Travel bosses peg the rise of online operators as the trend to watch out for in 2011
Travel agencies must adopt a powerful online strategy if they are to compete with the burgeoning online travel market and the web booking portals predicted to flood the market in the coming year.
Travel company bosses interviewed by Arabian Travel News all pegged the rise of online bookings as the biggest trend in the region’s travel sector for 2011 and said agencies must invest in the technology to sell through the web in order to remain competitive, and not fall by the wayside.
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Kanoo Travel, executive general manager Abdulla Abu Khamseen stated that it was essential every agency adopted a “multi-channel” approach in order to succeed.
“The internet has become a way of life for us all,” said Khamseen. “Many international online operators have encroached into our territories offering travel products online. In 2011, the number of tickets purchased and hotels booked online will increase. As a travel company it will be our duty to prepare ourselves for this new generation traveller, understand their needs and wants, and offer suitable solutions catering to them.”
In order to cater to the growing numbers of online travel buyers, Khamseen said Kanoo plans to launch its first fully-fledged online travel reservations portal complete with payment gateways offering air, car and hotel products later this year.
Orient Travels has also introduced its own booking portal in a bid to compete in the online sphere.
Asim Arshad, CEO, Orient Travel Services said traditional travel agencies were being hit hard by the growth in online travel. “Online booking companies that have come into this market are taking substantial business away from traditional TMCs, especially in the retail sector. We are trying to combat these issues by having our own online booking tool that is equally efficient so that we can also have a bigger reach for prospective customers.”
Last year saw the launch of Indian Online Travel Agencies (OTA’s) Cleartrip.ae and MakeMyTrip.ae in the UAE; while hotel booking site Hotels.com — a sister site to Expedia — launched a dedicated Arabic version.
Hrush Bhatt, founder and director, product and strategy, Cleartrip, predicted that e-commerce in Dubai would hit US $36 billion in 2010.
“This is a mature, internet savvy market with over 60% internet penetration,” he said. “We believe that our best-of-breed products will revolutionise the way the UAE books travel online.”
And the coming year will see a raft of new OTAs with an “Arabic flavour” entering the market — predicted Benjo Van Laarhoven, executive vice president, Al Shamel International.
“The entry of tailored Online Travel Agencies into the Middle East will have huge impact,” said Van Laarhoven. “I predict there will be some leakage from traditional agencies to these online travel agencies. But on the other hand traditional travel agencies can also launch their own online offerings, so it will be interesting to see what the bigger agencies do.”
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