Online Travel Industry – India
August 2010
Executive Summary

              Online travel market valued at INR a bn in 20--; Expected to reach INR b bn by 20--
     ...
•Market Overview
•Business Model
•Drivers & Challenges
•Trends
•Competition
•PE Investments
•Key Developments


         O...
Online travel is a fast emerging business segment attracting
 enormous investments private equity players
 Overview       ...
Drivers & Challenges – Summary



  Drivers

  Proliferation of Internet
                                                 ...
Trends - Summary

              Online railway bookings is becoming the preferred segment in online travel


             ...
Online travel industry is over crowded with many new
 entrants in the market
 Overview                                    ...
OTA Players in the Market (1/4)

 Company Snapshot: Company 1
 Corporate Information                                      ...
Thank you for the attention
The Online Travel report is a part of Research on India’s Tourism Industry Series.
For more de...
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Market Research Report :Online Travel Industry in India 2010

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For the complete report, get in touch with us at : info@netscribes.com

India is the most dynamic and fast growing online travel market in the APAC region. Online travel contributes 70% of all e-commerce activities globally. Private equity players have made huge investments in the online travel agency (OTA) segment in the past two years.

The report begins with the overview of the online travel market, including market size, growth and market share of key segments. It provides an overview of the industry supply chain and business model of online travel agencies. An analysis of drivers explain factors contributing to the growth of online travel market including proliferation of internet, rising income, Indian railways online portal, growth in low-cost carriers, secure payment mechanisms and rise of medical tourism. The key challenges discussed are low margins, high operating costs, poor internet and credit card penetration, and limited inventories and lack of awareness.

The key trends identified include online railway bookings becoming the preferred segment in online travel, growing emergence of corporate travel packages, growth in offline counters, emerging travel information portals backed by OTAs, rising international travel, booming religious tourism, emerging travel information portals, and OTAs serving as a preferred search tool for checking fares and ticket availability.

Competitive landscape identifies the major players and provides details of their revenues, market share and brief business description including financials. The report also covers the details of the private equity investments and other key developments in the industry.

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Market Research Report :Online Travel Industry in India 2010

  1. 1. Online Travel Industry – India August 2010
  2. 2. Executive Summary Online travel market valued at INR a bn in 20--; Expected to reach INR b bn by 20-- Online airline ticket booking share is more than p % Market Online Travel Agency (OTA) is the most sort after segment by the private equity players with huge investments in the past two years Drivers: Challenges: – Proliferation of internet LE – Low margins & high operating costs – Growth in low-cost carriers Drivers & – Poor internet and credit card penetration P – Rising income – Lack of technical awareness and reliability on Challenges – Secure payment mechanisms online transactions M – Indian Railways online portal A – Rise of Medical Tourism S Online railway bookings becoming the preferred segment in online travel Emergence of corporate travel packages OTAs looking for offline counters leveraging on their brand value Trends Emerging travel information portals backed by OTAs Religious travel is becoming a hot segment in online travel Rising international travel OTA’s serving as a preferred search tool for checking fares and ticket availability Online travel industry will see consolidation in the coming years owing to stiff competition OTA GDS Meta search engine Competition • Makemytrip • Amadeus • IXIGO • Yatra • Galelio • Ezeego1 • Cleartrip • Abacus • Zoomtra ONLINE TRAVEL INDUSTRY IN INDIA 2010.PPT 2
  3. 3. •Market Overview •Business Model •Drivers & Challenges •Trends •Competition •PE Investments •Key Developments ONLINE TRAVEL INDUSTRY IN INDIA 2010.PPT 3
  4. 4. Online travel is a fast emerging business segment attracting enormous investments private equity players Overview Market Size & Growth • Online travel market in India valued at INR x1 bn in INR bn 20-- 300 x4 • Online travel contributes p % of all e-commerce 250 Y% activities globally x3 200 LE • Total travel market was INR c tr in 20-- and India x2 150 accounted for only INR d bn x1 P 100 • Globally, it is expected to grow m-n % year-on-year 50 M while in India it is growing at j % 0 Online Market Share by Channel 20-- SA 20-- 20-- 20-- Online Travel Penetration 25 % 20-- 20-- u5 T1% S2 20 T2% 15 S1% u4 S3% T3% 10 u3 u2 5 u1 Supplier Website 0 Traditional Travel Agents (Via Suppliers) 20-- 20-- 20-- 20-- 20-- Online Travel Agents Source: ONLINE TRAVEL INDUSTRY IN INDIA 2010.PPT 4
  5. 5. Drivers & Challenges – Summary Drivers Proliferation of Internet Challenges Rising income Low Margins & High Operating Costs Indian Railways Online Portal Poor Internet and Credit Card Penetration Growth in Low-Cost Carriers Limited inventories and awareness Secure Payment Mechanisms Rise of Medical Tourism ONLINE TRAVEL INDUSTRY IN INDIA 2010.PPT 5
  6. 6. Trends - Summary Online railway bookings is becoming the preferred segment in online travel Emergence of corporate travel packages OTAs looking for offline counters leveraging on their brand value Key ` Rising international travel Trends Religious travel is becoming a hot segment in online travel Emerging travel information portals backed by OTAs OTAs serving as a preferred search tool for checking fares and ticket availability ONLINE TRAVEL INDUSTRY IN INDIA 2010.PPT 6
  7. 7. Online travel industry is over crowded with many new entrants in the market Overview OTA Market Share India (20--) • Online travel market is the most crowded arena in the Company 1 E-commerce segment with many new players M4% Company 2 • IXIGO, Ezeego1 and Zoomtra are the leading meta Company 3 search engines in online travel M3% Company 4 LE • With the existing competition online travel space is M1% expected to see consolidation MP • Added to that airline companies like SpiceJet, IndiGo and KingFisher in India are coming up with their own portal Rang7, which will affect OTA’s M2% GDS Market Share G4% SA Company 5 Average Unique Site Visitors Per Month Number in mn G3% Company 6 4 a1 Company 7 3 a2 Company 8 a3 G1% 2 G2% a4 1 0 Company 1 Company 2 Company 3 Company 4 Source: ONLINE TRAVEL INDUSTRY IN INDIA 2010.PPT 7
  8. 8. OTA Players in the Market (1/4) Company Snapshot: Company 1 Corporate Information Business Highlights Headquarters City A, Country B • Started Company Franchisee Associate Program (AFAP) to expand its business in Feb 20-- Founded 20-- • Also launched fully automated and robust mechanism for its Preferred Sales Agents Bookings Flight, Hotels, Bus, Cars, Holidays • It is the only Indian travel portal to have its E headquarters in the United States. It’s a 99% L Key People Mr. C subsidiary of its US company - Navin Communication P Inc. based in Silicon Valley, California Company Snapshot: Company 2 Corporate Information Headquarters City P SAM Business Highlights • F % revenues generated through airline tickets • Revenue for 20—to 20--: Gross sales of INR j mn per Founded 20-- day • Daily visits/hits on the site: Currently around i mn Bookings Flight, Railways, Hotels daily visits with unique visits being k Key People Mr. Y • Daily bookings: Around v air bookings + s Hotel room nights daily Source: ONLINE TRAVEL INDUSTRY IN INDIA 2010.PPT 8
  9. 9. Thank you for the attention The Online Travel report is a part of Research on India’s Tourism Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal Gaurav Kumar Phone: +91 22 4098 7530 Phone: +91 33 4064 6214 E-Mail: gagan.uppal@netscribes.com E-Mail: gaurav.kumar@netscribes.com Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. ONLINE TRAVEL INDUSTRY IN INDIA 2010.PPT 9

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