Ram Mandir has heightened the visibility of religious tourism: Yatra's Dhruv Shringi
As per Dhruv Shringi, CEO and Whole-Time Director, Yatra, travellers are adopting a strategic approach, by staying in Lucknow and leveraging the cultural richness and heritage and making it a dual experience with a day trip to Ayodhya.
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In recent times, there has been a noticeable surge in the trend of spiritual tourism, and this momentum has been steadily building over the past 12 to 18 months. One of the major reasons for this is driven largely by the substantial improvements in infrastructure, improvement in the airport infrastructure and the general accessibility to these spiritual destinations like Vaishno Devi, Tirupati Varanasi and now Ayodhya.
The pivotal moment surrounding opening and the inauguration of the Ram Mandir, has undoubtedly spurred a renewed interest and heightened the visibility of religious tourism within the country and it’s travellers, says Dhruv Shringi, CEO and Whole-Time Director, Yatra Online Limited.
He cites Ayodhya as an example and says the current trend involves travellers combining it with a visit to Lucknow. As it is a short drive from Lucknow and since Ayodhya's hotel infrastructure is still in its early stages of development. Travellers are adopting a strategic approach, by staying in Lucknow and leveraging the cultural richness and heritage and making it a dual experience with a day trip to Ayodhya.
Edited excerpts:
What was the rationale behind the #BindaasBookkar campaign? What were some of the brand's key learnings?
Looking at the past year, especially in the post-COVID period, we noticed more impulse buying. People are taking shorter and more frequent breaks. When you make impulsive purchases, you tend to be a little careful, thinking about possible problems or whether you've secured the best deal. It's a natural reaction to want reassurance and confidence in your choices.
Our goal was to assure customers that they are getting the best deal and that we, at Yatra, are here for them if anything goes wrong. We want to support the mindset that has developed – the idea that people have that you have only one life, make the most of it, this is to support that hypothesis.
What are some consumer insights that you guys have been leveraging in the OTA space?
We have noticed two main things based on our business structure. We have the consumer travel side under the.com brand and the business travel, which includes corporate travel on a yacht.
What's interesting is that these two aspects are working well together. The same person can be a business traveler or a leisure traveler several times a year. We cater to people from companies like KPMG, BCG, TCS, HCl - folks from the middle class in India. While they might travel for work multiple times a year, there are also times when they travel for personal reasons. This is giving rise to the idea of "business leisure," which is becoming quite popular.
Our approach is to create a seamless platform. It allows employees not only to book their business trips but also to plan leisure activities and side trips during their business travels. The goal is to make the entire journey more enriching, moving away from the routine of just the business trip and adding fun activities to the platform.
Where is the business coming from the most?
Evaluating the current composition of our business, the distribution of gross bookings reveals an interesting dynamic. At present, 60% of our total gross bookings are attributed to business-to-consumer (B2C) transactions, whereas the remaining 40% is derived from business-to-business (B2B) interactions. This 60-40 split reflects a distinctive balance in our revenue streams.
However, this split is not static and fluctuates based on seasonality. The distribution can vary within the range of 60-40, showcasing a certain adaptability in response to market dynamics. During seasonal shifts, we have witnessed an adjustment, with the range narrowing to 45-55 range as well.
What are your thoughts on spiritual tourism? Has Yatra witnessed any trend recently regarding this on platform?
In recent times, there has been a noticeable surge in the trend of spiritual tourism, and this momentum has been steadily building over the past 12 to 18 months. One of the major reasons for this is driven largely by the substantial improvements in infrastructure, improvement in the airport infrastructure and the general accessibility to these spiritual destinations like Vaishno Devi, Tirupati Varanasi and now Ayodhya.
The pivotal moment surrounding opening and the inauguration of the Ram Mandir, has undoubtedly spurred a renewed interest and heightened the visibility of religious tourism within the country and it’s travellers. In the past, such spiritual journeys and trips were often associated with specific age groups or traveller profiles, however, the recent surge in infrastructure improvements has attracted a more diverse audience, like the educated middle class to also explore such destinations are a stand-alone trip or even just as a side trip.
Take Ayodhya as an example, the current trend involves travellers combining it with a visit to Lucknow. As it is a short drive from Lucknow and since Ayodhya's hotel infrastructure is still in its early stages of development. Travellers are adopting a strategic approach, by staying in Lucknow and leveraging the cultural richness and heritage and making it a dual experience with a day trip to Ayodhya. This shows a new way of looking at travel, where people are open to exploring different routes and finding new places, even if they weren't popular before.
How is Yatra innovating and evolving?
At Yatra, innovation and evolution are central to our strategy, aiming to provide cutting-edge solutions and an outstanding travel experience for our customers. Our products can be broadly categorized into two main groups: technology-enabled customer experiential products and on-ground destination products where customers physically reach their holiday destination.
For technology-enabled customer experiential products, we are placing significant emphasis on harnessing AI tools to enhance the customer experience, making them more accessible for companies like ours. The main focus is on automating post-booking experiences and standardizing responses to common customer service queries. This involves a phased approach, starting with customer service and overall experience enhancement and gradually extending to features like personalized recommendation engines. These engines suggest tailored activities and options to customers.
On the other side, our on-ground destination products are experiencing an exciting wave of creativity. Apart from traditional pilgrimage and religious travel, there is a growing interest, especially among the younger population, in what we term as 'soft adventure.' This involves engaging in activities such as trekking, biking, and other outdoor pursuits that have become popular additions to the usual two or three holidays people take annually.
The travel landscape is evolving, giving rise to new products and the discovery of emerging destinations that cater to the changing tastes and preferences of our clientele. It's an exciting time in the travel industry where technological advancements and the infusion of unique travel experiences are reshaping the way people engage with and enjoy their vacations.
In terms of marketing and advertising, how is Yatra standing out?
One successful strategy that sets us apart is working with a network of micro-influencers through evolving social media. It's not just about partnering with one big celebrity anymore. Looking back at Yatra's journey, we started with Boman Irani, then moved to Salman Khan, who also became a shareholder. However, having a large star isn't the only way now. In today's diverse environment, micro-influencers help us target specific segments more effectively. There are influencers for soft adventure, pilgrimage, or regional focus, each with a sizable following. This segmentation and targeting have become crucial in today's marketing.
A decade ago, featuring a big celebrity during a popular TV show used to be enough. But the media landscape has changed significantly. As marketers, we need a more scientific approach, diversifying platforms and strategies for better returns. Relying on one platform is no longer sufficient; we must adapt to the changing landscape.
Another trend is the merging of online and offline realms. Techniques like retargeting are essential, ensuring we offer the right incentives at the right moment. The challenge is being present at every stage of the customer journey, from awareness to purchase. It's not about choosing between online or offline; we must seamlessly integrate both.
The media landscape and consumer engagement have transformed. As a brand custodian, my challenge is maintaining a consistent presence across all touchpoints, fostering the right brand perception while being cost-effective. It's about accessibility, relevance, and efficiency throughout the customer journey.
Regarding IPL plans, while it's a great property, we need a cost-effective approach. Exploring alternatives with comparable reach at a lower cost is crucial. Our strategy may evolve, possibly participating in one or two large events while maintaining a consistent presence throughout the year, considering the changing dynamics.
Could you share Yatra's growth trajectory?
After COVID, our growth has been really quick. In just the last quarter, our earnings went up by more than 20%, and the number of people using our services increased by about 26%. We expect this growth to continue, aiming for a mid-20s percentage increase in bookings over the next three to five years. We think it's possible to maintain a high growth rate, around 20%, mostly because we're expanding naturally.
I also want to mention our focus on offering more than just flights. In the past, we mostly dealt with flights, but now we've put a lot of effort into improving our hotel options. This change is a big deal for us, and it's a key part of our plan to grow.
