The Metric That Indian Startups Once Swore By Is Now Being Blamed For All The Sector’s Ills

Till a few years ago, profitability received the step-child treatment from Indian e-commerce entrepreneurs.

Online travel start-ups join e-commerce fray

India is in the throes of an entrepreneurship revolution with online start-ups getting the support of both consumers and venture capitalists. Over the years a large number of online travel start-ups have entered the fray to cash in on the e-commerce boom that has to a large extent been driven by travel segment in the country. One of the biggest challenges in the online travel space is competition, both from other online service providers and from traditional travel agencies. The travel industry, especially luxury travel, is the first to suffer in times of recession or downward economic trend. Both these situations are more challenging for start-ups than they are for established companies. Start-ups do not have any additional capital or reserves to fall back on, and during an economic downturn, if people spend on travel they prefer to go to a service provider where service satisfaction is guaranteed and not experiment with a new entrant in the market.