Market Research Report : Online travel market in india 2014 - Sample

Page 1

Online Travel Market – India October 2014


Executive Summary Market

Drivers & Challenges

Market Opportunity

 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

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

 Tier II cities  Social network domain  Mobile platforms Key Players

Competitive Landscape

Company 1

Company 2

Company 3

Company 4

Company 5

Company 6

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

2


•Macroeconomic Indicators •Introduction

•Market Overview •Business Model •Online Travel Portal

•Drivers and Challenges •Competitive Landscape •Market Opportunity

•Strategic Recommendations •Appendix ONLINE TRAVEL MARKET IN INDIA 2014.PPT

3


Macroeconomic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15 14 d1 c1 13 b1 12 a1

c4 b4 a4

c3 b3 a3

d2 c2 b2 a2

11

Q1

Q2 2010-11

2011-12

Q3 2013-14

2012-13

Q4

Inflation Rate: Monthly % 2 1

p

r

s

q

0 -1

-t

-2

Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

Nov 2013 - Dec 2013 4


•Macroeconomic Indicators •Introduction

•Market Overview •Business Model •Online Travel Portal

•Drivers and Challenges •Competitive Landscape •Market Opportunity

•Strategic Recommendations •Appendix ONLINE TRAVEL MARKET IN INDIA 2014.PPT

5


Owing to its business nature, online travel segment has some major advantages over other e-commerce segments Online Travel Market – India Overview (1/3) • 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 Size & Growth – India INR bn a6 b

a5 a4

a1

a2

a3

0 2013

2014e

2015e

2016e

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

2017e

2018e 6


Online Travel Agent – India Snapshot (1/2)

SAMPLE

Online Travel Market – India Overview (2/3) c2

c4 c1 c3

2013 c7 Unit %

Mode of domestic flight tickets sold c5

c6 c11

c10

c8 c9

0 India

Global

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

7


Website development is carried out in phases so as to ensure proper and efficient functioning Online Travel – Website Development Phases 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

z1

•text

z4

• text

z2

• text

z5

• text

z3

• text

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

8


Drivers & Challenges – Summary

Drivers Increasing Internet Penetration and PC users Increased Spending Power

Challenges Indian Railways Online Portal Growth in Aviation Industry

Nullification of Commission on Air Tickets High Operating Costs

Rise of Medical Tourism Ease of Transaction

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

9


Market Competition – Porter’s Five Forces Analysis Impact XX Threat of New Entrants

Impact XX

Bargaining Power of Suppliers

Impact XX

Competitive Rivalry

Impact XX

Bargaining Power of Buyers

Impact XX Threat of Substitutes

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

10


Competitive Benchmarking (2/5) Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Operating Margin

Net Margin

0 d1

d2

d3

d4

d5

d6

% Kuoni Travel (India) Pvt. Ltd.

MakeMyTrip India Pvt. Ltd.

Yatra Online Pvt. Ltd.

• text • text

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

11


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

Offices and Centres – India

Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol

Head Office

Stock Exchange

City

Products and Services Category

Products/Services

Tickets

P1, p2

Bookings

P3, p4

Others

P5, p6

Key People Name

Designation

Person 1

Chairman

Person 2

CFO

Person 3

Executive Director

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

12


Public: Domestic Company – Player 1 (2/6)

SAMPLE

Financial Snapshot Total Income

Key Ratios

Particulars

Net Profit/Loss

INR mn

u7

INR mn

u5 u1 0

u2 2011

u3 u4 2012

u6

u8 0

2013

2014

Financial Summary • 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

Financial Summary Indicators Market Capitalization (INR) Total Enterprise Value (INR) EPS (INR) PE Ratio (Absolute)

Value (18/06/2014)

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

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

Decline

13


Public: Domestic Company – Player 1 (3/6) Key Business Segments

Key Geographic Segments India

Others

v2

v3

v4

v5

2010

2011

2012

2013

v1 100% 50% 0%

0% 2014

Key Recent Developments Description

Overview

News

• text

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

14


Public: Domestic Company – Player 1 (4/6) Key Recent Developments Description

News

Business

• text

M&A

• text

Recognition

• text

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

15


Public: Domestic Company – Player 1 (5/6) Traffic Statistics – text

Ranks Global Rank

Audience Geography o1

o11

o12 o13

India Rank

o2

Browsing Location

o3

o10

Site Engagement

Technical Details

Bounce Rate

o4

Total Sites Linking In

o7

Daily Page Views per Visitor

o5

Search Traffic (%)

o8

Daily Time on Site

o6

Average Load Time (Secs)

o9

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

16


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

SAMPLE • text

• text

S

W

O

T • text

• text

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

17


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

Offices and Centres – India

Corporate Address

Tel No. Fax No.

City

Website

Head Office

Year of Incorporation

Products and Services Category

Products/Services

Online Travel

P1, p2, p3

Key People

Bookings

P4, p5, p6

Name

Designation

Person 1

Co-Founder and CEO

Other Services

P7, p8, p9

Person 2

Co-Founder and Advisor

Person 3

Co-founder and Chief Operating Officer

Person 4

Co-Founder and Chief Financial Officer

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

18


Private: Domestic Company – Player 2 (2/7) Shareholders of the Company

Ownership Structure s3

Name

s4

No. of Shares held s2

Shareholder 1 Shareholder 2

Total

s1

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

19


Private: Domestic Company – Player 2 (3/7) Financial Snapshot

Key Ratios

Total Income

Particulars

Net Profit/Loss

INR mn

INR mn t3

t5

t7

t1

t2

t4

2010

2011

t6

t8

0 2012

2013

Financial Summary

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

2012

2011

2010

-8.78

-6.62%

2.16%

4.03%

-5.81%

-9.18

-7.04%

2.13%

4.03%

-5.81%

-8.78

-6.62%

2.16%

4.03%

-5.81%

-57.82

-49.80%

8.02%

37.26%

-10.44%

-54.62

-46.52%

8.10%

28.82%

-9.61%

-64.69

-54.13% 10.56% 74.30%

-72.00%

-15.38

-11.83%

7.64%

-9.61%

-119.97

-88.83% 31.15% 77.31%

-89.20%

3.55%

Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)

• 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

Leverage Ratios

• The company reported a debt to equity ratio of - in FY 2013, an increase of t12% over FY 2012

2013

Profitability Ratios

Liquidity Ratios

• The company earned an operating margin of t10% in FY 2013, a decrease of t11 percentage points over FY 2012

y-o-y change (2013-12)

Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio

8.78

106.62% 97.84% 95.97% 105.81%

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

-19.27%

1.38

1.71

1.18

1.18

-8.61%

0.71

0.78

0.36

0.50

227.42%

0.00614

0.0019

0.29

0.09

226.03%

0.00610

0.0019

0.23

0.08

N.A.

N.A.

N.A.

N.A.

N.A.

-7.15%

13.42

14.45

19.18

15.34 1.65

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover

8.62%

1.79

1.65

1.90

11.17%

2.27

2.04

2.76

1.85

66.91%

8.18

4.90

18.44

12.38

87.76%

7.07

3.77

9.25

1.79

Improved

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

Decline

20


Private: Domestic Company – Player 2 (4/7) Key Recent Developments (1/2) Description

News

SAMPLE

Overview

• text

Current and Pending Investors

• text

Prior Investors

• text

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

21


Private: Domestic Company – Player 2 (5/7) Key Recent Developments (2/2) Description

Corporate Activity

News

• text

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

22


Private: Domestic Company – Player 2 (6/7) Traffic Statistics – text

Ranks Global Rank

Audience Geography q4 q3 q2

p1

India Rank

q6 q7

p2 q1

Browsing Location

q5

q8

p3

Site Engagement

Technical Details

Bounce Rate

p4

Total Sites Linking In

p7

Daily Page Views per Visitor

p5

Search Traffic (%)

p8

Daily Time on Site

p6

Average Load Time (Secs)

p9

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

23


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

SAMPLE • text

• text

S

W

O

T • text

• text

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

24


SAMPLE

e-Commerce Vendor – Opportunity

Target Tier II Cities

Online Travel Market – India

Mobile Platforms

Social Media Domain

ONLINE TRAVEL MARKET IN INDIA 2014.PPT

25


Thank you for the attention Online Travel Market – India report is part of Netscribes’ Retail and Services Series. For any queries or customized research requirements, contact us at: Phone: E-Mail:

+91 22 4098 7600 info@netscribes.com

About Netscribes, Inc. Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. ONLINE TRAVEL MARKET IN INDIA 2014.PPT

26


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.