Marketing Planning on "Travel Guru"

By

Abhishek Kumar Amit
PGDBA (2007-2009)
GSBA
Greater Noida
 

TO                                                                                                                                     FROM
PROF "NAJMUL HODA"                                                                                                           ABHISHEK KUMAR AMIT
                                                                                                                                         D-57

INTRODUCTION : -

Travel Guru is an online travel agency. It was promoted by tow Harvard Business School alumni. Their names are Ashwin Dharmera and Ganesh Rangaswamy. There are some facts related with this company:-

(i) It is the first travel agency to offer meta search technology.
(ii) It was offering Airline tickets Hotel suits, Vacation package, Corporate travel and cruises.
(iii) Ashwin Dhamera is the CEO and cofounder of TRAVEL GURU.

COMPANY PROFILE: -

Travel Guru was funded by Sequoia capital India, formed by a merger between Sequoia Capital and west Bridge Capital partners. West Bridge capital partner is a Mauritius based Indian Venture. Capital fund with approx $ 350 million under management. The fund focuses primarily on high growth India domestic services, consumer internet, consumer wireless and outsourced services business that are leaders in their market segments.

Travel Guru Tie-up with the following Organizations: -

(i) Air Deccan India's largest airline & cheapest one in India, tagged with Travel Guru, India's premier online travel portal, hotel bookings and hotel packages.
(ii) MTV launched Back Pack holidays with Travel Guru.
(iii) Sequoia capital India battery ventures invested $ 15 million in Travel Guru.
(iv) Travel Guru splits the Hotel Bill.
(v) Travel Guru  & Air –Deccan ink Alliance.
(vi) Spice Jet in alliance with Travel Guru.
(vii) Travel Signed agreement with Trx for Resx online booking tools.
(viii) Hotel Partners : - Taj , Leela , GrandInn, Gingd, Radisson , Royal Orchid, Oberoi Grand , Lotus Suites.

PRODUCTS OF TRAVEL GURU: -

(i) Air- Ticket Booking
(ii) Hotel Booking Worldwide
(iii) Honeymoon Packages
(iv) Corporate Travel
(v) Cruises
(vi) Inside India Traveling

FEATURES OF TRAVEL GURU: -

(i) It is providing the facility of e-ticketing
(ii) Special tie-up with ICICI Credit, Visa Cards.
(iii) It assured rooms at every price point budget, business value for money & luxury hotels.
(iv) Facilities access to unique hotels, which are not easily available elsewhere.
(v) It has choice with 4,000 hotels in India & 72,000 world wide, and 500 airline across the globe.
(vi) Juxt consult awarded it as "Best Practices Website " .
(vii) It's tag line is : - " Think Travel Think Travel Guru " .
(viii) Security: - Security Socket Layer Technology standards from Thawte.
(ix) Senior Citizenship discount.
(x) Tour to Mauritius, Singapore & Europe.
(xi) BPO.

DEMAND ANALYSIS : -

India is rapidly becoming a power market for online travel market. The travel market in India is subject to a unique blend of forces driving growth in online channel that is projected to quadruple in just two years. Drivers on the supply side are dovetailing with social and economic forces on demand side to both boost online travel adoption and enable India to leapfrog distribution technologies.  The result is booming travel demand and rapid uptake of online transaction methods.

* The nearly us $ 14 bullion travel market in India presents massive online opportunities for legacy and startup travel companies.
* Middle class family of India is expected to exceed 100 million before the end of the decade.
* India travel agency expected to reach $ 40 bn by 2008.
* The Indian online leisure/unmanaged business travel market reach nearly $ 800 million in 2006, u from less than $ 300 million in 2005. This hot market is projected to pass $ 1.3 bn in 2007 and swell to over $ 2 billion by 2008, a nearly sevenfold increase in just 3 years. The 2005 online beisure/ unmanaged business travel gross bookings figure represents just 2 % of total travel market in India , but by 2008 online penetration should be close to double digits.
* Travel Market Share expected to more triple from 7 % in 2006 to 25 % by 2008.
* Graphgraphgraph

In 2005 and 2006 at least eight startups or subsidiaries of established entities have or will have launched sites in the market including make my trip, yatra.com, cleartip.com & India times travel with an estimated $ 60 million in venture capital backing online travel agencies in the past 12 months. Travelocity India in the wings and an expedia entry certainly not for behind.

GROWTH DRIVERS : - Factors of Growth Drivers are : -

* Sustained Economic liberalization and Growth.
* Heavy infrastructure investments.
* Growth in Middle Class Family.
* A Cultural Disposition more attended to travel.

At the same time, supply factors have driver e-commerce in the travel sector, including: -

* Travel supplier partnership with the banking industry promoting online payments.
* An emerging technology sector permitting home grown online solutions,  and
* The explosive growth of LCC traffic.

Demand is the primary force in the development of the online channel.

COMPETITORS: -

Travel Guru has many competitors in the market. They are as below and details of some are giving after the list of competitors: - 

* Makemy Trip
* Yatra.com
* Travel Chacha
* Ezeego 1.com
* Thomos cook
* Elight Raja
* Arzoo
* Indiatimes Travel
* Glumo
* Mobissimo India

Makemy Trip

Makemy trip was launched in the year 2000 or the booming "USA to India " Travel market. It was founded by Deep Kalra.

Company Profile : -

(i) It commanded 4 % share of this NRI market when pegged at Rs. 4500 cr. ( USD $ 1 billion)
(ii) It was crossed Rs. 562 cr in current fiscal year and acquired one million customers in 2007.
(iii) By the end 2006 there were six online travel agency in India led by Makemy Trip which has presence across the country. Some 25 % business from it repeats traveler business.
(iv) The projected turnover for 2007 -08 fiscal year ending March 2008 is Rs. 1260 cr. (280 million USD) which is 124 % growth from previous years.
(v) Its overall market share was 71 %.

Product: -

(i) Flights
(ii) Road Trips
(iii) Hotels Suits
(iv) Weekend Breaks Travel
(v) Holidays Packages
(vi) Honeymoon package outside India.
(vii) Car Rentals in the U.S.A.
(viii) Tour Australia to U.K. , Vietnam Russia.

Services: -

(i) Air tickets, search compare and book tickets on any airline including low cost  carriers and full services airline.
(ii) Hotel reservation in international and domestic hotels at discounted tariff.
(iii) 25 % or 50 % off on ICICI Credit card, and Visa.

Ezeego 1

Its products are flights , cars, sights , holidays , rail , cruises , business trip , taxes , insurance , visa , destination.

Features : -

(i) 25 % to 50%  back on ICICI credit cards.
(ii) Festive season offers.
(iii) It had tie up with international & domestic hotels. 
(iv) Single window customer services.
(v) Dynamic packaging ensures a comprehensive choice of suppliers and product worldwide.

Yatra

Yatra is an online travel agency. It is the one of the competitor of Travel Guru.  Yatra has tie-up with many transportation agency. These are the special features of Yatra Travel Agency: -

(i) Yatra provided travel related information, pricing, availability, and reservations for airlines, hotels, buses, cars and car rentals, across 500 large cities and small rural areas.
(ii) Multi language customer service center.
(vi) Partners: - Air India, Air Deccon , Air Sahara, Indigo, Jet Airways, Kingfisher, Airlines , Spice jet .

It shows that Yatra provide cheapest air travel services, because Deccon $ Spice Jet are low cost airlines.

MERITS OF COMPITITORS: -

(i) Make My Trip provides online Rail booking for tour in Europe.
(ii) It has almost capture the NRI segment.
(iii) Provides festive seasons OFFER.
(iv) Ezeego1 provides Insurance to its TRAVELLER, and HEALTCARE.
(v) Ezeego 1 has Multi Language based Customer Service Center.

DEMERITS OF COMPITITORS: -

(i) They are not Targeting Rural areas.
(ii) Most of the Travel Agency are not providing the facility of Online booking system for Railways.  It is the big THREAT
(iii) Make My Trip is not cheaper than its Competitors.

Forecast: - By analyzing the growth of online agencies in India, the market share of travel guru & its competitors. This industry has a lot of potential to grab the market. If they target railway network, domestic online bookings & target rural areas , they will grow rapidly because 70% of our population is  living in rural areas .So they must have grown if targeting these backbone of Indian  industries . India travel industry is expected to reach $ 40 billion by 2008.

SWOT Analysis of TRAVEL GURU:

STRENGTH:-  

1- It has the good products such as flights, cruises, hotels suites etc and well versed and competitive partners which has grabbed the major market of the travel industry.
2- Its overall share market has 65%.
3- Corporate tour is great opportunity for it.

WEAKNESS:-

1- IT is not focusing on rural areas and Indian railway network.
2- Lack of corporate offices & small city offices across the nation.
3- It is not trying to grab the market share of NRI across the word, a few travelers are the customer of Travel Guru.

OPPORTUNITY:

The demand in online travel is growing .The no. of middle income group is expected to grow in India upto100 million. It CEO Dhamera has good knowledge of corporate world; it will help him to take decisions for travelers and in favor of agency prospect. According to phocuswright the projected target will reach at $2 billion in India.

Asia – pacific region shows growth in travel market also, decline in old travel agencies share market shows the growth of online portals in India.

THREAT:

It has strong competitors such as Makemytrip, Travel chacha, Thomas cook etc. They are dominating the market .In market there is competition for price setting and competitive price. Some threat from new investors who is going to enter into online travel market. It is the big threat for India based TRAVEL GURU.

SEGMENTATION:-

It has segmented the market into high and middle income group. Due to increase in per capita income the lower middle class family is now capable to travel by airlines. Now Travel Guru is doing mass marketing.

TARGETING:-

Travel Guru has targeted economical groups. It has offering cheap and the best hotels in INDIA & abroad also. For AGRA it has offered hotel bookings in the three star hotels also. But its has restricted itself only in METROPOLITAN and upper urban areas also.

POSITIPNING:-

In commercial it has advertised as "GUARNTEED HOTEL ROOM
                                               ANY budget, Anywhere."

It proves that Travel Guru has offered middle class to travel at low cost anywhere. During festive seasons it advertised though Economic Times, by internet and business magazines also. Its name also speaks the quality and services of Travel Guru. Its tag line is "TRAVEL means TRAVEL Guru. Through this it has tried to capture the mindset of the travelers.
 

Abhishek Kumar Amit
PGDBA (2007-2009)
GSBA
Greater Noida
 

Source: E-mail November 16, 2007

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