The online travel and hospitality industry recorded a strong rebound in 2022 after the slump caused by the global pandemic outbreak in 2020 and 2021. The pent-up travel demand in the sector has resulted in strong booking volume for online travel platforms in India. This has made the online travel and hospitality industry attractive for leading e-commerce firms. For instance,
Before entering the online hotel booking space, Flipkart also ventured into the online flight booking sector through the launch of the Flipkart Flights feature. Notably, Flipkart Flights have been on a steady path of growth ever since the firm entered the space, and with the launch of Flipkart Hotels, Flipkart is further strengthening its commitment to offer travelers a superior experience across India.
To make the Flipkart Hotels service more attractive to travelers in the country, the firm also aims to offer flexible payment options such as EMI payments. This strategy is similar to the one adopted by its competitors, such as Oyo, which offers Pay at Hotel option for its users in India.
In the online hotel bookings space, Flipkart Hotels is competing with domestic players such as MakeMyTrip, Oyo, Trivago, and Treebo, as well as with international firms like Airbnb, Booking.com, and Agoda. With new travel trends - like exploring lesser-known destinations, long stays, workations, and vacation rentals - becoming more mainstream, Flipkart intends to drive incremental revenue through the launch of Flipkart Hotels in India.
The presence of Flipkart in the space is expected to make the sector more competitive going forward. As a result of this increased competition, along with the expected surge in hotel booking volume in H2 2022, firms are also looking to add more rooms to their online hotel booking platforms. For instance,
Over the last two years, demand for luxury properties has also surged among Indians as travelers started to seek elite travel experiences during the global pandemic period. With the surge in booking volumes for super-luxury and premium hotels, online hotel booking platforms are also launching a collection of luxury properties to leverage the growing trend in India. For instance,
While the growth potential of the online hotel booking sector remains high in India from the short to medium-term perspective, the entry of Flipkart into the space is projected to drive further competition in the market over the next three to four years. As a result, PayNXT360 expects more firms to adopt similar growth strategies, such as offering flexible payment options and adding more inventory to their collection from the short to medium-term perspective.
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