Case study 1
Clear Trip (Virtual Travel Agent)
Clear Trip was launched in July 2006; It is one of the top online travel companies
in India with a 35% market share. Based on a straight forward promise of “making travel
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simple” for its customers, Clear trip offers convenience, choice without confusion, multiple
payment options, competitive prices and exclusive destination information with a customer
oriented approach. But dealing with the Indian mindset that remains sceptical about dealers
and their intentions, they had a tough time in gaining credibility.
However, Clear trip was able to do so by upholding integrity and transparency
which are the core values of the brand. It approached its customers at every touch point and
managed to establish a presence. It tapped every viable social media touch point it could get
to engage customers. But just when it thought all was going well for the brand, Clear Trip
came up against the Google challenge.
Clear Trip soon reached the stage of saturation in terms of online conversions. People
depended more on Google search and hence to fight the approaching stagnation, Clear trip
decided to explore the social media and mobile, the alternative mediums for reaching out
to your customers.
Study the case of Clear trip presented above carefully and discusses the issues
faced by this Online Travel Agent (OTA). Suggest measures and strategies to deal with
those challenges faced by Clear trip.com.
Case study 2
Impact of Ict on Indian Tourism
Around 20 per cent of offline travel agents in India have shut shop over the last
few years, according to statistics of the International Air Transport Association (IATA).
Globally, too, the numbers have fallen drastically.
IATA membership in the UK has fallen
to 3,000 from 60,000 in the last decade. Supporting these statistics, a study by the Internet
and Mobile Association of India (IAMAI) found that the ticketing business in India has
largely moved to the online platform, due to which, revenues of offline travel agents have
taken a beating. Online bookings of train and airline tickets rose 36 per cent in June, 2012,
compared with the previous year. While railways registered 5.83 million online bookings
in June, 2012, versus 4.30 million last year, airlines witnessed 1.45 million online bookings
against 1.07 million, according to IAMAI. Moreover, excessive discounts and personalized
services offered by offline travel agents have also worked against their interests. Nonetheless,
smaller agents who do not enjoy economies of scale, and therefore cannot offer specialized
services, are finding it hard to compete, the study revealed. Further, the economic slowdown
made it even more difficult for the travel industry, especially the smaller or regional players,
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many of whom have been looking for a buy-out.
Cox & Kings, which is fast building its
online expertise, and Thomas Cook, which, to cater to the unique Indian consumer needs,
is offering options of buying online and paying offline. The travel space is already seeing
consolidation with mergers and acquisitions taking place in both online and offline travel
industry. Yatra’s acquisition of Travel Services International, and Make My Trip’s buying a
stake in the Singapore-based Luxury Tours and Travels Pvt. Ltd are part of this consolidation
process.
What are the challenges faced by the small and medium sized travel agencies?
Draw strategies apart from offering suggestions to these players to compete in this
sophisticated technology based tourism industry
