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Cheap flights, sales on hotels key to Indian holiday plans

holidayBe it buying goods and supplies or enrolling your kid into a school, bargain hunting is the most common thing that an Indian would usually do and now it has reached a new level.

Indians are now considered as the world’s largest holiday bargain hunters, according to a new research report.

Indian travellers want infinite ways for bargaining and paying for a travel ticket online, says the ‘Why Do They Pay That Way?’ report by Worldpay, a payments company.

According to the survey conducted on 2,000 travellers in each of six markets worldwide more than three quarters of Indians (76%) selected their travel destinations because of a sale of cheap flights and holidays and 49% of Indian travellers planned to use a credit card to book their next holiday.

A stunning majority of 96% of Indian credit and debit card users said they would, in reality, prefer to book their package holiday using Net banking.

Phil Pomford, General Manager Asia Pacific, Global eCommerce, Worldpay, said: “Despite India’s relatively slow growth in travel spending, online travel sales are forecast to experience a significant rise in the coming years.

To gain the loyalty of Indian shoppers, online travel agents must recognise that travellers in India are on the lookout for both bargains and new ways to pay online. Merchants, who offer alternative payment methods, rather than just credit or debit cards, will be in a strong position to get more sales now and attract new shoppers as India’s middle class and online spending power continue to expand.”

Although with 18 internet users and 1.24 fixed broadband subscriptions for every 100 people, the country has yet to match other emerging markets in internet and mobile penetration worldwide.

India’s GDP grew 7.6% in the 2015/16 fiscal year, and eCommerce spending is predicted to triple by 2019. Worldpay’s research affirms this trend, with the majority of travellers saying they prefer to do holiday research online. As the internet users and middle class continues to grow in the country, online travel agents can expect to see more and more travellers booking holidays online.

It’s also important for online travel agents to recognise that Indian travellers are the world’s most likely to save for a holiday.

67% of Indians said they had paid for last holiday out of savings, making their spending habits similar to those in Brazil, another BRIC nation. 41% of Indian travellers prefer their holiday payments to go out of their current accounts, either by debit card (25%) or Net banking (16%). At the same time, 85% said they were interested in paying for their next holiday by instalments – indicating that India’s savings culture may be changing.

Pomford added: “Payment preferences in India vary greatly from consumer to consumer. Many travelers are credit-wary and prefer to save up before buying a holiday; others turn to credit cards because they are simple to use and offer discounts or rewards; and still more look to installment plans to spread the cost of a pricey holiday. These varying trends, along with the fact that over 95% of card users said that, if given a choice, they would prefer to book their next flight or holiday package using Net banking, should make online travel agents pause for thought.”

“In order to answer the demands of this diverse group of travellers, online travel agents must offer them variety. That way, every shopper gets the payment method they want. By acting as an innovator and catering to a wide variety of payment demands, online travel agents can gain a foothold in India and be well situated to secure future sales in this dynamic and emerging market.”

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