This PPT contains the full details about travel and tourism industry, about IRCTC. Marketing plan of IRCTC, their tag line, USP, Financial planning and new service idea that could be implemented

1. Arunima Divya Eswar Nikita Shilpi Subhadeep

2. INTRODUCTION of IRCTC
Indian Railway Catering and Tourism
Corporation is subsidiary of Indian Railways.
IRCTC was incorporated on 27th September,
1999 to handle catering, tourism, and online
ticketing operations of the railways.
IRCTC has launched various tourism products
and services for promotion of tourism industry
in India.

3. ALL ABOUT THE SECTOR
 The services sector of India remains the engine of growth for India’s economy and
contributed 55.39% of India’s Gross Value Added at current prices in 2019-20.
 At current prices, the sector grew 12.75% year-on-year in 2018-19.
 As of 2018, 31.45% of India’s employed population was working in the services sector.
Key Players -

4.  India's Tourism Industry is experiencing a strong period of growth .
 According to 2018 report of the WTTC, India was ranked 3rd in the tourism sector
 India ranked 8th in the world in 2018 contributing US$ 247 billion in terms of absolute
direct contribution of travel & tourism sectors to its GDP.
 It is the 3rd largest foreign exchange earner for the country.
 Total earning from the sector in India stood at US$ 28.6 billion in 2018.
 The Tourism Ministry has played an important role in the development of the industry,
initiating advertising campaigns such as the 'Incredible India' campaign, which promoted
India's culture and tourist attractions in a fresh and memorable way.
ALL ABOUT THE INDUSTRY

5. Indian Railway Catering and
Tourism Corporation
Total Revenue: 1957.01 Cr.
Catering
Total Income:
1076.36 Cr
Mobile Catering
Served on total
360 trains
Static Catering
Refreshment
room:169
Jan Ahaar: 57
Other Units
11 Base Kitchen, E-
catering in 325 Stations
Railneer
Total Income:
176.13 Cr
Online Ticket Booking
Total Income: 254.41 Cr
Growth Rate : 12.62%
No. of Mobile
Bookings:2.79
lakhs
Tourism
Total Income:
254.41 Cr
Domestic tour
Total tourist 33725
in 2018-19
Inbound and Outbound Tour
1149 passengers availed in Maharaja
Express.
Outbound Revenue: 27.38 Cr.
Air Tickets
4527 tourist travelled in 270 air
packages, Growth rate is 15%
State Teerath
Total Income:
195.70 Cr
Business model of
IRCTC

6. PRODUCTS
SERVICES
• Internet Ticketing
• Rail Neer
• Catering
• Tourism
COMPETITORS
• Yatra.com, Easy
booking
• Bisleri, Kinley, Royal
Blue
• Yatra Chef
• Travel Zaika
• Travel Khana
• RailYatri
• RailRESTRO

7. MARKET SHARES (COMPARISION) RAIL NEER MARKET SHARE
REVENUE
1829.50

8. Recent news of
company/sector
• Railways has been providing bulk cooked food with paper plates for lunch and food
packets for dinner through IRCTC base kitchens, RPF resources and contribution of
NGOs. While delivering the food to needy persons
• Tourist Industry Sees Crisis Looming from Coronavirus Visa Ban
• Railways to refund Rs 1,490 crore for cancellation of 94 lakh ticket bookings
• IRCTC launched Tejas train from Ahmedabad to Mumbai
• Vande Bharat Express , also known as Train 18, is launched by India( Run between New-
Varanasi & New Delhi Katra-Jammu & Kashmir
• The government plans to give out 150 trains on 100 routes to private players

9. Tag line
Lifeline of the nation
USP
Serving Customer with
a Smile
Mission
IRCTC to establish itself as a leader in the
area(s) of hospitality services , travel and
tourism, packaged drinking water, and Internet
Ticketing by providing value added products
and services for passengers, tourists and other
customers, targeting Indian Railways and Non –
Indian Railways related services alike, building
a resilient business portfolio that is scalable and
based on core competence.
Vision
To be the leading provider
of high quality travel,
tourism and hospitality
related services for a range
of customer, segments,
with consistently high level
of customer satisfaction.

10. Various strategies adopted
Target Market:
1. People who wants to travel a lot.
2. Catering for those who wants to
eat restaurant foods.
3. Railneer for those who are health
conscious.
Positioning:
IRCTC used Monopoly Positioning.
Only option to use is IRCTC mobile
app or website.
Tie-ups:
IRCTC made deals with many
renowned companies in catering
business e.g. KFC, Dominoes etc.
•KPO & Affiliate
marketing
•Value added service
•Digital Adds
E-Ticketing
•Customer engagement
through various
channels
•Focus on inbound and
outbound marketing
Tourism
•Improving food
quality and hygiene.
•Started E-Catering
•Usage of
digitalization
Catering
•Need-Gap analysis
•Operating models for
the plants
•Future capacity
expansion.
Rail Neer
Segment wise adopted strategies

12. Assumptions (For Rail Neer) :
1. Selling Price 20 rs per unit
2. Fixed Cost 100 crores
Selling price/unit 20.00
less : Variable cost/unit 10.00
Contribution/unit 10.00
Fixed Cost(Cr) 100.00
PV Ratio 50%
BEP 200.00
BEP in units (Cr) 10.00
1 2 3 4 5
A. Total Revenue 1,599.30 1,339.60 1,829.50 2,225.90 2,558.60
B. Total Expenditure 1,246.60 1,207.70 1,547.90 1,754.50 2,001.30
EBITDA (A-B) 352.70 131.90 281.60 471.40 557.30
EBIT 330.30 103.70 253.30 441.50 524.30
PAT 214.10 63.30 154.50 269.30 319.80
Net Profit 112.20 32.80 80.10 139.70 165.90
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
A. Total Revenue B. Total Expenditure EBITDA (A-B) EBIT PAT Net Profit
2017 2018 2019 2020E 2021E

13. NEW SERVICE DEVELOPMENT IDEA
Rail Jinni
-at your service
Rail Jinni
Passengers can avail
services easily like-
1. Ordering food.
2. Emergency correction
of tickets.
3. Checking ticket status,
4. booking of new ticket
etc.
Where we can fit ?
Get your order
at your seat
Make
payment
Provide
details
(Name, Seat
no etc.)
Choose &
Customize
Select Food
order option
in screen
Order Food using Rail Jinni

14. BUDGETING OF RAIL JINNI
No
1. only special train considered 40
coaches per train 20
Seats in a coach 70
2.amount of one machine 10000
3.installation charges to be paid sumsum(IT services) 15000000
4.Maintainance charges(lumsum)+ salaries 5500000
5. Tax & Insurance paid 10% on machine purchase
Assumptions
Particular Amount (Cr)
Machine purchase 56
Installation charges(IT) 1.5
Salaries + maintainance 0.55
TOTAL EXP 58.05
Tax + Insurance 5.6
TOTAL INVESTMENT 63.65
Cost Structure
Assume NET PROFIT (Cr.) 100
TOTAL INVESTMENT (Cr.) 63.65
ROI 57%
ROI of Rail Jinni
0
20
40
60
80
100
Assume NET
PROFIT (Cr.)
TOTAL
INVESTMENT
(Cr.)
Machine purchase Installation charges(IT)
Salaries + maintainance Tax + Insurance

15. THANK YOU
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Stay at Home,
Stay Safe….