Analysis of the market for travel agency services in India
The relevance of research
A feature of the tourism services market is the professional and territorial disunity of the service provider, their consumer - the tourist and the tour operator. Therefore, a travel agency plays a special role in the market, which is the link between the tour operator offering the product and the individual who wants to purchase it.
Purpose of the study
Overview of the state of the travel agency services market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the travel agency market
Content
Part 1. Overview of the Indian travel agency market
1.1. Definition and Characteristics of the Indian Travel Agency Market
1.2. Dynamics of the volume of the Indian market for travel agency services, 2012-2017
1.3. Market structure by type of service provided in India
1.4. The structure of the travel agency services market in the Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2: Competitive Analysis of the Indian Travel Agency Market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the consumption of travel agency services
3.1. Estimation of per capita consumption of travel agency services
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the market for travel agency services until 2022
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. Overview of the Indian travel agency market
1.1. Definition and Characteristics of the Indian Travel Agency Market
In tourism, the result of activity is reduced to a tourist product. Tourist product - any service that satisfies certain needs of tourists and is subject to payment by them.
The following people take part in the formation and sale of the tourist product:
- tour operators engaged in the manufacture and promotion and sale of a tourist product;
- tourism service providers (contractors) directly providing accommodation, catering, transport, sightseeing and other services included in the tour package - these are hotels, restaurants, transport companies (carrier companies), cultural enterprises (parks, museums, theaters) , sports (clubs, stadiums), medical and recreational facilities and excursion enterprises, etc. They act as contractors supplying tour operators with the services included in the tour;
- travel agents involved in the promotion and sale of a tourist product developed by a tour operator - intermediaries;
- consumers of a tourist product - any individuals who use, acquire or intend to purchase tourist services (tourist product) for personal needs.
A feature of the tourism services market is the professional and territorial disunity of the service provider, their consumer - the tourist and the tour operator. Therefore, a travel agency plays a special role in the market, which is the link between the tour operator offering the product and the individual who wants to purchase it.
Another feature of the market is the size of the target audience: almost all Indians are involved in domestic or outbound tourism.
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The main tasks of the travel agency:
- full and wide coverage of recreation and travel opportunities for all available tours, resorts, tourist centers, etc.;
- promotion of this information through advertising;
- organizing the sale of a tourist product in accordance with modern methods of trade, as well as using the specifics and features of the tourist market.
The demand for the services of travel agencies depends on the following features of the industry:
- a wide variety of trip participants according to their financial capabilities, age, goals and motives;
- individuality and a high degree of differentiation;
- a high degree of substitutability when choosing a product and choosing a travel agency.
One of the top priorities for every travel agency is attracting and retaining customers. Many travel agencies, in addition to selling tours, offer a number of related services:
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Travel agencies fall into two main categories:
- independent travel agencies;
- network travel agencies - points of sale united by a common brand, advertising and marketing policy, work technology, etc.
One way to run a travel agency business is to purchase a franchise. There are the following categories of travel franchises: franchises from network travel agencies and franchises from tour operators.
1.2. Dynamics of the volume of the Indian market for travel agency services, 2012-2017
Diagram 1 shows the dynamics of the volume of the travel agency services market.
Diagram 1. Dynamics of the market volume of travel agency services in India, 2012 - 2017, million Rs.
1.3. Market structure by type of service provided in India
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Diagram 2. Market structure of travel agency services by types, %
1.4. The structure of the travel agency services market in the Union Territories
Diagram 3 shows the shares of federal districts in the total volume of services provided by travel agencies.
Chart 3. Structure of services provided by travel agencies in India by Union Territories in 2017, %
1.5. Assessment of current trends and development prospects of the studied market
The main trends in the travel agency services market include the following:
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Increasing competition and increasing customer demand for tourism services leads to the fact that more and more domestic tourism firms are turning to marketing, trying to adapt to changes in the external environment.
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The main prospects for the travel agency services market include the following:
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1.6. Assessment of factors affecting the market
Macroeconomic factors affect the dynamics of all sectors of the Indian economy, including tourism and the provision of services by travel agencies. The main groups of factors are: economic, political, social and technological.
Economic
GDP (gross domestic product) is used to determine the rate of economic development of any state. GDP is a macroeconomic indicator that reflects the total value of goods, works and services that were produced and provided in the country in a year. Gross domestic product is the main indicator on the basis of which the level and pace of the country's economic development are determined.
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Demographic (social)
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The main goal of economic growth is to raise the living standards of society: therefore, when measuring it, not only changes in GDP are taken into account, but also population growth.
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The influx of migrants in large cities leads to an additional supply of labor, a change in the structure of the day in the direction of increasing working hours and time spent on the road to / from work, which reduces the amount of free time and stimulates the demand for travel agency services, as consumers want to take a break from daily rhythm, broaden your horizons, change the environment. For the market of tourism and services of travel agencies - the positive impact of the factor.
General trends in macroeconomic indicators can also be traced in such a value as the real incomes of the population.
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Fashion for tourism is one of the modern trends in the transformation of public consciousness. In this context of the development of the psychology of free time, the role and place of tourism in the structure of society's needs have changed. From the privilege of the elite, tourism finally becomes the vital necessity of the majority. The nature of tourism needs is changing. From primitive to more sublime, from a means of restoring labor power to a way for a person to realize his individual abilities and satisfy intellectual demands.
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Since the demand for the services of travel agencies directly depends on trends in the field of tourist preferences of the population, the fashion for tourism has …
technological
The development of the tourism sector in the world, the growth in the number of available offers and directions of tourism (internal and external) ... In particular, in India, both the number of tourist trips is increasing, and the geography of trips within the country is expanding. Resumed tourist flows from India to Turkey and Egypt. A variety of types of recreation is growing, for example, ski tourism has become popular. There are currently almost four million skiers in India.
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Another trend with increasing Internet audience in India has been the growth of mobile Internet users ...
Political
Foreign policy relations are the most important of the group of political factors that determine the vector of export development, the geography of raw materials supplies, mutual tourist flow, as well as the economic situation in the country as a whole ...
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1.7. Analysis of sectoral indicators of financial and economic activity
Important data for analyzing the state of the industry is the dynamics of such indicators as ...
Table 3. Profit (loss) from the sale of services of travel agencies in the Union Territories of India, 2013-2017, million Rs.
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The estimated indicator of the current liquidity of a normally operating solvent legal entity must not be lower than ..., i.e. it is necessary that the total value of current assets be greater than the amount of short-term liabilities.
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Business activity is the ability of an enterprise, based on the results of its economic activity, to take a stable position in a competitive market, it is the performance of an enterprise in relation to the amount of resource consumption in the process of the operating cycle. Indicators of business activity are related to the rate of turnover of funds: the faster the turnover, the less semi-fixed costs per turnover, which means the higher the financial efficiency of the enterprise and the industry as a whole as a combination of many enterprises.
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The stability of the financial position of the enterprise is impossible without effective management of working capital, based on the identification of significant factors and measures to provide the enterprise with its own working capital.
Part 2: Competitive Analysis of the Indian Travel Agency Market
2.1. Major players in the market
The market for travel agency services is one of the most ... in the Indian economy. At the moment, this market niche is actively working ...
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2.2. Market shares of the largest competitors
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2.3. Profiles of major players
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Part 3. Analysis of the consumption of travel agency services
3.1. Estimation of per capita consumption of travel agency services
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3.2. Market Saturation and Estimated Market Potential in India
The potential capacity of the market for travel agency services depends entirely on the dynamics in the tourism market.
With the financial capacity of consumers and the availability of a competitive offer, both outbound and domestic tourism can develop in parallel ...
Approaching the potential of the tourism market and the market for travel agency services has not been exhausted in all directions. Naturally, the development of domestic and inbound tourism is more attractive for the country's economy. With the current population, the integrated development of territories, the restoration of historical and cultural sites, the development of regional tourism has the potential ...
3.3. Description of consumer preferences
According to GidMarket, when choosing a travel agency, the consumer is guided by the following criteria:
Diagram 18. Rating of criteria for choosing a travel agency in 2018, %
During the crisis of 2014-2016, the main criteria for choosing a travel agency were price: prices for tours, availability of last minute tours, discounts and special offers for customers…
3.4. Price analysis
The travel agent purchases tours from the tour operator and sells the tourist product to the buyer, or acts as an intermediary between the tourist and the tour operator for a commission provided by the tour operator.
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Due to the percentage of the commission included in the price, the travel agency can give the tourist a small discount. The use of additional margins is rare due to the high competition in the market in question.
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The price of a visa service at a travel agency depends on many factors:
- country and period of stay in it;
- the need and (or) the possibility of personal presence at the visa center;
- geographical location of the travel agency;
- terms of paperwork;
- travel agency markups to the cost of a visa;
- type of visa (tourist, business, study), etc.
The most expensive visas are issued to the following countries: ...
Part 4. Assessment of factors of investment attractiveness of the market
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Part 5. Forecast for the development of the market for travel agency services until 2022
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The dynamics of the development of the market under consideration will depend, in particular, on the general economic condition of the state.
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Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
The income of participants and the development of the market for travel agency services directly depends on the dynamics of the indicators of a larger sector of the Indian economy - tourism ...
Diagrams
Diagram 1. Dynamics of the volume of the market of travel agency services in India, 2012 - 2017, million Rs.
Diagram 2. Market structure of travel agency services by type, %
Diagram 3. Structure of services provided by travel agencies in India by Union Territories in 2017, %
Diagram 4. Share of sales of travel agencies operating on a franchise basis in India in 2012-2017, %
Diagram 5. Dynamics of India's GDP, in 2011-2018 (forecast), % to the previous year
Diagram 6. Monthly dynamics of the US dollar against the rupee, 2014-October 2018, Rs. for 1 US dollar
Diagram 7. Population dynamics in India, 2010-2018, million people, % of the previous year
Diagram 8. Comparison of GDP and population dynamics in India, 2011-2018 (forecast), % to the previous year
Diagram 9. Dynamics of real incomes of the population of India, 2011–October 2018, % to the previous year
Diagram 10. Internet penetration in India among the audience of 16 years and older, 2008-2017, %
Diagram 11. Profitability of profit before tax (profit of the reporting period) in the field of travel agency services in comparison with all sectors of the Indian economy, 2013-2017, %
Diagram 12. Current liquidity (total coverage) in the service sector of travel agencies for 2013-2017, times
Diagram 13. Business activity (average term of receivables turnover) in the service sector of travel agencies, for 2013-2017, days days
Diagram 14. Financial stability (security of own working capital) in the service sector of travel agencies, in comparison with all sectors of the Indian economy, 2013-2017, %
Diagram 15. Shares of major competitors in the travel agency services market in 2017, %
Diagram 16. Dynamics of the total revenue of 20 major operators of the travel agency market in India, 2013-2017
Diagram 17. The volume of consumption of travel agency services per capita, 2013-2017, Rs./person
Diagram 18. Rating of criteria for choosing a travel agency in 2018, %
Diagram 19. Structure of planned trips in India in 2018 by types, %
Diagram 20. Holiday destinations abroad planned in 2018
Diagram 21. Price map of the cost of visa processing services in TA for the countries of the Schengen agreement in 2018
Diagram 22. Price map of the cost of visa processing services in TA for other countries in 2018
Diagram 23. Forecast of the volume of the market for travel agency services in India in 2018 - 2022, million Rs.
Tables
Table 1. Number of travel companies in India in 2013-2017, units
Table 2. STEP-analysis of factors influencing the market of travel agency services
Table 3. Profit (loss) from the sale of services of travel agencies in the Union Territories of India, 2013-2017, million rubles
Table 4. Gross margin of travel agency services compared to all sectors of the Indian economy, 2013-2017, %
Table 5. Absolute liquidity in the travel agency services sector compared to all sectors of the Indian economy, 2013-2017, times
Table 6. The main companies participating in the market of travel agency services in 2017 GK ""XXX""
Table 7. Basic information about the participant of the group of companies ""ХХХ""
Table 8. Basic information about the participant XXX
Table 9. Basic information about the participant XXX
Table 10. Basic information about the participant XXX
Table 11. Basic information about the participant of the group of companies ""ХХХ""
Table 12. Basic information about the participant XXX
Table 13. Basic information about the participant XXX
Table 14. Basic information about the participant Network TA ""ХХХ""
Table 15. Basic information about the participant XXX
Table 16. Basic information about the participant Network ""XXX"" and XXX
Table 17. Basic information about the participant XXX
Table 18. Basic information about the participant XXX
Table 19. Basic information about the participant XXX
Table 20. Basic information about the participant XXX
Table 21. Basic information about the participant XXX
Table 22. Basic information about the participant XXX
Table 23. Basic information about the participant XXX
Table 24. Basic information about the participant XXX
Table 25. Basic information about the participant XXX
Table 26. Consumer price indices for tourism services in India in 2013-2017,%
Table 27. Assessment of factors of investment attractiveness of the travel agency services market
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