By the middle of 2008, Indian Railways is looking to allow travel agents, including online travel agents, to sell railway tickets online. They’re going to start with a selective rollout, Nalin Shingal, Chairman and Managing Director, Indian Railway Catering and Tourism Corporation (IRCTC) has told TravelBizMonitor (via AlooTechie), and will be working with most OTAs by end of 2008. At the India Digital Summit, responding to a question from the audience, Sanjay Aggarwal, head of operations of IRCTC, had said that their sustenance depends on the extra charges – they collect 2-3 percent over and above the ticket prices. “Transactions are almost 1.8 million a month, 10-12 percent (of total transactions). We’re growing at around 200-250 percent every year.” Now here’s why they’re looking to allow OTAs a look in: being present on OTA websites might allow those looking for cheap airfares to compare prices with Railway tickets. Secondly, greater distribution might help increase the number of transactions, and hence earnings for the IRCTC. There probably wont be much in terms of margins for the OTAs, though.
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