Market Analysis

The e-travel industry contributes to a majority of 88% growth of the Indian e-commerce
industry. India’s online travel market stood at $5.71 billion in 2015. As per the latest reports
most of the growth in the Indian travel market would be coming from the increasing
penetration of international flight and hotel bookings offered by online portals such as
Cleartrip, MakeMyTrip, Yatra, and others. Increase in user demand is also a factor as Indian
consumers are expected to devote almost 4% of their wallet spends on travel. The online travel
market in India, led by flight and hotel aggregators, is expected to touch $13.6 billion by 2021
and will account for almost 43% of the total travel category in the country, management
consulting firm Praxis Global said in a report.
The number of hotel rooms booked in India, both online and offline, touched 11.4 million in
2016, while the number of flights stood at 99.9 million. The combination of travel and
transportation offers, even those which include airport transfers, as well as holiday packages
are growing hugely. Millennial customers are travelling a lot more than before, and they are
seeking travel experiences, so they turn to providers who can pitch these packages together.
Online travel portals successfully provide a 360 degree virtual tour apart from audio tours,
photographs, video reviews and video blogs either put by regular travelers or by the travel
agency itself. The pressures of day to day life coupled with the ease of access and booking
through online tourism portals have given rise to more spontaneous travels. 

The primary market drivers are the increased spending power of the people, growing internet
and credit card penetration, governmental initiative to spread tourism, emergence of new
online segments and the much anticipated growth in civil aviation market. The major short
term restraints in the upcoming trends are the low operating margins and the non-reliability
of offline partners. Other factors that require attention are the limited penetration of the
service to the urban areas, payment processing issues, cultural barriers and lack of customer
willingness, poor industry practices and insufficient tech infrastructure.

The market that can be segmented on the basis of the service offered as Airline and Railway
ticketing, accommodation and hotel reservation, organized tour packages and car rentals, has
sufficient opportunities in the domain of mobile platform, seamless merging of online and
offline facilities, shift to non-air travel segments, scope in medical and travel tourism and the
exploitation of social media for its services and promotion.
PORTERS FIVE FORCES
Threat of New Entrants

 The economies of scale is fairly difficult to achieve in the online travel industry. This
makes it easier for those producing large capacitates to have a cost advantage. It
also makes production costlier for new entrants like us. This makes the threats of
new entrants a weaker force.
 The product differentiation is strong within the industry, where firms in the industry
sell differentiated products rather a standardized product. Customers also look for
differentiated products. There is a strong emphasis on advertising and customer
services as well. All of these factors make the threat of new entrants a weak force
within this industry.
 The capital requirements within the industry are high, therefore, making it difficult for
new entrants to set up businesses as high expenditures need to be incurred. Capital
expenditure is also high because of high Research and Development costs. All of
these factors make the threat of new entrants a weaker force within this industry.
 The access to distribution networks is easy for new entrants, which can easily set up
their distribution channels and come into the business. With only a few e-commerce
selling the product type, it is easy for any new entrant to get its product on the
shelves. All of these factors make the threat of new entrants a strong force within this
industry.
 The government policies within the industry require strict licensing and legal
requirements to be fulfilled before a company can start selling. This makes it difficult
for new entrants to join the industry, therefore, making the threat of new entrants a
weak force.

Bargaining Power of Suppliers

 The number of suppliers in our industry operates is a lot compared to the buyers.
This means that the suppliers have less control over prices and this makes the
bargaining power of suppliers a weak force.
 The product that these suppliers provide are fairly standardised, less differentiated
and have low switching costs. This makes it easier for buyers like us to switch
suppliers. This makes the bargaining power of suppliers a weaker force.
 The suppliers do not contend with other products within this industry. This means
that there are no other substitutes for the product other than the ones that the
suppliers provide. This makes the bargaining power of suppliers a stronger force
within the industry.
 The suppliers do not provide a credible threat for forward integration into the industry
in which our company operates. This makes the bargaining power of suppliers a
weaker force within the industry.
 The industry in which our company operates is an important customer for its
suppliers. This means that the industry’s profits are closely tied to that of the
 suppliers. These suppliers, therefore, have to provide reasonable pricing. This
makes the bargaining power of suppliers a weaker force within the industry.

Bargaining Power of Buyers

 The number of suppliers in which our industry operates is a lot more than the
number of firms producing the products. This means that the buyers have a few firms
to choose from, and therefore, do not have much control over prices. This makes the
bargaining power of buyers a weaker force within the industry.
 The product differentiation within the industry is high, which means that the buyers
are not able to find alternative firms producing a particular product. This difficulty in
switching makes the bargaining power of buyers a weaker force within the industry.
 The income of the buyers within the industry is low. This means that there is
pressure to purchase at low prices, making the buyers more price sensitive. This
makes the buying power of buyers a weaker force within the industry.
 The quality of the products is important to the buyers, and these buyers make
frequent purchases. This means that the buyers in the industry are less price
sensitive. This makes the bargaining power of buyers a weaker force within the
industry.
 There is no significant threat to the buyers to integrate backwards. This makes the
bargaining threat of buyers a weaker force within the industry.

Threat of Substitute Products or Services

 There are very few substitutes available for the products that are produced in the
industry in which it operates. The very few substitutes that are available are also
produced by low profit earning industries. This means that there is no ceiling on the
maximum profit that firms can earn in the industry in which it operates. All of these
factors make the threat of substitute products a weaker force within the industry.
 The very few substitutes available are of high quality but are way more expensive.
Comparatively, firms producing within this industry mostly sell at a lower price than
substitutes, with adequate quality. This means that buyers are less likely to switch to
substitute products. This means that the threat of substitute products is weak within
the industry.
Segmentation, Targeting and Positioning
Segmentation- Trip-Ease takes into consideration all the internet user seeking for planning
their trips. This market is expected to reach 48 billion by 2020.

Target Market- Trip-Ease target market is people of age between 18-55. But major focus is
on millennials because they are the group who are frequent travelers and are seeking travel
experiences. Moreover, Millennials spending power is much higher than baby boomers and
they love to spend money on vacations and trips.

Positioning- Trip- Ease positions itself as a portal which provides an integrated platform
where user can plan their own trip, ask and see suggestion of other travelers, can chat with
them and at the same time providing an option to split the travel budget among co-travelers.

Promotion and Distribution Channels

Blogs- Blogs and Vlogs of different travelers who want to share their experience with other
people who want to plan their trip to a particular place. Apart from that our content team will
be posting the blogs of various famous places to visit so that people can know about the place
they are planning to visit and plan their trip accordingly.

Social Media/Advertising- On Social media like Facebook and Instagram we will follow
multi-facet approach involving posts related to offerings (exotic destinations, blogs, vlogs,
special offers), campaigns and themes based on occasions. An interesting thing about our
strategy is that our content will not be limited to a specific target audience or a specific
objective that is i.e. our content mix will be spread across the awareness, interest, desire and
action cycle which is an ideal approach for any brand.

Apart from the posts which create awareness about their offerings and exotic travel
destinations We will also run several campaigns, contests and engagement activities to keep
the audiences glued to our Facebook and Instagram Page.
KEY PARTNERS

Influencers - Travel Bloggers and Vloggers.

Payment Providers- Google Pay, Phone-Pay, Various payment gateways of banks.

Accommodation- Hotels, air-bnb, zostel

Travel- Ola, Uber, local cabs, Meru, Skycabs, Airlines (Indigo, Go-Air, Spicejet, Vistara etc.)

VALUE PROPOSITION
Customer Value: - Our company aims at providing our customers a platform where our
customers plan their trips according to their ease and comfort. We also help our customer in
planning their trip by providing them the travel experience of various places of other travelers
in the form of blogs and vlogs. Since we are in the era of digital age our company also aims at
providing unique features to our customers to enhance trip planning experience. We suggest
them best hotels, flights and cabs at cheaper prices. Apart from that we also provide
customized packages for those customers who don’t want to bear the pain of planning their
trips by themselves. Also, we give an option to chat with other travelers in the app and
travelers can also split their bill with their co-travelers.

Company Value- We believe in positive work environment, looking for new opportunities and
at last believe in providing quality experience to our customers.