E-ticketing and e-travel in India took off as a result of efforts by Indian Railways in late 2004, accompanied by good deals offered by new generation budget airlines, which sell most of their stock through the Internet. An estimated 7,000 tickets with an average price of Rs1,500 each are sold each day on the Indian Railways website. However, in terms of value sales, Internet rail transportation constitutes a lower proportion of the total than air transportation.
Consumers sought out Internet access through various means and made sure they did not get left out of the benefits – usually price discounts. On-line hotel reservations in India have also picked up, but constitute just 3% of the business. According to the Internet and Mobile Association of India, 16% of on-line shoppers spent in the Rs10,000 plus range, including spending on computers, hotel rooms, jewellery, airline tickets and home appliances.
Company-owned sites, as well as specialised travel portals, drew in travellers in thousands. Travel agents also recognised the importance of the Internet as a means to distribute and market various deals, drawing in 7% of business from this medium. Much of it is still, however, not real-time.
