world class business enterprenuer

Be a World Class Travel Entrepreneur


• Why Be a World Class Travel Entrepreneur ?

• About TravelPort Holidays (India) Private Limited

• More About Travelocity

• Franchising : What are the Retail Travel Products for Mass Market ?

• Franchising : What are Corporate Loyalty Products for Industry ?

• Franchisee Fees, Commission & Gross Profit

• Franchising Executions & Contact Details

Why Travel Business :Top 5 Reasons

1. International Tourism is Booming – Growth Rate of 12% in international tourist arrivals worldwide

2. Indian Tourism Growing Faster than World Average– Indian Tourism will grow annually at 8.8%over the next decade– India amongst the top 10 preferred destinations in the world ( Source :

Conde Nast Traveler and the Lonely Planet)

3. High Growth in Indians Travelling Abroad– India outbound tourism is booming and growing at 18% and is expected

to reach 1.6 crore by 2010 .– Over 5 crore Indians will travel overseas by 2020

4. Number of Indians Travelling within India is 30 crore– Increased purchasing power and higher standards of living associated

with growing economy

5. Travel by a lot of Young People with Good Incomes – 60% of the population between 20 – 40 years– Many young people take loans or use credit cards for travel

Invest in Travel :Top 5 Reasons1. Very low capital investment

– 100-150 square feet of area, basic communications infrastructure , low brand royalty

2. No investment in inventory – Unlike other retail businesses no goods have to be brought or stored

3. Customer has a regular requirement– Regular need of railway, air or bus tickets by families– Regular requirement of air , hotels and car rentals by corporate

4. Low running expenses– Staff with basic education (10 or 10+2), Little/No delivery expenses

(most tickets delivered by email/sms) , low maintenance costs of the outlet

5. High margin, Low effort– 10% or higher margin on hotels and packages– 17.5% margin on selling vacation vouchers to corporates

Why TravelPort :Top 5 Reasons1. Best Franchisor Award in Franchising for Last 5 Years

– Proven track record in franchising . Award by Franchise India for last five years

2. Full Service Travel Franchisee– All possible travel products under one roof : right from air ticketing,

hotels, bus, railways, packages, group tours, foreign exchange, visa, corporate loyalty solutions , conferences, incentive tours etc

– Most products available online

3. Market Leader in Unique & High Margin Corporate Loyalty Travel Products– TravelPort is Market Leader in India providing unique corporate loyalty

products like vacation vouchers, gift certificates, scratch & win cards etc.

4. Many of the Best International Deals by Travelocity– Strategic alliance with Travelocity , world’s second largest travel portal,

provides some of the world’s best deals in international flights, international hotels and international packages

5. Market Dominance in Hottest Indian Destinations like Goa

TravelPort Holidays• TravelPort Holidays India (P) Ltd is a creative, young &

dynamic Travel Management company founded with 3 operating objectives in mind.– Create Innovative Travel Products.– Redefine & Create Innovative Distribution channels.– Make New Business Models.

• TravelPort Snapshot– 7 years young – 150 people strength – India’s fastest emerging Travel Management company – Presence in 60 cities in India & around the Globe– Wide range of retail, corporate & partner products– More Information on TravelPort: www.TravelPort.in

TravelPort’s Alliance with Travelocity

• Travelocity is second largest online portal in the world with annual turnover of around 50,000 Crores

• Strategic Partnership between TravelPort and Travelocity enables booking in over 450 Airlines & 80,000 Hotels worldwide, including 126 cities in India

• All products available online on Travelocity can be sold by TravelPort and its franchisees

• Travelocity Products available to TravelPort and its associates are– Air Ticketing : Domestic & International– Hotel Booking : Domestic & International– Packages : Domestic & International– Cruises, Sight Seeing, Car Pickup and all travel related

services

Key Partners of TravelPort

• Other Key Partners of TravelPort are – Reliance Money

• TravelPort is Reliance Money Master Distributor on all-India basis. Offered to TravelPort franchisees

– BigAdda.com • Reliance owned ,India's first and largest social networking site .Travel

partner for 3 years– Big Bazaar

• Retail Terminals in Big Bazaar Hypermarkets in South India– V-Mart

• Retail Terminals in V-Mart Hypermarkets in North India– Mahindra Holidays

• Travel Services Partner– Future Money

• EMI Vacations Partner – Wall Street Forex

• Foreign Exchange Partner

About Travelocity

• 4,500 employees around the world, booked over $11 billion (Rs 44,000 Crores) in travel in 2007.

• Just turned 12 years old, most experienced online travel company on the planet.

• Winner of “Worlds Best Internet Travel site, 9 years in a running.

• Travelocity owns and operates lastminute.com, the leader in European online travel and ZUJI, the leading OTA in Asia-Pacific.

• Travelocity is owned by Sabre Holdings Corporation, the world leader in travel commerce.

• Partner centric company intent on delivering consistent value to supplier and distribution partners

Great Deals

• Great value travel deals which have been sourced ‘locally’ all around the world• Example : In order to get best deals from Goa.

Travelocity is sourcing Goa from TravelPort • Travelocity’s rapidly expanding merchant hotel initiative

and its ability to undercut its competition on price has ensured that many of the world’s best deals & prices are available onsite

• For Indian Market Travelocity has great deals in• Air Ticketing : Both International & Domestic• International Hotel Booking• International Packages• International Cruises , Sight Seeing etc.

Travelocity Page

Alliance website can be accessed through www.travelport.in/travelport

http://www.travelport.in/travelport


Online International Air Ticketing

1. Online International Air Ticket on Travelocity– Franchisees can book the international flight tickets on

Travelocity by visiting www.travelport.in/travelport– Travelocity has some of the best international flight

deals out of India – Attractive commissions are provided on gross fare and

not only on base fare– These commissions coupled with “special fares”, These commissions coupled with “special fares”,

would greatly increase conversions and overall would greatly increase conversions and overall business and hence earningsbusiness and hence earnings

2.2. Offline booking by calling at TravelPort Mumbai office is also available



International Air May Comparisons

Travelocity Air Tickets DealOn Some Frequent Routes from Mumbai

Usually 2000-3000 cheaper than

Other Competitive Options

International Air June Comparisons

Malaysia on Malaysian Airlines (Booked on 19 May for 1 June/7 June)

Singapore on Air India

(Booked on 27 May for 2 June/5 June)

Yatra 25,382 20,737

Makemytrip 25,794 20,940

Website of Airline

25,217 23,491

Travelocity 23,794 17,940

Travelocity Air Tickets Deal

Usually cheaper than

Other Competitive Options including website of Airlines

Online International Hotel Ticketing

1. Online International Hotel Ticketing on Travelocity– Franchisees can book the international hotels on

Travelocity by visiting www.travelport.in/travelport– Travelocity has some of the best international hotel

deals out of India – Attractive commissions of 10% are provided– These commissions coupled with “special rates”, These commissions coupled with “special rates”,

would greatly increase conversions and overall would greatly increase conversions and overall business and hence earningsbusiness and hence earnings

2.2. Offline booking by calling at TravelPort Mumbai office is also available



Online International Packages

1. Online International Packages on Travelocity– Franchisees can book the international packages (flight

+ hotel ) on Travelocity by visiting www.travelport.in/travelport

– Travelocity has some of the best international packages deals out of India

– 6% commission on flight+ hotel is very attractive

2. Packages from Emirate Holidays– TravelPort also has a tie up with Emirates holidays to

provide for all flight+ hotel packages on www.emirates-holidays.com

– Exciting packages to all locations where Emirates flies– Packages targeted for a quality conscious traveler

Standard International Packages • TravelPort has Standard International Packages

– TravelPort has serviced more than 30,000 customers– 110 packages or ways to see the world the TravelPort

way– Destination Specialization :Egypt, Dubai, Malaysia,Sri

Lanka, Thailand, Singapore– These standard packages are available on Wander World

at www.travelport.in– Special Interest Packages like Sports Travel, Experience

Led Travel ,Honeymoon ,Holy Tours• Group Tours booked through Mumbai Office

– TravelPort is Incentive Travel Specialist with 200 key corporate relationships

International Air, Hotel & Packages Deals for JuneAn example of best deals available in June for Asia & Europe

International Air, Hotel & Package Deals for JuneAn example of best deals available in June for Middle East , Australia & Americas

Online Domestic Air Ticketing

• Franchisee can choose from TravelPort’s portal & Travelocity 1. Online Domestic Air on TravelPort Portal

• TravelPort has its own portal on www.travelportair.com

• All domestic airlines available.• Check booking status and print/email/sms ticket

with online cancellation request2. Online Domestic Air is also available on Travelocity on

www.travelport.in/travelport• Overall commission better than other sources

Online Domestic Air Ticketing

Travelocity Deal3% on Gross Fare

Usually Higher than

Regular Deal 5% on Base Fare

Domestic Hotels Booking

1. Online Domestic Hotel Booking with Indian Distributors – TravelPort has a tieup with Indian Hotel Distributors

through which booking online can be done with immediate confirmation

– Please visit www.travelport.in– Best prices in many cases, very competitive prices in

others– Largest inventory of hotels

2. Online Domestic Hotel Booking on Travelocity– Franchisees can book the domestic hotels on

Travelocity by visiting www.travelport.in/travelport

3. Offline Domestic Hotel Booking through Mumbai Office– Great deals on destinations like Goa, Uttranchal,

Himachal etc– Offline deals have a commission of 15% or higher

Domestic Package Booking• About TravelPort Domestic Operations

– TravelPort is India's Largest Domestic Inbound Operator to Goa.– Key Supplier To Leading OTAs and Travel Agents.– Have serviced more than 50,000 clients.– gogoaonline.com- Online portal for travel to Goa.

1. Standard Domestic Packages (Hotel + Car) through Mumbai Office– 151 packages or ways to Experience India – Destination Specialist for Goa, Himachal, Uttaranchal, East, Kashmir

and Kerala .– www.wanderindia.in

2. Online Domestic Packages on Travelocity– Franchisees can book the domestic packages (flight +

hotel ) on Travelocity by visiting www.travelport.in/travelport

Online Railway Ticketing

– www.irctc.co.in– TravelPort has a tie up with the Indian Railways– Online booking of railway ticket can be done through

IRCTC– Booking of regular tickets, tatkal tickets, all sectors– Booking Fee from Rs. 50 – Rs 300 (in case of Tatkal) can

be charged from customers– Franchisee can also book Attractive Railway Tour

Packages with commission of 10%– Franchisee is allowed Usage of IRCTC Logos

Online Bus Booking• Online Bus Booking

– Ready by July 2008– Book bus tickets online, over the phone or over the mobile – Book bus tickets online with over 250 bus travel operators – Book bus tickets online for over 3200 routes across India – Return bus tickets reservation – Cancel your bus tickets online

Partner ProductsReliance Money Products

• Reliance Money, part of the Anil Dhirubhai Ambani Group (ADAG)

• Promoted by Reliance Capital – the financial services arm of ADAG.

• Reliance Capital focuses mainly on the Indian financial services industry

• Ranked amongst the top 5 NBFCs in India. With Reliance Money

• Currently, Reliance Money is in the process of rolling out an all-India retail focused Financial Wealth Management Platform (online trading portal) which amongst others will facilitate trading in Equities, Commodities and Offshore Investments.

• Online – (through www.reliancemoney.com) – Equity Broking (USP being introduction of Limit

Card & most competitive rates)– Futures & Options– Initial Public Offering (IPO)– Mutual Funds– Commodity (to be launched shortly)– - (in partnership with CMC) Off-shore

Investments• Offline (Distribution)

– Life & General Insurance (Reliance life & general insurance & third party)

– Money Transfer & Changing (through Reliance Money Express-Western Union Money Transfer)

– Mutual Funds (all AMCs)– Gold coins– IPO– Credit cards (Reliance credit cards)– Personal Loans (Reliance Consumer Finance)

• To be launched shortly– Portfolio Management Services (PMS)– Wealth Management Services

Corporate Products• India’s Leading

Travel Incentive and Loyalty Management company

• Ongoing engagement with All Leading Brands

• Innovative products

• No 1 Position in this category.

• 200 Blue chip corporate clients.

Corporate Products : Summary

Objective Objective Product Product Budget Budget

Customer Acquisition Air Pac, Vac Pac, Leisure

Pac99 to 2999

Loyalty Rewards White label offers /Leisure Pac/Gift

Certificates 0 to 50000

Employee IncentivesGift certificates

/Incentive travel 999 to 30000

Promotion Sur(e)Prizes- All in One 99 onwards

Awards/Prizes/Contests

Gift Certificates/Themed Holidays

2999 onwards

Dealer IncentivesGift Certificates/Incentive Travel/Themed holidays

1999 to 50000

Vac Pac - 2 nights - 3 days across 75 Deluxe Hotels and 40 Destinations

Vac Pac Premium - 40 Luxury Hotels ,Forts ,Palaces and Camps

Vac Pac International - Hotels across 12 Countries in Asia and Europe

Best USE :

Types :

Getting New Customers

http://vacpac.co.in/

Corporate Product Example : VAC PAC

Scratch Cards, Win Customers

Corporate Product Example : SUR(E) PRIZES

An easy to implement scratch card driven promotion

Guaranteed prizes and gifts for everyone

Gifts include I-pods, Reebok bags, Motorola phones, Air Tickets, International holidays, fast track watches etc….

One window implementation and fulfillment

Starts at as low as Rs.99/- onwards

http://www.travelport.in/stamps.php

Multiple Choices. Simple Execution. Enjoyable Vacations!

Best Use

Employee Rewards

Dealer Incentives

Key Customers

Contest and Giveaways

Gift Certificates from Rs. 499 onwards

http://www.travelport.in/giftcertificates.php

Corporate Product Example: GIFT CERTIFICATES

Corporate ProductsExamples of Promotions

Corporate Products Client List

Brief Description of Franchising Schemes

• TravelPort Preferred– All retail products meant for servicing all mass market customers– A 100 square feet shop & one counter staff to be appointed to service all

these products– Products for both the price conscious and quality conscious customers– One stop shop, all travel needs fulfilled – Meant for Entrepreneurs who are comfortable in selling through Retail– Also relevant for towns where large number of corporate are not present

• TravelPort Priority– All retail products available. A shop & a retail counter staff services these

products– All corporate loyalty products like VAC PAC , Gift Certificates can also be sold– Entrepreneur has to regularly meet the corporate sector and employ a

corporate executive – Entrepreneur needs to be committed to corporate sales

• TravelPort Corporate– Only corporate loyalty products can be sold. No need for a shop.– No retail product can be sold– Previous background in selling to corporates necessary

FranchiseSchemesGives an idea of different types of products available under different schemes.Three categories1.Basic Travel2.Corporate Loyalty3.Other Products

TravelPort Preffered

TravelPort Priority

TravelPort Corporate

Products Retail ShopRetail Shop + Corporates Corporates Only

Domestic Air Ticketing Y Y N

International Air Ticketing Y Y N

Domestic Hotel Booking Y Y N

International Hotel Booking Y Y N

Train Y Y N

Bus Booking Y Y N

Standard Foreign Individual Travel Packages Y Y N

Customized Foreign Travel Packages Y Y N

Standard Domestic Individual Packages Y Y N

Customized Domestic Travel Packages Y Y N

Group Packages- Domestic Y Y N

Group Packages- International Y Y N

Meetings,Incentives, Conferences Exhibitions Y Y Y

Corporate VAC PAC N Y Y

Retail VAC PAC Y Y Y

AIR PAC N Y Y

Gift Certificate N Y Y

White Labelling N Y Y

Scratch and Win N Y Y

Reliance Money Y Y N

Related Products like VISA, Forex etc. Y Y N

Corporate Loyalty Travel

Basic Travel Products

Other Products

Infrastructure & Mandatory Expenses

Basic infrastructure, staff, retail space required, mandatory expenses incurred to set up & launch the retail outlet

TravelPort Preferred

TravelPort Priority

TravelPort Corporate

Infrastructure and staff requirements

Minimum Retail space(sq.ft) 100 150 N

Communications Infrastructure

PC, Printer, Broadband

PC, Laptop, Printer,

Broadband

Laptop, Printer,

Broadband

Counter Staff 1 1 0

Sales Executive 0 1 0

Non Refundable Franchisee Expenses

Shop Layout, Posters, Opening Ads, Franchisee

Training, Staff Training, VAC PAC Vouchers

125 Vac Pacs 500 Vac Pacs 250 Vac Pacs

Total Amount (Infrastructure & Mandatory Expenses)

1,55,000 2,55,000 85000

Renewal Annual Renewal Fee 10,000 10,000 5,000

Expected Monthly Commission

Unit Price MarginMonthly Comm. Unit Price Margin

Monthly Comm. Unit Price Margin

Monthly Comm.

Domestic Air 60 100 6,000 60 100 6,000

International Air 15 20,000 5% 15,000 15 20,000 5% 15,000

Domestic Hotel Booking 10 3,000 10% 3,000 10 3,000 10% 3,000

International Hotel 6 6,000 10% 3,600 6 6,000 10% 3,600

Train 120 50 6,000 120 50 6,000

Bus 90 400 5% 1,800 90 400 5% 1,800

Foreign Packages 6 25,000 8% 12,000 8 25,000 8% 16,000

Domestic Packages 8 15,000 10% 12,000 10 15,000 10% 15,000

Domestic or Foreign Group Tours 0.3 4,00,000 6% 7,200 0.3 4,00,000 6% 7,200Meetings, Incentives, Conferences, Exhibitions 0.3 6,00,000 6% 10,800 0.3 6,00,000 6% 10,800

VAC PAC 1 3,00,000 17.50% 52,500 1 3,00,000 17.50% 52,500

Retail VAC PAC 1 2,00,000 17.50% 35,000

Gift Certificate 1 1,00,000 10% 10,000 1 1,00,000 10% 10,000

Scratch & Win 0.3 3,00,000 10% 9,000 0.3 3,00,000 10% 9,000

AIR PAC 0.3 3,00,000 10% 9,000 0.3 3,00,000 10% 9,000

Reliance Money 2,500 2,500

Travel Related Others 500 500

Total Monthly Commission 1,15,400 1,67,900 80,500

TravelPort Preferred TravelPort Priority TravelPort Corporate

Expected Yearly Profits

Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3

Rp Rp Rp Rp Rp Rp Rp Rp Rp

INFLOWS

Yearly Commission 13,84,800 17,31,000 21,63,750 20,14,800 25,18,500 31,48,125 9,66,000 12,07,500 15,09,375

OUTFLOWS

Staff Salaries 78,000 78,000 78,000 1,68,000 1,68,000 1,68,000 0 0 0

Brand Royalty 2,52,810 11,236 11,236 2,80,900 11,236 11,236 1,85,394 5,618 5,618

Franchisee Exp. 1,55,000 0 0 2,55,000 0 0 85,000 0 0

Communication Infrastructure 35,000 0 0 60,000 0 0 40,000 0 0

Office Rental 72,000 72,000 72,000 1,08,000 1,08,000 1,08,000 0 0 0

Miscellaneous Expenses 24,000 24,000 24,000 30,000 30,000 30,000 24,000 24,000 24,000

TOTAL 6,16,810 1,85,236 1,85,236 9,01,900 3,17,236 3,17,236 3,34,394 29,618 29,618

Gross Profit Before Tax 7,67,990 15,45,764 19,78,514 11,12,900 22,01,264 28,30,889 6,31,606 11,77,882 14,79,757

TravelPort CorporateTravelPort Preffered TravelPort Priority

Franchise Fee: Breakup

TravelPort Preffered TravelPort Priority TravelPort Corporate

PaymentNon Refundable Franchisee Expenses

155,000 255,000 85,000

Non Refundable Brand Royalty

225000* 250000* 165000*

Refundable Opening Currency

20,000 45,000 0

Payment at Signoff

400,000 550,000 250,000

Note: * 12.36% Service Tax on Brand Royalty

Current Terminals & Look/Feel

Contact Details • Mr. Ratheesh Nambi for Delhi

& Pune – Mobile : 09987564765– ratheesh.nambi@travelport

.in

• Mr. Anup Nair for Tamil Nadu, Kerela, Andhra Pradesh, Punjab, Haryana, J& K – Mobile : 09867510419– [email protected]

• Mr. Sunil Shetty for Maharashtra

- Mobile: 09920365101 -

[email protected]

• Mr. Rajjeet Chandra for Rest of India– Mobile : 09867510427,– [email protected],– [email protected]

om

• In case you are unable to reach any one :Kshitij Thorat– [email protected]

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