Credit card limits, merchant establishment charge-backs, and issues related to basic travel quota (BTQ) forms for international products, are only a few of the problems that dog online travel portals.

For these reasons, online travel agents (OTAs) are unable to sell too many international products although they are seeing significant growth in the domestic market. BTQ is the scheme wherein foreign exchange is issued to the residents who wish to undertake foreign travel. The BTQ form has to be signed physically and therefore places a limitation on the online travel agent (OTA).

Moreover, credit card transactions online for international travel are usually in excess of Rs 1 lakh and online shoppers are generally unable to transact because of the limit on their cards.

The problem is compounded by the fact that shoppers are also unwilling to commit to large transactions online because of security issues and also an inclination to settle their bills in installments.

Get the full story at The Financial Express