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Simplify360 Research on use of Social Media by Online Travel Agents
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ONLINE TRAVEL AGENCY INDUSTRY IN INDIA
HOW ONLINE TRAVEL AGENCIES CAN LEVERAGE SOCIAL MEDIA TO GROW ITS BUSINESS
(c) InRev Systems
• Holidays
• Hotel Reservation
• Air Tickets
• Bus & Rail Tickets
• Car Rentals
• Foreign Exchange Services
• Visa Assistance
• MICE, etc.
IND
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Online Travel Agency
Dynamic PackagingCustomizable and dynamic, allowing customers to build their own trips
Traditional PackagingFixed package, consumer having no flexibility in building own trips
Two forms of Sales
Indian Online Travel Market
2907 33424362
5524
0
1000
2000
3000
4000
5000
6000
2008 2009 2010 2011
Market Size (US million $)
Source: PhoCusWright
Online Travel market accounts for 28% of all travel revenue
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63.5 63.2 62.5 62.2 62.1 61.8
36.5 36.8 37.5 37.8 37.9 38.2
0
20
40
60
80
100
2004 2005 2006 2007 2008 2009
Female
Male
2004 2005 2006 2007 2008 2009
0-14 8 7.2 7 7 6.8 6.3
15-24 11 11.9 12.6 12.8 12.7 12.5
25-34 19 19 19.5 20.2 20.3 20.6
35-49 31 31 29.9 28.9 29 29.1
50-64 22.5 23 23.4 23.6 23.7 24
Over 65
8.5 7.9 7.6 7.5 7.5 7.5
Holiday Demographic Trends (% no of people)
Holiday Takers by Sex (% no of people) Holiday Takers by Age (% no of People)
Source: EuroMonitor International
3.4 3.9 4.5 4.7 5 5.2
96.6 96.1 95.5 95.3 95 94.8
0
20
40
60
80
100
2004 2005 2006 2007 2008 2009
Non-Holiday Takers
Holiday Takers
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1
2
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4
5Industry Rivalry
Threat of New Entrants
Supplier PowerBuyer Power
Threat of Substitute
IndustryRivalry
The total no of OTA players is not big and exit cost is high which makes the industry attractive while low fixed cost and undifferentiated product/service makes it less attractive. Overall, the attractiveness of the industry due to industry rivalry is MEDIUM
Threat of New Entrants
The industry is not capital extensive and there is no economy of scale involved which makes the industry less attractive. Overall, the attractiveness of the industry due to threat of new entrants is LOW
Supplier Power
There are not many no of suppliers. Moreover, backward integration of the supplier is quite possible. Overall, the attractiveness of the industry due to supplier power is MEDIUM
Buyer Power
There are large no of buyers and forward integration of the buyers is not possible. However high price sensitivity and not much undifferentiated brand makes the industry less attractive. Overall, the attractiveness of the industry due to buyer power is MEDIUM to HIGH
Threat of Substitute
There are huge no of substitutes available in the market such as Direct Company Website/ Agent. However the convenience of using OTAs makes it attractive over its counterparts. Overall, the attractiveness of the industry due to threat of substitute is MEDIUM
Overall, the attractiveness of the industry is MEDIUM
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LinkedIn has over 100 million users and adds about 1 million new users to its service every week. The median age of LinkedIn users is 41, and the average user has 60 connections. 20 percent of its members are in the service industry
YouTube has 2 billion views per day, and 24 hours of video is uploaded every minute. YouTube achieved for the first time the milestone of 100 videos watched per user last year
STATISTICS
Twitter has more than 145 million users and adds about 6 million new users a month. On average 140 million tweets are sent a day. More than 460,000 new account have been added every day . The median age of a Twitter user is 35 years old and the average user has 70 followers
Facebook currently has over 500 million active users around the globe and 50% of these active users log on to Facebook in any given day. Facebook's median age is 31 and its average user has 130 friends and is connected to 80 community pages, groups or events while average user creates 90 pieces of content each month
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Access sentiments of customers
Consumer Insights
Brand Health
Tracking Engagement with customers
Reaching out to customers
CRM
Negative word-of-mouth spreads fast especially in the social media and it is essential to engage proactively with such customers
It is essential to engage with customers to attract new customers as well as to understand the needs of customers
NEED
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Has your agency got new product or service which you want to be make aware among your customer base? Social media is the best and easiest place to drive awareness of your product/service
It is essential for your agency to provide the best service and solution to your customers. By leveraging social media, OTAs can develop and increase their relationship with customers
Develops & Deepens Customer
Relationship
Foster Innovation &
Idea
Hasten Awareness
Social media is the right place to collect information about the company. Social media is filled with suggestions for improvements and ideas and these can be used to foster innovation
NEED
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CREATE fan pages to post contact information, recent updates, and most importantly allow “fans” and the Company a means of communication on the main page and through the implementation of discussions on the fan page
DEVELOP catchy and clever ways to express the most recent company information. Consumers can share recent experiences with the company, as well as recommend potential product ideas and innovations
UPLOAD and share videos and educate your customers with awareness, testimonial and videos showcasing what your Company truly is
CONNECT the staffs of your Company and RECRUIT the best talents in the industry in this most professional social networking site
POWER
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DEX
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Makemytrip.com has more than 1000 followers in Twitter and the Company also uses it for giving notification and engaging with customers
Yatra.com has more than 1600 followers in Twitter and the Company uses it for giving notification and engaging with customers
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Yatra.com has less LIKES as compared to Makemytrip.com in Facebook
Yatra.com engaging and replying to customers queries
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BlogFacebook Page
Engagement in Facebook YouTube Channel
Makemytrip.com is one of the most prominent online travel agency in India using social media as a way of connecting and engaging with customers
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SOCIAL MEDIA GRADES is calculated based on the interactivity level of the mixed retailers in Facebook, Twitter, LinkedIn, YouTube and Blogs. It shows how active the online travel agencies are in the social media space
No of Channels represents the number of social networking sites a mixed retailer’s is present in
ONLINE TRAVEL AGENCIES No of Channels Social Grades
MAKE MY TRIP 6 3.35
CLEAR TRIP 5 2.87
IXIGO 5 2.69
YATRA 6 2.64
GO IBIBO 4 2.42
Social Media Grades for the OTAs in India
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Interaction Plot of the Online Travel Agency in the Social Media Space
0
0.5
1
1.5
2
2.5
3
3.5
0 1 2 3 4 5 6
Inte
ract
ivit
y Le
vel
No of Channels
© InRev Systems 2011
RES
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FIN
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(1/7
) People Talk a Lot About Companies.
But tracking conversations happening online is easier said than done. With SIMPLIFY360, you can track what customers are talking about your retail brand – good or bad feedback or even suggestion ……………
ENGAGE and ACT based on the conversation about your brand…….
© InRev Systems 2011
RES
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(2/7
) BRAND AWARENESS: Number of conversations across web
Makemytrip.com as the highest number of mentions in the social media followed by Yatra.com in a period of 1 week while Cleartrip.com has the least conversation;Yatra.com – 213, Makemytrip.com - 232, Ixigo.com - 149, Cleartrip.com - 142
© InRev Systems 2011
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)BRAND HEALTH: SENTIMENTS across web for different Online Travel Agencies
Yatra.com has the least positive sentiment talk about it while Cleartrip.com has the worst negative sentiment talk about it
YATRA MAKEMYTRIP IXIGO CLEARTRIP
Positive Sentiment % 65.8% 72.9% 82.2% 68.6%
Negative Sentiment % 9% 2.7% 3% 11.4%
© InRev Systems 2011
RES
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)COMPARE the demographics – age group of your brand talkers with competitors
Most of the conversations about the online travel agencies happen in the age group of 26-35 and 36-45 while for Cleartrip.com, it is talk more about
by younger people of the age range of 18-25
© InRev Systems 2011
RES
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(5/7
)COMPARE the demographics – location of your brand talkers with competitors
Makemytrip.com and Cleartrip.com are famous
in Mumbai, Goibibo.com in Hyderabad, Ixigo.com in Delhi and Yatra.com in
Ahmedabad
© InRev Systems 2011
RES
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)COMPARE the source of messages
All Online Travel Agencies are strongly talked about in Blogs
© InRev Systems 2011
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)INDUSTRY INTELLIGENCE
Tracking the keyword “FLIGHT TICKET” in Simplify360
There are 28080 mention of the keyword “FLIGHT TICKET” in the social media within a period of 2 weeks alone
12.55% of the talks about FLIGHT TICKET is related to negative sentiment about the topic
Most talks about “FLIGHT TICKET” happens in Twitter followed by Blogs and Facebook
Majority of the talkers about FLIGHT TICKET are people in the age group of 26-35 and 36-45
© InRev Systems (2011)
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