Online Travel Market in India

[pic 1][pic 2]

[pic 3]

[pic 4]

Contents

Statement of Interest        2

Project Approach        2

Travel and Holiday Business in India/Context        2

Key Players/Competition        2

Points of Parity        3

Points of Difference        4

Psychographic Segmentation        4

Characteristics and Needs of Segments        5

Survey Results        5

Product        7

Need Analysis        8

Points of Differences        8

Meet Customer Expectations        8

Product Characteristics        9

Product Extension        9

Future Product        10

Place        10

Targeting        11

Communicating Value        11

Digital Marketing        11

Integrated Marketing Communications        12

Delivering Value        13

Value Networks        13

Mutual Responsibility        14

References        14

Statement of Interest

To assert if the current online travel market has space for a new entrant, which trades in only holiday packages (domestic + international).

Project Approach

[pic 5]

[pic 6][pic 7]

Travel and Holiday Business in India/Context

India is the second fastest growing travel and tourism market of the world, second to China. Travel and tourism industry contributed to 6.5% of India’s GDP1 in 2015 and the industry is poised to grow 7.5% annually2. Following drivers have steered the growth:

• Increasing income of Indian middle class population and improving lifestyles
• Low cost air travel and expansive rail network
• Higher internet and e-commerce penetration and use of smartphones/social media
• High aspirations of young Indian population

Key Players/Competition

The travel industry in India is characterized by Online (Delivery through Web based platform) and Offline players in the segment. The multiple players offer various services like holiday packages, booking for travel, stay bookings, business travel etc. The services can be segmented as per target audience, occasion for travel (leisure, medical, business, etc.), affordable accommodation, augmented services (VISA services, insurance, bank tie-ups). Cox and Kings, SOTC, Thomas Cook are performing well in the offline segment. MakeMyTrip, Yatra and Cleartrip cater to 87% of the online market1.

The top 10 companies (both online and offline) in Indian travel industry market are2:

1. MakeMyTrip
2. Thomas Cook
3. Cox and Kings
4. Yatra
5. SOTC
6. Goibibo
7. Expedia
8. Cleartrip
9. Travel Guru
10. Akbar Travels

Following is the chart representing market share information of Web-based travel service providers:

[pic 8]

Points of Parity

[pic 9]

[pic 10][pic 11][pic 12]

[pic 13]

[pic 14][pic 15]

[pic 16][pic 17]

[pic 18]

[pic 19][pic 20][pic 21]

[pic 22][pic 23][pic 24]

Points of Difference

Psychographic Segmentation

[pic 25]

Characteristics and Needs of Segments

The below was compiled based on interaction and interviews with customers and actual users of services.

[pic 26]

Survey Results

Following are some excerpts of the survey conducted:

[pic 27]

[pic 28]

[pic 29]

[pic 30]

[pic 31]

Product

We propose to introduce a new travel portal that would sell only holiday packages, unlike competition who sell flight tickets, rail tickets etc. Salient features of the portal are as follows:

...