When booking online for staying within India, the Indian travelers like to book 3 star hotels within a tariff slab of INR1,500 to INR3,500. It was found in a recent study by Goibibo.com, one of the leading online travel portals in India, that 50 percent of the online booking of hotels was for 3 star leisure hotels.
The monthly travel report released by the online booking site showed that affordable average price point and online availability are the key reasons for travellers opting for this category of hotels. Talking about the trend, Ashish Kashyap, CEO, ibiboGroup said, “Hotels is one of the fastest growing segments for Goibibo. There is a lot of headroom for growth in this segment with the ecosystems getting established. We are solving the problem of fragmented supply and also creating transparency for the end traveller.”
The report shows that leisure hotels make for 56.41 percent of bookings while business hotels fall slightly back at 43.59 percent. In terms of destinations, Bangalore in South of India is found to be the busiest business travel destination due to more online visibility of hotels from this city followed by Mumbai and Hyderabad. According to Kashyap, SMEs and individuals clearly outrival corporates in terms of driving these bookings; since SMEs are the most price conscious segment and are seeing value in booking online. “Also, they get transparent information and better value than the intermediary channels,” he added.
Currently the 3 star and below segment of hotels have the largest and the most fragmented supply in India, according to industry reports. It is this fragmentation that creates huge opportunity for driving e-commerce between thousands of these hotels and travellers. Goibibo looks to focus on that to grow the online booking business in the country.
The recently launched monthly report from Goibibo also tracks and analyses the qualitative aspect of hotels that Indian travellers are looking for. The report shows top factors that make people unhappy during their stay and also the important elements that travellers look forward to from a hotel. This makes it relevant for the hotel businesses who are looking at the online medium to improve business. “At ibiboGroup, we are obsessed about data, analytics and insights across our various portfolio businesses (Goibibo, Tradus, PayU etc). Learning from live user data and analytics is enabling us to constantly provide a superior user experience. We continue to publish monthly travel infographics for the entire market. This is the third in the series so far,” Kashyap informed.