How Skyscanner Is Building Its Presence in a Booming India Market

Skift Take

As more Indians look to explore new destinations and seek better travel deals, Skyscanner’s approach of being both a travel guide and a deal-finder could resonate. The company’s vision of making India a top-three market is ambitious, but its success could redefine the company’s role in Asia,

Peden Doma Bhutia

Travel metasearch engine Skyscanner is preparing to launch a new marketplace within its app that offers a range of additional services.

The feature, which has not yet been officially announced, aims to integrate options like ground transportation, visa services, and even travel-related information, making the app a one-stop shop for travelers, Skyscanner CEO John Mangelaars told Skift.

The company has already rolled out a sustainability feature where airlines can post their environmental commitments, and this marketplace could significantly expand the app’s scope, according to the CEO.

Mangelaars, who was visiting India last week spoke to Skift about deepening Skyscanner’s presence in the country, a travel market that according to him shows significant potential for the travel metasearch engine.

The India Market for Skyscanner

“India figures among our top 10 revenue-generating markets alongside the U.S., Brazil, Japan, France, Germany and South Korea. We believe India could soon be in our top three markets,” Mangelaars said.

Mangelaars’ optimism stems from the rapidly evolving travel landscape in India, rising disposable incomes, increased air connectivity, and a growing appetite for unique travel experiences.

As more Indians take to the skies, for domestic as well as international trips, Skyscanner has set up a local team in India to forge partnerships and adapt offerings to local needs.

The Great Indian Outbound Wave

With a little less than 100 million passport holders, India’s outbound travel market is still nascent. However, Skyscanner sees an opportunity with millennials, who are keen to explore international destinations, especially as infrastructure and affordability improve.

“While three out of four millennials in India want to travel abroad, they are also looking for good deals and unique experiences,” Mangelaars said. 

The company’s “Explore Everywhere” feature, which uses AI and machine learning to recommend destinations based on traveler preferences and trends, is designed to cater to this demographic.

Solutions for a Tech-Savvy Audience

Skyscanner is also integrating AI-driven tools to improve the travel planning process. The “Savvy Search” tool allows users to input preferences like “Northern Lights” or “affordable beach destinations,” helps them find personalized recommendations based on real-time data.

“Indian travelers are very receptive to AI-powered tools. While they may not seek out AI as a standalone feature, they appreciate the improved experience it offers, from better price searches to tailored suggestions,” he noted.

Strategic Partnerships to Boost Market Penetration

Skyscanner’s collaborations with local players like JioCinema and Paytm signal a deeper integration into India’s digital ecosystem. These partnerships would make users aware of Skyscanner’s functionality and also help improve user engagement through events and targeted marketing.

By leveraging India’s rapidly evolving digital payments landscape, including UPI adoption, Skyscanner aims to simplify travel bookings for Indian customers.

“Partnerships with local players allow us to create relevant experiences for Indian travelers. Whether it’s through JioCinema’s contests or our collaborations with Paytm, we want to be where the travelers are and help them discover new travel opportunities,” he said.

Navigating Price Sensitivity with Value-Driven Offerings

Skyscanner is fine-tuning its offerings to cater to India’s value-conscious travelers. Mangelaars pointed out that Skyscanner’s tools, such as price alerts and fare drops, help users find the best deals.

This focus on affordability aligns with Indian travelers’ desire for value while offering flexibility in terms of travel dates and destinations.

“Indian travelers want a good deal, but they also seek unique experiences. We aim to offer them both, with features like our Explore function and tailored search options that make travel planning easier and more enjoyable,” according to Mangelaars.

However, Skyscanner’s ambitions in India go beyond market share. Mangelaars envisions a future where the company plays a role in supporting the broader development of the travel ecosystem. As India continues to invest in airport infrastructure, and as countries ease visa restrictions for Indian travelers, Skyscanner aims to position itself as a key partner in this growth.

“There is a powerful opportunity for India to align the stars. We want to be advocates in this process and help connect the dots,” he said.