NE Rural Tourism Private Ltd. [RTNE]www.rtne.co.in

Hotel website

Online Travel AgentsTravel Agent

The Indian Leisure Travel

10,000 listed properties

828 destinations

www.makemytrip.com has just 2,500 listed properties

Indian Travel & Tourism Consumption Trends

Focus on robust domestic market as compared to volatile In- bound tourists.

Domestic leisure traveller - 4.5 % of the population. Mostly originating from 13 major cities in India. Looking for better deals (price point INR 1000), shorter breaks, through

online markets. Intra regional travel - trips < 3 days; growing @ 17%

6%77%4%12%2%East

0%1%90%3%6%South

2%2%9%66%21%North

1%1%8%8%81%West

NortheastEastSouthNorthWestFrom to

Demand – Supply Gap

India has peak season of 100 nights, almost 80% of tourist traffic originates during these nights.

Shortage of 100,000 rooms per day (2008) during peak season.

Of the 828 known destinations in India; 50% of the tourist traffic visits top 50 destinations.

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2007 2009 2011 2013 2015 2017

No

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No. of bed nights required

No. of bed nights available

Consequences of Skewed Demand - Supply

Paucity of peak season accommodation in top 50 destinations

Unreasonably high tariffs

Pressure on the carrying capacity of the destination leading to environmental degradation

Opportunity for Rural Tourism

Case of high potential, invested capital & missed opportunities

The Traveller Rural TourismOperator

The Gap…

How do I find these destinations?

What is the level of quality?

Are rooms available?

Can I reserve one?

How can we reach more travellers?

How do we compare to our competition?

What improvements should we make?

Result:

Lower occupancy for rural operators

Traveller visits higher priced, more common destination or forgoes trip

Back-End Platform

Rural Tourism Supply ChainSales

Accommodation

Accreditation

Information

Demand

Destination

Accommodation

Booking

Payment

Quantity

Standard

Quality

Quality

Gap 1

Customers

Distributors

Gap 2 Gap 3 Gap 4

Travel Agents 25000

Preferential price point INR 1000 per night

50 mn middle class to become 250 mn.

NE Rural Tourism Pvt. Ltd. has created

The TravellerRural Tourism

Accommodation

Back-endwww.rtne.co.in

On-line Booking Network

Real time Inventory Instant booking & confirmation Convenient payment options User generated content

describes destination quality and experience

Result

• Information asymmetries drastically reduced

• Architecture created for multiple players along the supply

chain to leverage

Hotel website

Online Travel AgentsTravel Agent

Hotel website

Local tour operator

Back-End Platform (www.rtne.co.in)

Local tour operator

Destinations

Properties

Inventory

Gap 1 Gap 2

PartnershipsBack-End Platform

Rural Tourism Supply ChainSales

Accommodation

Accreditation

Information

Demand

Destination

Accommodation

Booking

Payment

Quantity

Standard

Quality

Quality

Gap 1

Customers

Distributors

Gap 2 Gap 3 Gap 4

Travel Agents 25000

Preferential price point INR 1000 per night

50 mn middle class to become 250 mn.

Accommodation

Standard

Quality

Quality

• Create a back-end

• Create successful franchisee like templates

• Interim period to consolidate back-end

• Scale up in top 50 destinations

• Scale up to market requirements

Theme

• Largely actively driving (as operator and investor)

• Present in Coastal Maharastra

• Build partnerships

• Training/Audit Program.

• Rally stakeholders

• Create awareness

• Uttarakhand/HP/Karnataka/TN

• Create service lines along business models

• Fund expansion/debt guarantee (scale-up) if required

RTNE's role

• Existing local private entrepreneurs

• Online/Offline Agents

• Networks of local private entrepreneurs and local people

• VTNE and other training institutions

• Networks of local entrepreneurs

• Financial Institutions

Potential partners

Capacity Building Strategy

Stage 1 Stage 2 Stage 3

Karmveer Rathoreinfo@rtne.co.in www.twitter.com/RuralTourismNE+91 97909 23774