Perception of Online Travel Booking Among the People of Bangladesh

The total revenue from the travel and tourism market in Bangladesh was USD 1,728 million in 2019 which came from hotels, package holidays, vacation rentals, and other market segments. In the same year, the international tourism receipts for the country were USD 391 million representing a 9.5% growth from the previous year, and 400 percent growth over the last decade. These figures demonstrate the potential for growth in Bangladesh's travel and tourism industry, as the country continues to develop its infrastructure and attract more visitors. Within this market, 3 to 5% of offline customers are going to convert into online customers every year. Other factors related to online travel booking also seem favorable. 25% of individuals in Bangladesh used the internet in 2020, compared to a mere 5% in 2011. Furthermore, different Online Travel Tech companies have come into being over the past few years which would disrupt the existing market dominated by offline travel agents, individual hotels, and airlines in Bangladesh. That is, both the travel market and the online share within this travel market is growing in this country.

The following are some main findings based on a survey done on the Bangladeshi people about the perception of online travel booking

Importance of Factors by Likely and Unlikely Groups

The customers were classified into two categories, based on how they rated their likelihood to book onlineLikely Group andUnlikely Group. The chart above shows the difference between the perceived importance of the various factors. Among the various factors, the importance oftime to book was the most different between the two groups. It means that the proposition of spending less time booking online is going to be attractive to a Bangladeshi user. The next most differentiating factors were personalized services and the convenience of booking. The importance price or fare was similar for those who are likely and unlikely to book online. Complex trips were not an influencing factor for online travel for either the likely or the unlikely to book travel, online groups.

Security vs Likeliness

Customers were asked about how secure they thought their personal and financial information was in the digital space. The responses show that there exists a medium positive correlation of +0.56 between the perception of security and the likeliness to book. This means that companies must first make themselves trustworthy to their potential customers to motivate travelers to book online.

Impact of the Perception of Security

Very Good Very Bad

To fully understand the impact of such a relation between the perceived lack of security of personal and financial information, the chart above can be used. Most people in our survey responded negatively about their perception of information security in online space. At the same time, the share of people who have really high trust in the security of e-commerce platforms is only 6%, compared to 18% of people who are strongly against the thought of online information security. These figures translate to why Bangladeshi people might be slower to adopt online travel.

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