In a first, online travel company Expedia is planning to open retail outlets for the Indian market. This is a strategy it has not adopted anywhere else worldwide.
However, it is not the first online travel company to have offline presence in India. MakeMyTrip has 54 stores across India. Yatra.com has 23 outlets, including one in Kathmandu, which it refers to as ‘Yatra holiday lounges.’
In a contrast scenario, traditional travel companies like Cox & Kings and Thomas Cook are looking at online as an important tool for growth and remaining relevant. A senior travel industry expert said, “Companies have to go for a hybrid model and have a healthy mix of both online and offline if they want to compete and get a wider market share.”
Expedia’s plans for offline retail outlets may have been triggered by restrictions in the Indian market, including poor broadband penetration and problems related to online payment. While noting Expedia had become a familiar name in the online travel space, Vikram Malhi, the company’s country head, confirmed plans to set up offline retail stores.
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Monday, June 11, 2012
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