market research report : online travel market in india 2014 - sample

Online Travel Market – India

October 2014

2

Executive Summary

Market

Drivers & Challenges

Competitive Landscape

Drivers

Increasing Internet Penetration and PC users

Increased Spending Power

Indian Railways Online Portal

Growth in Aviation Industry

Rise of Medical Tourism

Ease of Transaction

Market Opportunity

Challenges

Nullification of Commission on Air Tickets

High Operating Costs

Key Players

Company 1 Company 2 Company 3

Company 4 Company 5 Company 6

Online travel segment is considered to be occupying a share of ~80% in the total e-commerce pie in India

MakeMyTrip, Cleartrip and Yatra hold a market share of 85% in the online travel market in the country

Tier II cities

Social network domain

Mobile platforms

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

3

•Macroeconomic Indicators

•Introduction

•Market Overview

•Business Model

•Online Travel Portal

•Drivers and Challenges

•Competitive Landscape

•Market Opportunity

•Strategic Recommendations

•Appendix


4

Macroeconomic Indicators (1/3)

11

12

13

14

15

INR tn

Q4

c4

b4

a4

Q3

c3

b3

a3

Q2

d2

c2

b2

a2

Q1

d1

c1

b1

a1

2013-14 2012-13 2011-12 2010-11

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

Aug 2013 - Sep 2013

q p

%

Nov 2013 - Dec 2013 Sep 2013 - Oct 2013

-t

Oct 2013 - Nov 2013

s

Jul 2013 - Aug 2013

r


5 ONLINE TRAVEL MARKET IN INDIA 2014.PPT

•Macroeconomic Indicators

•Introduction

•Market Overview

•Business Model

•Online Travel Portal

•Drivers and Challenges

•Competitive Landscape

•Market Opportunity

•Strategic Recommendations

•Appendix

6

Owing to its business nature, online travel segment has some major advantages over other e-commerce segments

• Commanding a market share of about , the online travel segment drives the e-Commerce market and mainly

comprises of ticket booking, hotel accommodation and packaged tours

• It is anticipated that the market will cross the ball park figure of INR by the end of 2014

• Currently, the market in India has immense potential to offer vendors, splendid opportunities to generate a larger

revenue share

As of now, one of the most successful online travel website is being managed by the Indian Railways, wherein it caters to an average of

around transactions per day

Online Travel Market – India Overview (1/3)

0

INR bn

b

2018e

a6

2017e

a5

2016e

a4

2015e

a3

2014e

a2

2013

a1

Online Travel Market Size & Growth – India


7

SAMPLE Online Travel Agent – India Snapshot (1/2)

Online Travel Market – India Overview (2/3)

c1

c2

c3

c4

c11 c10 c9

c8

2013

0

Global

c6

India

c5 Unit %

c7 Mode of domestic flight tickets sold


8

Website development is carried out in phases so as to ensure proper and efficient functioning

Developing an online travel website is a step by step approach, consisting of various phases, so as to ensure proper and efficient transaction over the internet

Online Travel – Website Development Phases

z1 •text

z2

z3

z4

z5 • text

• text

• text

• text


9

Drivers & Challenges – Summary

Drivers

Increasing Internet Penetration and PC users

Increased Spending Power

Indian Railways Online Portal

Growth in Aviation Industry

Rise of Medical Tourism

Ease of Transaction

Challenges

Nullification of Commission on Air Tickets

High Operating Costs


10

Competitive Rivalry

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitutes

Threat of New Entrants

Impact XX

Impact XX

Impact XX

Impact XX

Impact XX

Market Competition – Porter’s Five Forces Analysis


11

Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3)

Competitive Benchmarking (2/5)

0

%

d2 d1

Yatra Online Pvt. Ltd.

d6 d5

MakeMyTrip India Pvt. Ltd.

d4 d3

Kuoni Travel (India) Pvt. Ltd.

Operating Margin Net Margin

• text

• text


12

Public: Domestic Company – Player 1 (1/6)

Key People

Products and Services

City

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Category Products/Services

Tickets P1, p2

Bookings P3, p4

Others P5, p6

Name Designation

Person 1 Chairman

Person 2 CFO

Person 3 Executive Director

Head Office


13

SAMPLE Financial Snapshot Key Ratios

Financial Summary


Financial Summary

Indicators Value (18/06/2014) Market Capitalization (INR)

Total Enterprise Value (INR)

EPS (INR)

PE Ratio (Absolute)

Particulars y-o-y change

(2014-13) 2014 2013 2012 2011

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Improved Decline

• The company earned a net profit of INR- mn in FY 2014, as compared to net profit of INR - mn in FY 2013

• The company reported total income of INR - mn in FY 2014, registering an increase of u9% over FY 2013

• The company earned an operating margin of u10% in FY 2014, a decrease of u11 percentage points over FY 2013

• The company reported debt to equity ratio of u12 in FY 2014, an increase of u13% over FY 2013

0 0

INR mn

2014 2012

u3

u4

2011

INR mn

u1

u2 u6

u5

u7

2013

u8

Total Income Net Profit/Loss


14

Key Business Segments Key Geographic Segments


Key Recent Developments

Description News

Overview • text

100%

50%

0%

2014

v1

0%

2013 2012

v4

2011

v3

2010

v2 v5

India Others


15

Key Recent Developments


Description News

Business • text

M&A • text

Recognition • text


16


Traffic Statistics – text

Ranks Audience Geography

Site Engagement Technical Details

Global Rank o1

India Rank o2

Browsing Location o3

Bounce Rate

Daily Page Views per Visitor

Daily Time on Site

o4

o5

o6

Total Sites Linking In

Search Traffic (%)

o7

o8

Average Load Time (Secs)

o9

o11

o10

o13

o12


17

SAMPLE Public: Domestic Company – Player 1 – SWOT Analysis (6/6)

• text

• text

• text

• text

T O

W S


18

Private: Domestic Company – Player 2 (1/7)

Key People

Products and Services

Company Information Offices and Centres – India

Name Designation

Person 1 Co-Founder and CEO

Person 2 Co-Founder and Advisor

Person 3 Co-founder and Chief Operating Officer

Person 4 Co-Founder and Chief Financial Officer

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Category Products/Services

Online Travel P1, p2, p3

Bookings P4, p5, p6

Other Services P7, p8, p9

Head Office

City


19


Shareholders of the Company Ownership Structure

Name No. of Shares held

Shareholder 1

Shareholder 2

Total

s2

s1

s4 s3


20

Financial Snapshot Key Ratios

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios Operating Margin -8.78 -6.62% 2.16% 4.03% -5.81%

Net Margin -9.18 -7.04% 2.13% 4.03% -5.81%

Profit Before Tax Margin -8.78 -6.62% 2.16% 4.03% -5.81%

Return on Equity -57.82 -49.80% 8.02% 37.26% -10.44%

Return on Capital Employed -54.62 -46.52% 8.10% 28.82% -9.61%

Return on Working Capital -64.69 -54.13% 10.56% 74.30% -72.00%

Return on Assets -15.38 -11.83% 3.55% 7.64% -9.61%

Return on Fixed Assets -119.97 -88.83% 31.15% 77.31% -89.20%

Cost Ratios

Operating costs (% of Sales) 8.78 106.62% 97.84% 95.97% 105.81%

Administration costs (% of Sales)

N.A. N.A. N.A. N.A. N.A.

Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.

Liquidity Ratios

Current Ratio -19.27% 1.38 1.71 1.18 1.18

Cash Ratio -8.61% 0.71 0.78 0.36 0.50

Leverage Ratios

Debt to Equity Ratio 227.42% 0.00614 0.0019 0.29 0.09

Debt to Capital Ratio 226.03% 0.00610 0.0019 0.23 0.08

Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.

Efficiency Ratios

Fixed Asset Turnover -7.15% 13.42 14.45 19.18 15.34

Asset Turnover 8.62% 1.79 1.65 1.90 1.65

Current Asset Turnover 11.17% 2.27 2.04 2.76 1.85

Working Capital Turnover 66.91% 8.18 4.90 18.44 12.38

Capital Employed Turnover 87.76% 7.07 3.77 9.25 1.79


Improved Decline

Financial Summary

• The company incurred a net loss of INR - mn in FY 2013,

compared to a net profit of INR - mn in FY 2012

• The company reported total income of INR - mn in FY 2013,

registering an increase of t9% over FY 2012

• The company earned an operating margin of t10% in FY 2013,

a decrease of t11 percentage points over FY 2012

• The company reported a debt to equity ratio of - in FY 2013, an

increase of t12% over FY 2012

0

INR mn

2013

t7

t8

2012

t5

t6

2011

t3

t4

2010

t1

t2

INR mn

Net Profit/Loss Total Income


21

SAMPLE

Key Recent Developments (1/2)

Description News

Overview • text

Current and Pending Investors

• text

Prior Investors • text



22

Key Recent Developments (2/2)

Description News

Corporate Activity • text



23


Traffic Statistics – text

Ranks Audience Geography

Site Engagement Technical Details

Global Rank p1

India Rank p2

Browsing Location p3

Bounce Rate

Daily Page Views per Visitor

Daily Time on Site

p4

p5

p6

Search Traffic (%) p8

Average Load Time (Secs)

p9

q1

q3 q2

q4

q7

q8

q6

q5

Total Sites Linking In p7


24

SAMPLE Private: Domestic Company – Player 2 – SWOT Analysis (7/7)

• text • text

• text

• text

T O

W S


25

SAMPLE e-Commerce Vendor – Opportunity

Target Tier II Cities

Mobile Platforms Social Media Domain

Online Travel Market – India


26

Thank you for the attention

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market research report : online travel market in india 2014 - sample

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