Your SlideShare is downloading. ×
0
Online Travel Industry in India - Market Size
Online Travel Industry in India - Market Size
Online Travel Industry in India - Market Size
Online Travel Industry in India - Market Size
Online Travel Industry in India - Market Size
Online Travel Industry in India - Market Size
Online Travel Industry in India - Market Size
Online Travel Industry in India - Market Size
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Online Travel Industry in India - Market Size

14,080

Published on

Dissection of Indian Online Travel Business for Domestic Market. Calculation of the Market Size.

Dissection of Indian Online Travel Business for Domestic Market. Calculation of the Market Size.

Published in: Business, Technology
4 Comments
18 Likes
Statistics
Notes
  • good and useful information, can anybody provide similar info related to international travel industry and airlines along with their online vs offline sale structure.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • can anyone tell me the size of total travel market in Asia pacific countries individually.???
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Take a print out and document it.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • how can i download this slide.. seems to be a very important informations here.. !
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
14,080
On Slideshare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
0
Comments
4
Likes
18
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. being practical: Online Travel Industry in India O7, March 2010 pj | pj@beingpractical.com | www.beingpractical.com What is the Market Size of OTA Industry for Domestic Airlines in India
  • 2. Domestic Airline Fleet in India *indicative data only, gathered from various sources available. Consider all numbers as indicative figures * Data excludes Air India / Indian Airlines domestic flight operations * Actual flights per day may be an lower number since most carriers operate multi-destination flights, like Mum-Kolkata-Guwahati *Jet Airways fleet size may be fleet in service for both domestic/international operations. As of Airline Fleet Size Flight per day Destinations Dec ‘09 Jet Airways 89 400 40 Dec ’09 Jet Lite 19 110 30 Dec ’09 Jet Konnect 19 125 17 Dec ’09 Spice Jet 19 125 18 Dec ’09 Indigo 24 125 20 Dec ’09 Kingfisher (w’ Red) 66 400 80 Dec ’09 Paramount 5 28 9 Dec ’09 Go Air 8 55 12 Total: All Private Airlines 249 1398 230
  • 3. Maximum Tickets Available for sale *indicative data only, gathered from various sources available. Consider all numbers as indicative figures * Actual number of seats available may be lower than mentioned since flights operated may be lower, as mentioned in previous slide * Most airlines in India operate Airbus/Boeing aircrafts with which seating configuration varying between 180 to 220 * Full service airlines like Jet Airways & Kingfisher operates flight with business class seats, and have ATR aircrafts in fleets as well * Paramount Airways flies smaller Embraer aircrafts Total Tickets available for sale each day = Total Seats available = 275,680 Airline Flight per day Seats per Aircraft Total Seats Available Jet Airways 400 200 80,000 Jet Lite 110 200 22,000 Jet Konnect 125 200 25,000 Spice Jet 125 200 25,000 Indigo 125 200 31,000 Kingfisher (w’ Red) 400 200 80,000 Paramount 28 60 1,680 Go Air 55 200 11,000 Total 1398 1398 275,680
  • 4. PLF – Passenger Load Factor <ul><li>Total tickets available for sale, indicates maximum inventory available or max supply </li></ul><ul><li>From time to time, airlines in India have raised concerns on the occupancy levels of seats, that’s passenger load factor. Mostly the number has hovered between 68% to 72% for most full service airlines & between 75% to 82% for low cost carriers </li></ul><ul><li>Assuming 75% PLF for India, total sold out tickets in India per day would be: 2,06,760 </li></ul>Total Seats Offered: 275,680 Passenger Load Factor: 75% Seats sold: 206,760
  • 5. Sale Distribution through different channels <ul><li>Having said that 206,760 tickets are available for sale, lets not assume that all sale happen through online channels </li></ul><ul><li>Different channel includes – Offline Travel Agents & Tour Operators, Tickets sold as part of travel packages, Big Corporate Organizations booking tickets for its employees through offline travel partners, Ticket Counters at airports and yes – Online. </li></ul><ul><li>Assuming a healthy 40% of all airline ticket sales as online sales </li></ul><ul><li>However, consumers in India are price sensitive and do book directly from airline’s websites as well. </li></ul><ul><li>Doing the division > Ticket Sales on airline websites = 15% > Ticket Sales on OTA websites = 25% </li></ul><ul><li>Tickets sold by OTAs daily = 51690 </li></ul>Please note that this distributions as channels is pure assumptions
  • 6. So What’s the Top Line Sales? <ul><li>Total Ticket Sold by all OTAs per day = 51690 </li></ul>Figures based on assumptions & numbers used through this presentation <ul><li>Assuming average price of ticket sold online at = Rs. 5000 (not all get a Rs.3000 ticket) </li></ul><ul><li>That’s daily sale of Rs. 258,450,000 -> ie. Rs. 25.84 crores </li></ul><ul><li>Monthly = 775.2 crores </li></ul><ul><li>Yearly= 9062.4 crores </li></ul><ul><li>Market size for Indian OTA Industry: 9000 crores approximately </li></ul><ul><li>On a 5000 INR priced ticket, you pay 2000 INR tax (that’s 40% ) </li></ul><ul><li>Removing the tax factor, the number will be 5400 crores per year </li></ul>
  • 7. Interesting take aways… <ul><li>this presentation can be extended to predict profitability of an OTA but has been restricted to predicting the market size only. However it’s a volume game! </li></ul><ul><li>On an average, every aircraft in India does 5.6 flights per day If airlines could further manage route optimization and do 1 more flight per day, at 6.6 flights per day, OTA Industry Sales will be up by 15% </li></ul><ul><li>If an airline adds one more aircraft to its fleet, OTA business increases by 0.4% Note that the airlines listed here itself (excluding Air India, Indian Airlines (now part of Air India) have over 250+ air crafts in orders with Airbus / Boeing and others. This is equivalent to number of aircrafts in operations now. If market conditions remain positive and airlines accept deliveries of these aircrafts over next 5 years, the market size will be double of existing today! </li></ul><ul><li>Nevertheless, Online Booking of Tickets will only increase in coming years. This presentation assumes 40% of ticketing happening online, this percentage share will increase with increase in consumer’s likeness for online transactions. The share of online reservations between airlines & OTAs will be deciding factor. </li></ul>
  • 8. thank you O7, March 2010 pj | pj@beingpractical.com | www.beingpractical.com

×