels get most of their booking through OTA sites rather than their own website. In US as per phocuswright report on Feb 2015, hotel direct (from web/ mobile sites) has touched about 35%. Our assumption is that hotel direct in India (blended average) will be between 10-15%.

This is predominantly due to lower number of chain hotels in India and a highly fragmented market.

Even though the ecommerce book lead by airline tickets and retailers is driving more consumers to look for hotels online, Lack of tech solutions, real-time updating of information etc. has made online hotel sales a laggard category. With more hotels understanding the fact that the demand is shifting online, we should expect a lot more efforts from the hotel industry to capture this demand.


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