For the complete report, get in touch with us at : info@netscribes.com Netscribes (India) Pvt. Ltd., a knowledge consulting solutions company, announces the launch of its updated report – Online Travel Industry in India 2012. The online travel industry in India has witnessed tremendous growth as people move towards online travel portals due to convenience and discounted offerings. The report begins with an introduction to the e-commerce market in India and offers information regarding the market size and growth. It also gives a break-up of the revenue for the e-commerce market. It goes on to explain the market structure of the e-commerce market and also provides an overview of the factors which drive this market. In the market overview section the structure of the online travel market is explained. Market size, growth and the break-up of the revenue generated is also provided for the online travel market. Increasing share of online travel market as well as the prevailing commission structure has been highlighted. Porter’s five forces analysis gives an overall picture of the online travel industry and helps to understand the major influencers. The business model explains the role of global distribution systems and their role in the online travel industry. This section also explains the various incentives provided by the OTA’s to attract more customers and the operational edge OTAs have over the traditional tour operators. Drivers include factors such as proliferation of the internet, especially broadband, which has increased online traffic considerably. Rising disposable income has also acted as a driver for online travel portals. Indian railways online portal has proved to be extremely efficient and user friendly, instilling confidence among people to book tickets online. Other drivers identified include rise in low cost airlines which has paved a way to travel by air for the large middle class segment in India thus increasing traffic to these online portals. Secure payment mechanisms have given people the desired confidence to carry out transactions online. On the other hand tremendous rise in medical tourism has led to influx of foreign travelers to India which again gives rise to increased traffic. Challenges identified include stiff competition coupled with low margin and high operating costs which has caused profit margins to shrink. In addition, limited awareness about portals adds to the woes. Trends identified are emergence of value added services among various OTAs including discount vouchers to woo customers and gather a large market share. Emergence of corporate packages is another trend identified. Many OTAs are following a hybrid model constituting online and offline stores to penetrate the market even further. OTAs are also moving towards better technology so as to cater to the increased traffic and offer a user friendly experience to its clients. They are also becoming more responsible and addressing customer queries

1. Online Travel Industry – India
Online Travel Industry India
February 2012

2. Executive Summary
 Ecommerce boom and increased awareness is likely to see the business grow
Market  The estimated market size of the Indian online travel market is A bn with a growth rate of a %
Overview  Air tickets constitute the bulk of the revenue share for online travel market
Drivers:
Challenges:
– Proliferation of internet
– Low margins & high operating costs
– Rising income
Drivers & – Indian Railways online portal – Limited inventories and lack of awareness
Challenges – Growth in low‐cost carriers
– Secure payment mechanisms
– Rise of Medical Tourism
 Value added services
 Emergence of corporate travel packages
f l k
 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
g
 OTA’s serving as a preferred search tool for checking fares and ticket availability
 Rising PE/VC investments
Major Players in the Market
Competition
p
Player 1 Player 2 Player 3 Player 4
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3. •Introduction
•Market Overview
•Business Model
Business
•Drivers & Challenges
•Trends
Trends
•Competition
•Strategic Recommendations
•Appendix
pp
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4. Increasing importance of e‐commerce will fuel the growth
of online travel in a big way in the days to come
Introduction E‐ Commerce Industry
• E‐commerce essentially means trading of INR bn
goods/services through an electronic medium such as 2000 D
internet
i
1500 D%
• E‐commerce essentially uses funds transfer, electronic
1000
messaging, electronic data interchange, e‐mail etc. to
C
complete the transaction 500 A B
• Most common type s of e‐commerce prevalent in India 0
are: 20‐‐ 20‐‐ 20‐‐ 20‐‐
• Online Travel
• E‐retailing Market Share: Online Travel (20‐‐‐‐‐)
• Online trading of stocks and shares
• Online advertisements Type A Type B
• Online job search
• Matrimonial sites
A%
• Real estate / property research
•Increasing awareness about internet shopping, cost
competitiveness and better technology has gone a
long way to fuel the growth of e‐commerce B%
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5. Airline ticket booking contributes to the bulk of online travel
market in India
Overview Online Travel: Market Size
• As more and more Indians are turning to the web for
their travel needs this sector is poised to grow at a 600 A a2
tremendous rate
• Increased awareness and better and reliable 400
a1
technology has gained the trust from the market
200
• Online travel market in India valued at INR A bn in
20‐‐ 0
20‐‐ 20‐‐
Online Travel: Structure Online Travel: Break‐up (20‐‐‐‐‐)
Type 1 Type 2
Online
Type 3 Type 4
Travel
c %
c%
d %
Type A Type B Type C Type D
b %
a %
Type a1 Type a2
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6. Drivers & Challenges – Summary
Drivers
Proliferation of Internet
Rising income
Ri i i
Challenges
Indian Railways Online Portal
Low Margins & High Operating Costs
Growth in Low‐Cost Carriers Limited inventories and awareness
Secure Payment Mechanisms
Rise of Medical Tourism
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7. Trends ‐ Summary
Value added services
Emergence of corporate travel packages
Emergence of corporate travel packages
OTAs looking for offline counters leveraging on their brand value
Rising international travel
Key
Trends `
Embracing Technology
Embracing Technology
More interactive OTAs
OTAs, a preferred search tool for checking fares and ticket availability
PE/VC investments
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8. Public : Domestic Company – Company 1
Company Information Offices and Centres – India
Block ABC
Corporate Address City XYZ
Tel No. 123456
Fax No. 1234567
Website http://www.abc123com/
p // abc 3co /
Year of Incorporation 20‐‐
City A
Products and Services
Products and Services
Category Products/Services
Key People
Product 1 P1,p2,p3
Name
N Designation
D i ti
ABC abc
XYZ xyz
MNO mno
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9. Public: Domestic Company – Company 1
Financial Snapshot
i i lS h Key Ratios
K i
y‐o‐y change
Particulars 20‐‐ 20‐‐ 20‐‐ 20‐‐
Revenue Net Income (20‐‐‐‐‐)
Profitability Ratios
6 x4 0.15 Operating Margin a1 a a2 a3 a4
x3
Net Margin b1 b b2 b3 b4
4 x1 x2 0.10
Profit Before Tax Margin c1 c c2 c3 c4
2 0.05 Return on Equity d1 d d2 d3 d4
Return on Capital Employed e1 e e2 e3 e4
0 0.00 Return on Working Capital f1 f f2 f3 f4
20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets g1 g g2 g3 g4
Financial Summary Return on Fixed Assets h1 h h2 h3 h4
Cost Ratios
• The company incurred a net profit of INR A mn in FY 20‐‐, as Operating costs (% of Sales) i1 i i2 i3 i4
compared to net profit of INR B mn in FY 20‐‐ Administration costs (% of
j1 j j2 j3 j4
• The company reported total Income of INR X mn in FY 20‐‐, Sales)
registering an increase of r % over FY 20‐‐
registering an increase of r % over FY 20 Interest costs (% of Sales)
Interest costs (% of Sales) k1 k k2 k3 k4
• The company earned an operating margin of d1 % in FY 20‐‐ an Liquidity Ratios
decrease of k % points over FY 20‐‐ Current Ratio l1 l l2 l3 l4
Cash Ratio m1 m m2 m3 m4
• The company reported debt to equity ratio of g in FY 20‐‐, an
Leverage Ratios
increase of r % over FY 20‐‐
Debt to Equity Ratio n1 n n2 n3 n4
Financial Summary Debt to Capital Ratio 01 o o2 o3 o4
Interest Coverage Ratio p1 p p2 p3 p4
Indicators Value (DDD/MMM/YYYY) Efficiency Ratios
Market Capitalization (INR) a Fixed Asset Turnover q1 q q2 q3 q4
Total Enterprise Value (INR) b Asset Turnover r1 r r2 r3 r4
EPS (INR)
EPS (INR) Current Asset Turnover
Current Asset Turnover s1 s s2 s3 s4
c
Working Capital Turnover t1 t t2 t3 t4
PE Ratio (Absolute) d
Capital Employed Turnover u1 u u2 u3 u4
Improved Decline
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10. Public: Domestic Company – Company 1
Key Business Segments Key Geographic Segments
P1
Country ABC
6,000 6,000
6 000 c1
d b1
c 4,000
4,000 b a1
a
2,000 2,000
0 0
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
Key Recent Developments
Description News
Overview • It sells Product 1 under the brand name of ‘abg’ & ‘def’
Production facilities • In India the company has k manufacturing hubs and j marketing offices
Shareholding pattern • Promoters of the company hold j % of the share while k % is held by general public
Clients • Clients are spread across ghj countries spanning across t continents
Investments • The company wants to invest INR K mn in a company through a joint venture in Country 2
producing product a and product b
producing product a and product b
• So far the company invested INR 0.C mn in company A in country A
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11. Thank you for the attention
The Online Travel report is a part of Research on India’s Travel and Tourism Industry Series.
For more detailed information or customized research requirements please contact:
Gaurav Kumar
Phone: +91 33 4064 6214
E‐Mail: gaurav.kumar@netscribes.com
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