Travel Industry: USD 36 bn, 7.5% expected CAGR over next 10
years Source: India 2012 WTTC, IBEF Travel Industry* is playing an
increasingly important role in Indias economy : 1.9% is the direct
contribution of total Travel industry to Indias GDP 5% contribution
to total employment 3.8% of total exports was from Inbound tourism
(~USD 14.5 bn ) 5.1% of total investment was in Travel(~USD 23 bn)
Domestic Travel to be the primary growth driver: ~82% of Total
Travel 74% of Travel is Leisure travel, expected to grow by 8.6% in
2012 26% of Travel is Business Travel, expected to grow by 4.1% in
2012 CAGR: 7.8% *WTCC definition of Travel includes: Domestic
expenditure +Inbound tourism + restaurant& leisure industries+
govt. spending+ capital investment
Slide 7
India is the second largest Travel Market globally after China,
largest contributor to employment Source: India 2012 WTTC,
IBEF
Slide 8
Travel: Poised to Sustain Growth Momentum Favorable demand,
improving infrastructure and investments to drive T&T growth
Source: India 2012 WTTC, IBEF Increasing per capita income and a
rapidly growing middle class: 160 mn people expected to grow to
over 267 mn by 2016 Favorable demographics: Over 50% of the
population under 25 years Domestic as well as outbound travel to
increase due to: Increased affordability as a result of increasing
disposable income Availability of attractive tour packages
Increased affinity towards leisure travel Demand GrowthIncreasing
InvestmentPolicy Support Innovative campaigns launched to attract
tourists: Incredible India and Athithi Devo Bhavah 100 % FDI
allowed in hotel and tourism sector USD 648.5 mn sanctioned during
the 11th Five Year Plan for 991 tourism infrastructure projects
CAGR of 15.4% over 2005-11 in Govt. spending on T&T (USD 1.6 bn
in 2011) T&T attracted capital investment of INR1,253.9bn in
2011 (~USD 23 bn) Expected to rise by 12.3% in 2012 (~USD 26 bn);
~5.3% of GDP Rise of 7.5% pa is projected over the next ten years
to INR2,903.9bn in 2022 (~USD 53 bn) 1 23
Slide 9
Retail Travel : 33% of Travel is Online, Online growing much
faster than offline Online travel share has been steadily
increasing: 23% in 2009 to ~33%** in 2012 Online travel penetration
(33%) is ahead of China and Japan; comparable to US (38%) Online
Travel market grew 3x compared to the overall market in 2011 viz.
23% vs 8% 23% growth projected during 2012-13 USD 7.3 bn (12) to
USD 9 bn (13) Online travel drives >85% of e- commerce in
India
Slide 10
Travel Market Segmentation
Slide 11
Suppliers Website v/s OTA
Slide 12
Online Travel Future Growth Engine: Hotels, Bus, Car rentals
Source: Phocuswright; Internal intelligence 2012 Retail Travel
Industry Split USD Bn2012 Total2012 Online Online Penetration
Online Split (%) Air9.33.942%54% Hotels5.90.813%11%
Rail6.02.542%34% Car Rental0.70.113%1% Total21.87.333% Bus80.22.9%
Air ticketing continues to be the largest segment (54%) followed by
rail ( 35%) Newer categories like hotels, tour packages, bus and
cars have higher margins, low online penetration and are going to
be the drivers for the next phase of growth Supplier branded sites
accounted for 64% of the total market led by Indian railways and
low cost carriers However, OTAs to grow fast by focusing on the new
high growth verticals
Slide 13
Turbulence in Travel Market: Driven by issues facing the
domestic airline industry Source : Phocuswright, DGCA Supply
constraint: Grounding of majority of Kingfishers fleet, long
duration strikes by the National carrier Spiraling jet fuel prices
and consequently hike in fares resulting in stagnant /decline in
passenger traffic growth Rupee depreciation slowing outbound travel
High debt burden and operating losses for majority of the Indian
carriers Air Market: Total & Online Challenges facing the
airline industry Air continues to be the largest travel category
both online and offline 2011-12 has been a challenging year for air
growth: Passenger traffic declined by 0.9% from Jan - Sept 2011 to
Jan - Sept 2012 Gross margin under pressure for travel companies
because of increase in monopoly of airlines However online air
growth has remained robust at 25% in 2011 and expected to be 22% in
2012 to USD 3.9 bn Steady increase in online air penetration : from
38% in 2011 to 42% in 2012 end Domestic Air Passenger Traffic
(0.9%)
Slide 14
Turbulence to be Overcome by policy changes and shifting focus
to new growth verticals Source : Phocuswirght; KPMG Background
Paper on Indian Aviation, news articles Revival of Domestic Air New
Verticals Growth Incumbents to increase supply: from 385 to 522
aircrafts over the next few years; will ease out the demand supply
mismatch 49% FDI by foreign carriers approved, potential funding
for cash strapped airlines Increased supply and competition from
new players will reduce monopoly of existing suppliers ATF imports
allowed, airline operating costs to reduce Opening of bilateral
rights to all domestic carriers, will lead to better seats
utilization Investments for up gradation / creation of new airports
Key Verticals to drive future growth Hotels Holidays / Packages Bus
New verticals: Car rentals Higher margin categories, focus area for
all OTAs Characterized by low online penetration, increasing trend
to move online: enough headroom for growth Categories like bus and
hotels are highly scalable and huge standalone verticals for
growth
Slide 15
Slide 16
Goibibo - 2012
Slide 17
Goibibo 2013
Slide 18
Our Focus Areas
Slide 19
Slide 20
Goibibo on all mobile platforms
Slide 21
Goibibo mobile experience : Fast, easy & seamless
Slide 22
Goibibo Hotels
Slide 23
Hotels@yourprice mobile only app for hotel bidding
Slide 24
Bus on mobile Ladies seat
Slide 25
Tools On Mobile Mobile Sync with WebWeather forecast Fare
Trend
Slide 26
Improved Home screenTravelers' list Improved Bus UI