Yatra Online is India’s largest corporate travel services provider and the second largest online travel company in India, among key OTA players in terms of gross booking revenue and operating revenue, for Fiscal 2020. They have largest number of hotel and accommodation tie-ups amongst key OTA players of over 2,094,000 tie-ups, as on October 29, 2021.
They are the leading corporate travel service provider in India with approximately 700 large corporate customers and over 46,000 registered SME customers and the second largest consumer online travel company (OTC) in the country in terms of gross booking revenue for Fiscal 2020.
Their business is based on a common technology platform that serves customers through multiple mobile applications as well as website www.yatra.com.
Their strategy spans the entire value chain of travel and hospitality covering B2C (business to consumer) and B2B (business to business which includes business to enterprise and business to agents).
The Indian travel industry is expected to grow at 5-7% CAGR, expanding to Rs 3,350-3,370 billion in fiscal 2025 from Rs 2,470-2,490 billion in fiscal 2020, driven by development of tourism infrastructure, rising income levels translating to higher discretionary spending on travel and tourism, and increase in frequency of travel for business and leisure purposes.
The online travel market in India is estimated to grow to Rs 2,390- 2,410 billion in fiscal 2025 from Rs 1,480-1,500 billion in fiscal 2020, or at 9-11% CAGR.
The OTA (Online Travel Agency) industry in India in gross booking revenue terms is estimated to grow at 11-13% CAGR between fiscals 2020 and 2025 to Rs 1,680-1,700 billion.
Strengths And Risks
+ Trusted Brand: : Yatra is one of the most well-recognised travel brands in the country, addressing the needs of both leisure and business travelers Their leading market position and “Yatra” brand enables them to target new customers and leverage when contracting with airlines and hotel suppliers.
+ Large, Loyal Customer Base: : They have served 12 million cumulative travel customers as of Sept ‘21, with over half of them having signed up for their eCash loyalty program. They recorded a booking success rate of 98.7% on their websites and mobile applications in the B2C channel for domestic transactions
+ Multi-Channel Strategy: : They have a unique go-to-market strategy that is a mix of B2C and B2B. This comprehensive approach creates a strong network resulting in significant cross-sell between business and leisure travelers, which addresses the entire travel market in India.
+ Integrated Tech Platform: : They utilize a single data center with an active backup in a separate location and also utilize cloud services with ability to restore all site operations within 48 hours in case of a complete shut-down.
+ B2B Channel: : Their B2B channel includes corporate travel and travel agent business. They provide an end-to-end SaaS-based travel solution to corporates. The Travel Agent channel helps them reach customers in smaller markets (Tier 2 and Tier 3 cities) where internet penetration has traditionally been lower.
- Covid Impact: : The COVID-19 pandemic has had, and is expected to continue to have, a material adverse impact on the travel industry and their business, financial performance and liquidity position.
- High Competition: : The Indian travel industry is highly competitive and success depends upon ability to compete against numerous established and emerging competitors, including other online travel agencies, traditional travel companies, travel research companies, payment wallets, search engines and metasearch companies, both in India and abroad.
- Airline Industry Risk: : They are partnered with seven domestic airlines as well as over 400 international airlines; however, a substantial portion of our Air Ticketing revenue comes from 4 airlines. Any adverse market development can hamper the business.
- Consolidation Risk: : Air India now uses one Global Distribution Service provider for its entire domestic inventory and two GDS providers for its international inventory. Other airlines may also switch to the same which can impact volumes and revenue significantly
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