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Thursday, November 13, 2014

Online Flight Booking Trend

The global travel industry is expanding and is robust in growing economies like India and China. As per reports, travel sales are expected to reach $830 billion in the year 2017, in spite of cheap flight tickets offered by carriers. Despite influential role of new economies, North America is leading when market value is considered, and annual growth rate has been estimated at 7 per cent. However, one thing that is common in all the markets is change in the method of seat reservation. The culture of going to the counter is coming to an end as most of the people use internet services or get their tickets booked by agents.

The Emerging Trend

In places like Spain and the United Kingdom, online travel sales accounts for more than 50 per cent. Asia-Pacific is one of the fastest growing travel markets and its value increased to around $91 billion in the year 2014. With the onset of new technologies, and penetration of mobiles and tablets, online flight booking has been replaced with mobile travel purchase. Currently, Japan is the leading country in the regions as far as digital booking is considered, but China and India are catching up quite fast. Improvements in the basic infrastructure and increased access to the internet may act as a catalyst in digital flight booking.

Seat reservations, made by using mobile devices, have increased by more than 20 per cent in the first six months of 2014. When compared to desktops or laptops, it is around 10 times higher in case of booking. Not only air tickets, but car rentals and hotel bookings by using smart devices also increased in the past few years. An average of $600 more were spent on the reservations made by an iPhone or iPad as compared to Android-based devices. However, the sum total of Android bookings is higher in value as well as number.

Effect on the Cost of Seat Reservation

Apart from simplifying the booking process and increasing the reach, it has also reduced the cost of operation to a great extent. The manpower and machines needed by carriers to generate the ticket as well as to distribute it, has been reduced significantly. Now, travellers can book tickets using mobile phones or other devices. Travel portals have launched their applications that can be downloaded by users to book tickets anytime and anywhere. As per reports, in-app bookings account for around 12 per cent out of total reservations done using the phone.

How does it Work?

Simplicity is the first reason that it is preferred by passengers over other methods. Just with an internet connection and smartphone, travellers can handle most of the transactions in minutes. It usually includes information regarding all the flights operated on the required routes along with secure online payment option. After making a seat reservation, passengers can opt for online check-in process, view the flight schedule, track current status and other flight information. They can also amend dates or request cancellation using the same application. In some cases, passengers may have to visit the office in person to cancel tickets. Apart from this, a valid identity card is required at the terminal for boarding the flight.

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