Startup Funding for Online Travel Portal

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www.Indiatravelpal.com
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• Scope of Online Travel and Tourism Business in
  India
• Report by Madhav Bhole
• Triyugi Enterprises
• indiatravelpal_at_gmail.com

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www.Indiatravelpal.comIndia Domestic Tourism
Scenario
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www.Indiatravelpal.comIndia outbound Tourism
Scenario
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www.Indiatravelpal.comIndia Inbound Tourism
Scenario
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www.Indiatravelpal.com

• Tourism is largest service Industry in India
  contributing 6.6 of GDP (INR 7416 Billion) and
  8.78 of total Employment in 2012 (25 Mil. direct
  and 40 mil. Total including indirect and induced
  jobs in Travel Tourism).
• Travel Tourism is a significant source of
  export revenue for India. In 2013, visitor
  exports totaled USD 37b which was 12 of all
  services exports and 3.9 of all exports
• http//www.kpmg.com/

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www.Indiatravelpal.com

• The total market size of the tourism and
  hospitality industry in India stood at US 117.7
  billion in 2011 and is anticipated to touch US
  418.9 billion by 2022.
• FTAs (Foreign Tourist Arrivals) during the period
  January-June 2014 stood at 3.54 million as
  compared to FTAs of 3.36 million during the
  corresponding period of 2013, registering a
  growth of 4.5 per cent. FTAs during June 2014
  were 492,000 as compared to 451,000 during June
  2013, a growth of 11.5 per cent.

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• Foreign exchange earnings (FEE) during
  January-June 2014 stood at Rs 56,760 crore (US
  9.44 billion)as compared to FEEs of Rs 51,587
  crore(US 8.58 billion)during the same period
  last year, registering a growth of 17.9 per cent.
  FEEs during June 2014 were Rs 8,458 crore (US
  1.41billion).

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• The number of tourists availing the tourist Visa
  on Arrival (VOA) scheme during January-June 2014
  have recorded a growth of 28.1 percent. During
  the period, a total number of 11,953 VOAs have
  been issued as compared to 9,328 VOAs during the
  corresponding period of 2013.

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www.Indiatravelpal.com

• New Narendra Modi Government has given Top most
  priority to Tourism industry and had promised to
  increase Visa On Arrival facility to more
  countries than present 12.
• The Government is making all efforts to improve
  infrastructure at Tourist places.
• India is looking to build a Digital highway for
  which Internet and Telecom giants are looking a
  big share of investment.

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www.Indiatravelpal.com

• Scope of Online Travel Portals in India
• The unprecedented demand for low air fare has set
  the travel portal business earning high lately.
• More passengers now opt Air travel compare to
  Train journey for long distances.

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www.Indiatravelpal.com

• This boom has happened due to some favorable
  conditions, such as
• Higher internet penetration Whether its the
  mobile net connectivity or the net connected PCs,
  India is seeing a high growth rate of internet
  penetration. This has led many travel portals to
  get good number of queries. As net connectivity
  helps consumer to book air tickets conveniently.
• Increasing use of plastic cards Plastic cards as
  they are popularly known are helping consumers to
  book their tickets easily, sitting at their cozy
  home.

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www.Indiatravelpal.com

• Promotional strategies Promotional strategies
  are nourishing the growth of online buying trend.
  For instance, book air tickets from a certain
  travel portal and you will avail discount on
  purchasing cloths from an famous brand.
• Holiday packages Attractive holiday packages are
  acting icing on the cake. A holiday package of
  just Rs. 23,000 to Bangkok and Pattaya looks
  alluring! Isnt it?

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• Top 5 travel portals of India
• 1. Make My Trip,
• 2. Yatra,
• 3. Clear Trip,
• 4. Goibibo,
• 5. Travelocity

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www.Indiatravelpal.comTurnover of Online Portals

• The Indian e-commerce market was at Rs
  84000 Crore (14 billion) for the year 2012.
  Online travel constitutes a sizable portion (87)
  of this market today. Online travel market in
  India is expected to grow at a rate of 22 over
  the next 4 years and reach Rs 54,800 Crore (12.2
  billion) in size by 2015.

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www.Indiatravelpal.com Makemytrip(start 2000)
v/s Yatra.com (start 2006)
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• Hotels Inventory
• Currently, India has supply of about 183,000
  total rooms of which 50000 in star category
  with additional 50,000 coming In next 3-4 years
• Government of India has approved 300 hotel
  projects nearly half of them are in the luxury
  range.
• There are more than 20000 hotels across of India,
  while only 5000 are represented by big travel
  portals. Mostly from top 5 destinations

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• Occupancy levels in India as a whole stood at 60
  and ARR (Average Room Rate) INR 6440 in FY10 as
  against 54 and INR 6733 in FY09.

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• Aircrafts and Seats inventory
• India at present has 406 Aircrafts and 54 Million
  Seats i. e 147,945 seats per day to be sold
  while major OTAs sell only 50,000 tickets per day
  so still there are 97,945 seats to be sold per
  day. (Dec 2013)
• With additional Aircraft orders from India will
  be having 1100 Aircrafts by 2020 and 170 Million
  seats so it will require to sell 465,753 seats
  per day.

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• Tourist destinations across India
• There are more than 1500 credible tourist
  destinations across India while only about
  200-250 are represented on big travel portals.
• There are more than 468 UA (Urban Agglomerates /
  towns) having more than 1,00,000 populations
  with total 377 million urban population. All
  these good income localities with young, net
  savvy, English literate, middle class population
  will increase the demand of Online Travel and
  tourism.
• Census 2011

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• Further penetration of Internet through multiple
  channels including Broadband, Wireless, Mobile
  Commerce online travel portal will be boom to
  such Tourist destinations and UA Mega cities.

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www.Indiatravelpal.com

• About Indiatravelpal.com
• Indiatravelpal.com is a web centric company
  involved in Travel portal development.
• The founder is M.Sc in Computer Science and has
  wide experience of 25 years in IT industry.
• Has a good understanding of Finance and
  management
• www.Indiatravelpal.com is looking for
  Startup/Angel capital from interested VCs/Crowd
  funding sources.

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www.Indiatravelpal.com

• Where www.Indiatravelpal.com stands in Online
  Travel market?
• It is on step 1 of ladder.
• It has created a comprehensive portal
  www.Indiatravelpal.com on Indian tourism which is
  its primary market and www.Goatravelpal.com (A
  specific destination portal). It is in process of
  creating webportal on World Tourism
  www.Hotelstravelpal.com
• It wants to fill the gap where Big Travel Portals
  are not operational.

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www.Indiatravelpal.com

• Business proposition
• Sell of Air tickets through white label program
  for domestic and International routes.
• Sell of Hotel rooms for 3 star and above hotels
  though white label for domestic and international
  hotels.
• Strong service organization to serve tourist
  customers in domestic as well as Foreign Tourist
  segments, specially for unrepresented destination
  /hotels.

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• Sell of bus tickets through white label program.
• Car reservation system.
• More initiative on Digital marketing of these
  products

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www.Indiatravelpal.com

• USP
• Hotel internet booking engine for unrepresented
  hotels which are not listed through GDS thereby
  giving alternative reasonable hotel
  accommodations to customers. Sell these hotels
  through agents network. Also use voice solutions
  in these areas, if necessary. Become GSA for some
  hotels.
• Sell of tourist packages of major tour operators
  throughout India through internet by giving good
  exposure to these packages through digital
  marketing. There are more than 2000 Tour
  operators and activity conductors registered in
  Tourism ministry which are operating in various
  regions/ tourist circuits.

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www.Indiatravelpal.comFor queries on Startup
FundingContact Madhav BholeC/o Triyugi
Enterprises, Mumbai.Email Indiatravelpal_at_gmail.c
om

• End
• Thank you