Photo - Marketing
22356

Marketing

India
Market: Tourism, sport
Stage of the project: Operating business

Date of last change: 10/12/2017
Min investment
$  250.000
0
Total required
$ 1.000.000
Rating
equalizer 115 из 1000
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Idea

We are a White Label Domestic Flight portal. We intend on creating market awareness and getting more travel agents on-board.

Current Status

Already 9 travel agents in India are using our services and are more than satisfied. They are getting better prices than most of their competitors which have increased their market size and profit margins. We, being linked to them, continue to prosper gradually but decisively.

Market

Travel agents with offices in prominent locations of Key cities for more walk-in customers. And local travel agents with monopoly-like situation in remote cities.

Problem or Opportunity

Almost all the local travel agents find it hard to compete with big online players.They are dependent only on little profits provided by other white labels. We, on the other hand, Provide better prices to the same travel agents. A travel agent, on an average domestic air ticket, earns $5-$6. which is roughly 7%. The way we earn is by adding a slight amount to the price, which is still lower than most white label companies. So the more our customers sell, the more will be our profits. Since the agents already have a huge customer base, we just have to tap these agents. The problem is that only 5% profit margin is there. So to make a $100 profit, $ 20000 would have to be put in, which will get recovered when the customer pays up to the agent and agent pays to us. Which can take anywhere from 2 hours to 20 days. So we need the funding, not just to tap more travel agents, but being able to fulfill their ticket requirements. We have visited 11 travel agents till now and we had better prices than 9 of them, So the product is not an issue.

Solution (product or service)

We are better than most in the airline white label prices and do not charge anything. We increase their profit margins to up to 10% and make a 5% profit on an average.The way we earn is by adding a slight amount to the price, which is still lower than most white label companies. So the more our customers sell, the more will be our profits. Since the agents already have a huge customer base, we just have to tap these agents.

Competitors

VIA.com is one of the biggest players and is the most commonly used portal. Our prices are cheaper than them. Although they operate at a much larger scale, we have better prices so we can capture their market share.

Advantages or differentiators

Our product is free. Most good enough white labels charge the agents for using their portals. We give them this service free of cost.

Finance

The problem is that only 5% profit margin is there. So to make a $100 profit, $ 20000 would have to be put in, which will get recovered when the customer pays up to the agent and agent pays to us. Which can take anywhere from 2 hours to 20 days. So we need the funding, not just to tap more travel agents, but being able to fulfill their ticket requirements. We have visited 11 travel agents till now and we had better prices than 9 of them, So the product is not an issue.
A small-scale travel agent makes tickets worth $1600 in a month in which our margin is usually 80 USD. A large-scale agent makes tickets worth $54000 in which case our cut will be 2700 USD a month.

Money will be spent on

Hiring sales executives to get more agents on board and fulfilling their orders.

Offer for investor

40% euity

Risks

The only risk is very less profit margin. If we have enough revenue, we
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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Product Video