OTAs take the lead in superapp innovation as India’s travel market reaches new heights

The Indian travel market is thriving, with both domestic and international travel reaching historic highs. According to Phocuswright’s latest report in the APAC travel market India’s OTAs: Superapps in the Making?, this remarkable growth in tourism is propelled by favorable demographics, rising employment and increasing disposable incomes among the young middle class, as well as significant investments and enhancements in infrastructure and connectivity. While all sectors within the industry are poised to benefit from this robust expansion, OTAs stand out as some of the primary beneficiaries in this booming travel landscape.

Furthermore, an intriguing trend is unfolding in the market: Many OTAs are striving to transform into travel superapps. A travel superapp is a mobile or web application that allows users to accomplish a variety of travel-related tasks, such as researching destinations, booking flights and accommodations, arranging transportation, and accessing other services, all within a single platform.

The full article delves into each major OTA in India, examining their current status and progress toward achieving superapp status.

Here are 5 ways they are making superapp ambitions a reality—while unlocking new markets and revenue streams:

1. Indian OTAs are pursuing superapp ambitions that go beyond simply providing a comprehensive range of services; they are also focused on engaging customers through various channels. Many of these OTAs are seeking to penetrate new demand segments, particularly in corporate travel.


2. Travel agents represent another lucrative customer segment with immense potential, prompting online agencies to pursue a significant share of the offline travel agent market by providing user-friendly platforms that simplify the booking process.


3. To support non-travel brands looking to enter the travel sector, OTAs are offering simple plug-and-play solutions that make it easy for these organizations - such as financial institutions, retailers and loyalty clubs - to deliver private-label travel services.


4. Travel ancillaries present a significant growth opportunity too. While still in its infancy in India, this segment is receiving increased attention due to the growing need to address all aspects of travelers' needs.


5. Some Indian OTAs are opening franchise stores to expand their reach in offline markets, particularly in tier-2 and tier-3 cities, where many customers still prefer face-to-face interactions.

Phocuswright’s India’s OTAs: Superapps in the Making? examines the ever-dynamic Indian OTA sector, focusing on growth and transformation by market players. Key questions answered by this research include:

• What are the offerings of major Indian OTAs, and which channels are they present in to serve their diverse customer base?
• How is the potential of the Indian market providing OTAs with opportunities to expand into various segments and channels while doubling down on their core strengths?
• How close are Indian OTAs to realizing their superapp dreams, and which players are leading the charge?
• How do India’s OTAs differ in their approach to becoming superapps?

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