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In the wake of Covid-19, metasearch engines, such as Google, Kayak, and Skyscanner, have emerged as dominant players in the outbound travel booking segment. Rategain’s data indicates that before Covid-19, travel agents, Global Distribution Systems (GDSs), and travel management companies held an 80 per cent majority in bookings. However, in the current scenario, 80 per cent of travellers are opting to book their tickets through metasearch engines.
In 2019, GDSs enjoyed a 74.6 per cent market share, while metasearch’s share was nil. However, since the start of Covid-19, there has been a rapid surge in bookings through metasearch engines.
Also read: Yatra.com clocks 85% increase in business for FY23
Ankit Chaturvedi, Global Head of Marketing, explained that pre-pandemic, GDS bookings were driven by travel package providers, catering to group bookings or family vacations, which constituted close to 15-16 per cent of all bookings. However, family travel has come down post-pandemic, and solo and couple travel has increased, which is now being booked online.
When the effects of Covid-19 started to reduce in 2022 and markets started to open up, travellers started comparing flight and hotel tickets through searches from the metasearch engines. Metasearch’s share rose to 59.6 per cent, with GDS continuing to be second with 31.2 per cent. Airline websites grabbed a share of 4.7 percent, followed by other portals. In the first two months of 2023, metasearch’s share has risen to 78.4 percent.
According to Chaturvedi, the reason for the increase in bookings through metasearch engines is that they provide the best and cheapest options. With increasing costs, people are searching for the cheapest rates.
Also read: Leisure travel makes a comeback as intercity travel increases: Uber
In 2019, most outbound travels happened for leisure or non-business reasons and were booked through travel agents or package providers who used GDS. However, in 2023, this trend has shifted to the use of metasearch platforms, where travellers book international trips by themselves.
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