INDUSTRY ANALYSIS

I. Future outlook and trends

It is claimed that Internet users and 14.3 active Internet users . It is expected that the growth in
rural villages will be higher compared to urban cities While over 60% of travel planning is still
done offline, that number is rapidly decreasing. Some travel agencies are changing their business
model to a more web-friendly approach in order to compete. These companies offer both online
and bricks-and-mortar services to lure customers. OTA industry is very competitive with more
than 30 players in the market.

DIRECT CONTRIBUTION

The direct contribution of Travel & Tourism to GDP reflects the internal spending on Travel &
Tourism (total spending within a particular country on Travel & Tourism by residents and non-
residents for business and leisure purposes) as well as government 'individual' spending -
spending by government on Travel & Tourism services directly linked to visitors, such as
cultural (eg museums) or recreational (eg national parks).

TOTAL CONTRIBUTION

The total contribution of Travel & Tourism includes its wider impacts (ie the indirect and
induced impacts) on the economy. The indirect contribution includes the GDP and jobs
supported by: Travel & Tourism investment spending an important aspect of both current and
future activity that includes investment activity such as the purchase of new aircraft and
construction of new hotels; Government 'collective' spending, which helps Travel & Tourism
activity in many different ways as it is made on behalf of the community at large eg tourism
marketing and promotion, aviation, administration, security services, resort area security
services, resort area sanitation services, etc; Domestic purchases of goods and services by the
sectors dealing directly with tourists - including, for example, purchases of food and cleaning
services by hotels, of fuel and catering services by airlines, and IT services by
travel agents. The induced contribution measures the GDP and jobs supported by the spending
of those who are directly or indirectly employed by the Travel & Tourism industry.

The direct contribution of Travel & Tourism to GDP in 2013 was INR2,178.1bn (2.0% of GDP).
This is forecast to rise by 7.5% to INR2,340.6bn in 2014.This primarily reflects the economic
activity generated by industries such as hotels, travel agents, airlines and other passenger
transportation services (excluding commuter services). But it also includes, for example, the
activities of the restaurant and leisure industries directly supported by tourists.
The direct contribution of Travel & Tourism to GDP is expected to grow by 6.4% pa to
INR4,346.4bn (2.1% of GDP)
by 2024.

The total contribution of Travel & Tourism to GDP (including wider effects from investment, the
supply chain and induced income impacts, see page 2) was INR6,631.6bn in 2013 (6.2% of
GDP) and is expected to grow by 7.3% to INR7,117.6bn (6.3% of GDP) in 2014.

It is forecast to rise by 7.0% pa to INR13,983.0bn by 2024 (6.8% of GDP).

The report from Ministry of Tourism is also attached in the annexure that shows the increased
growth rate of foreign and domestic tourists.

COMPETITION MAPPING

OTA

Makemytrip.com Yatra.com Goibibo.com

Services offered International and Airline bookings, Flights, holiday
domestic air tickets, railway bookings & packages ,hotels, and
holiday packages and info services, hotel bus ticketing
hotels, bus and rail bookings, holiday bookings
tickets, MICE,car packages, bus
rentals, customer care ticketing and car
support rentals
Business model B2C model B2C model & B2b B2C model & B2b
consumer through call model approach model approach
center, website and
travel agents
B2b model- have
separate sign in option
Strategy Expanding hotel & - -
packages business,
travel agents network,
new geographic
markets
Technology Amadeus - -

People It has over 450 Over 7000 Presently 200-500

employee on board- employees, 24*7 call employees
self service marketing center and 15 retail
no direct interaction, holiday lounges
travel agents spread across the
distributors and country
dealers and offers 24*
7 customer service
Process Online processing, Online processing, Online b2c transaction
home delivery facility has toll free customer processing
available, care number
Mode of payment is
possible by any bank
Strength Travel insurance, Partnership with Best deals to the
international sim card, reputed and reowned community members
forex card, mmt credit companies
card, mmt gif
vouchers
Promotion and Social sites likes Website, 24*7 call Offer coupon codes or
distribution facebook, twitter, centre, retail outlets promotional codes
youtube , news papers called yatra holiday
and magazines lounges
Sales promotion: Mobile app, offline
By giving festival travel agent- b2b
discounts model, yatra travel
Roundtrip tickets express
discounts
Best deal of the month
Special offers to
different holiday
destination
Place Internet marketing/ e- Headquarter in Headquartered in
business9 e- Gurgaon, Haryana. Gurgaon and other
commerce- b2c and b- Over 10 offices in 10 offices in Bangalore
commerce b2b) metro cities and Mumbai
Dedicated 24* 7
customer care support
and they have offices
in 20 cities across
India and 2
international offices in
New York and
Sanfrancisco

Offline travel agents:

Sabar travels Hetshree travels Rivera travels Bliss holidays

Product Car on rents, Cabs service, Air travel Tour Packages (Domestic &
features holiday packages flight bookings, bookings, International)
and bus bookings holiday packages holiday tour
and bus bookings packages, car Adventure Holidays (Bike
rental, railway Tours, Trekking, Camping
tickets, etc)
passport and Air Ticket Booking
visa advisor
Bus Ticket Booking

Car Rental

Passport Consultancy

Tourist Visa Consultancy

Cruise Booking

Forex

Travel Insurance

Destination Wedding

Business B2C approach B2C, B2B B2B and B2C B2B and B2C approach
model approach approach

Online Websites but no No website, Websites and Websites, but no online

presence online bookings presence on social platform bookings
facebook , booking is
offline

location Gandhinagar Gandhinagar Ahmedabad Gandhinagar

Sector 21 Infocity Cg Road Sector 11

Working 8- 10 8-9 hours daily(9- 10-6 10-8

hours 8)
Strategy Providing Offering quality Quality and Transparency and
facilities to service to best possible knowledge
customers and customer then price
keeping good quantity
relations with
operators to
manage timings
for bus

employees 4 3 6 7

area 200 sq. feet 230 sq.feet 700 sq.feet 400 sq. feet

Level of Car/buses rent Cabs service Cabs services Holiday packages

expertise and tour
packages

turnover 20 lakhs 30-40 lakhs - 30-70 lakhs

Time Period 20 years 15 years 10 years 1 year

outlets 2 1 1 1

Initial 3 lakhs 7-11 lakhs - 10 lakhs

investment

promotion Website and Word of mouth , - Website, facebook and local

newspaper justdial and advertising
advertisements facebook

Recruiting No No No Not specific, they are

policies trained before

strength Their relation Cab services Personal Training and knowledge

with customers given to relation with
and agency customers industry
weakness Bus timings Not more - -
knowledge about
ticketing

Consortia Yes Patel No No

Affiliation Patel & Shreejee

Travels

Credit terms Immediate Immediate Immediate Immediate

Business Mix Not available Corporate &

Customers All kind All kind No single All kind

booking

Affiliation Not affiliated IATA IATA Not affiliated

Centralized Decentralized Centralized Centralized Decentralized

or
decentralized

GDRS NA Amadeus Galileo NA

Automation 1 pc 4 pcs 6 pcs 2 pcs

1 landline & a 1 landline & 1 landline & 1 landline & mobile

mobile mobile
mobile

Market Segmentation:

Methods used to segment markets

There are seven main ways of dividing up markets for segmentation. Purposes, all of which are
used in practice in the travel and tourism industry. They are usually based on some form of
database analysis or Marketing research and a commitment to segmentation implies a
Commitment to marketing information systems. The main methods of segmentation are by:

Purpose of travel.
Buyer needs, motivations, and benefits sought.
Buyer behavior/characteristics of product usage.
Demographic, economic, and geographic profile.
Psychographic profile.
Geo demographic profile

Segmentation by purpose of travel:

For any tourism business, practical marketing segmentation should always begin with a careful
analysis of the purposes for which customers undertake travel and use its and competitors
products. Take, for example, business. Within the broad category of business travel there are
many specific aspects of purpose, which determine the nature of the products offered and the
promotional approach to be used. Conference markets require different products to those
supplied to other business travellers and meetings for groups of different sizes require special
provision; some travellers may require secretarial services and business

travel ranges from first-class to budget-priced products. The range of segments noted under the
main sectors of travel and tourism earlier in this article reflect some of the more obvious
purposes. A little thought will indicate a wide range of possibilities. Provided the customer
groups associated with any purpose meet the five essential criteria for effective segmentation, a
detailed understanding of each purpose of visit will always be useful in practice. For smaller
businesses in travel and tourism, segmentation by simple analysis of purpose maybe all that is
needed for practical or actionable purposes.

STP- segmenting, targeting, positioning

Under this, the market is segmented based upon factors like Age, Gender, Income Level, Occupation,
Social Status and Geographical Location and Psychographic

Age 20-60
Gender Males & Females
Occupation Professionals/ Housewives/ Youth/Business Executives
Social Class Social Class: Middle Class, Upper Middle Class, Upper class
Location Across India
Focus on travelers planning tour domestic and internationally, it could be broadly divided into two major
segments: personal travel and tourism and business travel.

The mass market consists of travelers that travel in large groups and prefer all-inclusive tours. They are
generally conservative

The popular market consists of smaller groups going on inclusive or semi-inclusive tours. This group
includes pensioners and retired people.

The individual market consists of chairmen, senior executives, etc.

Psychographic (VALS Framework) VALS segmentation developed by SBI (Strategic Business

Insights), categorises consumers into 8 different types based on a set of psychological traits and
key demographics that drive consumer behaviour. The combination of motivations and resources
determines how a person will express himself or herself as a consumer in the marketplace.

For I Travel, the four main basis for segmentation are: Experiencers & Achievers Innovators
& Stivers

TYPES Resources Orientation Characteristics Media

Experiencers High Self- Follow fashion Attend to

Expression and fads advertising
Spend much of Listen all
disposable income on kinds of music
socializing
Buys on
impulse
Achievers High Status Image Average TV
conscious watchers
Relatively
affluent
Attracted to
premium products
Innovators High Self Esteem Sophisticated Updated
Upsacle and about products online
image is important
Tries new
products without the
fear of risk
Strivers Medium Fun loving Trendy Not so media
Money defines oriented
success

The psychographic segmentation for I TRAVEL is done on the basis of VALS Framework for
Segmentation. The Values, Attitudes and Lifestyles System of segmentation helps a marketer
understand the crux of his target groups VAL.
I travel being a service provider of travel packages like adventure, family, weekend and business
packages requires the people who are avid travelers.

As the lifestyle changes, consumption of services might change. For example, a newly married
couple might prefer romantic holidays, but once they have children they would prefer family
vacations where there are plenty of activities to entertain kids. Teens and youth might prefer
adventure holidays whereas senior citizens would probably prefer more relaxing vacations.

Customer profiling:

Age 20-30 30-40 40-50 50 -60 and above

Youth- students, Retired

Business class,
Occupation freelancers, Business class
settled
entrepreneurs

Income 50000-100000 5,00,00 10,0000 100000 &above

Social status Upper class Middle class Upper class

 Extremely Calm,And
Passionate, sophisticated, relaxed
Personality adventurous and classy Business Family oriented
educated Visit corporate
hubs

Fond of travelling Family

& Photography, gatherings, yoga
Partying & International visits Business, family
Likes
Socializing gatherings

Religious places
Business corporate Religious and all
Adventure and or family quite
Travel meetings and inclusive
holiday tours (relaxed
exhibition packages
tours)