'Domestic online travel industry to grow 12-14 percent'

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SME Times News Bureau | 27 May, 2015
The domestic online travel agency (OTA) industry in India will grow 12-14 percent this fiscal with the companies in this space focusing on organic growth, according to online travel portal Cleartrip.

The USD 3 billion online travel agency (OTA) industry accounts for 22 percent of the overall travel industry, according to the company.

"I think the various companies now are focusing on growing their business internally and inorganic growth may come afterwards. For the time being, it'll be organic growth," the company's chief revenue officer Amit Taneja told media persons here.

The company commands the largest market share in terms of mobile transactions and is the second-largest in the OTA segment having 39 percent market share.

MakeMyTrip is the market leader in the overall OTA segment.

"Our turnover last year was USD 800 million and we received 54 percent of the enquiries from mobile handsets. This fiscal year, we are projecting a growth rate of 45 percent compared to 39 percent in the previous financial year from 2013 to 2014," he said.

He said the OTA industry was increasingly getting queries from the mobile platform.

"Forty percent of the transactions with an average size of Rs.8,000 for us was through the mobile platform last year," Taneja said.

He, however, said his company will continue to focus on growing bookings from the computer segment and focus on the mobility segment which is predominantly led by apps.

The venture capital-funded travel portal is not seeking any investment presently.

"We are not looking at any funding. We have sufficient funds at this point," the official said.

Cleartrip received its last round of funding in 2012.