1. 06-05-2015 CRP 2 - S P Jain School of Global Management
1
2. Online Travel Agents - Customer Perception Group 1 MGB CMM
Ameya Sonkusale Eesha Bahl Kajol Ghosh Sagar Hastak 06-05-2015 CRP
2 - S P Jain School of Global Management2
3. Travel Itinerary 06-05-2015 CRP 2 - S P Jain School of
Global Management 3 Aims and Objectives of the Research Three modes
of booking Research Methodology Primary Research Analysis SWOT
Matrix Marketing Strategies for OTAs Research Challenges and
Learning's
4. 06-05-2015 CRP 2 - S P Jain School of Global Management 4 To
understand the Consumer Behavior patterns while using the online
travel agencies for making leisure travel bookings in Sydney
Objectives of the Research To Understand the customer perception
and their buying behavior towards OTAs. To study the challenges
faced by OTAs to convert a potential buyer into a customer. To
identify strategies the OTAs can implement in order to overcome
advantages enjoyed by the traditional travel agents. AIM
5. Online OTAs & Direct Supplier Websites 06-05-2015 CRP 2
- S P Jain School of Global Management 5 Modes of Bookings Offline
(Brick and Mortar)
6. Strategic Framework 06-05-20156 Market Research Market
Analysis Corporate Perspective Strengths & Weaknesses SWOT
Firms Capability Cost Advantages Differentiation Advantages Step 2
Market Perspective Opportunities & Threats SWOT Market
Attractiveness Size of market Growth of market Competitive
Structure Cyclicality Market Risks Step 1 Marketing Planning Step 4
- Marketing Strategies Increase Volume / Productivity Distribution
Strategy Promotion Strategy Price Strategy Step 5 Marketing Mix
Brand Strategy Product Strategy Segmentation Step 3 Market &
Segment Selection Research Identify segments Identify Segments
Target Identify most attractive segments Attractiveness of Segments
Positioning Select most attractive segments Select Segment CRP 2 -
S P Jain School of Global Management
7. Primary Research Methodology 06-05-20157 Primary Research
Qualitative Feedback Prepare a Discussion Guide based on key
findings from the Literature Survey Meet Customers and take their
feedback. Consumer perception survey Identify consumers of both
Online and Offline Travel Agents Disparity Analysis Factor Analysis
Cluster Analysis Inference Learning's & Recommendations
Challenges and Limitations CRP 2 - S P Jain School of Global
Management
8. 06-05-20158 Qualitative Research Features in OTAs Preferred
Modes of booking for Domestic and International Travel Choices
between different modes of booking Choice and Nature of booking
Loyalty to particular OTA Concerns while making Bookings CRP 2 - S
P Jain School of Global Management
9. 06-05-20159 Quantitative Analysis Disparity between customer
perceptions and Industry claims Point of Difference Customer
Perception Industry Claim International Travel Bookings 45%
preferred Brick & Mortar for booking international flights 46%
preferred Direct Company Websites for international hotels Direct
company websites preferred for international flight bookings Brick
& Mortar preferred as compared to OTAs and Official Company
Websites for hotel bookings Domestic Travel Bookings 55.1%
preferred OTAs for booking domestic flights 47% preferred Direct
Company Websites for domestic hotels OTAs preferred as compared to
Brick & Mortar and Official Company Websites Domestic Holiday
Packages 49% preferred OTAs for domestic holiday packages OTAs
preferred as compared to Brick & Mortar and Official Company
Websites International Holiday Packages 44% preferred OTAs but 41%
of the remaining preferred Brick and Mortar system Brick &
Mortar preferred as compared to OTAs and Official Company Websites
CRP 2 - S P Jain School of Global Management
10. MARKET ATTRACTIVE INDEX FOR OTAs SR. NO. Market
Attractiveness Matrix: FACTORS CURRENT RATING (1- 7) FUTURE RATING
(1- 7) 1 Size of the market (Scale: 1= small, 7 = significant) 5 6
2 Growth of the market (Scale: 1 = low, 7 = high) 5 3 3 Competitor
hostility (1 = high hostility, 7 = low) 5 2 4 Market Risk (Scale: 1
= high, 7 = low) 4 2 Overall Average Rating 4.75 3.25 06-05-201510
CRP 2 - S P Jain School of Global Management Market Analysis
11. DIFFERENTIAL POSITION MATRIX FOR AN OTA wrt Direct Supplier
Websites SR. NO. Differential Position Matrix: FACTORS CURRENT
RATING (1- 7) FUTURE RATING (1- 7) 1 Easy of payment (Scale: 1=
small, 7 = significant) 4 3 2 Holiday tours and packages (Scale: 1=
small, 7 = significant) 6 6 3 Cab pick and drop service (Scale: 1=
small, 7 = significant) 4 2 4 Advertisements (Scale: 1= small, 7 =
significant) 5 5 5 Customer Care (Scale: 1= small, 7 = significant)
5 6 6 Reward incentives (Scale: 1 = low, 7 = high) 5 3 Overall
Average Rating 4.83 4.17 06-05-201511 Differential Position/Cost
Advantage MATRIX FOR OTAs wrt BRICK & MORTAR SR. NO.
Differential Position Matrix: FACTORS CURRENT RATING (1- 7) FUTURE
RATING (1- 7) 1 Ease of planning an itinerary (Scale: 1 = low, 7 =
high) 2 4 2 Human Consultation & Guidance (Scale: 1 = low, 7 =
high) 1 2 3 Simulated Experience Of Destination (Scale: 1 = low, 7
= high) 5 6 4 Value for money tours and packages (Scale: 1 = low, 7
= high) 5 6 5 Accessibility (Scale: 1 = low, 7 = high) 5 7 Overall
Average Rating 3.6 5 CRP 2 - S P Jain School of Global
Management
12. 06-05-201512 MaintainHarvestDivest GrowthMaintainHarvest
Growth/ enter GrowthDivest/ growth Differential Position
Disadvantaged Average Advantaged High Medium Low
MarketAttractiveness 1 7 1 7 3.5 3.5 MaintainHarvestDivest
GrowthMaintainHarvest Growth/ enter GrowthDivest/ growth
Differential Position Disadvantaged Average Advantaged High Medium
Low MarketAttractiveness 1 7 1 7 3.5 3.5 Strategic Characterisation
Matrix OTAs v/s Direct Suppliers OTAs v/s Brick & Mortar CRP 2
- S P Jain School of Global Management
13. SWOT OTAs 06-05-201513 CRP 2 - S P Jain School of Global
Management MARKET ATTRACTIVENESS OTAs CAPABILITIES (DIFFERENTIAL
POSITION) OPPORTUNITIES THREATS STRENGTHS WEAKNESSES SIZE OF THE
MARKET Expected to increase: Technology + Awareness -NA- GROWTH OF
THE MARKET -NA- Slowing: Slowly reaching its saturation point +
Marketing will play a major role COMPETITIVE STRUCTURE -NA- New
firms + Brick & Mortar opening their own websites MARKET RISK
-NA- Decreasing Customer Base: Stiff competition from Company
websites DIFFERENTIATION -NA- Access to the same technology.
Efficient utilization of available to resources will be the
differentiating factor. COST FACTORS -NA- Better technology &
resources at lesser price
14. Factor Analysis 06-05-201514 Rotated Component Matrixa
Component 1 2 3 Ease of cancelation .790 User friendly interface
.782 Customer Care .697 Easy of payment .684 Low Price .671 Time
while booking .668 Advertisement .811 Brand popularity .805 Online
reviews .702 Referrals from friends and Relatives .687 Email and
SMS alerts .843 Cab pick and drop service .794 Holiday tours and
packages .700 Mobile Application .674 Extraction Method: Principal
Component Analysis. Rotation Method: Varimax with Kaiser
Normalization. a. Rotation converged in 6 iterations. OTA Selection
factors Core Features Ease of cancelation User friendly interface
Customer Care Easy of payment Low Price Time while booking Brand
Advertisement Brand popularity Online reviews Referrals from
friends and Relatives Extended Features Email and SMS alerts Cab
pick and drop service Holiday tours and packages Mobile Application
CRP 2 - S P Jain School of Global Management
15. Cluster Analysis 06-05-201515 Distribution in Clusters Core
Features Brand Extended Features 1. Economic Traveller Core
Features Brand Extended Features 2. Impulsive Traveller Core
Features Brand Extended Features Perks Lover These form 28% of the
sample. 43% of these are females. 61% of these have an annual
income of less than AUD $ 50,000. 73% of these fall in the age
group of 18- 40 years. 90% of these people have a short length of
stay of less than 7 days. These form 29%. 63% of these people have
an average length of stay between 5-7 days. Majority, 81%, of these
are male. These are distributed over all age groups. These form a
large chunk of 43%. 58% of these spend 5-7 days on an average
during their leisure trip. 67% of these are male. CRP 2 - S P Jain
School of Global Management
16. Mode of Booking Predictor Model Discriminant Function Mode
of Booking = 0.675 (Extended Features) + 0.613 (Brand) + 0.361(Core
Features) After getting the values for the customer rating on
Extended features, Brand and Core Features, we will get a score.
Score can be interpreted as follows: 1 : OTA 2 : Offline Travel
Agents 3 : Direct Supplier Websites 06-05-201516 CRP 2 - S P Jain
School of Global Management
17. Marketing Strategy 4Ps 06-05-201517 CRP 2 - S P Jain School
of Global Management Integration with Offline Travel Agents Improve
Safety of Personal and Financial Details Use Big data to convert
information seekers to actual customers. Provide more flexibility
to customers Follow a Holistic Approach International Travel and
Holiday Packages Add extended services like Mobile
application(Multi- screen) & cab drop services. E-marketing
Real time pricing Charge extra services at a premium price Reduce
the overhead/hidden charges involved in each booking Engage
Customers through Social Media Efficient utilization of
review/feedback websites eg. TripAdvisor
18. 06-05-201518 Learnings and Inferences 3 Major Groups of
Customers to be Targeted Importance of Brand and Extra Features
Influence of Social Media/ Internet on the Industry OTAs Growth Key
Challenges CRP 2 - S P Jain School of Global Management
19. Key Challenges Scenario Mapping 06-05-2015 CRP 2 - S P Jain
School of Global Management 19 Disagree Neutral Agree Customer
Perception ImpactonOTASales LowMediumHigh Confidentiality of
Personal Travel Information Sceptical of making bookings Alone
Security of Payment Details Rigidity of Booking Credibility of
Information Extra ChargesCumbersome
20. 06-05-201520 Further Scope of Research Study the gaps which
are causing OTAs to fail in the International Holiday Segment.
Study the Cost structure of OTAs and identify ways of expanding
bottom lines Influence of added services like VISA facilities on
International Packages. Limitations of Our Research Time constraint
Cost restraints Limited sample size Limited Industry exposure
Validation of the Questionnaire CRP 2 - S P Jain School of Global
Management
21. 06-05-201521 Learnings from the Research Importance of
Literature Review Techniques to approach and engage customers in
discussions Importance of designing an appropriate Discussion Guide
and Questionnaire Implementation of Data Analysis and Research
Methods CRP 2 - S P Jain School of Global Management
22. THANK YOU ! Q & A 06-05-201522 CRP 2 - S P Jain School
of Global Management
23. Factors Affecting Consumer Perception 06-05-201523 Consumer
Perception User Friendly Interface Time Ease of payment Low prices
Brand popularity Referrals from friends and relativesAdvertisem
ents Online Reviews Ease of cancellation Rewards and incentives
Holiday tours and packages Mobile Booking CRP 2 - S P Jain School
of Global Management
24. SWOT Analysis 06-05-2015 CRP 2 - S P Jain School of Global
Management 24 OTAs Strengths: Low Cost and Accessibility Technology
Intangible Product Dynamic Packaging Added services to the
customers The 5S approach of marketing Weaknesses: Unavailability
of Real Time booking facility Lack of synchronization Less
Connectivity Unfavorable Cancellation Policies Modes of Payment
Opportunities: Inherent Nature of travel Niche Market User-friendly
Interfaces Big Data One stop Shop Untapped Markets Multi Screen
consumer behavior Threats: IT costs Customer Loyalty Increasing
Competition with saturating Market Unfavorable relations with some
Vendors Economic and Political Instability UnfavorableFavorable
InternalExternal
25. Australian Travel Industry 06-05-2015 CRP 2 - S P Jain
School of Global Management 25 The industry had 6.3 Million Leisure
Visitors in 2014. Source: 1.
http://tra.gov.au/documents/ivs/International_Visitors_in_Australia_September_2014_Results_of_The_International_Visitors_Survey.html
2. http://www.tra.gov.au/publications/publications-list-1166.html,
2014 0 500 1000 1500 2000 2500 3000 Holiday Visiting Friends and
Family Business Education Employment Other Purposes In Transit No
of Travellers(Thousands) Visitors in 2014 9 895 9 248 7 034 1 217
24044 20173 8575 3412 0 5 000 10 000 15 000 20 000 25 000 30 000
Holiday Visiting friends and relatives Business Others
NoofTravellers(Thousands) Domestic Travel Interstate trips
Intrastate trips
26. 06-05-2015 CRP 2 - S P Jain School of Global Management
26Integration of OTAs with Traditional Offline travel Agents Use of
Offline agents for Overseas bookings Increased Use ! Cost-effective
technology OTAs Growth and Market share on the decline Fast
Reaching Saturation point
27. Recommendations Integration with Offline Travel Agents
Improve Safety of Personal and Financial Details Use Big data to
convert information seekers to actual customers. Add extended
services like Mobile application(Multi- screen) & cab drop
services. Potential Market International Travel and Holiday
Packages 06-05-201527 CRP 2 - S P Jain School of Global
Management
