NE Rural Tourism Private Ltd. [RTNE]

Hotel website Online Travel Agents Travel Agent The Indian Leisure Travel  10,000 listed properties  828 destinations  has just 2,500 listed properties

Indian Travel & Tourism Consumption Trends  Focus on robust domestic market as compared to volatile In- bound tourists.  Domestic leisure traveller % of the population.  Mostly originating from 13 major cities in India.  Looking for better deals (price point INR 1000), shorter breaks, through online markets.  Intra regional travel - trips < 3 days; 17% 6%77%4%12%2%East 0%1%90%3%6%South 2% 9%66%21%North 1% 8% 81%West NortheastEastSouthNorthWestFrom to

Demand – Supply Gap  India has peak season of 100 nights, almost 80% of tourist traffic originates during these nights.  Shortage of 100,000 rooms per day (2008) during peak season.  Of the 828 known destinations in India; 50% of the tourist traffic visits top 50 destinations.

Consequences of Skewed Demand - Supply  Paucity of peak season accommodation in top 50 destinations  Unreasonably high tariffs  Pressure on the carrying capacity of the destination leading to environmental degradation

Opportunity for Rural Tourism

Case of high potential, invested capital & missed opportunities The Traveller Rural Tourism Operator The Gap… How do I find these destinations? What is the level of quality? Are rooms available? Can I reserve one? How can we reach more travellers? How do we compare to our competition? What improvements should we make? Result:  Lower occupancy for rural operators  Traveller visits higher priced, more common destination or forgoes trip

Back-End Platform Rural Tourism Supply Chain Sales Accommodation Accreditation Information Demand Destination Accommodation Booking Payment Quantity Standard Quality Gap 1 Customers Distributors Gap 2Gap 3Gap 4  Travel Agents  Preferential price point INR 1000 per night  50 mn middle class to become 250 mn.

NE Rural Tourism Pvt. Ltd. has created The Traveller Rural Tourism Accommodation Back-end On-line Booking Network  Real time Inventory  Instant booking & confirmation  Convenient payment options  User generated content describes destination quality and experience Result Information asymmetries drastically reduced Architecture created for multiple players along the supply chain to leverage

Hotel website Online Travel Agents Travel Agent Hotel website Local tour operator Back-End Platform ( Local tour operator Destinations Properties Inventory Gap 1Gap 2

Partnerships Back-End Platform Rural Tourism Supply Chain Sales Accommodation Accreditation Information Demand Destination Accommodation Booking Payment Quantity Standard Quality Gap 1 Customers Distributors Gap 2Gap 3Gap 4  Travel Agents  Preferential price point INR 1000 per night  50 mn middle class to become 250 mn.

AccommodationStandard Quality Create a back-end Create successful franchisee like templates Interim period to consolidate back-end Scale up in top 50 destinations Scale up to market requirements Theme Largely actively driving (as operator and investor)‏ Present in Coastal Maharastra Build partnerships Training/Audit Program. Rally stakeholders Create awareness Uttarakhand/HP/Karnatak a/TN Create service lines along business models Fund expansion/debt guarantee (scale-up) if required RTNE's role Existing local private entrepreneurs Online/Offline Agents Networks of local private entrepreneurs and local people VTNE and other training institutions Networks of local entrepreneurs Financial Institutions Potential partners Capacity Building Strategy Stage 1Stage 2 Stage 3

Karmveer Rathore