overview report

7/31/2019 Overview Report

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Table of Contents

Cover Page 1

Contents 2

Introduction 3

I. Trends and Features of online travel agency in India 3

II. The combination of the Cultural, Economical and Legal impact on the Industry 4III. Technological impact 5

Conclusion 7

Bibliography 8

Appendices 10


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1The online travel agencies are growing really fast. According to surveys IRCTC online sales are 99% since 2006. This company is the first in India who sold

tickets for trains via Internet. They manage to settle cancellation or modification by phone or online. Recently they launched a loyalty system like airlines.

All the points accumulated can be converting in train tickets, which can help IRCTC to keep their oldest clients who could be interested by all the new online

travel agency with better prices.

Cox and Kings is the oldest one it was created in 1758 but it was for the well being of the army then with the globalization it became a travel agency. This

company has experienced an incredible growth thanks to the Internet. Indeed in 2006 it had only 5% of online sales with a value of 8.8 million dollars, but

now in 2011, it sold over 152.4 million dollars online (an increase of 143.6 million of dollar in 5 years), or 27.7% of online sales.

Make my trip is selling flight, train or buses tickets in 20 cities in India. They sell one out of twelve domestic flights online. Their sells are around 90% online

since 2006. Even if this company is offering a lot of products customers have to be aware that the customer service is really poor, means that the company

can call one week before saying that the itinerary has just changed without any financial compensation.

2In general in India the amount of sales for travel retailing has grown a lot since 2006, 300 billion of Rs. Even if the travel retail through travel agency is still

bigger the part of booking online sky rocked, it can be explain by the cultural, the economic and the technological development in India.

II. The combination of the Cultural and Economical impact on the IndustryIndia is booming economically, which has allowed all sectors to develop. Many European and American industries have settled in India because the labour

and manufacturing costs were much cheaper. This change has lead to rising wages of employees and an increase in the number of vacation days. Indeed so

far the employees had only a maximum of 48 vacation days per year, they accumulated 2 to 4 days per month, depending on their seniority. Also some

companies had no concept of sick leave; accordingly each day of illness was recorded as holidays. Today, employees have up to 60 vacation days per year

with a higher salary, and are often childless couples or singles, allowing them to travel more easily.

1Table 7 in the appendices

2Table 1 and 2 in the appendices


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Indians are travelling for different reasons:

- Leisure travel is growing (7% in 2011) because of the increase of the salaries and the number of days of holidays. Most of the Indians are travelling

inside India because they are visiting their family. Indeed they had job opportunity so they moved out in other cities. There was a very large

increase in number of flights in India because the connections between the different cities were improved and travel agencies now offer negotiated

rates very affordable for domestic flights.

- While business travels are fewer than leisure travel, they are rising sharply (5% in 2011). Indeed, thanks to the economic development, needs of

businesses increase the number of business visits, both in India and abroad. The cruise industry and flights have seen the fastest growth for

business travellers. However the luxury sector has declined sharply for B to B, in fact, the companies seek to reduce their costs and therefore they

are not anymore sending their emissaries in luxury hotel or do not do more traveling in first class.

3Indians are traveling abroad as well. There were in 2011, 13 million trips, or an increase of 11% for international flights, departing from India. The most

popular destinations are Singapore in the first position followed by the United Arab Emirates, Thailand, China and finally the USA.

III. Technological and Legal impact on online booking4The incredible technological advance in matters of computer or phone enabled the rise of online travel agencies. However in India only 2.8% household

owns an Internet line. The India finds itself at the 54th

place out of 61 countries possessing the Internet connection. However 20% of households own a

mobile phone, allowing them to have access to Internet.

The online booking in India has become very popular; people can book a plane ticket, train or even a complete journey in a few seconds thanks to a click.

Also the prices online are mostly much cheaper than prices in agency.

However a part of the population remains much attached to traditional agent because they are still not very at ease with the Internet. Also having a person

in front of us, which responds to our questions and advising us, still remains the real advantage of traditional travel agencies.

3Table 3, 5 and 6 in the appendices

4Table 4 in the appendices


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There are several problems with booking online. Indeed there may be some pirate sites that will sell flight tickets or holiday package, but are in fact, web

sites managed by the scammers and the client will never receive any confirmation of payment or reservation.

According to the newspaper Medianama there is also some web site like Make my Trip set up opaque fares. That is to say it offers very attractive prices for

tickets but not revealed the name of the airline. The client does not know at the time of booking which airline hes going to travel with; he will know only

after paying. This system is a violation of 1937 Aircraft Rules, because there is suppose to be a full transparency in the pricing of airline companies.

To avoid this kind of problem most countries have put in place laws that govern Internet. For example to accept a contract there must be two clicks. First

step, one click on a tab to accept and then a message appears asking you if you are sure you want to accept. This helps to avoid making payments by

mistake.


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Conclusion:

India is a country in full development, which, thanks to numerous investments coming from abroad and a skilled workforce, has managed to win the

monopoly of manufacturing in certain industries such as new technologies. This boom has also helped to increase the living standards of Indians who cannow spend their wages in other products than those of the first necessity. In addition, companies have increased the number of days of vacation per year.

All these improvements now allow Indians to travel for the first time or more for some else.

For 5 years the online travel agencies know an incredible development. Some agencies have tripled their turnover. But all Indian homes do not possess a

computer or Internet, therefore much of the population remaining potential customers.

If India can develop its telecommunication networks and provides Internet in each home, the area of online shopping will become one of the most

important markets and therefore the online travel agencies will benefit.


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Bibliography:

Euromonitor International:

Author Unknown. Online Travel in Survival of the Fittest, October 2009

Author Unknown. Travel 2.0 - online travel trends, 28 December 2006

Author Unknown. Travel and Tourism India, April 2011

Author Unknown. India leads growth in online travel sales in Asia, 13 March 2007

Author Unknown. India: Growth Market for the Future, November 2005

Angelo Rossini. Healthy Performance for Online Travel Agencies in 2011, 10 February 2011

Author Unknown. India Country Pulse, 22 March 2012

Nikhil Pahwa. Medianama, Opaque Fares Controversy: MakeMyTrip Gets Indigo & Jet Airways Back, 4 May 2012

http://global.factiva.com.ezproxy.lib.uts.edu.au/redir/default.aspx?P=sa&NS=18&AID=9THE011100&an=HTMEDN0020120504e85400005&cat

=a&ep=ASI

Passport:

Author Unknown. Budget travel briefing, December 2011

Author Unknown. Travel industry global overview 2012, February 2012
http://global.factiva.com.ezproxy.lib.uts.edu.au/redir/default.aspx?P=sa&NS=18&AID=9THE011100&an=HTMEDN0020120504e85400005&cat=a&ep=ASIhttp://global.factiva.com.ezproxy.lib.uts.edu.au/redir/default.aspx?P=sa&NS=18&AID=9THE011100&an=HTMEDN0020120504e85400005&cat=a&ep=ASIhttp://global.factiva.com.ezproxy.lib.uts.edu.au/redir/default.aspx?P=sa&NS=18&AID=9THE011100&an=HTMEDN0020120504e85400005&cat=a&ep=ASIhttp://global.factiva.com.ezproxy.lib.uts.edu.au/redir/default.aspx?P=sa&NS=18&AID=9THE011100&an=HTMEDN0020120504e85400005&cat=a&ep=ASI


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Author Unknown, Travel retail in India, March 2012

Author Unknown. Consumer Lifestyle India, December 2010

Author unknown. Tourism flows outbound in India, March 2012

Author unknown. Technology, communications and media: India, 2 February 2010

Author unknown. Tourism flows domestic India, April 2011

Timir Mozumder 1996-2012, Indian Aviation http://knowindia.net/aviation3.html
http://knowindia.net/aviation3.htmlhttp://knowindia.net/aviation3.html


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Appendices:

Table 1:


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Table 2:


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Table 3:


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Table 4:


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Table 5:


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Table 6: Leisure departure by destination 2006-2011 (000 trips)


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Table 7 : Value of Online sale for different agencies 2006-2011

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