Mobile bookings for travel are on rise in India but global uptake is still slow, finds a recent survey
Ninety-five per cent of Indian travellers are planning to travel domestically (down one per cent compared to 2013) while 66 per cent are planning to travel abroad, up 21 per cent compared to last year, according to a survey (TripBarometer) conducted by TripAdvisor. More than 61,000 travellers and hoteliers around the world, with 890 respondents from India, participated in the survey.
The results paint a positive picture for the global travel industry overall. Travellers are planning to spend more on their holidays in 2014 with the average annual traveller spend rising from US$5,955 in 2013 to US$6,136 this year, an increase of three per cent. On average, Indians plan to increase their annual travel spend by 15 per cent from US$3,264 in 2013 to US$3,746 in 2014, though this still falls behind the average global travel budget.
South African travellers are planning the biggest increase in their travel budgets this year, up 30 per cent from 2013, followed by Indonesians, Australians and Malaysians. Despite relatively low optimism in the economy (only 11 per cent of global respondents and 14 per cent of Indian respondents report spending more on travel because they feel more confident about the economy), travellers are not willing to give up their holidays, with many opting to hunt for bargains and make sacrifices in other areas of their lives in order to protect their travel spend.
Currency fluctuations are more likely to affect travel plans of Indian travellers, with 63 per cent indicating that it would impact their holiday plans, compared to 44 per cent globally. Despite this, those affected are still planning to travel; of those travellers that say currency fluctuation will impact them, 53 per cent global respondents and 44 per cent Indian respondents will research more to find the best price.
“Exploration is back on the agenda in 2014, with more travellers planning international trips this year,” said Marc Charron, President, TripAdvisor for Business. The increase in travel budgets and travel plans is mirrored by business confidence with 70 per cent of global hoteliers saying they are optimistic about their profitability in the next year. Similarly, four in five (83 per cent) Indian hoteliers say they are optimistic about their profitability in the next year (down from 89 per cent in 2013). Over half (55 per cent) of Indian hoteliers are also planning to increase room rates with 51 per cent saying this is due to increased overheads. Mobile booking is increasing in Asia, but global uptake is still slow. Whilst 91 per cent of global travellers are attached to their mobiles; India and China lead the pack with 98 per cent of travellers from each country saying they use their smartphones on holiday.
Two in five (41 per cent) Indians use their smartphone to find things to do, and over one-third (35 per cent) to search for hotels. Despite the increasing number of travellers using their mobile to plan and research, the trend has not yet crossed over to the booking stage.
Compared to the global average of 66 per cent, fewer Indians booked their last trip online (55 per cent). For those who booked their last holiday online, three out of ten state ‘better price’ as the reason for choosing this booking method. Thirty-seven per cent Indians booked offline, compared to only 24 per cent of global travellers.
Commenting on the findings Nikhil Ganju, Country Manager of the site said, “What is most exciting is the huge opportunity that mobile booking represents with a significant portion of travellers both globally and in India using their smartphones to find things to do and search for hotels whilst they are travelling. The good news is that the majority of Indian hoteliers already have mobile offering for travellers and of those who don’t, nearly two-thirds plan to introduce it in 2014. It is only a matter of time before this gap is bridged and booking process on mobiles is facilitated to reach more people on the go.”