Farechase India hotels

Abstract

The project deals with understanding the online hotel reservation market of India and interest of hotels to engage in it. Secondary data analysis is first done to gain a broad view of the online travel industry. An exploratory market research is then conducted to assess the readiness of hotels for partnering with an online travel booking website. An overview of the contents is given below Section 1 Secondary data analysis Section 1A - Market potential - The accommodation market in India is Rs 18200 Crof which the registered hotels account for Rs 5030 Cr. The rest comprises of small motels spread throughout the country typically with rates below 750 Rs per night (calculated after making suitable assumptions). The market size for the online reservation industry when it matures is estimated at about 720 Cr or 32 lakh bookings a year. Section 1B - Competitor analysis - There are at least 11 major competitors in India in the internet reservation market and a description of them is given. Most of them are new and funded by Venture Capitalists with investments ranging from 9 Cr to 45 Cr Rs. Recently international players like Travelocity and Mobissimo have announced plans of entering the Indian market .Section 1 C - Business models - The online intermediaries have a range business. models from the merchant model to the pure listing model, a brief description of them is made. Section 1D - Potential benefits for hotel - A hotel can save up to 16 % of its profit by internet bookings and implementation of a web based reservation system. A portion of this value can be appropriated by an intermediary who brings traffic to the hotels website. Section 1 E - Other miscellaneous information like demographics etc are examined.