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Ecommerce in India is rising quickly as consumers turn to the web for products and services, but more than 80% of the country’s online sales come from travel purchases. Online buyers in India spend nearly five times more on leisure and unmanaged business travel than they spend on retail purchases.
Business-to-consumer ecommerce sales in India (including travel) will reach $13.8 billion this year, with online travel sales accounting for $11.5 billion, or 83%, of the total, eMarketer forecasts.
eMarketer expects online travel to maintain its dominance over ecommerce sales in India because the category's momentum will outpace that of retail ecommerce throughout the forecast period, which runs through 2016. For example, in 2012, retail ecommerce (excluding travel) is expected to increase 26.3% to $2.3 billion, compared to online travel, which will growth 42.8%, even despite the travel segment’s already well-established status.
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