RIVALRY IN THE TRAVEL AND TOUR OPERATOR INDUSTRY The present day travel and tour operator industry in India is highly fragmented and comprises a number of unorganized and small operators. Keeping recent trends in mind, it would be a grave error to ignore the significance of the Online Travel Agencies (hereinafter abbreviated as OTAs) on the industry dynamics. The OTAs have been a game changer and even the traditional travel and tour operators as on date have developed online portals. Thus we will study the industry rivalry first by analysing the rivalry among the OTAs, then the rivalry among the traditional travel and tour operators and finally, we will analyse the rivalry across the two types of operators Rivalry among the Online Travel and …show more content…
This is a relatively young industry and the OTA wave in India began with Deep Kalra’s MakeMyTrip Limited. Founded in 2000 as a fledgling startup, this company has now grown to 1,714 employees in 2014 and has a revenue of $ 300 million in India as on 31st March, 2015. Some of the other major players in this market are Cleartrip, Expedia, Yatra, GoIbibo and Travelguru among various others. The companies mentioned above offer comprehensive travel solutions including accommodation, airline travel booking, travel insurance etc. and mainly compete on price. At present, the OTA sub-industry has a few major players with MakeMyTrip, singlehandedly accounting for 47% market share based on gross bookings followed by Cleartrip and Yatra at 20% each. The remaining is accounted for by GoIbibo.[1]Thus, the OTA industry can be …show more content…
There are many players in this category, both in the organized as well as the unorganized segments. At present, only two firms are listed in India – Thomas Cook India Ltd and Cox and Kings Ltd. The other major players who are well known are Kesari Travels, Akbar Travels, Mercury Travels, SITA Tours, Club 7 Holidays and various others. As per Indian Association of Tour Operators (IATO), there are 1,565 members (albeit including OTAs and hybrid tour operators)[2] This shows us the fragmented nature of the travel and tour industry. Such a fragmented market therefore indicates existence of high rivalry. The traditional market is highly unorganized. Also the switching costs, particularly with such large number of players and with increasing awareness of the Indian travellers about large number of players is very low. Indian travellers tend to be price sensitive which results in increased price based competition among
The corporation can use its name as its strong base to attract the attention of new customers as well as to make certain that it is holding on to the old ones. Furthermore, economy of scale plays a significant role in this industry. Travelodge has a higher profitability aspect than the single operations (Wilkinson, 2013). If a new competition enters the market, they will find it difficult to compete with Travelodge as setting a proper quality and price regarding the economies of scale takes time. For Travelodge management, the capital intensive industry is tied with the fixed costs which make the entry of any entrant extremely
This website links to a report on the increasing number of travel agents within the past number of years.
For the introduction, brief information regarding my purchase and the travel and tourism industry is presented. It was then followed by the explanation of the 2 chosen theories from two different chapters.
Helped With unique efforts by government and all other stakeholders, including hotel owners, resort managers, tour and travel operators and employees who work in the sector, Indian hospitality industry has gained a level of acceptance world over. It has yet to go miles for recognition as a world leader of hospitality.
factors. The most attractive industry is one in which entry barriers are higher than normal and exit barriers are low. These two things will allow firms to enter a lower-competitive scene with an easy exit, if any is needed. -Supplier Power. The bargaining power of suppliers is also described as the market of inputs. Suppliers may refuse to work with the firm which is why it’s needed to have a good brand reputation along with good customer relationships. There is another option of supplier charging high prices for unique resources, during this geographical coverage and bidding processes together with capabilities of the firm plays an important role. -Competitive Rivalry. Rivalry has always played an important role in the competitive market. For most industries, the possibility of rivalries is the major determinant of the competitiveness of the firm. Each industry has its own number and size of firms. The bigger the amount of firms an industry has, the bigger the differentiation and the amount of strategies available to them. Each firm should be flexible through customization and vari...
In recent years, business tourism has become increasingly prevalent and prevailing in the tourism industry. There are large quantities of significant changes which have far-reaching implications for all consumers and suppliers of business travel such as consumption patterns, great developments in transport and communications technology, and the world´s political and economic changes related to tourism industry. All these developments have brought large effects on business travel as well as the main challenges to this sector for the coming years. Every day, tens of thousands of people are beginning or ending their business trips all around the world, while numerous conferences or exhibitions are being held globally, so business tourism is a
Compete in today’s global world makes the countries in any other parts of the world will compete to defend presence acknowledgement by the world. The development of all aspects of life makes the state in any hemisphere shows of wealth as well as his true identity as a country. A country’s resource wealth into the shield from the impact of the progress of the world, but it also can we take advantage to make our country as the world promotion. The development of the world culture as icons make important to maintain themselves in the middle of the era of competition, culture is a symbol of system and meaning in a human society which contained the norms and values of social relationship and behavior become the true identity of a country. Cultural wealth makes a humor behavior patterns are increasingly diverse, the attitude of cooperation in building a nation. the nature how a country’s or community’s view on it is an important aspect, which we refer to as the hospitality properties. The attitude of showing how the country educating people inside. The wealth cultures make a country home to place tourism as other important aspects to compete in today’s global world.
There are factors which are affecting the consumer behavior in Tourism are Safety and mature consumers, Web, Pricing and tourism studies. The web is considered one of the important factors, which have been argued by the authors about its importance in terms of its influencing acknowledgment.
Nations, like the people who inhabit them, are all different. Some, like the United States, are at the forefront of technology and development. Others exist as third world nations, where even the most basic necessities are hard to come by. And then there are those which are in the middle, such as India. In the past 20 years, India has grown in the eyes of the global community from a rural, developing nation to a burgeoning global marketing hub. While India had much guidance from the United States and other global powers, the country has still chosen to follow its own path of business and marketing development. This paper is designed to evaluate India's current marketing environment in comparison with the marketing environment here in the US, citing both nation's similarities and differences.
Tourism and Hospitality has developed rapidly and becoming extremely important to economy in the world. The income that several countries in the world receive from tourism industry can be reached to $1billion per year. In addition, Marketing is one of the most important factors that help and effect to tourism industry in many positive ways. Marketing evolved in the tourism industry since 1980. It promotes tourism industry by encouraging the tourists to travel at their destination with the strategy that made up to the tourist satisfaction. However, a marketing strategy does not have to be complex, in fact it should be a easily understood which ensure the advantage of marketing of the products and services to the tourist business to obtain positive
The hotel industry is one of the fastest growing industries in India. The total market size of Indian tourism and hospitality sector stood at US$ 117.7 billion and is expected to touch US$ 418.9 billion by 2022. The foreign direct investment (FDI) inflows in hotel and tourism sector during April 2000 to July 2013
According to Leiper “Transportation is the only link between the tourist-generating region and destination region”[2]So, transportation was a more interesting sector to discuss in the report but I tried to find a company which is related with all these main sub-sectors discussed above in the report. I have decided to look in the U.K market for such company because “Tourism is one of the largest industries in U.K, worth approximately 75.9 £ Billion to the U.K economy in 2002 and supporting around 2.1 million jobs.” [3] During my research on internet I found many companies offering services in the tourism of U.K but I have decided to choose “Simply Travel” because of its variety of services offering related with the accommodation, transportation and attractions.
Guests can make bookings through a combination of ways. In August 2003, AirAsia became the first airline in the world to introduce SMS booking where guests can now book their seats, check flight schedules and obtain latest updates on AirAsia promotions from the convenience of their mobile phones. AirAsia also recently introduced GO Holiday, the airline’s online programme where guests can book holiday packages online in real time. (Temporal, 2006)
In India, one can never over-look the political factors which influence each and every industry existing in the country. Like it or not, the political interference has to be present everywhere. Given below are a few of the political factors with respect to the airline industry:
The Hotel industry has become very important in the past years due to immense traveling and growth of international business. The Hotel industry not only plays an important role in the life of people but as well as the economy of the country. I spent an hour of my day relaxing in the lobby at the Fontainebleau resort in Miami, while on vacation with my family visiting from out of state. It was my first time staying at the resort so I was eager to check it out, after seeing such great reviews on Yelp and hearing great things from friends who have been there in the past. The employees working at the resort were very welcoming, professional and willing to go above and beyond to help their guests. The check-in process was very quick due to having