Travelocity, Expedia to enter India

This article deals with the entering in the Indian market 2 of the major online travel booking agancies, namely the American Travelocity and the European Expedia. Everthing seems to show that it is, for those 2 firms, the best time to target this market. Indeed, between 2004 and 2006 the average number of online travel transaction has raised by 400% and low cost carriers have also been lauched, connecting second and third cities across the country. Also, according to Indian online travel booking players such as Malemytrip, Yatra, Travelguru and Cleartrip, this Indian market is worth $800 millions and will keep on expanding in the coming years.

So what does all this mean in terms of Revenue Management?

From the customers'point of view it is interesting to have more competitors on that market. Indeed, the more players there are, the more they are going to fight to attract customers and therefore, the more choice there will be. Further on, the prices will probably go down.

From the different competitors'point of view, several variables will have to ba taken into accout.

-Expedia and Travelocity are online booking specialists which already have a very large database. They certainly bring eperience to the others but the latter will have to learn quickly how to play the game.

-Secondly, customers will have to differentiate those different agencies and therefore there is probably a big work on communication to do for those firms. Indeed, they will have to develop a branding strategy that will be effective so that they can attract customers but also retain them by delivering the best service possible.

As a conclusion, Traelocity and Expedia are certainly right to enter the Indian market now. Besides, local competitors are welcoming them. However, each player will have to bear in mind that there is loads to do in order to attract and retain customers and that competition will probably be fearless.