Travel entertainment service business model for Indian Railways
This project is from way back in 2011, so today the content might seem dated
considering the pace at which technology has evolved.
However, something similar did come into existence in India a few months later.
(Unfortunately not by us, but it’s good to know that the idea had merit. )
Computing System Rental Service for
Long-Distance Train travel in India
• Rental service for Entertainment / work systems on Outstation
•Rent at starting point – Use on journey - Return at destination
•Based on the Captive Audience Network Model
Product Price in INR
Aakash – low-cost Tablet PC 2,999.00
Reliance 3G Tab 12999
WESPRO 7" Netbook Laptop WIFI USB N720 800 MHz 256 MB 4071
Acer Emachine Mini Netbook Notebook 1GB 250GB 14,749.00
ASUS Eee PC X101H Netbook - N455 / 1GB / 250 GB 11,495.00
**Work with Economies of Scale to reduce costs.
THE BUSINESS OUTLINE
•Physical Stores / counters
at all major Stations
•Procurement in bulk
streaming media, etc.)
•Inventory & Store Space
•Customer - Nominal
CAPTIVE AUDIENCE NETWORKS
A broadcast-like medium to deliver informative content to viewers while
they wait at a venue.
Use of plasma displays and LCD screens to deliver content that is relevant
to the target audience.
Common locations include medical centre waiting rooms, train and bus
stations, and retail checkout areas.
The Technology - a display screen, a media player, and a content
management server connected to the media player over a network.
•Replication of the mass CAN model in an individual, one-to-one
•Travelers rent the device at the beginning of their journey.
•Use the device on the train journey, for entertainment or work
•Paid content / ads streamed to device
over a wireless network.
•Return the device at destination
We Procure the Device in bulk from suppliers
Advertisers provide us with content + Fees
Content is Streamed to the device via a network
Alternatively, manually installed/updated into each
Customer Orders the device via our website & inputs journey details
Customer collects the device at starting point of journey
Through journey - Customer uses the device, ads are streamed at regular intervals
Customer returns the device to store on arrival at destination point + Collects Deposit
THE VALUE CHAIN
THE TARGET GROUP
Travels by outstation trains, AC / 1st class / Chair Car (Can later be
replicated for General classes.)
Is technology savvy.
Mainly students, business travelers, tourists.
Long Distance travel, especially day travel, including long idle
Can afford to spend approx. Rs 2000 as a refundable deposit (In
addition to a rental fee of approx Rs. 100)
TARGET PERSONA #1
Mona is a 23-year old IT-engineer who works in Mumbai. She
travels home to Delhi for a few days every month.
Mona boards the Mumbai Rajdhani Superfast Express from
Mumbai at 4pm and is scheduled to arrive at Delhi at 7am the next
She usually spends her time on the train
reading her favorite novel,
listening to her iPod and
worrying about the work piling up
in the office while she’s away.
Jay is a 36 year old businessman from Bangalore. He is headed to
Kashmir on vacation with his 5-year old daughter, Sara.
They board the Kashmir Kalli Express from Bangalore at 5am and is
scheduled to arrive at Kashmir at 11pm the next day.
It is a long journey, and little Sara gets bored and restless.
She carries her dolls along on the journey
but misses her video-games at home.
TARGET PERSONA #2
User Orders device
Details and Journey
payment of Rental
fee + Refundable
Step 2. At
User picks up the
device from the
Store on Starting
Makes payment of
Rental fee +
(If not paid online)
temporary key and
User uses device
Ads are streamed to
Step 4. On
Validity of Key
expires + system
User returns device
at Store at that
Gets a FULL Refund
of Security Deposit
*As compared to installing permanent on-board entertainment systems in trains
advertising to captive
• TG captive for long
periods. Ample time
for ad messages to
• Large Audience
• Free usage of a high-
• Payment only of a
security deposit. (and
a nominal rental fee.)
For the Railways
• Solution to major
customer pain point.
• Relatively low-cost,
• No /nominal charge
to customer for high-
• Competition to
Airlines in this
•Possible Tie-ups with:
•Travel Websites like Makemytrip, Yatra.com, etc.
•Advertising at major railway stations
•Pilferage / Damage.
• Software / Hardware issues & Troubleshooting mid-journey.
• Inventory management (various locations)
• Content - monitoring and updating on each unit.
• Low public familiarity with technology.
• Single-use pin number – travel-time based pricing.
• Limited validity period, system locks and can no longer be accessed.
• Security Deposit equal to the cost of the Device, Fully Refundable
• Personal Details collected at time of order.
• Security Deposit + original documents.
TACKLING SECURITY ISSUES
TACKLING INVENTORY & MAINTENANCE ISSUES
•Stock dispatched to respective Station stores only when
order is placed.
• Small volumes of Inventory kept in stores on all major
stations for Spot rentals.
• Toll-free technical support number / availability of a
technician in major trains for troubleshooting.
Potential for expansion
- Also Replicable in long-distance buses.
Assuming implementation in 2 major types of trains in India
Revenue from rent 150000
Income from Adv. 30000
Total Revenue 180000
Cost of Tablet PC 150000
Website creation 20000
Total fixed cost 172500
Labour @ 5000/month 40000
Shop rent 20000
Technicians @10000/Month 20000
Website maintenance 10000
Total variable 90000
Total cost 262500
BEP 1.675 months
Monthly Income Statement