Vishal Suri says that tourists are increasingly looking at online resources for research and bookings
SOTC Travel has said that online sales of its holiday packages are set to increase between 25% and 30% over the next couple of years. The step-down subsidiary of Fairfax Financial Holdings Group said that online sales are currently about 15% of its overall revenues and that the company is making significant investments in the digital space to be able to increase its overall contribution to the company's business.
Speaking to DNA, Vishal Suri, managing director, SOTC Travel Ltd, said that tourists are increasingly looking at online resources for research and bookings. "This is forcing companies to actually invest a lot more in the areas of technology and building their online platforms. I think it is very important that we are relevant to these prospective travellers when they are researching their holiday choices.
"At that point in time, we need to be in their consideration set else we may not even be considered when they eventually finalise their holiday plans. That's why there is a lot of investment happening on the online platform so that we start featuring in their primary research," he said.
SOTC, which is held through Thomas Cook (India) Ltd, said that the company has a very compelling proposition as far as its online platform is concerned. In fact, this year alone SOTC is expecting to sell at least 15% of its holiday plans online. This will be a combination of domestic, short-haul and international long-haul holidays.
"I only see this going up to about 25% or 30% over the next couple of years. While we already have a strong presence in the online platform, we are building on it and continue to invest on that side. While our focus is on packages or experiences as we call it but we also offer components.
"All our acquisition cost towards online is only towards holiday packages. We don't sell flights or hotels only like the other online travel agencies (OTAs) but a destination and its experience," said Suri on the sidelines of unveiling the SOTC India Holiday Report 2019.
As per its holiday report for 2019, over 70% respondents to the survey in the age groups 25 to 35 and 36 to 55 years booked their holidays online. In fact, 48% of the 56 plus segment felt comfortable booking online. Also, in a major fillip to the digital ecosystem, over 80% respondents said they use credit or debit card for travel booking and on-ground expenses - the discounts and cash backs being a key driver.
"Spends on holidays seem directly proportional to age groups and is likely a reflection of the increase in income and savings. Approximately 93% of respondents under 25 years spend less than one lakh per annum on holiday travel and over 50% of the respondents in age groups less than 25 to 55 years spend only up to Rs 1 lakh per annum.
"Also, in a marked change, Indian travellers have begun viewing equated monthly installment (EMI) and loans as an option to fund their holidays with an average of 4% of respondents across all age groups availing of these to enjoy a vacation," as per the SOTC India Holiday Report 2019.
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