Travel
Technology
Business
Finance
Investment
Online Business
Airline Industry
Travel booking
Equity Research
(1/18)
About-
Easemytrip.com was founded
as a B2B portal to give travel agents access to its website to book domestic travel airline tickets.
Later, it went into the business to
customer (B2C) distribution channel in 2011.
About-
Easemytrip.com was founded
as a B2B portal to give travel agents access to its website to book domestic travel airline tickets.
Later, it went into the business to
customer (B2C) distribution channel in 2011.
(2/18)
Industry backdrop:
Travel booking is not a new business in India. The online penetration levels in bookings is around 40%.
Infact, air segment has ~70% online bookings.
Industry backdrop:
Travel booking is not a new business in India. The online penetration levels in bookings is around 40%.
Infact, air segment has ~70% online bookings.
(3/18)
Solutions provided by EMT:
1. Airline Tickets
2. Rail & Bus Tickets
3. Hotel bookings
4. Cab Booking
5. Holiday Packages
6. Travel Insurance
7. Visa processing
8. Other outdoor activities tickets
Revenue share:
1. Airline: 98.7%
2. Hotel : 0.40%
3. Others : 0.90%
Solutions provided by EMT:
1. Airline Tickets
2. Rail & Bus Tickets
3. Hotel bookings
4. Cab Booking
5. Holiday Packages
6. Travel Insurance
7. Visa processing
8. Other outdoor activities tickets
Revenue share:
1. Airline: 98.7%
2. Hotel : 0.40%
3. Others : 0.90%
(4/18)
What makes EMT so special?
We all know the convenience fee charged by an Online Travel Aggregator (OTA) whenever we book our tickets via these platforms.
EaseMyTrip runs a No Convenience Fee Model which has turned out to be a game changer for the company.
What makes EMT so special?
We all know the convenience fee charged by an Online Travel Aggregator (OTA) whenever we book our tickets via these platforms.
EaseMyTrip runs a No Convenience Fee Model which has turned out to be a game changer for the company.
(5/18)
Word of mouth play:
EMT has an over 80% repeat transaction rate in the last five years. The main factor behind this is the Word of mouth growth due to the no convenience fee model.
EMT continues to grow at more than 50% per year in the B2C business.
Word of mouth play:
EMT has an over 80% repeat transaction rate in the last five years. The main factor behind this is the Word of mouth growth due to the no convenience fee model.
EMT continues to grow at more than 50% per year in the B2C business.
(6/18)
Revenue Model EMT:
The company doesn’t charge its customers however, it’s generates revenue through a series of commission fees.
1. Commission from Airlines
2. From Global Distribution Service providers
3. Cancellation charges from Airlines
4. From Banks
Revenue Model EMT:
The company doesn’t charge its customers however, it’s generates revenue through a series of commission fees.
1. Commission from Airlines
2. From Global Distribution Service providers
3. Cancellation charges from Airlines
4. From Banks
(7/18)
Smart Convenience fee model:
EMT doesn’t charge its customers any convenience fee when they book a ticket. However, In case a customer uses any discount coupon to book a ticket, EMT adds a convenience fee at the end!
This smart strategy has played well for EMT!
Smart Convenience fee model:
EMT doesn’t charge its customers any convenience fee when they book a ticket. However, In case a customer uses any discount coupon to book a ticket, EMT adds a convenience fee at the end!
This smart strategy has played well for EMT!
(8/19)
Most profitable business:
EMT is the most profitable company in this segment even though every other OTAs earns through the same commissions.
The reason is their smart cost cutting strategies. By focusing more on tech enabled operations and asset light approach.
Most profitable business:
EMT is the most profitable company in this segment even though every other OTAs earns through the same commissions.
The reason is their smart cost cutting strategies. By focusing more on tech enabled operations and asset light approach.
(9/18)
Ease My Trip has focused on AI ML a lot which has helped them to keep their employees count a fraction of its competitors.
For your reference,
EMT has 345 total employees vs Make My Trip has close to 3200 employees which doesn’t even count the outsourced call centres!
Ease My Trip has focused on AI ML a lot which has helped them to keep their employees count a fraction of its competitors.
For your reference,
EMT has 345 total employees vs Make My Trip has close to 3200 employees which doesn’t even count the outsourced call centres!
(10/18)
The B2B business of EMT:
EMT was a B2B business when it first started it’s operations!
It has close to 56,000 travel agents who use their portal to book the tickets for their clients!
Their are total 70,000 registered travel agents in India. This shows EMTs reach.
The B2B business of EMT:
EMT was a B2B business when it first started it’s operations!
It has close to 56,000 travel agents who use their portal to book the tickets for their clients!
Their are total 70,000 registered travel agents in India. This shows EMTs reach.
(11/18)
Where is EMT losing out?
• International Airline bookings:
This business needs greater human intervention & customer service.
However, EMT is more effective in less curated segments. Thus it will be interesting how EMT takes on the giants with lesser employees.
Where is EMT losing out?
• International Airline bookings:
This business needs greater human intervention & customer service.
However, EMT is more effective in less curated segments. Thus it will be interesting how EMT takes on the giants with lesser employees.
(12/18)
Other Categories:
The company still needs to do a lot of work with respect to other sectors like cab bookings, Buss travel and others.
EMT intends to take the same asset light approach in these segments too. This will help them to keep their margins higher.
Other Categories:
The company still needs to do a lot of work with respect to other sectors like cab bookings, Buss travel and others.
EMT intends to take the same asset light approach in these segments too. This will help them to keep their margins higher.
(13/18)
Key growth drivers:
1. Online travel market set to double over next five years.
2. Higher internet penetration in tier 3-4 cities and villages across India
3. Govts push for Air travel for all is a major boost of OTA segment
Key growth drivers:
1. Online travel market set to double over next five years.
2. Higher internet penetration in tier 3-4 cities and villages across India
3. Govts push for Air travel for all is a major boost of OTA segment
(14/18)
Key Risks:
1. High competition industry as other players are backed by large VCs.
2. Travel industry especially Air travel is always susceptible to major economic cycles as well as events.
3. Entry of new players like Flipkart, Amazon in travel space.
Key Risks:
1. High competition industry as other players are backed by large VCs.
2. Travel industry especially Air travel is always susceptible to major economic cycles as well as events.
3. Entry of new players like Flipkart, Amazon in travel space.
(15/18)
Financials :
1. Revenue growth: 46% CAGR
2. Number of registered customers: 1.3cr now vs 59 lacs in 2018
3. Mobile downloads : 55lacs vs 16lacs in 2018
4. EBITDA margin - 38%
5. PAT margin : 28%
6. Debt to Equity : 0.1
7. ROCE : 35%
8. ROE : 37%
9. PEG : 1.06
Financials :
1. Revenue growth: 46% CAGR
2. Number of registered customers: 1.3cr now vs 59 lacs in 2018
3. Mobile downloads : 55lacs vs 16lacs in 2018
4. EBITDA margin - 38%
5. PAT margin : 28%
6. Debt to Equity : 0.1
7. ROCE : 35%
8. ROE : 37%
9. PEG : 1.06
(16/18)
Shareholding Pattern:
1. Promoters : 74.9%
2. FIIs : 1.9%
3. DIIs : 1.45%
4. Public : 21.7%
Promoters :
1. Nishant Pitti
2. Rikant Pitti
3. Prashant Pitti
Shareholding Pattern:
1. Promoters : 74.9%
2. FIIs : 1.9%
3. DIIs : 1.45%
4. Public : 21.7%
Promoters :
1. Nishant Pitti
2. Rikant Pitti
3. Prashant Pitti
(17/18)
Conclusion:
Easy Trip Planners similar model like that of Indigo is working well for them and their investors. The company seems to be ticking all the boxes for now and the numbers speaks for themselves
The company knows how to generate revenue from its business model.
Conclusion:
Easy Trip Planners similar model like that of Indigo is working well for them and their investors. The company seems to be ticking all the boxes for now and the numbers speaks for themselves
The company knows how to generate revenue from its business model.
(18/18)
What are your thoughts about the business model of EMT?
@datta_arvind @caniravkaria @stockifi_Invest @VRtrendfollower @kuttrapali26 @MadhusudanKela
What are your thoughts about the business model of EMT?
@datta_arvind @caniravkaria @stockifi_Invest @VRtrendfollower @kuttrapali26 @MadhusudanKela
Loading suggestions...