10 December 2019

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Tapping the SME Traveller Segment

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Be it due to customer’s maturity, business maturity, newer business dynamics keeps on coming in. The biggest change in the travel business has been witnessed due to the advent of Internet.

Internet has registered a great success story in the travel business. Considering the present market trends, Internet will play even more important role in bringing the seller and buyer together in the travel business. It will also act proactively in managing the entire market dynamics.Different segments such as high profile individuals, small businesses etc have   different needs such as quality holiday, travel experiences, value for money or personalized service and exclusivity. This is driving the growth of innovative and flexible shared ownership products that cater to individual needs.

More than 60 per cent of India's population is below the age of 30. And more than 90 percent of Indian working class is working with the SMBs segment. So, with such data point SMB business travel has a lucrative potential for travel segment. However, newer technologies like online travel scheduling and ticketing are helping the SMBs and home segment to avail best in class business travelling.

Development of back end infrastructure and redundant connectivity are essential along with investments by the hospitality and travel industry. It is also important to note that business travel increases the tourist traffic to the destination which evidently helps the hotel industry.

Maximum utilisation of the hotel properties and the investment are the key growth drivers from the hotels' point of view. However, it is high time for the hospitality and travel industry to look at the SMBs as their potential segment. But to attract them, certain amended business policies are needed.

Due to the economic slowdown, social and ethnic disturbances, urban terrorism etc the tourism industry faced one of its worst years of business last year. The Indian travel and tourism industry has probably never witnessed a slump as hard as the one that hit the fraternity mid 2008, spilling over to 2009. Every segment related to the tourism business has either directly or indirectly faced challenges that have lead to introspection.

While mentioning all this, the travel companies must have to look at new business areas such as business traveling from the small businesses segment. Although it is not the right time for big travel budgets and exotic business meetings but, yes this is the right time when small and mid-sized businesses have started registering better revenue figures and started looking at some level of exotic business review meetings.

So while, highlighting the potential of small and mid sized business segment, one has to look various aspects of SMB travellers, for example the cost. Cost of traveling should be made more compatible and innovating marketing strategies have to be made available to this segment.

However, travel industry is all set to grow with the overall growth of the industry but it has to be open for innovation. Better packaging and better pricing could help small businesses to invest in the out of the box business travel.

Last Updated ( Thursday, 03 March 2011 15:22 )  

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