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
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•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
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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
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•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
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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
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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
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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
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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
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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
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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
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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
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Public: Domestic Company – Player 1 (4/6) Key Recent Developments Description
News
Business
• text
M&A
• text
Recognition
• text
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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
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Public: Domestic Company – Player 1 – SWOT Analysis (6/6)
SAMPLE • text
• text
S
W
O
T • text
• text
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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
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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
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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
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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
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Private: Domestic Company – Player 2 (5/7) Key Recent Developments (2/2) Description
Corporate Activity
News
• text
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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
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Private: Domestic Company – Player 2 – SWOT Analysis (7/7)
SAMPLE • text
• text
S
W
O
T • text
• text
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SAMPLE
e-Commerce Vendor – Opportunity
Target Tier II Cities
Online Travel Market – India
Mobile Platforms
Social Media Domain
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