Half of airline ticket sales in India will be online by year-end

Mumbai: More than half of domestic airline tickets sold in India will be online by end of this year, predicts leading travel industry research firm PhoCusWright Inc., up from 43% in 2007.
In value terms, India will sell 43% of all airline tickets through online channels by 2010-end, said the Connecticut, US-based firm that studies how travellers, suppliers and intermediaries connect. Airlines in India are trying to increase tickets bought online, partly to save on commission paid to travel agents, but such bookings account for just about 15% in value today.
Separately, carriers, expected to make losses of up to $2 billion (Rs9,304 crore) in 2008-09, plan to abolish the 5% commission on tickets paid to travel agents from 1 November to reduce distribution costs.
Selling and distribution cost for country’s largest private airline Jet Airways (India) Ltd increased by nearly 23% to Rs982.9 crore in the year up to 31 March, up from Rs800.8 crore in fiscal 2007. It reported an increase of 15.7% in commissions to travel and general sales agents from Rs558.9 crore in fiscal 2007 to Rs646.7 crore in the fiscal year just gone by.
PhoCusWright believes India will evolve a franchisee model for travel agents in a commission-free environment, given high real estate costs, increased wage inflation and staff attrition.
18/09/08 P.R. Sanjai/Livemint

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Categories: Indian Aviation- In General Sep 2008