Wag the Dog II

1
Wag the Dog - II

• An examination of the long tail in India

2
What are Indians saying
3
Upsides
Convenience
Comparison
Instant bookings
Choices
Mobile
LCCs
Weekend Breaks
Deals
Air Rail
4
Challenges
Holidays
Credit Card Security
Online Penetration
Traditional Travel Agents
5
Classification of cities towns
6
The diversity long tail
7
Emerging Consumer Segments

• Lib Kids - Born after 1991
• In-transit - Born between 1964-91
• Midnight Survivors - Born before 1964

8
Attracting the long-tail

• Newspapers growing at nearly 20 on ad revenues
• More than 200 channels airing 300K TVCs per week.
• 300 radio channels across 91 cities
• Online media is still limited at 2 of total
  media spends.

9
Internet population
10
Indian Online Travel Industry

• Half of all eCommerce in India is eTravel
• 84 of online buyers (10.8M) have bought travel
  online
• Typical buyer 28-44yrs Male Owns car hi-end
  apps Salaried Biz
• Long Tail evident Geographic spread of buyers
  over 500 towns
• Arguably the fastest online shift globally -
  grown to 40 in 3 yrs
• Market expected to grow to 5 Bln by 2010

Source JuxtConsult Survey Apr 07
11
Implications on travel

• Huge market beyond
• the net
• Metros
• .and even air (only 9 travel by air)
• Emergence of new segments
• Well funded competition is great for consumers
• Very low APEX for holidays
• WoM still the primary driver for choice of hotels

12

• India is not about the best practice but the
  next practice