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Submitted by: Juhi Singh, 19/B-9, IFMR, Chennai

Summer internship report @ PhocusWright

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Page 1: Summer internship report @ PhocusWright

Submitted by: Juhi Singh,

19/B-9, IFMR, Chennai

Page 2: Summer internship report @ PhocusWright

About PhoCusWright …..

Market Research Company, Based in US

Focus on Travel and Tourism Industry – Full Supply Chain

Research authority on how suppliers, travelers and intermediaries connect

Corporate Culture – Open And Contemporary

Independent, rigorous and unbiased reporting for travel, tourism and hospitality distribution.

Page 3: Summer internship report @ PhocusWright

Revenue Model - PhoCusWright

Revenue Model – Conferences and Publications

Annual Revenue – 6 billion USD

The PhoCusWright Conferences – 1. The PhoCusWright Conference – The Travel Innovation Summit, Deal Day,

Centre Stage

2. WIT – Web in Travel

3. PhoCusWright@ITB

4. TRAVDEX

5. The PhoCusWright Analyst Forum

The Recent Publications – Online travel and Tourism and Consumer travel Report

Page 4: Summer internship report @ PhocusWright

My Projects @ PhoCusWright …..

Diverse Geographically – Europe (Airline and Hotels), Asia Pacific (Airline Industry), India (Departure Analysis and Professional Colleges Study), US (Online Travel Agencies – Pricing Survey)

Covering the Full Supply Chain

Supplier

Hotels, Airlines

Intermediaries

Online Travel Agencies

Consumers

Travelers

Page 5: Summer internship report @ PhocusWright

Projects Accomplished

1. Indian Outbound Aviation Market; Trend Analysis for Q1 2009

2. Analysis of Asia Pacific Airline segment Post Recession

3. Traveler Survey and Traveler Behavior Analysis

4. Market Trends Analysis of European Airlines and Hotels (under review)

5. Data compilation for Pricing Survey on Online Travel Agencies

6. Analysis of the MBA courses in India (in terms of size and dispersion), identifying the major hubs in terms of student volume and number of colleges

7. Database Survey for Sales and Business Development

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Objective: To estimate the size the outbound market from India and analyze the market share of the players in terms of passengers carried and departures (no. of flights) from Indian destinations (Cities) for Q1 2009

Methodology: Data Collection from Directorate General of Civil Aviation (DGCA), Data Analysis and Data Mining (News Releases)

Key Results:

i. Scenario 2005 vs. 2009:

2005 March - Air India; Market leader and key player

Jet Airways; Small Market Share

2009 March - Air India; Still leader but tough competition

Jet Airways; Second Key Player, Captured big Market

Kingfisher ; New Player, Small Market Share

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

Page 7: Summer internship report @ PhocusWright

Key Results: Continued …..

ii. Identifying the Market Giants:

In 2009 March, Major Market Share was captured by Emirates, Air Arabia, Gulf Air, Qatar and Lufthansa (Monthly Departures)

Top 4 Airlines – Airlines from Gulf Region (40% outbound)

Emirates – European Region dry;721 flights, +22 flights/week to India; Ahmedabad (Cargo -Pharmaceutical) , Chennai (Cargo - Textile, Electrical Machinery, Perishables), Tiruvananthapuram and Kozhikode (Passengers – Kerala - Travel destination)

Air Arabia – LCC (94% Load Factor across Indian destinations in 2008); 414 flights, 13th destination (Goa – Leisure and Business Travel)

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

Page 8: Summer internship report @ PhocusWright

Key Results: Continued …..

ii. Identifying the Market Giants: Contd.

Gulf Air- Market with tremendous growth, 276 flights, 8th destination (Hyderabad – 80% bookings in 1st month)

Qatar Airways - Indian destinations (load factor of over 75%), 257 flights, 9 destinations, 2 new (Amritsar- pilgrim, Goa- travel)

Lufthansa- German; Considers India $2 billion (in 2008 Carried 20% more passengers when ASKs increased by 20%, 22- 30% of Profit from APAC region is from India) , 232 flights, 6th destination (Mumbai, Mumbai-Munich; Financial and Commercial Hubs)

Summarize …… Indian Perspective and International Perspective

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

Page 9: Summer internship report @ PhocusWright

Objective: To analyze the Impact of recession and downturn on Aviation Industry in Asia Pacific Region

Methodology: Data Collection from 23 Airline Websites, DGCA, Currency Conversions in to USD, Jan- Mar as Q1, Passengers data – Monthly and Revenue Data - Quarterly (Investor Relations, News and Press Releases)

Key Results:

i. Passenger/Traffic Revenue Variation y-o-y (Q1 2009 vs. Q1 2008): Overall -14.82% All except Air Asia show negative variation, Highest dip in MALAYSIA AIRLINES, followed by JET AIRWAYS and KOREAN AIRLINES

Air Asia- +31.92%; LCC, Passenger(+21%), Load Factor(-2.4%), Avg. Fare (+5%), ASK(+19%), Profit(+26%); Enormous Opportunities–New Ventures.

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

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Key Results: Continued…..

i. Passenger/Traffic Revenue Variation y-o-y (Q1 2009 vs. Q1 2008): Contd.

Malaysia Airlines- -36.95%; Triple Squeeze - Over Capacity, Extreme Fuel Volatility, Global Slump - ↓ Passenger Demand, Response – Capacity Cut (11%)

Jet Airways - -32.74%; RPK(-8.3%), ASK(-9.3%), Hung flights on London – Amritsar, Brussels – Bangalore and Mumbai – Shanghai – San Francisco; US Meltdown, IT Slowdown - ↓ Decline in Demand from Trans Pacific Market

Korean Airlines - -28.32%; International Passenger Traffic (-2.1%), Domestic Passenger Traffic (2.5%), Surging Oil Prices and Weaker Demand esp. from Business Travel.

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

Page 11: Summer internship report @ PhocusWright

Key Results: Continued…..

ii. Variation analysis over the three months of the 1st quarter 2009 (based on PAX Carried):

Feb over Jan 2009: All APAC Airlines post negative; Demand Side (ECONOMIC CRISIS – Load Factor ↓, PAX↓, Affordability↓), Supply Side (Airlines – Fuel Hedging Costs, Existing High Capacities but low Load Factors)

Mar over Feb 2009: Only Qantas and Virgin Blue reveal negative variation; Nearly all Airlines Slashed Fare, Qantas & Virgin Blue – Swine Flu Outbreak on Trans Pacific,

iii. Identifying the Market Giants:

In Q1 2009, The Market Leaders based on PAX carried for APAC market are: China Southern, JAL, Air China, Qantas and Cathay.

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

Page 12: Summer internship report @ PhocusWright

China Southern – 21%; Largest in PRC, Huge Domestic Market, Govt. Support, Abolition of Fuel Surcharges, PAX +10% y – o – y

JAL Airlines – 16%; Vast network coverage, Prudent steps to deal with weak demand, bold review of network and frequency, fleet strategy of aircraft downsizing

Air China – 13%, Increased Demand from Mainland, Domestic Traffic +18.9% offsetting International – 8.2%, Sharp fall in fuel prices, Govt. Support

Qantas – 13%, Strategic Expansion through LCC – Jet Star, Although Australian Economy moving into recession, Group ASK (-4.5%), International Mainline (-10.7%), JET STAR ↑, Domestic ASK (+3.6%), Internationally (+21.5%), International Market hopeful specially with JET STAR

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

Page 13: Summer internship report @ PhocusWright

Cathay Pacific – 8%, Extensive spread and Strong connection, Strategic Decisions in downturn regarding flight frequencies, Increment in Demand Soaring routes and Crashing Demand diminishing

Summarize …… Impact of recession clearly visible

Luxury – Business and Leisure travel hardest hit

Survival of the Fittest

Matching Price with Decline in PAX

Strategic decisions for flight frequencies and capacity

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

Page 14: Summer internship report @ PhocusWright

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

Objective: To analyze the traveler behavior in current scenario of Financial Downturn and upcoming Online travel

Methodology: Online Questionnaire; Multiple choice and Multiple correct type, Relevant 115 respondents taken in for study

Key Results and Summary:

i. Impact of social networking sites: People do share photographs (72%) but only 22% rely on others experiences shared on such websites. Ignorance – Travel Application (12%), Travel Trip Notes (24%), Twitter (12%)

ii. Price Cautiousness and Sensitivity while planning a travel trip: Majority people Price cautious (64% - Plan to spend $50-250, 27% plan for $250 – 500, 5% for $500 -1000, and only 4% above $1000), Most preferred Holiday type in Financial Crisis – Weekend (77%) and Vacation (19%)

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iii. Vigilance to Online Travel Booking Modes: Very Popular specially in Airline (Airline Website 30%, MakemyTrip 26%, ClearTrip 10%, Yatra 10%, Kayak 1%) and Train Tickets (IRTC - 83%); Offline booking for the two just 23% &17% respectively. Other Categories catching up like Online Bus (44%), and Accommodation (39% including hotel website, Make my trip and ClearTrip)

iv. Profiling the Traveler (20 – 25):

20 to 25 age group: Tech savvy, contemporary and vigilant, generally prefer to travel either with group of friends (83%) or alone (17%), follow social networking sites, Online booking modes the most.

Indian Outbound Aviation

Asia Pacific Aviation Market Pricing Survey

Traveler Survey European Hotels and Airlines

Professional Colleges

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Objective: To Collect the data for the pricing survey (as a part of hotel booking and fees analysis)

Methodology: Airline Survey- Top 20 US Cities Pair with a specific Flight No. on a specified date, Prices on same day for 2 consecutive days From Airline site, then OTA site like Expedia.com, Cheaptickets.com, Travelocity.com, Orbitz.com, Priceline.com - AIR FARE, TAX AND TOTAL FARE

Hotels Survey- Top 15 Hotels (from luxury hotels chain) with specific Room type on a specified date, Prices on same day for 2 consecutive days From Hotel Website, then OTA site like Orbitz.com, Expedia.com, Hotels.com, Priceline.com, Travleocity.com, Cheaptickets.com – ROOM RATE, TAX AND TOTAL RATE

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

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Basic Observations and Understandings:

Airline Survey: Travelocity lowest, nearly the same as Airline Website while Priceline is highest

Hotels Survey: Orbitz, Expedia and Cheaptickets – all equal in most of the cases and lowest price, highest Priceline, Travelocity earns here by being in the intermediate category

FOR Online Travel Agencies (OTAs): Generally prices offered lesser than supplier, Very little Profit Margin, Very Tough Competition

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

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Objective: To analyze the current trends of European Airlines and Hotels, to Size the travel and tourism industry in Europe in Current scenario and to Measure the impact of recession on Travel and Tourism sector in European Region

Methodology: 29 airlines, Passenger Carried 2006, 2007 and 2008 Yearly; Quarterly for 2008 and Q1 2009 on Calendar Year basis along with Load Factor (in %) and Fare/Traffic Revenue ( in USD, converted from local currencies)

8 Major Luxury hotel chains ( Accor, Best Western, ICH, TUI, Marriot, Starwood, Wyndham and Hilton) Hotels Chain and Hotels Revenue, Occupancy Rates (Occ. Rate), Average Daily Rate(ADR)/Average Room Rate (ARR), Revenue per Available Room (RevPar) and Room Count for European Region

Results and Analysis: UNDER REVIEW

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

Page 19: Summer internship report @ PhocusWright

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

Objective: 1. To analyze the number of colleges imparting Management/Advertising courses

in India. 2. To analyze the opportunity in terms of volume i.e., number of students doing

management and advertising courses in country. 3. Identifying the major hubs (cities) in terms of highest number of colleges and

most massive volume of students 4. To analyze specifically the opportunity in cities of Mumbai and Pune. 5. To build the database for future with all contact information.

Page 20: Summer internship report @ PhocusWright

Methodology: A database with college address, contact number, fax number, web link, E-mail Ids, Course category and number of students taken for each course per year was collected city wise and analyzed

Results and Analysis:

In Terms of Number, there are more than 1300 colleges, which provide MBA / PGDM or equivalent Degree/ Diploma to students.

In Terms of volume more than 75000 students graduate every year with an MBA Degree / PGDM Diploma Course.

There are 48 cities in India with more than 5 MBA colleges and 16 cities with more than 25 colleges

There are 118 cities from where more than 100 MBA graduates passing every year and 21 cities with more than 1000

Indian Outbound Aviation

Asia Pacific Aviation Market

Traveler Survey

Pricing Survey

European Hotels and Airlines

Professional Colleges

Page 21: Summer internship report @ PhocusWright

Top 5 cities in terms of Highest No. of MBA colleges and which can be recognized as the major hubs are : Pune, Hyderabad, Bangalore, Delhi and Mumbai

Top 5 cities in terms of Highest No. of MBA Students passing every year are: Delhi, Mumbai, Pune, Hyderabad and Bangalore

Specifically for Mumbai, 5743 MBA grads pass every year and there are 63 MBA colleges operating in the city.

Similarly, for Pune, 4878 MBA grads pass every year and there are 91 MBA colleges.

Indian Outbound Aviation Traveler Survey European Hotels and Airlines

Professional Colleges Pricing Survey Asia Pacific Aviation Market

Page 22: Summer internship report @ PhocusWright

Other Assistances….. SALES FORCE AND CLIENT DETAILS

E – LEARNING SERVICE PROVIDERS

E – LEARNING PROSPECTIVE CLIENTS

VENTURE IN EDUCATION – MAILING, DATA COLLECTION, CONTACTS

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Experience @ PhoCusWright …..

Meeting the CEO

Learning from the experiences of General Manager APAC

Work Culture – Open and Connected through Technology, Updates and Discussion through Conference Calls

Data Mining

Page 24: Summer internship report @ PhocusWright

Application of Management

Principles Statistical Techniques – Time Series, Market Share and Variation

Analysis

Market Research – Traveler Survey

Marketing – Discount Pricing Strategy for Market Penetration

Management Information System – Excel and Pivot

Corporate Finance – Data Mining

Management Accounting – Financial and Operating Results

Organizational Behavior – Virtual Company

Economics – Scenario Comparison

Operational Management – Service Company

Page 25: Summer internship report @ PhocusWright

REFERENCES Directorate General of Civil Aviation – dgca.nic.in

Investor Relations and Financial Results by Airline website and Hotels website

OTA websites; priceline.com, travelocity.com, cheaptickets.com, hotels.com, orbitz.com, expedia.com

Travel Survey Questionnaire http://spreadsheets.google.com/viewform?formkey=cmFFUXFsSEc2dERoQTExWGdseVpEZWc6MA

PhoCusWright phocuswright.com

Page 26: Summer internship report @ PhocusWright

ACKNOWLEDGEMENTS

MR. RAM BADRINATHAN, General Manager, APAC

Miss. Namita Gyanchandani, Research Associate

Mr. Deepak Jain, Research Associate

Placement Committee

Faculty

Seniors and Colleagues

Page 27: Summer internship report @ PhocusWright

THANK YOU !!!!!

Page 28: Summer internship report @ PhocusWright

SUMMER PROJECT REPORT

Juhi Singh,PGDM- B9,

IFMR, Chennai

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“SUMMER INTERNSHIP REPORT”

Accomplished at

SUBMITTED TO:Mr. RAM BADRINATHAN,

General Manager Asia Pacific Region,PhoCusWright Inc.

In Partial fulfillment of PGDM course at

SUBMITTED BY:Miss. JUHI SINGH,

PGDM Batch 2008 - 2010,IFMR, Chennai.

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Acknowledgement

Firstly, I would like to express my profound gratitude to PhoCusWright, Inc., for entrusting upon me, giving me the opportunity to work with them and learn in the process. I am grateful to the company because this has been a very enriching experience for me.

I am highly indebted to Mr. Ram Badrinathan, General Manager, Asia Pacific region and Research Analyst at PhoCusWright, Inc. for his constant encouragement and support during the term of internship. I am grateful to him for providing me a very congenial atmosphere at the company. I am glad that I got to meet someone as knowledgeable as him at an early stage of my career and learnt so much from him. I also thank him for giving me an immensely enriching opportunity of meeting and listening the words of spellbound from none other than but Mr. Phillip, The CEO and The President of PhoCusWright, which is one of the everlasting experiences of lifetime.

I express my sincere gratitude to Miss Namita Gyanchandani, ResearchAssociate, for her excellent mentoring and constant motivation throughout the project. She was always available for clearing out my doubts despite of her busy schedule. She was there at every stage of my project with her constructive suggestions and valuable inputs. She is a source of inspiration for me. She is extremely skilful at her work and always kept me pushing harder which helped me to complete so much of work in such a short span of time. It was a wonderfulexperience working under her and I owe her a lot for this.

I am also grateful to Mr. Deepak Jain, Research Associate, for his valuable suggestions and extremely helpful shortcuts and techniques. He guided me for few of the projects and was an immense source of knowledge. He has an excellent understanding of numbers.

I also take this opportunity to express my gratitude to all the colleagues and seniors who helped me during the course of project. Finally, I would like to thank the Placement Committee and College Authorities, because of whom only I got this remarkable opportunity and unforgettable experience.

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About the AuthorJUHI SINGH [email protected]: 25/08/1987 Mobile: +91 9444937049

Education

Degree Year Institute/ University

Percentage/ CGPA

PGDM Pursuing IFMR, Chennai -

B.Sc. (Chemistry & Botany)

2008 Lucknow University, Lucknow

60.2%

AISSCE (CBSE) 2004 N.D.D.A.V. Public School, Faizabad

69.4%

AISSE (CBSE) 2002 N.D.D.A.V. Public School, Faizabad

84.6%

Awards and Achievements

Secured 1st rank in Chinthana Science Exam at school level (2002-03) Secured 408th rank at all India level in OSIB Mathematics aptitude

test in class 7th Secured a distinction in all subjects at A.I.S.S.E (Xth Boards) and stood

2nd at school in the same Received Talent recognition certificate on district level from Akhil

Bhartiya Vidyarthi Parishad (ABVP)

Projects Accomplished

Successfully accomplished Six projects with PhoCusWright as a part of Summer Internship Program.

Successfully completed a project with BANYAN (an NGO for mentally ill women based in Chennai) on “Study Of Socio – Medical Model Of Adaikalam And Management Practices Over There”

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Performed and submitted a marketing research analysis on “Consumer Behavior towards Mobile Service Provider and Cellular Industry”

Hobbies and Extra Curricular Activities

Won 2nd prize in Article Competition in Royapettah Government Hospital, Chennai

Coordinator of Social Service Club, “SAMARTAHAN” at IFMR. Organized various activities as a part of same which include Blood donation Camp with JEEVAN BLOOD BANK, Shishumela for 200 orphanage, street and underprivileged kids called LAKSHMI BAL MAHOTSAV, Activities for aged and orphanage with an NGO called NEWLIFE CHARITABLE TRUST located in Tambram in Chennai, and EYE CAMP for poor people of slum area with MAHAVIR INTERNATIONAL.

Contributed actively in the College B – Fest, ABHYUDAYA, served as Public Relations at the same and coordinated for getting the sponsorship for On line Media Partners PAGALGUY

Contributed two articles for the IFMR Monthly Journal Wrote an article in the magazine of Entrepreneurship club “TEC” in

IFMR Participated and ran in MARATHON (5km) for “Celebrating the

Spirit Of IFMR – Run For Fun” Wrote four articles in college journal in Lucknow University. Wrote an article in the monthly journal “BETWEEN THE MEDIA” Performed Dance in Annual function “UDAAN” in Lucknow university in

2nd and 3rd year of graduation Performed dance in farewell party in IFMR Won 1st prize in the dance competition conducted by RKBK, Faizabad Active member of Marketing (INSIGHT), HR(MITR),

Entrepreneurship club(TEC) and Creativity at IFMR Sang Saraswati Vandana in the master ceremony of the B–Fest

“ABHYUDAYA” Won 1st Prize in Sanskrit Essay Writing Competition conducted by

DAV Organization

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Won 2nd prize in Shlokavrti Contest held at school level Participated in UN Information tests at school level in various years Participated in Arya Vidya Competition of various years for moral

science and Sanskrit tests Participated in various inter and intra school extempore, writing,

debate, dance competitions

Areas of Interest

Dancing Travelling, Meeting New People and Knowing New Cultures Writing Poems; and Articles on Social Awareness Blog Writing

http://juhisingh3000ifmr.wordpress.com/

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Table Of Contents

1. Executive Summary ……………………………………………………………………. 7

2. Company Profile ………………………………………………………………………………. 10

3. Indian Outbound Aviation Market Trend Analysis for Q1…………………. 14

4. Analysis of Asia Pacific Airline Segment; (Post Recession) …………………. 24

5. Traveler Survey and Traveler Behavior Analysis ……………………………… 35

6. Data collection for Pricing Survey on Online Travel Agencies ……… 56

7. Analysis of Professional Colleges in India …………………………………… 59

8. Description of Other Projects and Assistances ……………………………. 66

9. Experience at PhoCusWright.Inc. ……………………………………………………. 67

10. Applications of Management Principles …………………………………….. 68

11. References ………………………………………………………………………………. 70

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Executive Summary

The project involved an understanding of markets by reviewing the recent publications of PhoCusWright on “Online Travel Overview” for PhoCusWright Markets: US, Europe, Asia Pacific (APAC) and Australia & New Zealand (ANZ). This was followed by an analysis of current trends prevailing in European hotel and Online Travel Agencies market trends. After developing a basic understanding, the travel and tourism market were tracked with live projects and research was done to understand each prevailing trend.Following are brief description of the projects accomplished during the three months period:

1. Indian Outbound Aviation Market; Trend Analysis for Q1 2009 –

In order to estimate the size of the outbound departures from India and Passenger (PAX) carried; Market share and Time Series Analysis of Airlines over the 1st quarter 2009, and a Scenario Comparison of Airlines from Indiain 2005 vs. 2009 was done. This gave the impact of downturn on Indian Markets and helped to identify the market leaders and emerging Market giants.

2. Analysis of Asia Pacific Airline segment Post Recession –

In order to measure the Impact of downturn and the depth of recessionhitting the Asia Pacific Region, an analysis of current trends in Q1 2009 was done based on available Passenger and Revenue data. Variation analysis, Market Share analysis and Time series analysis was also done.

3. Traveler Survey and Traveler Behavior Analysis –

In order to analyze the travel patterns and impact of various attributes on the consumer (here traveler) behavior an online survey was conducted. One hundred and fifteen responses were taken into consideration and various attributes were measured to do customer (traveler) profiling based

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on age group, price cautiousness and sensitivity, Vigilance to Online booking modes and Impact of Social Networking sites on travel behavior.

4. Market Trends Analysis of European Airlines and Hotels (under review) –In order to size European Travel and Tourism Market and measure the Impact of recession on them, 29 Airlines and 7 Major Luxury Hotel Chains of European region were chosen for the purpose of study. Passengers Revenue, Passengers Carried and load factor for Airlines, and Revenue of the Hotel Chain, Revenue contribution from the different hotels, Room Counts, Occupancy Rates, Average Room Rate and Occupancy Rates for hotels were the key attributes chosen for the purpose of the study. The period between 2006 to 2009 Q1 was chosen for the purpose of the study. The data format was changed and the collected data is still under review.

5. Data compilation for Pricing Survey on Online Travel Agencies –

As part of air & hotel booking fees analysis, a pricing survey was conducted. The survey was based on top-20 domestic city-pairs in US with a specificdate to be searched and a specific flight number for pricing comparison through various Online Travel Agencies (OTA) websites like Expedia, Travelocity, Orbitz, Priceline and then comparison with the respectiveairline websites. On the hotel side also, a group of hotels was searched for a specific date through the same websites and compared with the respective Hotel Chain website. This gave an idea of how different channels reach out to the customer. It also helped to realize that there is very little differentiation and commoditization in online booking.

6. Analysis of the MBA courses in India (in terms of size and dispersion), identifying the major hubs in terms of student volume and number of colleges –

Since the Online Travel is the most upcoming field in the Industry, but due to a lag in Industry needs and education system in India, PhoCusWright plans to enter the education sector in the near future. Therefore, an

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analysis of professional colleges in India was conducted to foresee the opportunity for the same.

7. Database Survey for Sales and Business Development - As a part of internal database building for various purposes, helped to add to the sales force of the company and in identification of prospective service providers with E – Learning services in Travel and Tourism Industry specifically in India. In addition, did the data base collection for prospective clients at various travel and tourism company all over the world for learning ware. Along with the analysis of professional colleges, did a database collection with details of the MBA colleges in India. It was a data capturing activity as a part of building a data warehouse, which can be useful in future for data mining and knowledge management.

The project was very vast and diverse, not only in terms of nature but in terms of geography also. It involved exhaustive data collection, analysis, data mining and researching.

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Company Profile

The PhoCusWright Inc.

About the Company:

PhoCusWright is the travel industry research authority on how travelers, suppliers and intermediaries connect. Independent, rigorous and unbiased, PhoCusWright fosters smart strategic planning and tactical decision-making.

PhoCusWright delivers qualitative and quantitative research on the evolving dynamics that influence travel, tourism and hospitality distribution. Our marketplace intelligence is the industry standard for segmentation, sizing, forecasting, trends, analysis and consumer travel planning behavior. Every day around the world, senior executives, marketers, strategists and research professionals from all segments of the industry value chain use PhoCusWright research for competitive advantage.

To complement its primary research in North America, Europe and Asia, PhoCusWright produces several high-profile conferences in the U.S. and Germany, and partners with conferences in the U.K., China and Singapore. Industry leaders and company analysts bring this intelligence to life by debating issues, sharing ideas and defining the ever-evolving reality of travel commerce.

The company headquarters are in the United States, with offices in Germany and India.

Founder, President and CEO:

Mr. Philip Wolf, founded PhoCusWright Inc. in 1994 and serves as the president and CEO of the company. His expertise in travel distribution strategy, technology and innovation has made him a sought-after speaker around the world. After two decades of analyzing and scrutinizing on strategic change and market trends, he is now a recognized industry authority.

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The Mission of the Company:

“PhoCusWright is the travel industry research authority on how travelers, suppliers and intermediaries connect. Independent, rigorous and unbiased, PhoCusWright fosters smart strategic planning and tactical decision-making. PhoCusWright delivers qualitative and quantitative research on the evolving dynamics that influence travel, tourism and hospitality distribution. Our marketplace intelligence is the industry standard for segmentation, sizing, forecasting, trends, analysis and consumer travel planning behavior”

The Corporate Culture and Organizational Hierarchy:

PhoCusWright is a market research firm with less of traditional hierarchy; the corporate culture is more of contemporary in nature. There is a core team of Board members comprising of The President - CEO, The Chairman of The Board of Directors, The Treasurer and Secretary, and TheDirector and Managing Partner. There is a core Management Team reporting to the CEO, comprising of The Senior Vice president (heading a team of Event management and Services production), The Vice President, Finance and Administration (heading Finance, Accounts, IT and Database team heads), The Vice President, Marketing Sales and Client services (heading a fully equipped team of Marketing and Business Development), and The Vice President, Research (supported by a huge team of analysts and research associates). The India Office is headed by Mr. Ram Badrinathan, The General Manager, of the Asia Pacific region, is also an Analyst at the company and heads a team of 2 Research Associates and many contract based employees.

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The Revenue Model:

The annual turnover of the company is around 6 billion and the revenue is generated through various products and services offered by the company to the travel and tourism company industry in specific. PhoCusWright offers four annual, subscription-based, syndicated services that provide easy-to-access feeds of market forecasts, segment data, consumer survey information, insight and commentary for the corporate and leisure travel, tourism and hospitality marketplace. PhoCusWright’s in-depth reports touch on all topics related to the industry—including country specific issues in online travel commerce, emerging consumer and corporate travel trends and buying patterns, the future for travel agencies, and the innovative use of customer relationship management. Companies leverage the power PhoCusWright to answer the specific questions and to solve the unique challenges that must be addressed to take a company to the next level. PhoCusWright provides facts, figures, forecasts, insight, commentary and analysis on the business dynamics and various players, and assesthe competitive landscape to square companies’ conclusions with marketplace realities. PhoCusWright events are distinguished by the senior level of attendees and speakers, the strategic presentation and analysis of trends, the high production value of the proceedings, the savvy audience armed with questions, and the probing perseverance of PhoCusWright analysts who skillfully moderate all the sessions. Hundreds of companies across the globe from the following sectors use PhoCusWright products and services.

The PhoCusWright Conferences:

PhoCusWright events are distinguished by the senior level of attendees and speakers, the strategic presentation and analysis of trends, the high production value of the proceedings, the savvy audience armed with questions, and the probing perseverance of PhoCusWright analysts who skillfully moderate all the sessions. The upcoming conferences are as follows:

1. The PhoCusWright Conference – The Travel Innovation Summit, Deal Day, Centre Stage

2. WIT – Web in Travel3. PhoCusWright@ITB4. TRAVDEX5. The PhoCusWright Analyst Forum

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1. INDIAN OUTBOUND AVIATION MARKET TREND ANALYSIS FORQ1 2009

Background:

In the recent years, the western companies have turned their heads towards the developing countries like China, India, etc. The Indian Economy is booming, so is the Travel and Tourism in India. This made nearly all airlines already operating here to increase their flight frequencies back and forth from the Indian destinations. Indian Airports also witnessed entry of many new players in the market. Therefore, to analyze the current trends in travel and tourism market, India serves as a hot topic.

Objective:

To estimate the size the outbound market from India and analyze the market share of the players in terms of passengers carried and departures (no. of flights)from Indian destinations (Cities).

Methodology:

In order to analyze the aforementioned, departure details from various websites and news releases were collected. However, in the mean time the complete information regarding the monthly statistics of departures and passengers carried for all the airlines operating at Indian airports and those based in India itself (operating to International destinations) was provided by Directorate General of Civil Aviation (DGCA).

Analysis was multidimensional and multifarious, in fact open ended. The various attributes measured were-

Market share analysis in terms of departures of Indian airlines to International destinations and International airlines to Indian Destinationsfor March 2009 (Indian vs. International, amongst the Indian Airlines themselves, and amongst the International airlines as well),

Scenario Comparison between 2005 and 2009 amongst the Indian airlines operating in international destinations,

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Identifying the market giants in terms of departure and Passengers (PAX)carried,

Variation analysis in terms of departures of International Airlines to Indian destinations for 2008 vs. 2009,

Market share analysis of passenger carried for 2008 Full Year, 2009 Jan, Feb and Mar (Indian vs. International, amongst Indian airlines, amongst International Airlines,

Time series or trend analysis based on PAX over 3 months Jan, Feb and Mar 2008 (Indian vs. International, amongst Indian Airlines themselves, and in international Airlines.

Key Observations, Results and Discussions:

Following are the key analysis, results and findings from this project:

1. Scenario 2005 vs. 2009 in Indian Market:

In 2005, Indian Aviation market was captured by Air India and a small market share went to Jet Airways, in terms of departure to international destinations.

In 2009, Air India still has been the market leader, but faced serious threat by fast catching up Jet Airways, and small market share has been captured by Kingfisher as well.

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The basic reason, as scrutinized to this trend is that, the market has more of monopoly in nature in 2005. Air India enjoyed the major chunk of market because there were not much players from India flying to foreign destinations while in 2009, there has been a completely different picture as Jet Airways has gained considerable importance in terms of departure frequencies to International destinations and there is an entry of a new player, Kingfisher. The above trend is due to the following reasons:

Jet Airways has exponentially caught up the market in 2009 when compared to 2005, because, till the beginning of May 2005, the international destinations for the Jet were just Columbia, Kathmandu and Singapore while in late May 2005, Jet started its 1st flight between London and Mumbai. In 2005, only it took a step to enter into Code sharing with the United Airlines for U.S. destination. Also 2005 was the year of IPO for Jet.Kingfisher has also occupied a relatively small place while there aren’t any trails of it in 2005. Only in September 2008, Kingfisher launched its firstInternational flight (between Bangalore and London) and in the view of long term strategy still decides to continue to expand.

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2. Identifying the Market Giants:

In 2009, Major Market Share was captured by Emirates, Air Arabia, Gulf Air, Qatar and Lufthansa.

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Although the overall departure in the Month of March from Indian destinations by International Airlines has been 4691, a major chunk i.e. 1900 has been attributed to these Top 5 Airlines, (with overall market share in terms of Departures), Emirates (15%), Air Arabia (9%), Gulf Air (6%), Qatar (5%) and Lufthansa . Of them also the first four have 1668 departure, and all these four Airlines are based in Middle East Countries.

This has been a fact established by the Airports Authority of India (AAI) which alsoreveals in a press reports that the airlines based in Gulf countries have been able to substitute the strong market position of European Carriers.

This trend is there because Airlines from the gulf countries have followed a strategy of connecting Indian destinations to two to three hour-long flights to Gulf and then from there, they provide connections worldwide.

Now specifically going by all five of these, each one of them have their own reasons for being the market leaders to capture Indian destinations.

The EMIRATES, which conquers the largest market share in terms of departures, continues ferociously to capture the Indian Market and retain its strong position. It recently added 22 more flights/week to Indian destinations exclusively since the European Markets have dried up; India is one of the hottest trading destinations these days. Each of the city for which the flight frequencies have been increased

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has some profitable reason, which incited Emirates to increase the flights frequencies. The added destinations and the destinations which will be more frequently sought after are

Ahmedabad (Since the firms in Pharmaceutical sector cluster in Ahmedabad, so to support the Pharmaceutical export the cargo capacity has been increased by 236 tons/week per direction),

Chennai (Since the Cargo exports from the city take in the form of textiles, garments, electrical and electronic goods, machinery and spares, leather products, pharmaceuticals, perishables, valuables and mobile phonesexports, so the enhanced capacity of 343 tons/week per direction will increase the city’s export potential to Europe, America, Africa and the Middle East),

Kolkata (which is the key gateway for the business and leisure travelers from Middle East and Europe, seeking easier passage to N. Eastern India, and also a key destination for export of Export of fresh fruits, vegetables, jute, leather, silk and tea, so keeping both of these factors in mind, flights frequencies have been increased by 12/week while cargo capacity has been enhanced by 190 tons/week per direction),

Tiruvanthpuram and Kozhikode (which are the favorite travel destination of the picturesque state of Kerala, the flights frequency in the state now becomes 37 flights/week).

The AIR ARABIA, which is the second largest in terms of market share, is the firstLow Cost Carrier (LCC) in India, acknowledged an average load factor (Passengers Carried or PAX as a proportion of average seats) of 94% across all the destinations from India in the year 2008. Air Arabia, with 12 destinations and 95 weekly flights, recently added its 13th destination as Goa (travel agents expect Air Arabia’s Sharjah-Goa flights to carry around 55,000 passengers to and fro each month, especially since a large number of Goans working in the Gulf countries have theirfamilies based in Goa, and along with that Goa serves as a great holiday, personal travel and business destination for the passengers). Since Air Arabia is gaining a considerable and consistent revenue generation through Indian market even in downturn, this makes it incited enough to keep its strong hold over the Indian Market for which Air Arabia is also making extra efforts through promotions likeVisa Assistance, Hotel Bookings, Competitive Pricing and Fare Reduction specially to the Indian Customers as they are providing one of the highest load factors.

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The GULF AIR, the airline with third largest market share, also considers India as a major destination and a market with tremendous growth up to an extent that even if more players come into the competition (from Gulf Region notably), there is enough space for all. Gulf Air considers such a high opportunity in Indian Markets because of the fact that Gulf region itself accounts for 40% of outbound traffic from India. For making its position safe and strong in Indian Market, Gulf Air just added Hyderabad as its 8th destination to India and the service is on daily basis which seems to be a successful move as already 80% average bookings have been reported for the 1st month.

The QATAR AIRWAYS, the fourth leader in terms of departure, currently operates 58 flights per week to nine cities in India and has decided to add 2 new destinations even in the period of downturn, considering India as such a tremendously growing market. The load factor from the ongoing flights from Indian destinations have a load factor of over 75% and Qatar Airways also have one of the most successful operations in India. Keeping such factors in mind Qatar Airways has focused on a long-term strategy, it is taking a bold move of adding two more destinations from a profitable market, which has expected to be even more profitable under stable scenario when the dust of downturn settles. The destinations added are also those which are expected to be the upcoming targets in future, 1st is Amritsar, the holy city which attracts many pilgrims and the 2nd is Goa, the famous tourist destination. In addition, the Doha Houston flight started by Gulf Air recently, was also started keeping in mind that there is a large Indian population living in Greater Houston region.

The LUFTHANSA, the fifth market leader in terms of departure, considers India as a $2billion travel market and in the year, 2008 carried 20% more passengers even when the capacity has been increased by 20%, and doesn’t at all thus want to lose its strong position in Indian Market. It is the biggest European Carrier from USA to India, and just announced Orlando as 17th US city and Kolkata as sixth Indian destination and the move has been accredited to maintain its hold over Indian Market as the recent time witness the entry of many new competitors and claimants. It has also been boosting its presence by starting Mumbai-Munich (both financial and commercial hubs) to further reinforce its presence in theIndian Market. India is a sustainably profitable sector for Lufthansa as 22-23% of Asia Pacific region’s revenue for the airline comes from the country, lesser than Japan but more than China and thus the airline has added Pune to its Indian destinations network.

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3. Indian Airlines in 1st 3 months of 2009:

In February, 2009, PAX for kingfisher goes high while for Jet and Indian Airlines, PAX declines.

In March, 2009, PAX scenario flips over the previous month scenario. Jet and Indian increase while Kingfisher declines.

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The airlines based in India reveal a very intresting trend for the 1st Quarter of 2009. Time series analysis of PAX carried over the 3 months (Jan, Feb, Mar 2009)reveal that passengers carried by Indian airlines and Jet airways declines for the month of February while PAX for Kingfisher strengthened. On the contrary, in the month of March, Indian airlines and Jet had an uptrend in the PAX carried while Kingfisher followed a downtrend. On reaserching the reasons for the same, it is unveiled that in January 2009, Kingfisher which was a new entrant into themarket, slashed the air fares drastically (by 21 to 65%) competing on price with others (also followed by Jet to some extent) by which Kingfisher was able to

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initially attract and snatch the passengers, but then it failed to sustain the discounted prices and the fares went up again and even the decent occupancies were lost by the Kingfisher (and thus gained by the other two). So, by the low price-high penetration strategy, Kingfisher is intially able to eat up the market share of Indian airline in this quarter but in the long run that too in weakening economy, the strategy fails to work.

Summary:

Indian Outbound market size is very huge and still has even greater potential to grow. Since the downturn and recession has hit the western world and developed countries deep down, the travel and tourism which is generally considered a luxury market has come to a saturation and is thinning out nowadays there. Therefore, in the search of newer booming economies, the prime focus has shifted to countries like India and China. Even the depth of downturn is lesser in India as compared to Western world. Therefore, keeping in mind the long-termgains and believing the forecasts, the various airlines are trying to strengthen their roots in Indian Aviation Market. The early entrants of the markets thus have a better hand over others and have easy way to go but those who have enteredlate have to thrive the tough times and tough competition from others as well.Especially, the airlines from gulf capture have seen to emerge as market leaders in recent years due to their strategy of connecting Indian destinations to two to three hour-long flights to Gulf and then from there, they provide connections worldwide. The current scenario of Indian Outbound market shows a relative dip in no. of passengers carried due to fall in business and leisure travelers as an impact of downturn. The Airlines based in India, which operate on international routes, have expanded since 2005, when the private players entered the market and since then Jet has done strategically well, and Kingfisher, which entered recently in Sept 2008 and is trying to capture the market through discounted pricing strategy. But but then it fails to sustain the discounted prices and the fares went up again and even the decent occupancies were lost by the Kingfisher

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2. ANALYSIS OF ASIA PACIFIC AIRLINE SEGMENT (POST RECESSION)

Background:

The time is getting tougher for all countries and continents, for all industries and businesses as a post spiraling effect of recession hit of the western world. In the present scenario, Asia Pacific region is considered as an unexplored market with tremendous potential for future growth in the present scenario. The concern grows over measuring the effect and depth of downturn in Asia Pacific Market. The best way is to analyze the luxury market, Travel and Tourism being one of them. In addition, in order to size the Asia Pacific aviation market and forecast its future trends, the analysis of post effect of downturn and its sustainability, the post downturn analysis is done.

Objective:

To analyze the Impact of recession and downturn on Aviation Industry in Asia Pacific Region.

Methodology:

In order to analyze the scenario in Asia Pacific region, 23 Airlines were chosen, as they are the major ones and operate in international routes as well. The analysis was done using two attributes namely the passenger data (for Q1 2009 on monthly basis and total and latest data for the month of April 2009) and revenue data (Q1 2008, Q2 2008, Q3 2008, Q4 2008 and Q1 2009). Since Revenue was reported in the local currency where the Parent Airline company is based, thus for the sake of standardization the data was converted into Million USD. Each airlinefollows a different financial year, for the sake of consistency, Jan-Mar is taken asQ1, i.e. we have taken the Calendar year as the base for our study. With the passenger data, monthly variation over the previous month, Market Share for Q1 2009 and Time series analysis over the months was done. On the other hand, with the revenue data, Year on Year (y-o-y) analysis, Quarterly Variation analysis, Quarterly Time Series analysis and Market share analysis were done.

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Key Observations, Results and Discussions:

1. Year on Year Variation of Revenue in Q1 2009 vs. Q1 2008:

Revenues have declined either marginally or substantially in Q1 2009 for all the airlines of Asia Pacific Region except for Air Asia.

CarrierVARIATION

In number In %Japan Airlines -23.20 -0.70%

All Nippon Airways -148.21 -6.44%Singapore Airlines -520.94 -25.47%

Air China -333.82 -18.73%Korean Airlines -393.46 -28.32%China Airlines -76.20 -14.07%

Jet Airways -221.68 -32.74%Eva Air -77.32 -18.99%

Malaysia Airlines -136.68 -36.95%AirAsia 22.05 31.92%

Grand Total -1909.45 -14.82%

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Except for Air Asia, all other airlines reveal a negative variation on Year on Year basis, for Q1 2009 over Q1 2008. In the Quarter under review, Asia Pacific Carriers were the hardest hit by the crisis and saw their Q1 2009 year on year passenger traffic by 12.4% in comparison to the industry decline of 9.1%

Following are the analysis of the reasons behind this trend (airline wise):

Air Asia is the sole player with a positive variation in Q1 2009, on a year on year basis. Air Asia, a Low Cost Carrier (LCC), thrives during the economic hardship. It reports robust passenger growth (+21% y-o-y), very small decline in load factor (-2.4% y-o-y), and Average fare up (+5% y-o-y). The capacity showed an extensive growth of 19% and profit growth of 26% (y-o-y). The reason being enormous opportunities, as a result of dramatic cut in flights and capacity by many of Asia Pacific Airlines. So, Air Asia continued its venture of growing in new markets, winning market shares from the competitors and speeding up the pace of industry consolidation.

JAPAN AIRLINES The JAL group posted a decline of 0.70% of revenue from air transport segment in Q1 2009 on a year on year basis, International Revenue perKilometers (RPK) demand fell by 13.6%. The basic reason for fall in the passenger traffic is the discouraged international business travelers as an impact of global economic crisis resulting in reduced air traffic.

ALL NIPPON AIRWAYS Q1 2009 reveals a 6.44% dip in revenue from total of international and domestic passenger segment. The reason is lack of consumer confidence and drop in commercial activity. The major reason for fall in demand was the decline in overseas travel, which was depressed more than 25% on European and North American routes.

SINGAPORE AIRLINES There has been a constant decline on the demand side, which is the main reason for decline in traffic revenue. In the response to the drop in passenger demand, company has suspended its few services to Osaka via Bangkok, Los Angeles via Taipei, Vancouver via Seoul and Amritsar. Cutbacks in capacity are there across the network. However, new services to Riyadh via Dubai and Kuwait via Abu Dhabi were added to the network (due to prospects of higher demands). However, the spread of Influenza Virus again hampers the prospects of growth in Passengers number.

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AIR CHINA The traffic revenue shows a negative variation of 18.73% while the operating revenue decline by 11.8% on a year on year basis. The domestic market although sustained well but the international market remained sluggish and the PAX carried further declined leading to the fall in revenue. The traffic on domestic route is up by 18.9%, while international and regional routes are down by 8.2% and 10.2% on a year on year basis. Therefore, the drop in traffic revenue in Q1 2009 over 2008 is due to fall in number of passengers carried on International as well as Regional routes.

KOREAN AIRLINES reported the losses and decline in Passenger Revenue on a Year on Year basis due to surging oil prices and weaker demand. International Passenger growth (RPKs) slowed to just 2.1% in the quarter, while domestic traffic contracted 2.5% year on year.

CHINA AIRLINES Following the weak demand in traffic as a post affect of downturn, China airline posted a drop in Traffic Revenue by 14.0%, and however as compared to the Q1 2008 the fuel prices were lower. There was a boost in passenger traffic from the mainland China along with the continuous cost saving efforts, the results were better than expected in spite of weak demand from International routes.

JET AIRWAYS reports a revenue decline of 32.74% and a decrease of 8.3% in RPK for the Quarter as compared on year on year basis while Available Seat Kilometers were reduced by 9.3% due to which the load factor was 71.7%, an increase of 0.8 percentage points. In order to restore the profitability, it dropped its underperforming routes London- Amritsar, Brussels – Bangalore, and Mumbai –Shanghai- San Francisco. The reason for dropping these flights is that the service was started on the premise that the Trans Pacific market would be robust but the events like US downturn and IT slowdown, resulted in lower in fact sharply declined demand. Therefore, a prudent step of hanging these operations was taken.

Malaysian Airline revealed a revenue decline of 36.95%. The decline in revenue in this quarter is an affect of triple squeeze; Over Capacity, Extreme Fuel Volatility and a global slump, which hit passenger demand. In response to collapse in demand, Malaysia Airlines proactively reduced the capacity by 11%.

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2. Variation analysis over the three months of the 1st quarter 2009:

CarrierVariation in

number (in Feb over Jan)

Variation % (in Feb over Jan)

Variation in number (in Mar

overFeb)

Variation % (in Mar overFeb)

Qantas -430.00 -13.38% 423.00 15.19%Cathay Pacific -283.48 -13.55% 286.82 15.85%

Singapore Airlines -266.00 -18.40% 101.00 8.56%Virgin Blue -230.50 -13.95% 138.20 9.72%

Japan Airlines -206.04 -5.28% 724.76 19.60%China Southern Airlines -192.36 -3.70% 190.42 3.81%

Air China -143.60 -4.47% 116.6 3.80%Eva Air -50.85 -10.66% 71.618 16.81%

Jet Airways -44.45 -3.89% -29.69 -2.71%Indian Airlines -31.99 -5.07% -15.65 -2.61%

Kingfisher -10.00 -1.06% -64.12 -6.89%Grand Total -5036.88 -18.62% 1942.97 8.82%

The Month of February shows a negative variation in the number of passengers over the previous month. Variation becomes positive in March when compared over February, for all the airlines (except for those from India). The effect of Economic Crisis caused the Load Factor and thus, number of passengers carried, to come down. This is due to the fact that in period of economic crisis and recession, the affordability becomes low. The Airlines suffered losses due to higher fuel hedging costs, low passenger demands and high capacities and so is the downtrend in the month of February for nearly all the airlines. March unveils a better picture and most of the airlines have shownpositive results, except Qantas, Virgin Blue and the Airlines from India. The basic reason to this trend can be attributed to the fact of Swine Flu outbreak during the same period. One of the worst affected routes to Australia is Trans Pacific from US, on which Qantas is engaged in price war with Virgin Blue. The route used to be profit making until February but then started making huge losses due to heave decline in the PAX carried. The reason for decline in passenger number for the

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airlines based in India (for February) has already been analyzed in the previous project.

3. Indian Airlines in 1st 3 months of 2009:

Refer to “Observations, Results and Discussion 3” of the previous project.

4. Analysis of Passenger Carried for Q1 2009:

The Market share analysis of PAX carried in Q1 2009 unveils the Market Leaders. The Airlines which dominate are; (in decreasing order of passenger carried), China Southern, Japan, Air China, Qantas and Cathay.

China Southern Airline is able to capture a huge Market share (in terms of Passenger Carried) because China Southern is the largest in the People's Republic of China in terms of passengers carried and as such one of the largest airline of Asia Pacific Region. China itself has a huge domestic market and thus along with full support from government to fight the impact of downturn, China Southern’s

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first-quarter passenger numbers (for 2009) rose by 10 percent, as the abolition of domestic fuel surcharges and government efforts to revive the economy spurred demand.JAL Group is Asia's biggest airline group in terms of sales revenues and 2nd largest in Asia in terms of passengers carried annually. JAL Group airlines serve 216 airports in 34 countries and territories, including 60 airports in Japan. The international network covers over 246 passenger routes and 37 cargo routes, and the domestic network covers 154 routes. JAL and its seven subsidiary airlines make a total of up to 1,200 domestic and international routes passenger flights a day. Responding to weak demand, especially on international routes, resulting from the global economic slowdown, JAL aims to match better to supply and demand by conducting a bold review of its network and flight frequency, whilst continuing to implement its fleet strategy of aircraft downsizing. The airline group is also targeting greater operational efficiency and profitability by increasing the role of two of its lower overhead subsidiaries: JAL Express and J-AIR. In FY2009, JAL Express will start operating on international routes for the first time.Air China has been able to capture a major chunk of market share because 1st

Quarter of 2009 emerged with an increase in demand from the Mainland, whicheven compensated for the fall in passenger traffic from International routes. The airline’s passenger traffic on the Mainland, in Q1 2009; increased by 18.9% y-o-y, offsetting an 8.2% fall in passenger number on its international routes. The sharp fall in fuel prices helped them to report extraordinary gains in terms of revenue also.Qantas has been able to maintain its strong position and capture a big chunk of market share in spite of fall in demand due to downturn because of its strategic expansion through LCC Jet Star. Although the group capacity (ASKs or Available Seats Kilometers) fell by 4.5% in the last month, including 10.7% reduction in the International mainline flying, Jet Star still continues to grow, adding 3.6% more capacity in the domestic market and 21.5% more ASKs Internationally. Jet Star and particularly its International Operations provide a glimmer hope for Qantas Group, as Australian domestic market continues to deteriorate. February’s 9.7% plunge was followed by 10.1%reduction in domestic yield in March, reflecting that the Australian Economy is moving into recession.

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Cathay Pacific enjoys one of the highest Market shares due to its extensive spread in terms of destinations and strong connections to various cities and countries. These statistics speak for themselves; Cathay Pacific covers over 111 destinations worldwide, convenient connections to over 40 Asian cities and connections to over 20 destinations in China (through its sister airline, Dragonair) and in global network with connections to 150 countries and over 700 destinations. To maintain its market share even in downturn, there have been changes made in flights frequencies. In Short, the strategy followed is increment in demand soaring routes and crash the demand diminishing routes.

5. Analysis of Maximum Passenger Dip in the month of February - Airline Wise:

Dip in passenger number in the month of Feb over the previous month has been most for Singapore Airline, followed by Virgin Blue, Cathay Pacific, Qantas, Eva and Japan.

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Singapore Airline is supposed to report the worst ever decline yet due to its incapability and inability to match the price hikes and capacity reductions with slower demands due to global meltdown that has dampened the travel demand.In January 2009, Singapore Airlines recorded a 6.9% year-on-year decline in system wide passenger carriage (measured in RPK). Passenger load factor (PLF) dropped 6.4bps to 74.1% against the backdrop of an increase of 1.0% in capacity (measured in ASK). The number of passengers carried declined by 10.4% over the same month last year to 1.4 million. Major changes in Capacities were done by changing the size of aircrafts and decreasing the frequencies at different routes. In February 2009, Singapore Airlines recorded a year-on-year decline of 17.0% in system wide passenger carriage (measured in RPK or Revenue per Passenger Kilometers) which outpaced the reduction of 8.5% in capacity (measured in ASK or Available Seats Kilometers. As a result, passenger load factor (PLF) declined by 7.1 BPS to 69.7%. The number of passengers carried decreased by 20.2% over the same month last year, to 1.2 million. The year-on-year capacity contraction resulted from the planned reduction in frequencies across route regions due to

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the falling demand as well as the introduction of the smaller aircraft size and termination of few services.Cathay Pacific Airlines shows a decline in passenger traffic due to continuing deep slump in premium cabin demand. Leisure demand helped to balance up relatively well but had to be stimulated by a raft of promotional fares in most markets, although the dip in passenger numbers was still bigger than decline in capacity. The premium cabin demand remained persistently weak and this coupled with a downward pressure on fares and negative currency movements is putting tremendous pressure on yield.Virgin Blue also reported a major dip in passenger traffic accredited to the reason that Virgin Blue has been occupying an uncomfortable place. On all fronts its competition is intensifying, domestically in both Australia and New Zealand, between the two countries across Tasman and Internationally on Pacific. On each of these, Virgin remains the underdog. Virgin no longer remains the lowest cost operator in any of these markets. The introduction Embraer Jet on the smaller haul domestic routes has helped Virgin to make some inroads into Qantas stranglehold on corporate accounts, but this is a slow moving process. Along with that, to worsen the situation there was a swine flu outbreak in Trans- Pacific route to Australia, which is the hub for Virgin Blue.Qantas Airline reported decline majorly due to the decline in passenger traffic from domestic market as the Australian economy slipped into recession and along with that, the Swine Flu was another major reason due to which the passenger traffic declined. The airline itself reported that total domestic yield excluding exchange for the financial year was 3.2 per cent lower. While the total international yield excluding exchange increased by 2.5 per cent. Qantas said its domestic yield was adversely affected last month by the removal of the remaining domestic fuel levies.Eva Air reports a deep slump in its revenue as oil prices hover around USD 60/barrel. It is facing further deep losses in 2009 and the passenger demand was running even below expectations i.e. 7% decline in passenger traffic. Another reason for this fall in passenger demand was Swine flu Outbreak.

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Summary and the key understandings from the analysis of aviation industry of Asia Pacific Region – Post Downturn:

The results portrayed and revealed a further distressing and gloomy picture demonstrating that the global downturn has not bottomed yet and Asian carriers are dramatically discounting fares and freight rates to fill the excess capacity and thus to increase and maintain the Load factors. However, the strategy fails when the oil prices are increasing, not all cases are exceptions like Chinese government. This is a period of change and hence, the survival of fittest. Only those players who are capable of adapting to the situation by matching the prices with the decline in passenger traffic and make the right decisions with respect to the flight frequencies and capacity reduction or increment will be able to survive in tough times.

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3. TRAVELER SURVEY AND TRAVELER BEHAVIOR ANALYSIS

Background:

In order to analyze the traveler behavior on different attributes like price sensitivity while planning a vacation, price cautiousness in the downturn and recessing economies, vigilance to online travel booking modes and profiling the customers of various age groups.

Objective:

To analyze the traveler behavior in current scenario.

Methodology:

Consumer behavior analysis through an online questionnaire method was conducted, keeping in mind all the attributes. The questions were of multiple-choice type where respondents could select multiple answers for few of the questions as well. This helped to analyze popular combinations, after cleaning the data, in case the answers seemed to be very irrelevant. The nature of questionnaire was kept simple for the sake of general understanding. The questions somehow reflected and measured each of the objectives like the Vacation packages (reflected price sensitivity), choice of package in the recessing economy or downturn (reflects price cautiousness in tough times), Vigilance to online travel mode (reveals contemporary and up-to-date nature) and Age wise analysis (reveals the preferences based on age). There was a special emphasis on social networking sites as well and their impact on travel behavior. Totally One hundred and Fifteen responses were analyzed after the data cleaning. As far as limitation to the survey is concerned, more respondents were from 20-30 age group. However, this helped in a better profiling of the age group.

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Key Analyses, Results and Discussions:

1. Impact of Social Networking Sites on Travel Behavior:

A) People who decide or change their travel decision based on Orkut/Face book (Social Networking Sites)

Not many people get influenced for their travel based decisions on the basis of Social Networking Sites.

B) People who use travel applications on Orkut/Face book (Social Networking Sites)

Very few people use or may be are rather ignorant to such applications on the social networking sites.

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C) People who share travel photographs on Orkut/Face book

Considerably large percentages of people share their travel photographs on Social Networking sites.

D) People who take travel trip notes from Orkut/Face book

Not many people take travel trip notes from Social Networking sites.

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E) People who hold polls on Orkut/ Facebook which impacts their travel decision.

Very few, in fact nearly negligible percentages of people hold such poles and even the decisions are not based on such poles.

F) People holding a Twitter Account

Very Fewer people hold a Twitter Account.

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Summary on the basis of Social Networking sites:

Although People do share their memories and photographs with others on the sites but when it comes to making a descision on others experiences, the decision is taken on own will as well as there are a large number of people who seem to be ignorant about such stuff.

2. Price cautiousness and sensitivity while planning a travel trip:

A) Of the total respondents, analyzing the percentage of people and the expenses they plan for a travel trip

Most of the people lie in $50-$250 category for travel expenses which is the lowest plan as per the option and then secondly bulk people go to the $250 -$500 category, this reveals that people are highly price cautious when it comes to travelling. This also applies well to the context of downturn and thus fall in passengers load factors for airlines and Occupancy rates for Luxury hotels.

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B) Analyzing the travel behavior types and type of holiday preferred, in the light of financial crisis.

Most of the people prefer a vaccation holiday, and then the next highest category is of vaccation holiday and the lowest (4% only) prefer a day excursion. So, this reveals that financial crisis as such doesn’t impact the Holiday type. So, the question arises, is it the expenses which are varying?

C) Analyzing the vaccation type vs. the expenditure planned.

To answer the above question, a two diemsional analysis is done, which draws a corelation between the type of Holiday preferred and the expenses planned.

People who plan to spend $50-$250, bulk choose a weekend holiday.

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People who plan to spend $250-$500, majority prefer a weekend holiday.

People who plan to spend $500 - $1000, Don’t differentitate between a Weekend or Vaccation, i.e. a 50:50 ratio exists between the choices, probably this is according to the time they can manage for a holiday.

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People who plan to spend to spend above $1000 also are split in 50:50 ratio when it comes to choosing for holiday types. Again the same reason of time constarint may be a driving force for making the decision.

So, the vaccation Holiday is the most preffered type across all categories of travellers irrespective of their spending nature.

D) Analyzing the two most popular traveler group on the basis of the expenses they plan and the age group divison.

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Traveler who plan to spend $50-$250, majority lie in 20-25 age group, then equal number of respondents were in 26- 30 and >40 age group. Then, few are in 30-35 age group and least no. of people from 36-40 age group.

Traveler who plan to spend $250-$500, majority lie in 30-35 age group, then equal number of respondents were in 26- 30 and 20-25 age group. Then, the least no. of people from >40 age group.

Summary of Price cautiousness and sensitivity while planning a travel trip: Majority of people are price cautious when it comes to travel trips. Most preferred holiday types seem to be weekend and vacation holidays, but people generally don’t tend to spend beyond $50- $500 per head when it comes to travel planning.

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3. Vigilance to the online travel booking modes:

Just looking at one - dimensional analysis on the basis of answers to the questions related to the mode of travel/bus/hotels booking doesn’t reveal many important trends so a two dimensional study was also done to draw meaningful and relevant conclusions. The two dimensional study was done age group wise, thus will be included in customer profiling section.

A) Modes of Air travel booking famous amongst people.

Online booking from the Airline websites, MakeMyTrip.com and Offline through travel agent comprise the most popular choices. The next popular category is Yatra.com and Cleartrip.com. These days direct booking from airline offices is one of the least preferred and vanishing category. If the online travel modes are taken together, then the travel bookings through travel agents and direct bookings seem to form a very small proportion of the airline-booking mode, which clearly suggests that online travel booking is on high uptrend.

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B) Search modes famous amongst people for deciding their travel destinations:

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The popular modes of the search for travel destinations are: Google/Yahoo (Search Engines), Travel Brochures/Books/Magazines (Travel Guides) and Travelers review (Online Reviews of Travelers) seem to be most popular choices, and combinations of Search Engines with Travel guides as well as Search Engines with Traveler Reviews Online seem to be the next popular (equally preferred). So, online travel search mode is on an uptrend.

C) Accommodation booking preferences:

Still Majority of people directly go to the hotels and get the bookings, while the second prefered category is the Online booking from the hotels website. But if total of (all Online booking modes) Online booking through hotel website, MakeMyTrip.com, Yatra.com and Cleartrip.com is taken together reaches very near (39%) to the bookings diectly at hotels.

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D) Rail Tickets booking mode:

Majority of people book their train tickets through online booking and this comprises 83% of the total respondents, which is a clear indicator of the true picture.

E) Online Bus Booking:

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Although there are slightly more people belonging to the “NO” category but still many people i.e., 46% of people book their bus tickets through Online booking mode. So, again online booking mode is escalating.

Summary of Vigilance to Online booking modes for Traveling:

The online booking Modes are very popular in case of Train and Planes booking while in other categories they are catching up really fast.

4. Customer/Traveler Profiling on the basis of Age Groups:

A) PROFILING THE TRAVELERS 20-25:

Partners Preferred:

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Social Networking Sites for Travel Decisions:

Travel Trips Note from Social Networking Sites:

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Conducting Polls on Social Networking Sites for travel decision:

Air Travel Booking Mode:

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Accommodation Booking Mode:

Online Bus Booking Mode:

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Search Mode for Travel destinations:

PROFILE OF TRAVELERS OF AGE GROUP 20-25: This Age Group is very Tech Savy, Contemporary, Modern and Vigilant for the Online booking mode, generally prefer to travel with friends or sometimes alone as well. Social networking sites are used for travel purposes decisions and polls as well. The search modes for the travel destinations are all online and web based modes.

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B) PROFILING THE TRAVELERS 26-30:

Partners Preferred:

Social Networking Sites for Travel Decisions:

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Air Travel Booking Mode:

Accommodation Booking Mode:

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Online Bus Booking Mode:

PROFILE OF TRAVELERS OF AGE GROUP 26-30: This Age Group is not that Tech Savvy,or rather of intermediate between a traditional and higly contemporary group, because although many of them book through online modes, Travel agents bookings do exist in the air as well as accomodation bookings. Also,in travel destinations search modes along with the web search, brochures and magazines are also referred. If we compare the social netwoking sites responses also the people who say yes are not as much as in the 25- 30 age group. This age group people not only prefer to travel with friends or sometimes alone, but with family as well. So, this a rather intermediate category neither fully contemporary and noreven totally conventional.

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4. MARKET TRENDS ANALYSIS OF EUROPEAN AIRLINES ANDHOTELS

Background:

Due to the recession, hardest felt in the western world, and European world in specific, Market Sizing of European Travel and Tourism Market was planned. The basic idea was to compare the period of boom and analyze the present situation. To have a better overview of impact of recession from its origin to its current scenario, Quarterly information was stressed on. Since European market is huge and can’t be covered in a short span of time, so the project was divided into stages with the stress on Airlines, Hotels and Online Travel Agencies first.

Objective:

To analyze the current trends of European Airlines and Hotels, to Size the travel and tourism industry in Europe in Current scenario and to Measure the impact of recession on Travel and Tourism sector in European Region

Methodology:

There are 29 Airlines based in European Region all of which were chosen for the purpose of study. The attributes chosen in case of Airlines were Passengers carried (PAX), Passenger (or Fare or Traffic) Revenue, and Load Factors. The basis of data collection was 2006, 2007 and 2008 annual data and 2008 Q1, Q2, Q3, Q4 and 2009 Q1 quarterly data, based on calendar year quarters.

Seven major hotel chains were taken which have their operations in European region. The attributes chosen for hotels were Hotels Revenue in European region, Occupancy Rates (Occ. Rates), Average Daily Rate (ADR) or Average Room Rates (ARR) and Revenue per Available Rooms (Rev PAR). The basis of data collection was 2006, 2007 and 2008 all four quarters and annual data, and 2009 Q1. All the revenue information was converted into USD from local currencies, for consistency.

Key Analyses, Results and Discussions:

Since the data was huge, inconsistent and massive, in some cases unavailable also. Therefore, the process is still under review.

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5. Data compilation for Pricing Survey on Online Travel Agencies

Background:

As a part of hotel booking and fees analysis, pricing survey had to be done. The strategy was to compare the prices offered by online travel agencies (OTAs)and the airline website (in case of airlines) and hotel chain website (in case of hotels booking.

Methodology:

Since the prices change rapidly, the exercise had to be done in one sitting. This exercise was supposed to be performed for two days continually for both the categories i.e., hotels and airlines. The template with top 20 city pairs with a specific date for and specific flight number was supposed to be searched for their base fares and tax rates through various Online Travel Agencies (OTA) sites like Expedia.com, Travelocity.com, Cheaptickets.com, Travelocity.com, Orbitz.com, Priceline.com and finally through each Airline website. This exercise was done for comparing the rates over two consecutive days and was performed on May 6th and May 7th. A similar exercise was done for hotels as well. The template with 15 top hotels (from the luxury hotel chains) with a specific location and specific room type, for a specific date was searched through OTAs like Orbitz.com, Expedia.com, Hotels.com, Priceline.com, Travleocity.com, Cheaptickets.com and then the chain site. This exercise was also performed for two consecutive days (i.e., on May 5th and May 6th) to compare the rates. This gave an idea of how different channels reach out to the customer also helped to realize that there is very little differentiation and commoditization in online booking.

Observations and Understandings from the exercise:

Since only data collection and compilation for the project was done and not the analysis, so following are the observations and understandings from the survey.

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For Airline Survey:

There are few clear trends observed during the pricing survey of Airlines. Of all the OTAs taken in for survey, travelocity.com, offers the lowest price, i.e. Airfare here, which is nearly the same as offered by the Airline Website itself, in most of the cases. Priceline.com offers the highest price than all of the OTAs taken in for survey for all the Airfares studied.

For Hotels Survey:

In the hotels survey, the priceline.com is the one offering Hotel Rentals at the highest price when compared with other OTAs taken in for the survey. The lowest price for hotel rentals is given by these three i.e. orbitz.com, expedia.com and cheaptickets.com. All of the three offer nearly the same price for Hotel Rental, which is the lowest in most of the cases. Here, Travelocity.com, which was lowest vendor in case of Airline tickets, is providing the prices amid, neither highest nor lowest.

For Online Travel Agencies:

In general, for the Online Travel Agencies (OTAs) as such, few of the OTAs offer prices lower than the supplier itself.

In the two consecutive days survey as such, there was not much of the difference in the prices, i.e. the prices did not change actually. So, the profit margin comes only as the date for travel (for Airline) or reservation (for hotels) approaches nearer.

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6. Analysis of Professional Colleges in India

Background:

The online travel and tourism is the upcoming and most sought after field in the industry. Most of the recent publications and work by PhoCusWright is based on this topic. However, there exists huge gap between the industry and the education system. PhoCusWright plans to enter education sector in future. The basic idea is to make the education system contemporary and prepare the second line of mangers. Therefore, an analysis was done, to foresee the opportunity, collect data and to geographically explore the density and analyze the spread.

Objective: I. To analyze the number of colleges imparting Management/Advertising

courses in India.II. To analyze the opportunity in terms of volume i.e., number of students

doing management and advertising courses in country.III. Identifying the major hubs (cities) in terms of highest number of colleges

and most massive volume of studentsIV. To analyze specifically the opportunity in cities of Mumbai and Pune.V. To build the database for future with all contact information.

Methodology:

A database with college address, contact number, fax number, web link, E-mail Ids, Course category and number of students taken for each course per year was collected city wise and analyzed.

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Results of analysis:

The opportunity is huge in terms of number of colleges and volume of students as well.

1. In Terms of Number, there are more than 1300 colleges, which provide MBA / PGDM or equivalent Degree/ Diploma to students.

2. In Terms of volume more than 75000 students graduate every year with an MBA Degree / PGDM Diploma Course.

3. There are 48 cities in India with more than 5 MBA colleges and 16 cities with more than 25 colleges

Cities with more than 25 colleges, recognised as opportunity and thus as hub.

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4. There are 118 cities from where more than 100 MBA graduates passingevery year and 21 cities with more than 1000.

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5. Top 5 cities in terms of Highest No. of MBA colleges and which can be recognized as the major hubs are : Pune, Hyderabad, Bangalore, Delhi and Mumbai

6. Top 5 cities in terms of Highest No. of MBA Students passing every year are: Delhi, Mumbai, Pune, Hyderabad and Bangalore.

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7. Specifically for Mumbai, 5743 MBA grads pass every year and there are 63 MBA colleges operating in the city.

8. Similarly, for Pune, 4878 MBA grads pass every year and there are 91 MBAcolleges.

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7. Description of Other Projects and assistances

Along with all the aforementioned projects and exercises, many internal projects were running, for which the assistance was required. Like database building for adding to sales force. The contact information, designation, e mail ids had to be updated of the various important executives from the clients company

Since PhoCusWright is looking in the direction of E- learning services as well so already existing companies with E- Learning services in Travel and Tourism Sector in India were Identified and updated to the database

In the E- Learning services, prospective clients in travel and tourism industries with profiles in learning, education or HR background were identified and added to the database

For entering the Education sector, colleges with Professional courses all over India were identified and their database was built up with physical addresses, contact information and course types.

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Experience at PhoCusWright.Inc

The following are some of the great experience I had at the company, which enriched my first experience at the corporate world.

Meeting the CEO of company: This was one of the greatest experiences during my course of work at PhoCusWright. Mr. Phillip, the CEO and President of PhoCusWright came down to India for a travel conference along with the Senior VP, Miss Carol. I was being called over there for the video shoot, which was done for developing Workshop Script. There was no script as such, but the experiences of his life, which he shared with us, right from the time; he entered the corporate world until today via the beginning of PhoCusWright itself, was a great learning. This was one of the best Inductions anyone can get in his/her life at a very early stage of career.

Learning through the experiences of Mr. Ram Badrinathan: There is a lot one can learn from others experiences, that too when it comes to Mr. Ram Badrinathan, the experiences are highly intellectual. There was a lot of rational and innovative thinking which comes from him. He is a great motivation force and an inspirational source, although my interaction with him was for a short period yet he is so resourceful and ingenious that even that short period was unforgettable.

Conference calls and being connected through technology, yet maintaining the discipline and work culture: The work culture of PhoCusWright in itself is quite different and nice experience. People are connected through technology only yet a lot of commitment and discipline is there. At the end of the day, the hard work pays, in the form of rich knowledge and work satisfaction.

Data Mining: There was lot of data mining involved specially in Departure analysis, Asia Pacific and European Market study. It was really amusing and astonishing to see how numbers speak themselves, whichwas in itself incredible and very interesting.

Virtual Travel: Visiting each of the websites, whether it be a hotel or airline, from Asia Pacific or Europe, it feels like having a virtual tour of the place.

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Application of Management Principles

There were many places where I could apply and appreciate what all I’ve learnt in the three Trimesters at IFMR. The key learning and application of management principles during the course of Internship at PhoCusWright are as follows:

Statistical Techniques- Lot of application from Quantitative management and Statistical technique was there. Since, the whole data analysis was based on Time series, Market share and Variation analysis, which was imparted as a part of course study, so the understanding and application became easier.

Marketing Research- Again proved to be very fruitful, while analyzing the Traveler survey and the Market shares and trends as well based on different attributes.

Marketing- Whether it be the pricing survey or finding the reasons through data mining, price competitive strategy, market penetration and market leadership by entering early, there was immense application of this course and thus was very beneficial.

Management Information System – Since the whole of data collection was done through excel and data analysis through pivot techniques, the application of this course was also equally important and vital.

Corporate Finance- There was a lot of application of corporate finance specially in the Airline projects (Both European and Asia Pacific), In fact, it won’t be wrong if I say corporate finance was there at every step of these two projects. Like the leasing done by airline companies as the business is of huge investment category, also the demand fluctuations in the period of downturn well reflected the market trends.

Management Accounting- There was a lot of application of management accounting principles while identifying the revenues for each airline and hotels. Sometimes, the reporting is concealed, so full financial results had to be read where in I could appreciate all that I read during this course study.

Organizational Behavior and Human Resource - As such, there was not any application of Organizational behavior and Human resource management in my project but it something which I couldn’t stop myself from observing. First thing worth mentioning is that, although PhoCusWright is not fully virtual company but it may not be totally wrong

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also if I describe the vertical under which I was working as a semi virtual concept, where the employees are connected through technology only and work from homes. This was something very new to me. Then, the second interesting observation of mine, which is related to the motivation theory. Whenever I got appreciated for my work I would work under external motivation to maintain that appreciation level, but whenever I did something wrong I worked under Internal Motivation to prove myself better and in good faiths of seniors again. The third Observation was about the teamwork, how teams work effectively. If the leader is strong, the team is ought to perform well and small teams often work better than larger ones. Since there is not much of hierarchy, you feel yourself as an integral part of team, which makes your performance better. Then, the other observation was about Organizational Culture, there are not much hierarchies, open culture and contemporary type.

Economics- This course was not directly applied but there were lot many concepts from economics which made the understanding while data mining like, the scenario comparison of Indian Aviation Market (2005 vs. 2008). In 2005, the market is of monopolistic nature and in fact more of monopoly of Indian Airlines. However, 2008 is oligopoly, so the price fluctuations greatly affect the demands. As happened in the case of Kingfisher, the number of passengers shot up as the fares were slashed by21-65% while it came down drastically when the prices hiked again. Also in case of Airlines from China, nearly all are in the market leader category, due to full-fledged support from the government policies.

Operational Management- Since PhoCusWright is a Service company, so there were a few concepts from Operational management, which helped me in understanding of the company functions better, like critical applications and quality sustenance. Since, they publish research works, which is one of the key activities for revenue generations, so the work should be strategically correct, purposeful and deliberate as well as on time. Because if the work is delayed, the time value of money is lost, as others may also publish similar works which makes the publication of no value then.

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References

1. DGCA – Directorate General of Civil Aviation – http://dgca.nic.in/2. Investor relations and Financial results by the Airline websites and Hotels

Website3. OTA (On line Travel Agencies for the Prices of various hotels and airlines)4. Hotels and Airlines websites for the prices offered5. http://www.123oye.com/institute/delhi/main.htm6. http://www.e-guru.org/education-resources-guide/managements-india-

colleges-b-schools/7. Linked in http://www.linkedin.com/8. Jigsaw http://www.jigsaw.com//9. http://www.phocuswright.com/conferences10.http://www.phocuswright.com/11.http://www.youtube.com/watch?v=XNEVGu7HG0U12.http://www.youtube.com/watch?v=TqBMuka46Wg&feature=related13.Travel Survey Questionnaire

http://spreadsheets.google.com/viewform?formkey=cmFFUXFsSEc2dERoQTExWGdseVpEZWc6MA.