E-commerce and Travel Portals

Is E-Commerce in India growing at the pace that it should?

As per the latest findings, Indian Ecommerce growth is pegged at 30% year on year. Let’s look at some interesting facts;

As per the report released by Internet and Mobile Association of India (IAMAI) and IMRB International, the total online transactions in India stood at Rs. 7080 Crores (approx $1.75 billion) for 2006/2007 and is expected to grow by 30% to touch 9210 crores (approx $2.15 billion) by 2007/2008.
In other words, that is only 0.002% of our GDP!
Distribution of Online spending

The Online spending is categorized mainly in following 5 areas:
  1. Travel: comprising Travel aggregators, Tour Operators, Hotels and Railways
  2. E-tailing: comprising Online Retailers and Online Auctions
  3. Classifieds: comprising Online Jobs, Online Matrimony, Online Property, Online Automobile and General Classifieds
  4. Paid Content Subscription: comprising research, articles, exclusive videos, etc
  5. Digital downloads: from Internet to Mobiles and internet
Here is the chart explaining the online spending breakup:

It is quite clear that a large chunk of online spending goes towards Travel E-Commerce. Rs. 7000 crores out of 9210 crores is expected to be spent on online purchase related Travel purchases like Airfare, Hotels, Car rentals and Rail bookings. That means nearly 76% of overall E-Commerce goes to travel sector alone.

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