Booking Holdings Sees India As Key Growth Market; Plans Major Investment

Booking Holdings, the parent company of major online travel platforms like Booking.com and Agoda, has identified India as one of its top five priority markets. According to Ewout Steenbergen, the company’s executive vice president and CFO, India is growing at a pace that exceeds even the broader Asia region.

“This year, our growth in Asia has been over 10 percent, and India is clearly growing in line with that, or even faster,” Steenbergen, who is currently visiting India.

Infrastructural Developments Fueling Travel Growth

Steenbergen credited India’s rapid growth in the travel market to significant improvements in infrastructure. He pointed to the country’s expanding airports, the rise of new airline services, and developments with major carriers like Air India and IndiGo as key factors driving this positive trend.

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“The improvements India has made in airports and infrastructure, along with the expansion of airlines, especially the new Air India and what IndiGo is doing, is really impressive. These changes are helping make India a top destination for international travelers,” he said.

High Demand For Alternative Accommodations

While foreign tourist arrivals have not yet returned to pre-pandemic levels, Booking Holdings is witnessing strong demand from international travelers looking to visit India. Additionally, the company has seen substantial growth in the alternative accommodation segment, which includes options like guest houses and apartments.

“We see very high demand for alternative accommodations such as guest houses and apartments, not just globally, but specifically in India as well. While hotels will always have their place, the rapid growth of alternative accommodations is particularly noteworthy,” Steenbergen state.

Global Property Growth And Expansion Plans

As of September 30, 2024, Booking.com boasts approximately 3.9 million properties globally. This includes over 475,000 hotels, motels, and resorts, along with more than 3.4 million alternative accommodation properties, such as homes and apartments. This is a marked increase from the 3.3 million total properties reported a year earlier.

To further solidify its position in India, Booking Holdings plans to invest $250 million in its newly established Centre of Excellence in Bengaluru over the next five years. The company also plans to increase its talent pool in India, growing from over 700 employees to 1,000.

Leveraging AI For Personalised Travel Experiences

Steenbergen emphasized the critical role of Generative AI in enhancing the customer experience. The company is focused on using AI to better understand travelers’ preferences and provide more personalized recommendations.

“The more we know about travelers – their history, preferences, and actions – the better we can tailor recommendations. This will make it much easier for customers to find their ideal options and complete their bookings,” he explained.