Effect of marketing strategies on the market performance and a comparative study of online travel agencies in India

• Published date: 01 February 2022
• Author: Shweta Agarwal,Shailendra Kumar,Nitesh Kumar Adichwal
• Date: 01 February 2022
• DOI: http://doi.org/10.1002/pa.2381

ACADEMIC PAPER

Effect of marketing strategies on the market performance and

a comparative study of online travel agencies in India

Shweta Agarwal

1

| Shailendra Kumar

1

| Nitesh Kumar Adichwal

2

1

Department of Management Studies, IIIT-

Allahabad, Allahabad, India

2

Department of General Management,

University of Petroleum and Energy Studie,

Dehradun, India

Correspondence

Nitesh Kumar Adichwal, Department of

General Management, University of Petroleum

and Energy Studie, Dehradun, Uttarakhand,

India.

Email: nnitesh139@gmail.com

The travel industry business in India started with its independence in 1945. India, a

country with a lot of diversity, cultural heritage, and scores of languages presents

unique challenges and opportunities for online travel agencies (OTAs). The internet

changed the face of the travel industry. The travel boom, evolution of the internet,

growing acceptance of e-commerce, and the emergence of low-cost carriers have

been key factors that have contributed to the emergence of this sector.

The present study attempts to bridge the research interests across marketing and

finance disciplines. It tries to explore the relationship between the marketing and

advertising efforts of the companies with the equity value of the Indian travel agen-

cies. It also aims to compare the popularity and acceptance of online services pro-

vided by the major players in the travel and tourism industry in India based on the

questionnaire survey conducted from 200 respondents.

1|INTRODUCTION

In this era, it is hard to imagine our lives without internet. All the ser-

vices required in our daily lives, be it shopping, reading, entertainment,

beauty, travelling, news, social media, etc., are available on internet.

Nowadays, consumers look for convenience and comfort, which have

led to the proliferation of online travel portals. The online travel por-

tals, also known as e-Travel portals, provide online booking services

to their customers through website. The online travel portals and

travel agencies offer services like air ticket booking (domestic and

international), hotel booking, exclusive travel and destination holiday

packages, car rental services, etc. These agencies also help the cus-

tomers in planning their trips. The online customer reviews and com-

ments have made it easier for people to share their travelling

experiences. People are no longer dependent on family and friends

for travelling tips; they also use the services of travelling agencies to

get the most up-to-date information on the major travel destinations

around the world, for example, budget advice, timings to visit particu-

lar places, money saving tips, suggestions on places to stay and places

to visit, things to see and do, and where to eat. These portals are mov-

ing from being a standalone entity toward a “one stop shop”for all

the travel needs of a traveler.

The availability of comparing prices while making the bookings

online also helps in enjoying the best deals available. Features like

easy cancellation, personalized deals, ticket tracking, and on-call cus-

tomer service ease the journey of a travel seeker and saves the time

consumed in visiting a traditional offline booking store. Various trip

advisors, travel blogs, and social networking sites encourage the con-

sumers to share their personal travel experiences online. A recent

study has suggested that the reviews posted on the TripAdvisor,

about the hotel stays, food, and overall ratings of the hotels have a

positive impact on the customers and thus generate more revenues

(Woodside & Bernal Mir, 2019). These sites spread word of mouth

(customer reviews) and increase the credibility of the portals, thus

increasing the lifetime value for their customers. Gift vouchers and

deals offered on travel packages are a major draw for the consumers;

many travel sites categorize their offerings as per themes—trekking,

adventure, wildlife, history, culture, etc. Companies are also offering

online content in regional languages in order to attract new cus-

tomers. Increased accessibility and affordability of mobile communica-

tion devices have led to a growth of m-commerce. Thus, the travel

companies offer incentives (e.g., various cash-back offers, additional

timed discounts, referral codes and deals, etc.) to download their

mobile-based applications to encourage bookings through mobile

phones. The travel agencies collaborate with other service providers,

such as banks (for loans and foreign exchange), hotels, transport ser-

vices such as airlines, taxi, and bus services to provide complete travel

package and also provide customized services.

Received: 26 June 2020 Revised: 25 July 2020 Accepted: 8 August 2020

DOI: 10.1002/pa.2381

J Public Affairs. 2022;22:e2381. wileyonlinelibrary.com/journal/pa © 2020 John Wiley & Sons Ltd 1of7

https://doi.org/10.1002/pa.2381