Business Plan

November 2014
Travelauto India Pvt. Ltd, # 204, Shangri-La Plaza, Road # 2, Banjara Hills
Hyderabad, India
UAE: +971 55 2005800 Email : chandra@travelauto.com
UAE | USA | UK | INDIA

Car Rental is a Sub-Segment of Travel and

Tourism (T&T) Industry
Travel Industry Landscape

Travel
Intermedia
ries

Travel
Agents

Airlines

Hotels

Wholesaler
s,
Aggregator
s,
Consolidat
ors
Classic Travel
Agents

Leisure

Source: Take a Trip into Future, Booz Allen Hamilton

Tour
Operators

Global
integrators
Regional
packages
Experts

International/Regional
chains
Independent agents

Travellers/
Customers

Car
Rentals

Rail,
Cruise

GDS/CRS
Providers

Online Travel Agents (OLTAs)

(Airlines, hotels, car rentals, rail, cruise
etc.)

Business/Corporate

Direct Online Sales

Travel
Suppliers

Destinati
on
Managem
ent

Evolving Towards Online Market Place

Connecting Service Providers Directly to
Customers
Online Marketplace Change in Travel Business Model

Travel
Intermedia
ries and
Agents
vs.
Online
Travel
Market

Airline
s

Hotels

Wholesalers,
Tour Operators
GDS/CRS
Providers

Class
ic
Trave
l
Agen
ts

Onlin
e
Trave
l
Agen
ts
(OTA
s)

Leisure

Travellers/
Customers

The
The
The
The
The

Car
Rentals

Rail,
Cruise

Online Market Place (OMP)

Connects customers with
service providers
(Example: Travelzoo.com,
Travelsupermarket.com,
Skyscanner.com, Kayak.com,
Car Rentals: travelauto.com)

Direct Online Sales

Travel
Suppliers

Destinati
on
Managem
ent

Business/Corporate

Visit Friends and Relative (VFR) Traveller MICE Tourism (Meetings, Incentives,
Independent Traveller
Conferences, Exhibitions)
Generation S (Senior) Traveller
Small Business Traveller
Female Business Traveller

GDS: Global Distribution System; CRS: Central Reservation System

: Take a Trip into Future, Booz Allen Hamilton; Shaping the future of travel in Asia Pacific, Amadeus; Travelauto

Distribution Channels from Traditional to Online

Market Place
Online Travel Agents
(OTA)

Traditional Channels

Focus on
Personalised
Services like
Tour planning,
Knowledge about
travel destinations
Corporate accounts
Holiday packages
Limitation: unable
to offer low prices

Focus on offering
low prices
Low prices
Limitation:
price wars
service providers
have low margins

Thomas cook
DNATA (UAE)
Sita Travels (India)
Arabian Travel Agency
SOTC

Expedia.com
Makemytrip.com
Cleartrip.com
Autoeurope.com
Rentalcars.com

Online Market Place

(OMP)

Focus is on
building
Technology to
connect Customers
directly with
Service Providers
Bookings on OMP
portal
Bookings directed
to service provider
portal

Kayak.com
Travelzoo.com
Travelsupermarket.com
Skyscanner.com

Travelauto.com

Car Rental Services Classification & Operators

Car Rental Service Offering
Chauffeur Driven

Hertz, Firefly,
Enterprise, National, Alamo
Avis and Budget
Thrifty & Dollar
Sixt
Carzonrent, Car Club, Oryx
(India)
Rentalcars.com (OTA)
Arguscarhire.com (OTA)
Car Trawler (Car Rental GDS)
Holidayautos.com (OTA)
Autoeurope.com (OTA)
Carrentals.com (OTA)

Carey International, Inc

Sixt, Hertz, Avis

Limousines
Hanco (KSA)
Tristar Worldwide
Careem.com (Middle East
Based aggregator) Pointto-point transfers
Uber (Point-to-point
transfers)
Small and Medium Size
Local
Operators

Tour
Tour
Packag
Packag
es
es

Airport
Airport
Transfe
Transfe
rs
rs

InterInterCity
City
Trips
Trips

Economy & Small Car

(Sedans & Hatchbacks)

City
City
Trips
Trips

Tour
Tour
Packag
Packag
es
es

Airport
Airport
Transfe
Transfe
rs
rs

Long Term
Rentals

InterInterCity
City
Trips
Trips

Short Term
Rentals
(daily)

Standard, Premium &

Luxury Veh
(Sedans, SUVs & Vans)

City
City
Trips
Trips

Self Driven

Savaari.com (India)
Olacabs.com (India)
Taxiforsure.com (India)
Carzonrent (India)
Oryx (India)
Meru Cabs (India)
Easycabs (India)
Uber (Point-to-point transfers)
Small and Medium Size Local
Operators

Global Car Rental Industry An Overview

Global car rental market is expected to reach USD 79.5 billion by 2019
9 0 .0 0

13.6
%

8 0 .0 0

7 0 .0 0

6 0 .0 0

5 0 .0 0

4 0 .0 0

3 0 .0 0

2 0 .0 0

37

42

48

54

62

70

79

1 0 .0 0

2013 2014E 2015E 2016E 2017E 2018E 2019E

Car rental is the fastest growing

segment among online travel bookings

North America is the largest car rental

market followed by Europe
In the Middle East, Saudi Arabia is the
leading car rental market followed by UAE
India and China are the emerging markets
According to industry sources, currently
online bookings account for 20-25% of total
car rental bookings
Average Revenue per booking (USD) of
Hertz

Q3 2013 Y-o-Y growth

USA

Intl'

World Average

2 0 .0 0 %

3 5 0 .0 0

1 8 .0 0 %

1 6 .0 0 %

3 0 0 .0 0

1 4 .0 0 %

1 2 .0 0 %

1 0 .0 0 %

8.00%

6.00%

4.00%

2 5 0 .0 0

17.4%

13.5%

11.8%

2 0 0 .0 0

7.2%

1 5 0 .0 0

2.00%

0.00%

urce: Adobe Digital Index, Hertz Annual Report, Press, Travelauto

1 0 0 .0 0

332
322
321
268
231
211 225
209 223
209
204
191

5 0 .0 0

2010

2011

2012

2013

UAE Online Car Rental Bookings Expected to

Reach USD 85 million in 2014 accounts 35% of
Car Rental Market
Average car rental days to reach 6.19
days by 2018
UAE Car Rental Market (USD mn)
6.19

4 0 0 .0 0

5.00

3 5 0 .0 0

6.2

5.2

3 0 0 .0 0

4.2
2 5 0 .0 0

3.50

3.2

2 0 0 .0 0

354

1 5 0 .0 0

1 0 0 .0 0

182

227

1.2

0.2

5 0 .0 0

-0.8

0 .0 0

2009

2013

2018

UAE Car Rental Driven by Intl and

domestic tourists
3 0 .0 0

Intl' Arrivals (mn)

Domestic Tourists (mn)

2 5 .0 0

9.2

2 0 .0 0

7.2

1 5 .0 0

5.9
1 0 .0 0

5 .0 0

2.2

9.2

12.4

15.8

0 .0 0

2009

2013

2018

According to Euromonitor
research UAE witnessed 2.0
million car rental bookings in
2009 with gross revenue of
USD 182 million
International and domestic
tourist the drivers of car
rental market grew by a CAGR
of 8.05% and 5.01% between
2009 and 2013 respectively
The online travel market in
the UAE recorded a CAGR of
27.27%, whereas the in-store
market value only increased
at a CAGR of 5.69% between
2009-2013

ce: https://timetric.com/research/report/TT0146MR/; UAEs online industry set to flourish by 2014

: 2018 tourist estimated based on 5% y-o-y growth from 2013

About Travelauto.com
Travelauto.com is a Travel Technology Platform for Car
Rentals
built on Market Place Model
Enabling Customers Connect Directly with Service
Providers

Vision
To build worlds largest online car rental marketplace

Mission
To provide the best user experience on Travelauto.com
Founded in 2012, now has

42+

Car Rental Brands in

Worldwide.

100+

Countries, Serving

1500+

Locations

Travelauto.com is a platform for Travellers to

Engage directly with Car Rental Service Providers

Compare Local Market Prices
Choose a Service Provider among International and Regional Brands

Middle East (ME) Car Rental Market* Driven by

Large Expats and Domestic Tourists
ME car rental and leasing market size
(USD mn)

Inbound
Inbound
Travellers
Travellers

xxx

Leisur
e

MICE &
Busine
ss
Touris
m

Middle East International

destination for MICE
In 2013, Abu Dhabi was named
amongst the top 100 busiest
global MICE destinations
Dubai ranked amongst the top 10
most popular business
destinations
Exhibitions & Conference

Domestic
Domestic
Traveller
Traveller

6 0 0 .0 0

266

5 0 0 .0 0

318

4 0 0 .0 0

3 0 0 .0 0

374

2 0 0 .0 0

1 0 0 .0 0

227

Saudi Arabia

UAE

Note: Including rentals and leasing

0
Oman

51

Qatar

Leading Service Providers in Middle

East
S.N
o

Service
Provider

1
Corpora
te

Car Leasing

0 .0 0

xxxxx
Leisure

Car Rental
7 0 0 .0 0

2
3
4

5
ce: MENA Tourism and Hospitality Report, Sept. 2013 Aranca; www. qatar.smetoolkit.org
Car rental include rentals and leasing; MICE: Meetings, Incentives, Conferences & Exhibitions

Country

Fleet Size
(#)

Saudi Arabia

Indian Car Rental Market.

The Pain Points in Online Car Rental Booking

Portals

for Customers

for Car Rental

Companies

Limited choice of brands and

no regional brands

Portals selectively promote

brands

No reviews and ratings for

service providers

Prices are controlled by

portals

ntal Portals: Rentalcars.com, CarRentals.com, CarTrawler, AutoEurope.com, EconomyCarRentals.com etc.

Travelauto - Value Proposition

C
U
S
T
O
M
E
R

Wide choice of
international
and regional
car rental
companies
Reviews and
ratings of car
rental
companies
Customer
support tools
(ticket
system)

P
R
I
C
I
N
G

Dynamic
Prices
Car rental
companies
can change
rental rates on
real time basis
through their
dash board
Hot Deals
Car rental
companies
can sell
excess/
seasonal
stocks through
promotions

M
A
R
K
E
T
I
N
G

Promotions
and packages
in popular car
rental
destinations
Customer
rating and
reviews for
marketing
Last minute
rentals

C
H
A
N
N
E
L
S

B2B: Travel
agents,
airlines,
hotels, tour
operators
Affiliates

Travelauto Business Model Canvas

Key Partners

Key Activities

Car rental
companies
Limousine
companies
B2B channel
partners
Payment gateway
Technology
partners
Investors

Platform
development and
maintenance
Portal user
experience &
booking
conversions
Partnerships with
car rental
Key
Resources
companies
and
B2B channel
partners

Cost Structure

Fleet availability
over fleet size in
all Travelauto
operating markets
Technical team/
partners

Value
World 1st portal for
Propositions
car rental and
chauffeur drive
bookings
Wide choice of
international and
regional car rental
companies
Reviews and
ratings of car
rental companies
Dynamic Prices
Hot Deals

Customer
Customer support
Relationships

Customer
Leisure travellers
Segments

tools (ticket
system)
Customer loyalty
programs

Business travellers
Local residents
B2B channel
partners

Channels

Tour/Travel
Operators,
Hotels
Revenue Airlines
Streams Affiliates

The Founder & CEO

V Chandra Moulli
Founder & CEO
Chandra, founded Travelauto.com in 2013, with a
great passion to build a Global Travel Transport
platform, where service providers (car rental
companies) and customers collaborate each other
to create value and business.
Prior to starting Travelauto.com, Chandra has held
various senior level positions in Autorent Car Rental
LLC, Paramount Leasing, Saud Bahwan Group,
Larsen & Toubro Limited and many more.
Chandra has completed his Executive MBA from
HEC Paris and has a B.Tech from Nagarjuna
University, India

The Travelauto Team

Yuvaraj, Manager, Marketing
Qualification: Bachelors in Computer Sciences, Executive
MBA
Experience: 10+ years in internet marketing, corporate
communications and web analytics
Suchetana, Executive, Marketing
Qualification: Masters in Business Administration
Experience: 2 years in business development, online sales,
e-commerce
Lakshmi Tulasi, Technical Analyst
Qualification: Masters in Technology
Experience: 2 years in web development, database
management
Santosh, Analyst, Search Engine Optimization (SEO)
Qualification: Bachelors in Technology
Experience: 3 years in SEO, link building

Travelauto Technology Providers

Application
Development
Partner

Hosting Partner

Enterprise
Content
Management
System

Ray Business Technologies Private Limited is a

Global Information Technology (IT) Services and Solutions
company. Kentico Gold Partner. It is a NASSCOM
member, ISO 9001-2000 Certified and currently pursuing
CMMi-3 Certification. Office Located in Madhapur,
Hyderabad.
Rackspace (NYSE: RAX) is the global leader in hybrid
cloud and founder of OpenStack, the open-source
operating system for the cloud. Customers look to
Rackspace to deliver the best-fit infrastructure for their IT
needs, leveraging a product portfolio that allows
workloads to run where they perform best on a
combination of platforms.
Kentico Software helps clients create successful
websites, online stores, community sites and intranets
using Kentico integrated marketing solution. With offices
in the United States, United Kingdom and Czech Republic
and more than 1,100 partners in 80 countries, Kentico is
one of the industry leaders worldwide.

Travelauto Evolution

Travelauto Car Rental Partners

Travelauto Key Statistics

Over 10 million Ad
Impressions

Traffic Distribution

Travelauto Internet Marketing Activities

Travelauto Projected Bookings and Revenue

Travelauto total bookings are expected to grow

Travelauto project revenue (USD million)

at a CAGR c.50% between CY2016 and CY2019

CY2015-2019

Car Rental Bookings

Revenue (USD million)

7 0 0,0 00

1 4 .0 0

80 0%

634,573
6 0 0,0 00

11.55

1 2 .0 0

518,329

60 0%

298,110

5 0 0,0 00

383,376

4 0 0,0 00

243,889

1 0 .0 0

8 .0 0

8.94

50 0%

329%

40 0%

6.25
181,556

3 0 0,0 00

20 0%

103%

199,531

3.07

4 .0 0

49,938

1 0 0,0 00

201,820

30 0%

6 .0 0

2 0 0,0 00

94,844

274,440

336,463

43%

29%

10 0%

0%

2 .0 0

0.72

104,687

-1 0 0%

0 .0 0

42369

42735
Car Rental

43100

70 0%

43465

Limousines

Total

43830

-2 0 0%

2015

2016

2017

Revenue (Usd mn)

2018
Growth

2019

Travelauto Projected Financials

USD

2015E

2016E

2017E

2018E

2019E

Car Rentals Bookings

25,325

1,04,687

2,01,820

2,74,440

3,36,463

Limousines Bookings

24,613

94,844

1,81,556

2,43,889

2,98,110

49,938

1,99,531

3,83,376

5,18,329

6,34,573

Total Bookings
Y-o-Y Bookings Growth

Total Revenue
Y-o-Y Revenue Growth
Direct Expenses
As a % ore Revenue
Indirect Expense
As a % ore Revenue
EBITDA
EBITDA Margin
EBIT
EBIT Margin
Net Profit
Net Profit Margin

NA

7,16,188
NA
4,20,754
58.7%
7,33,343
102.4%
-3,42,310
NM
-4,37,910
NM
-4,37,910
NM

300%

30,70,374
329%
11,00,492
35.8%
23,45,228
76.4%
-1,55,662
NM
-3,75,346
NM
-3,75,346
NM

92%

62,47,655
103%
16,19,151
25.9%
39,54,729
63.3%
10,05,358
16%
6,73,775
11%
4,44,759
7%

35%

89,36,129
43%
22,37,161
25.0%
49,99,313
55.9%
21,58,580
24%
16,99,655
19%
11,21,942
13%

22%

115,45,612
29%
29,16,482
25.3%
58,15,696
50.4%
34,22,242
30%
28,13,433
24%
18,57,147
16%

Travelauto Funding Purpose

Media Coverage - Travelauto

Travelauto