Consumer_Research_Preference_for_Online_Services_in_the_Indian_Travel_Market_M by Sutherland Global Services

Case Study and Sample Slides Domestic Traveler Products/Services

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Domestic Traveler Products/Services Client • The client was a leading travel research agency publishing strategic reports for the global travel and tourism industry with a focus on travel distribution, consumer behavior, marketing and technology developments

Client Ask • The client mandated SGS to survey urban travelers across India to uncover some of the key trends highlighting the online travel behavior of these travelers • The key objective of the study was to identify online transaction preferences of domestic travelers for hotel bookings, packaged tour bookings, ticket bookings, and other services

Sutherland’s Solution • A structured questionnaire was prepared in consultation with the client, which was predominantly close-ended with scaled criteria or multiple-choices • It was proposed to survey over 1,100 urban travelers between the ages of 20 and 70, with incomes ranging from INR100,000 to INR10,00,000+ • SGS outsourced fieldwork to third party, which was further collated to facilitate data analysis. The data was analyzed using plain cross tabulations to derive graphs/statistical analysis

• Benefits to the Client • The survey unraveled preferences of urban travelers for making online transactions and suggests some fundamental areas that travel companies could address, to ultimately improve their competitive edge and take their online distribution and e-marketing strategies to the next level • Key findings included: 1) Airline tickets consisted majority of the offline and online booking patterns due to decrease in air fares; 2) Customer remained price sensitive for hotel bookings & packaged tours; and 3) Security remained a concern to the consumers for online transactions

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Demographics of the Sample Age-wise breakup of the surveyed population

Income breakup of the surveyed population 20.2%

11.8%

34.7%

29.8%

8.6%

25.5%

4.7% 32.9%

< 25 Years

26-35

36-50

1.1%

30.7% No Income 5,00,000-7,50,000

> 50 Yers

Occupation of surveyed population

1,00,000-2,50,000 7,50,000-10,00,000

2,50,000-5,00,000 > 10,00,000

Travel purpose breakup of respondents

4.6% 6.5%

10.8%

34.2%

12.2% 10.1% 50.5% 3.4%

26.2% 41.6% Service

Business/ Entrepreneur

Student

Housewife

Other

Business

Holidays

Visiting Friends and Relatives

Pilgrimage

Others

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Key Outcomes (1/2) First Point of Research 19.0%

Planning and Buying a Holiday 34.7%

23.7%

20.2% 7.2% 8.6% 11.3%

30.7%

20.3%

Street Travel Agent - Phone 18.4% Online Travel Agent Website Others/ No Response

Street Travel Agent - Walk-in Supplier Website

Frequency of Leisure Travel

1.1%

Research and Book Online Research Offline and Book Online No Response

Research Online and Book Offline Research and Book Offline

Hotel Selection Preferences – Customers Remain Price Sensitive

20% Quality of Website 28%

15.7%

Star Rating

7% 2% 1%

22.0%

In-house Amenities

24.5%

Customer Reviews

27.5%

Availability of Food and Choice

34.0%

Friends Recommendations

38.4%

Distance from Tourist Spots 42% Yearly Monthly

Half Yearly Fortnightly

40.7%

Cost Quarterly Didn’t Answer

57.5%

20%

40%

60%

80%

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Key Outcomes (2/2) Internet Usage Behavior: 35% of Respondents Made Online Travel Transaction 80% of respondents had access to internet (either through home, office or cybercafe)

80%

Factors Affecting Booking of Travel Products - Pricing Seems Most Important Consumer Reviews

33%

Travel Agent Brand 56%

Out of those who had access, only 56% made any online transaction (at least one)

80%

24%

Brand of Supplier

30%

Rank 1

80%

6% 40%

60% 40%

20% 0%

3% 24%

41%

20%

40%

Rank 2

20% 60% Rank 3

80% Rank 4

8% 100% Rank 5

6% 34% 19% 32%

37%

13%

8% 9%

26%

16% 11%

Car

Railways

Packaged Tours

Street Travel Agent Supplier Online

17%

Breakup of Payment Habits

34%

NA Online Travel Agent

24%

66% 0%

Booking Preferences

16%

33%

Price of Product Out of those who have made online transactions, 80% made at least one online travel transaction

100%

35%

Of the 80% people who have online transaction facility, about 53% have actually used online mode of performing any transaction

53% 81%

Supplier Offline

Any Online Payment Facility No Facility Actually Performed Transaction

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Proposed KPIs, Target & Consolidated Scores Calculation Service Metrics

Attendance

Average Call Handling Time (mints)

Weightage

15%

20%

1 Unsatisfactory

80%

13 mts

70%

2 Needs Improvement

85%

11 mts

3 Satisfactory/ Meets Performance

90%

4 Above Average 5 Outstanding

Quality Matrices

First Call Schedule of Resolution/ Availability/Devi Issue Resolution Not Ready Time ation Time

Points Quality of Call

Accuracy

20%

35%

50%

74%

70.0%

(10.00)

78%

30%

80.5%

77.5%

(5.00)

9 mts

85%

25%

10%

87%

85%

0.00

95%

7 mts

92.5%

20.0%

-10.0%

93.5%

92.5%

5.00

100%

5 mts

100%

15%

-30%

100%

10.00

Person 1

87%

12.53

79%

40.00%

70%

65%

Person 2

90%

9.00

85%

25%

10%

87%

85%

Person 3

92%

9.73

94%

13%

-40%

92.10%

79%

Person 4

98%

5.00

87%

20%

-12%

97.50%

86.50%

Person 1

(3.0)

(8.8)

(4.0)

(10.0)

0.5

(10.0)

(7.75)

Person 2

0.00

Person 3

2.0

(1.8)

6.0

10.0

3.9

(4.0)

3.01

Person 4

8.0

10.0

1.3

5.1

5.5

8.1

1.0

5.02

KPIs

15% Target

Example Scores

Points Allocated

•

The scores for each KPI are limited to –ve 10 and +ve 10. Even if a person performs better than the ‘outstanding’ score, he/she would get rewarded a max of 10 points (Ex: Person 3 has achieved a not-ready time of 13%. However, he would get a score of 10 and not above 10)

•

Notice: Person 2’s scores match with the rating of 3 (meets or satisfactory performance) and hence, he has 0 points

Source: Sutherland Research

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