PRESENTED BYNEERAJ DUBEY

M.A.T.M.(1ST SEM.)

SOME ONLINE TRAVEL AGENCIESMakeMyTrip.comIndiatimes.comYatra.comTravelGuruClear tripArzooFlight raja

PERFORMANCE

Make My Trip ………… 50%-55%

India times …………. 10%-15%

Yatra. com ……….… 10%-14%

Others …………. 1%-16%

ONLINE TRAVEL BUSINESSThe total gross revenue earned by online travel

portals from the sale of airline ticket is in range of Rs.430-540 crores.

These online portals are getting a net commission ranging from 2% to 9% from airlines.

Airline business is forming almost 90%of total revenue of online travel portals & 10% revenue comes from hotel booking & others.

Online travel sales in Asia-Pacific are estimated to reach $25.6 billion this year.

ONLINE TRAVEL BUSINESSTravel portals in India did business of $800

million (of the total $15.5 billion travel market in the country) in 2006. This is expected to increase to $2 billion by 2008.

In 2006, India attracted 4.43 million foreign tourists; the same year, around 350-400 million domestic tourists are estimated to have traveled around the country.

For hotel bookings, the commission is much higher and varies between 8% and 25% .

AIRLINES ONLINE BOOKING 2007 ….. 33%

2008 ….. 39%

2009 ….. 43%

2010 ….. 55%

ONLINE BOOKING OF TRAINS2007 ………. 9%

2008 ………. 15%

2009 ………. 23%

2010 ……….. 34%

ONLINE BOOKING OF LODGING2007 ………. 3%

2008 ………. 5%

2009 ………. 6%

2010 ……….. 9%

MARKET FORCASTIndia will be Asia's fastest growing market for

online travel retail by 2010.Other markets topping the table include

Vietnam, Hong Kong, Indonesia and China, as online travel retail takes off in Asia.

The online travel retail market in India is expected to boom over the next five years, with Internet-based travel retail transactions increasing by an incredible 271% between 2005 and 2010.

online travel retail sales generated in India will exceed US$2 billion in 2010 alone.

REASONSThe rapid growth of the urban population in

India expected over the next five years will provide the perfect environment for travel retail companies with online operations, as ever-increasing numbers of Indians wishing to travel will have access to the Internet.

A strong correlation has emerged between the highest computer ownership rates and the largest urban populations, as they provide the ideal infrastructure for Internet services. With double-digit growth forecast in the number of urban households between 2006 and 2010, India is showing great potential for online businesses and as a result, great potential for online travel retail.

BOOSTERS OF ONLINE TRAVEL

Awareness of people.Government support.Good internet servicesProtection given by travel portals.Lucrative offers.Low price services.Effective marketing.

CHALLENGES

UnawarenessLess interestCredit card penetrationPoor internet facilitiesLack of facilities

SUMMARY

India is the most dynamic and fast growing online travel market in the APAC region. The online travel market in India has witnessed tremendous growth and is attracting large number of national and international players. Private equity players have made huge investments in the online travel agency (OTA) segment in the past two years.

SUMMARY

Factors contributing to the growth of online travel market based on increasing internet users, growth in low-cost carriers and secure payment mechanisms. The key challenges are low margins, high operating costs, and poor internet and credit card penetration.

T H A N K Y O U

& Q U E R I E S