Why price sensitivity and trust are not opposites in the online travel market

Online travel agencies dominate how Indians plan and book their journeys today. These platforms account for over 80% of the country’s online travel market, a scale built on speed, reach and relentless price comparison. Discounts became the default lever as mobile-first travellers learned to compare multiple options within seconds. That approach worked for volume, but scale changes expectations.

Travellers still watch prices closely, but they are becoming less impressed by repeated markdowns. Their attention is now shifting to whether the price shown can be trusted to reflect fairness and clarity. A low number on the screen means little if it creates doubt later. Price sensitivity is, therefore, taking on a different meaning. It is becoming more discerning.

The focus is turning from finding the cheapest option to deciding whether a price feels credible and justified, bringing trust into the decision alongside cost.

Discount-led growth has reached its limits

Discount-driven strategies can deliver volume, but they struggle to build durable preference. In crowded digital marketplaces, constant price competition erodes margins and conditions users to switch platforms effortlessly.

Evidence from travel and ecommerce sectors shows that loyalty formed purely through discounts is fragile. Once incentives disappear, so does engagement. Travellers today expect platforms to support them beyond the transaction. That expectation includes reliable customer service, accurate information and pricing integrity. When these elements are absent, no level of discount can fully compensate.

Sustainable growth requires moving away from transactional acquisition towards relationship building. Platforms that continue to rely solely on price risk attract short-term users rather than long-term customers. As consumer expectations mature, trust becomes a growth multiplier.

Trust and price sensitivity reinforce each other

Price sensitivity is often mistaken for indecision, but it is more accurately a form of caution. Travellers seek assurance that the price they see is fair, especially in a market where comparing multiple platforms takes only seconds. Studies show that clear pricing supported by visible guarantees significantly increases booking completion, while unclear or opaque pricing is a leading cause of abandoned transactions.

When travellers feel confident that a price reflects genuine value, their reliance on repeated discounts diminishes. Those who trust the price are also more likely to return to the same platform, reinforcing repeat behaviour. In this way, price awareness and trust work together. Confidence in pricing allows travellers to evaluate options more decisively, focus on the quality of the experience, and move through the booking journey with greater clarity and certainty.

Reassurance reshapes consumer decision-making

Travellers often make decisions based on small, practical signals rather than just price. Clear comparisons of schedules, availability, and service options help them navigate complex choices. Being able to see itineraries, check conditions, and understand what is included makes the process feel manageable and reduces mental effort. This allows travellers to focus on what matters most, such as convenience, timing, or personal preferences.

When information is presented clearly and accessibly, choices feel easier to evaluate, and travellers can act deliberately rather than rushing. Over time, these patterns influence how they approach all bookings. They begin to plan more carefully, weigh options thoughtfully, and select what suits their needs best, even when multiple alternatives look similar. The way travellers assess these details decides which platforms will drive engagement.

What OTAs must do to build trust-led value

To create real value, online travel platforms should focus on the experience, not just the offer. Booking flows need to be simple and intuitive, helping travellers compare options and understand their choices quickly. Clear explanations of policies, cancellations, and additional services reduce uncertainty and make decisions easier.

Features like personalised recommendations, preference-based filters, and visible timelines help travellers match options to their needs. Regular post-booking updates, including confirmations and reminders, keep the journey organised and predictable. When platforms prioritise clarity, convenience, and structured guidance, travellers can engage efficiently and make the most of their booking.

This approach turns transactions into meaningful experiences, allowing travellers to see the platform as a helpful partner in planning. Over time, the value of the service becomes defined by ease and reliability, not just price or promotions.

Conclusion

The online travel market is at a turning point. Success will come to platforms that anticipate traveller needs rather than simply reacting to behaviour. Those that focus on creating seamless, thoughtful experiences will set themselves apart in a crowded landscape. Every interaction, from exploration to post-booking support, shapes perception and defines long-term value.

Platforms that invest in understanding traveller priorities and designing services around them can foster deeper engagement and lasting relationships. In this environment, growth is determined not by short-term tactics but by the ability to consistently deliver clarity, reliability, and relevance.

The leaders of tomorrow will be those who design journeys that feel effortless, meaningful, and aligned with how travellers plan, choose, and experience their trips.

(Rikant Pittie is the Chief Executive Officer and Co-Founder of EaseMyTrip.)