Flipkart introduces a hotel booking service in advance of the holiday season

More than a year after purchasing online travel aggregator Cleartrip in an effort to broaden its presence across digital commerce segments, Walmart-owned e-commerce giant Flipkart has joined the hotel booking market ahead of the holiday season.

According to the business, clients will have access to 3 lakh domestic and foreign hotels through the new hotel booking function on its platform, Flipkart Hotels.

Additional advantages of the feature include adaptable travel and booking-related rules, simple EMI options to make trip inexpensive, and cost-effective choices, among others.

"With the support of Cleartrip's API, Flipkart Hotels will gain access to Cleartrip's comprehensive knowledge of the travel industry and its clients. This new solution, which is accessible through the Flipkart app, offers a hassle-free booking process and prompt contact via well-liked messaging services, according to the business.

Users will also be able to access third-party offers on the Flipkart platform thanks to the platform. Additionally, the business has established a specialised customer service department to assist clients with user-related inquiries resulting from the hotel booking service.

The hospitality sector has had a terrific year so far in 2022 thanks to a noticeable increase in demand for hotels on the domestic and foreign markets. According to the business, new travel trends including visiting lesser-known locations, working remotely, staying somewhere for an extended period of time, and renting out vacation homes are spreading.

"The travel business is benefiting from these advances. The upcoming festive quarter is anticipated to be even stronger for the whole travel industry given the 70 percent growth in the most recent quarter compared to a CAGR of 60 percent over the previous two years," the business noted.

However, because of inflation, growth in holiday season sales on e-commerce platforms is anticipated to be modest this year. According to them, annual growth will be between 15 and 20 percent, down from 25 to 50 percent in recent years.

Although fashion, cosmetics, and home décor sales are anticipated to expand steadily, sales of smartphones and electronic equipment are predicted to remain flat.

Additionally, they noted that as COVID-19 eases, the rise of online sales may be hampered by the return of offline purchasing.

Since offline sales have made a comeback, the effectiveness of macroeconomic factors and the size of discounts are now the main determinants of e-commerce sales. A high-end urban shop is experiencing an upsurge that has been steady over the previous few quarters, whereas a significant retailer in tier 3-4 cities is experiencing a dip in demand, a management consultant said.