PROJECT REPORT

ON

“A Study on consumer perception towards online travel agency with

respect to Udchalo”

FOR
THE PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE OF
“MASTER OF BUSINESS ADMINSTRATION”
FROM GGS IP UNIVERSITY
DELHI

BATCH: 2018-2020

SUBMITTED BY: SUBMITTED TO:

Anupama Mishra Prof. Rahul Verma

ARMY INSTITUTE OF MANAGEMENT & TECHNOLOGY,

GREATER NOIDA (UP) – 201306
 Supervisor Certificate – Faculty Mentor

This is to certify that Anupama Mishra a student of Master of Business Administration, MBA
2018-20, Army Institute Management & Technology, Greater Noida, has successfully
completed her project under my supervision.

During this period, she worked on the project titled “A study on consumer perception
towards online travel agency with respect to udchalo” in partial fulfillment for the award
of the degree of Master of Business Administration of GGSIP University, Delhi.

To the best of my knowledge the project work done by the candidate has not been submitted
to any university for award of any degree. Her performance and conduct has been good.

Prof. Rhaul Verma

AIMT-Gr. Noida
Date:
 Certificate of Originality

I, Ms Anupama Mishra, Roll No. 93518403918 of MBA 2018-20 Batch of Army

Institute of Management & Technology has undergone a Summer Internship in
Upcurve Business Services Pvt. Ltd (UdChalo)for a duration of 8 weeks on a project
title “A study on consumer perception torwards online travel agency with
respect to udchalo”, hereby declare that this project is my original piece of work.

Signature of the student:

Anupama Mishra
Date
 Acknowledgement

I want to show my sincere gratitude to all those who made this study possible. First
of all I am thankful to the helpful staff and the faculty of Army Institute of
Management and Technology. Second I would like to extend my sincere thanks to
my Industry Guide, Wing Commander Anantbir Singh Chaudhry , for his/her
untiring cooperation. One of the most important tasks in every good study is its
critical evaluation and feedback which was performed by my faculty guide Proff
Rahul Verma. I am very thankful to my Faculty as well as Industry guide for
investing his precious time to discuss and criticize this study in depth, and explained
the meaning of different concepts and how to think when it comes to problem
discussions and theoretical discussions. My sincere thanks go to my Institute and
family, who supported and encouraged me.

Anupama Mishra
MBA-15
 Executive Summary

In the present day scenario, for organizations to constantly innovate and grow it is important that they
maintain a knowledgeable work force. It is very important to understand a company internally and
externally. Working with UdChalo was a great opportunity to understand a company internally and
externally, understands its functionality thoroughly and being a part with playing a contributing role.
The best part of working with Udchalo was that one get privilege to create their own work environment,
show your own creativity etc.

The agenda of this study is to know the consumer perception towards online agency like udchalo.

The travel sector is an important sector of the tourism industry and extant studies point to the fact that
this sector is not only experiencing fast paced growth but also a higher demand for quality services from
contemporary travel consumers. This increasing demand being witnessed by the industry has led to the
development of different novel tourism and travel products but most significantly has seen the rapid
deployment of technology especially the internet and related social media platforms. Indeed the advent
of the internet has not only provided tourism and travel agencies a novel channel for the promotion and
distribution of their products thereby increasing their competitive positions; it has also given rise to the
development of tourism and travel agencies who operate wholly online, while giving consumers of
tourism and travel products the opportunity to conveniently search for, compare and purchase travel
products online. While the benefits of the internet to both the tourism and travel service provider
is clearly acknowledged, it is indeed the immense benefits it provides to tourism or travel
consumers that have become somewhat of a topic of debate with regard to the impact of these
benefits on the consumer’s perception of the relevancy of traditional ‘brick and mortar’ travel
agencies, thus directly questioning the future existence of such organizations
 Table of Contents
Certificate of Training – Industry Mentor ............................................................................... (i)
Supervisor Certificate – Faculty Mentor................................................................................. (ii)
Certificate of Originality ........................................................................................................ (iii)
Acknowledgement ................................................................................................................. (iv)
Executive
Summary……………………………………………………………………………..(v)

Chapter Page No.

Chapter 1- Introduction
1.1- Industry Introduction
1.2- Company Introduction
1.3- Topic Introduction

Chapter 2- Objective of the Research undertaken

Chapter 3- Literature Review
Chapter 4- Research Methodology
Chapter 5- Data Analysis
Chapter 6- Result Discussion
Chapter 7- Conclusions & Recommendations
Bibliography
Appendices- to include questionnaire
 CHAPTER 1
INTRODUCTION
INTRODUCTION

1.1 Industry Introduction

The online travel agencies is a lot more extensive than most different industries. The greater part of
business specialties are made out of just a bunch of various organizations, however this industry applies
to about any organization that is centered around consumer loyalty and meeting the leisurely needs
rather than the basic ones. Many forms of transportation that cater to any individual are also a vital part
of this business domain.

Though this is a very broad industry that includes many different businesses, there are some defining
elements that differentiates it from similar businesses. These companies don’t just focus on service and
luxury, but also depend on disposable income and providing customers what they want. The broad-
reaching service industry makes sure that every customer is happy because brand loyalty is essential.

Online travelling is the newest addition to the travelling ecosystem in India. The advent and
proliferation of computers, coupled with the increasingly acceptable leveraging of the Internet has
caused some major changes in the travel industry. Online travelling in India is yet at a very nascent
stage. Travelling has not been a focus area but merely another application for engaging users when they
are looking out for some quick results. The engagement level of most users has also been low with
infrequent usage and loyalty. However all this is changing with the spotlight sharply focused on
complete travel booking. The traditional means of procuring airline tickets and associate travel
arrangements are rapidly changing. These changes are primarily being facilitated by Internet travel
marketplaces (such as makemytrip.com, yatra.com, etc.) that claim to provide an easier, less expensive
alternative to traditional methods of ticket procurement without sacrificing service quality. If travel
marketplaces are to be successful then they need to understand their customers and what the motivations
behind their actions are, when it comes to shopping for discount travel.

Internet has brought about a revolution in every sphere of life. It has given business (whether big or
small) an equal opportunity to expand by reaching out to a wide range of customers throughout the
world. By increasing this world wide exposure, it has raised the competitiveness of the firms who have
become more creative and competitive in providing new and better services to the customers. Be it a
manufacturing sector or service sector; Information & Communication Technology (ICT) is getting key
component of every industry and Tourism Industry is not an exception to it. E-Tourism describes a new
way of doing business. It communicates faster and access global markets with minimal costs for new
businesses. According to the survey, conducted by Neilson, about 40% of the Indians are most likely to
buy airline tickets and reservations online; which is the second highest option in the minds of Indians
in terms of online purchasing as well as 29% of the Indians opt to plan for online Tours/ Hotel
reservations. With the increasing level of consumer confidence, online travel industry has seen rising
stocks and improved conditions for air and hotel suppliers in the industry’s ecosystem (Juman, 2012).
India's travel marketplace is expanding rapidly. The country's upwardly mobile middle class is growing,
they are increasingly tech-savvy, and they have a strong appetite for travel. India's expanding traveller
class is fuelling rapid growth in the total travel market and increasingly eager to embrace online travel
planning and booking tools.

1.2 Company overview

UdChalo is a Pune-based concessional air ticketing platform of “Upcurve Business Services Private
Limited”.
Upcurve Business Services Private Limited is a Private incorporated on 14 September 2012. It is
classified as Non-govt Company and is registered at Registrar of Companies, Pune. Its authorized share
capital is Rs. 100,000 and its paid up capital is Rs. 100,000. Founded by graduates of the Army Institute
of Technology (AIT), Pune, Varun Jain and Ravi Kumar. The other team members in udChalo also
have an Armed Forces background. It got operational on July 2014 and till date, continue to serve the
Army personnel and their dependents.
Army personnel in India have to travel quite a bit and they are rarely tech savvy. Trains are preferred
more for travel and the biggest chunk still buys offline and often has to change or cancel travel plans
because their tickets are in waiting list and at the same time, many flights (with almost the same rates)
take off with empty seats between the same destinations. And this is where udChalo comes in- it allows
army personnel travelling via 1A or 2A to take up these empty seats on the planes if their ticket is wait
listed. The company has a tie up with six major airlines in India and the system works only if the army
personnel enter his details which prove their identity and also their train reservation details so that no
one can directly come on the platform for the airline ticket.

VISION:
“Making Life Simpler for our Soldiers”
MISSION:
“Our mission is to bring Service for Services, offering ease and convenience”.
1.2.1 History

It all started when Ravi, who was about to join IIT-B for his masters in technology, landed on this idea
of figuring out a way in which people can be allowed to fly on seats which are going vacant. Graduating
in 2009 from the Army Institute of technology, Ravi worked for a few years at Tata Technologies and
Dassault before deciding to make a move for further studies. He had some savings and the itch to do
something on his own was pretty strong. He found some support from the Army Institute alumni and
took the plunge. Varun Jain, who has also co-founded Tavisca Solutions Pvt. Ltd., joined forces with
Ravi to launch UpCurve Software whose first product is udChalo.
They did pilot testing of this idea during last 2013 November and generated transactions of over INR
10 lakhs within 17 days of pilot running. After successful stint of pilot testing, they started actual
operation in July, 2014 where, they chose to start with one city which is BLR and a targeted audience.
They realized the loopholes and fixed them after the pilot test. Going forward, the udChalo model has
to inherently ensure that the airlines don’t lose original customers and streamlining this complex process
of building the bridge. Currently, udChalo is providing this facility on all outbound & inbound flights
from BLR. They also have a physical counter inside SSB center BLR near MG Road and if all goes
well, the plan is to go Pan India.

Achievements:

2019-07-27 CERTIFICATE OF REGISTRATION OF CHARGE-20190727

2018-05-28 CERTIFICATE OF REGISTRATION OF CHARGE-20180528

2016-11-10 CERTIFICATE OF INCORPORATION PURSUANT TO

CHANGE OF NAME-20161110

2016-11-03 CERTIFICATE OF REGISTRATION OF THE SPECIAL

RESOLUTION CONFIRMING ALTERATION OF OBJECT
CLAUSE(S)-20161103
1.2.2 Udchalo work culture

“ Lets work together to serve the people serving the nation”, this is the founder’s philosophy that has
made Udchalo a great place to work. This culture has consistently earned the organization many awards
and recognitions around the globe.

1.2.2.1 Awards and Recognitions

 Rated among India's 10 Most Promising Online Ticket Booking Companies in 2019 by Silicon
India
 Awarded by Entrepreneur India for the 'Travel Startup of the Year 2019'
 Received the GoStar Award from Go Air for our partnership with GoAir.

1.3 Topic Introduction

In today’s highly competitive environment, every company’s greatest asset is its employees and what
adds distinctiveness to this resource is its skill set. Moreover, it becomes an asset for a company as it
provide it with distinctiveness and helps it innovate constantly in terms of product and services being
offered.

The Internet has dramatically changed the way people communicate, search for information, make
decisions, and particularly the way they purchase goods and services. Travel products in particular have
proven to be one of the most suitable for selling online (Card et al., 2003; Jun et al., 20071). indicated
that travel products are ideal for selling online because they are no distribution costs involved. In
addition, online travel agency expansion continues to impact some countries the Asia Pacific (APAC)
region such as India and Australia/New Zealand (PhoCusWright, 2009c). Despite an overall downturn
in the APAC travel industry in 2009, the online travel market grew at double-digit rates as technology
soared in markets such as China and Japan.

The Internet has been seen to offer numerous benefits to potential customers seeking to purchase travel
products online. In general, the online environment certainly holds the promise of fast, convenient, and
inexpensive travel reservation; a wider selection of travel service providers; anytime/anywhere access
to rich multimedia destination information and real-time information on price and availability (e.g., last-
minute deals). Consumers have opportunities to find out product information with rapid process and
save time and money while purchasing travel products on the Internet.
Online consumer behavior is a broad and interesting area of study that can Benefit organizations in their
efforts to market and sell travel products and Services online. As consumers’ perceptions and attitude
towards online travelling is a prominent factor affecting actual buying behavior, this research has tried
to investigate a modest part of that area. Moreover due to increasing players in online travel industry,
the consumers have different preferences and perceptions regarding them. Despite the growing
importance of the internet as an information source for prospective travelers, as a marketing tool and as
a way of doing business, there is a general lack of information related to perceptions of travelers for
online travel products and services. Understanding their attitude is also of critical importance to travel
marketers in formulating appropriate marketing strategies so as to fully exploit the developing potential
of this new channel. Literature review revealed that researchers have tried to study online consumer
shopping behavior in general but no such specific study to understand consumers ‘perceptions related
to online travel has yet been done. Thus, the study will provide insights about the Internet users’ feelings
towards information seeking and online travel booking and also help to know their experience, level of
satisfaction and Purchase intention in future. Thus the research study would be useful to online travel
marketers to better develop appropriate strategies to enhance and promote ebooking to future users
while retaining existing customers and also to researchers as well as academicians conducting research
in this area in providing future direction.
 CHAPTER 2
OBJECTIVE OF THE RESEARCH
OBJECTIVE OF THE RESEARCH

2.1 Objective of the study:

 To understand the perception and attitude of internet users related to online Travel and ticket
booking with respect to Udchalo.

 To analyse the airlines preferred and perception on service quality offered by airlines.
 CHAPTER 3
LITRATURE REVIEW
LITERATURE REVIEW

Selling through the Internet is becoming a trend for most service providers. The customer purchase
intention towards online shopping is dependent on their acceptance of the Internet as a delivery channel.
Shim et al suggest that customers’ attitudes towards online purchasing are dependent on transaction
services, convenience, sensory experience and merchandise.

Kim states that online customer satisfaction is categorized under after-sales service, purchase result
and price attractiveness, product information, customer service, site design, product attractiveness,
payment method, site information and log-on convenience.

Famet al state that the determinants of trust in an online environment are dependent on predictability,
intentionality, capability, transference, and tangibility and interactivity. In transactions, trust is a
valuable catalyst in enhancing exchange. Customer satisfaction with online travel websites is dependent
on the informative, attractive and interactive nature of the websites

Nusair and Kandampully, in their research on attributes of customer satisfaction with online travel
services, state that playfulness and customization can improve the online travel service and garner
customer satisfaction. In services, interaction helps in instilling confidence in the minds of customers.
Appropriate product information, user-friendly design, language options, graphics and interactive
nature of the website can induce greater satisfaction and more sales conversions. Customers visiting or
browsing a travel website may not necessarily imply willingness to purchase online. Online
transactions entail providing website services according to customer needs. In an e-commerce setting,
transparency in pricing, product features and services can enhance customer Satisfaction and increase
loyalty towards the service provider. In India, customers would prefer a reassurance that the transaction
has been successfully completed .In this regard, receiving a Confirmation through a text message or
email about the payment would reassure the customer about the credibility of the online travel firm.

Nysveen et al suggest that the influence of value-based services, mobile terminals for exploring various
options, travel options and agent-based services can improve customer satisfaction with a service.
3.1 2010, Understanding Online Travel Agencies’ Cost Drivers and Ways to Optimize Business.

This White Paper reviews the results of an independent research study of Online Travel Agencies
(OTAs) conducted in Europe from November 2008 through to July 2009 by Hermes Management
Consulting (Hermes). The financial data used in the study is from 2008. The research was commissioned
by Amadeus in order to: • Better understand average revenue and cost structure of the OTAs • Analyze
OTAs business models, processes, cost drivers and productivity levels • Understand OTAs needs,
identifying opportunities to add value and optimize business A similar Activity-Based Costing (ABC)
study was carried out in Scandinavia in 2006. This time the scope was widened to include five OTAs
from France, Germany and the Netherlands as well as Scandinavia. This innovative study will open
windows of opportunity for European Online Travel Agencies. The purpose of this paper is to
communicate the results of the research, and offer recommendations on how OTAs can improve their
margins and better meet the needs of their customers.

3.2 2011 Simony Fraser University. Business plan analysis of a new venture for an online travel
accommodation reservation service - Bernadette Maxwel.

This paper is business plan analysis for developing a niche online travel agency business. The entity is
in the very early stages of setup, and the initial service will provide online reservations capabilities for
accommodations and other services targeted to golf and ski activity based travelers. The paper
examines the online travel agency industry, and performs a competitive analysis of the main
competitors in the industry, as well as the niche players looking to capture a similar market niche. The
paper also reviews market segmentation, and analyzes the behavior and needs of the target market to
determine if the development of this service will be a viable business. Lastly the paper examines the
operational considerations of establishing the business to provide the services, and to operate the
business successfully.

3.3 The Impact of Brand Image on Consumer Behavior

The concept “brand image” has drawn significant attention from academics and practitioners since it
was put forward, because it played an important role in marketing activities. Although brand image
was recognized as the driving force of brand asset and brand performance, few studies have elaborated
on the relationship between brand image and brand equity. Based on the brand image theories, this
study reviewed extant studies about the impact of brand image on consumer from perspective of
customer equity. It also presented the shortcomings of current research and pointed out the trends for
future study.

3.4 FUTURE OF AIR TRAVEL INDUSTRY: RELATION OF GROWTH AND CONSUMER

SATISFACTION Mansoor Nazir Bhatti, Muhammad Imran Qureshi and Khalid Zaman .

The present research paper investigates the airline industry’s present and future states in relation to
growth and consumer satisfaction. The approach of investigation is secondary data analysis. The
sample of the data is collected from various sources from official websites to books and scholarly
journals. The U.S. and European airlines are included in the data for analysis because of their history
and expansion globally. It was found in the research that both the U.S. and European major airlines
have constantly reported either losses or marginal profits in recent history. However, on the other hand,
low-cost carriers have mushroomed in both the markets because of their effective marketing strategies.
However, it must be noted that major airlines’ as well as low-cost carriers’ future is unpredictable and
many see both of them in danger because of increasing oil prices. Overall, the growth chances for low-
cost carriers are much higher in both U.S. and European air travel markets and beyond like Africa, Asia
Pacific, and Middle East. It is the major airlines from both the settings that are seen to be facing critical
challenges in the recent future. For which supply and demand is one single area that must be taken into
serious consideration by these airlines because it is this area that has been historically overlooked by
major airlines.

3.5 Inspira- Journal of Modern Management & Entrepreneurship: October, 2014

Selling through the Internet is becoming a trend for most service providers. The customer purchase
intention towards online shopping is dependent on their acceptance of the Internet as a delivery
channel. Shim et al suggest that customers’ attitudes towards online purchasing are dependent on
transaction services, convenience, sensory experience and merchandise. Kim states that online
customer satisfaction is categorized under after-sales service, purchase result and price attractiveness,
product information, customer service, site design, product attractiveness, payment method, site
information and log-on convenience. Famet al state that the determinants of trust in an online
environment are dependent on predictability, intentionality, capability, transference, and tangibility
and interactivity. In transactions, trust is a valuable catalyst in enhancing exchange. Smith states that
availability of free information does not ensure that customers will use it; this will depend on reliability
of and trust in the supplier. The role of online travel websites is to facilitate in increasing accessibility
of information and enhancing communication. An efficient information System would facilitate
customer satisfaction and help in building customer satisfaction.

3.5 Customer’s Perceptions and Intentions on Online Travel Service Delivery.

With the wide adoption of e-commerce in travel and tourism industry, the Internet has
become an important travel service delivery channel, and traditional travel agency has been
under severe disintermediation threat.
This paper reports on a survey conducted to explore the consumer’s current usage of the
Internet as the channel to search travel information and to book travel services. It also
investigates customer’s future intentions on using the Internet to book travel services. The
results indicates that online travel service delivery has grown as a popular direct distribution
channel in travel industry, but more of the customers still turn to the traditional travel
agencies, which support both the disintermediation and intermediation in travel industry.

3.6 Online Travel Agent Service and Customer Satisfaction Based on Correlation
Analysis.

With the cooperation of Internet and travel industries, online travel market has been booming,
the expected number of online travel users will be a larger growth in the future and service
quality will also become an important part of the tourism industry chain. It is a question of
travel companies to think about how to improve the online travel service quality and customer
satisfaction, to obtain the profits greatly. Through the statistical analysis, the authors test the
hypotheses with reaching the following conclusions:(1) There is significant difference
between customer perceived service quality standards and customer expectations of service
quality level of online travel booking. (2) The online travel booking service quality dimensions
positively correlated with overall satisfaction. Finally, the conclusions of this paper provides
a reference to improve the quality of service and overall customer satisfaction of online travel
booking.
 CHAPTER 4
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

4.1 TYPE OF STUDY

This is Descriptive kind of study done in order to obtain the findings about the customer
expectation on air travel agency like udchalo.

4.2 SAMPLE SIZE

Total sample taken 50 person.

4.3 SAMPLING PLAN: Cluster sampling method is used in research. In this basically
different geographical areas have been covered and accordingly outcomes obtained from sample
taken.

4.4 Research Design:-

The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will effectively
address the research problem; it constitutes the blueprint for the collection, measurement, and
analysis of data.

This report adapts the naturalistic observational research design to study the online air travel
industry, and the potential of it in Indian market. Thus exploring the possible opportunities for
start-ups and thus commenting on the business development strategies they adapt to sustain in the
market.

4.4.1 Research Methodology

Methodology is the systematic, theoretical analysis of the methods applied to a field of study. It
comprises the theoretical analysis of the body of methods and principles associated with a branch
of knowledge. Typically, it encompasses concepts such as paradigm, theoretical model, phases
and quantitative or qualitative techniques.
4.4.2 Methods of Research

Quantitative Approach- This approach adopts experimental and computational methods. The
conclusion is reached after following the rigorous process of observation made from
experimentation performed on the object. Some of the most important quantitative techniques are
inferential, simulation and experimental.

Qualitative Approach- In Qualitative approach, the researcher analyzes the objective and studies
it on the basis of a previous case study or a grounded theory. Usually, this approach is used in
routine business scenarios. Some of the most popular qualitative research methods are
ethnography, grounded theory, biology, case study and phenomenology.

4.5 MARKETING THEORIES – PESTEL ANALYSIS

Here PESTEL Analysis has been discussed briefly. The discussion also includes the PESTEL
Analysis for the aviation industry and then for the UDCHALO as a company.

A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro
environmental (external marketing environment) factors that have an impact on an organization.
The result of which is used to identify threats and weaknesses which is used in a SWOT analysis.

PESTEL stands for:

P – Political
E – Economic
S – Social
T – Technological
E – Environmental
L – Legal
Let’s look at each of these macro-environmental factors in turn.

All the external environmental factors (PESTEL factors)

4.5.1 Political Factors

These are all about how and to what degree a government intervenes in the economy. This can
include – government policy, political stability or instability in overseas markets, foreign trade
policy, tax policy, labor law, environmental law, trade restrictions and so on.

It is clear from the list above that political factors often have an impact on organizations and how
they do business. Organizations need to be able to respond to the current and anticipated future
legislation, and adjust their marketing policy accordingly.

For Aviation Industry:

1) Open sky policy

2) FDI limits: 100% for Greenfield airports

74% for the existing airports

100% through special permission

49% for airlines

For Udchalo: Defense and paramilitary is the target market of udChalo. Army has a huge role to
play in the success of the company. Political factors thus affect directly the growth of the
company. Like if army headquarter for any reason orders its people to stop buying tickets from
online agencies and others, the market for the company will be lost and company may come to
the termination point. Thus political relations is the major concern for the company.

4.5.2 Economic Factors

Economic factors have a significant impact on how an organization does business and also how
profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation,
disposable income of consumers and businesses and so on.
These factors can be further broken down into macro-economical and micro-economical factors.
Macro-economical factors deal with the management of demand in any given economy.
Governments use interest rate control, taxation policy and government expenditure as their main
mechanisms they use for this.

Micro-economic factors are all about the way people spend their incomes. This has a large impact
on B2C organizations in particular.

For Aviation Industry:`

1) Contribution to the Indian economy-since the industry is operating in Indian economy, the
revenue generated by the company adds to economy

2) Rising cost of fuel-the fuel price is rising because the subsidies government is providing are
being taken off.

3) Investment in the sector of aviation

4) The growth of the middle income group family affects the aviation

Sector-in today’s world with increasing income of middle class, people prefer to go by air because
it saves time at is all new a different experience.

For Udchalo: Army people have a decent pay package. Thus they can easily afford to travel by
air. Economy of the country may rise or fall but it doesn’t affect the salary of the army personals,
thus the market remains unaffected for this concern. But with thr fluctuations in economy the
prices of the flight tickets also rise and fall, the high rise in prices will affect the market of the
company as people are of middle class and thus won’t be able to afford the excess high prices for
travel.

4.5.3 Social Factors

Also known as socio-cultural factors are the areas that involve the shared belief and attitudes of
the population. These factors include – population growth, age distribution, health consciousness,
and career attitudes and so on. These factors are of particular interest as they have a direct effect
on how marketers understand customers and what drives them.

For Aviation Industry:

1) Development of cities leads to better services and airports-metro cities first had airports but
with development of the country new airports are being built up.

2) Employment opportunities-the aviation sector provided a lot of employment opportunities

because the industry is so vast that a lot of people can be employed

3) Safety regulations.

4) The status symbol attached to a plane travel.

For Udchalo: Army people are generally not so concerned about the luxury but safety for their
family. And also lot of cultural factors affects their decision to plan for a travel.

4.5.4 Technological Factors

We all know how fast the technological landscape changes and how this impacts the way we
market our products. Technological factors affect marketing and the management thereof in three
distinct ways:

 New ways of producing goods and services

 New ways of distributing goods and services

 New ways of communicating with target markets

For Aviation Industry:

 1) The growth of e-commerce and e-ticketing is now adopting the airline companies for the
facilities and services to the customers.

2) Satellite based navigation system is the most advanced technological factor.

3) Modernization and privatization of the airports.

4) Developing green field airports with private sector for example in Bangalore the airport
corporation limited.

For Udchalo: With the change in technology the customer needs to educated about the changes. Army
people are generally not so aware of the technological happenings in the society as thy are busy with
their job. Thus company need to make sure that they make their customers up to date about the services
and the changes in the technology in the industry to make them comfortable. In this way company gains
their confidence too.

4.5.5 Environmental Factors

These factors have only really come to the forefront in the last fifteen years or so. They have
become important due to the increasing scarcity of raw materials, pollution targets, doing business
as an ethical and sustainable company, carbon footprint targets set by governments (this is a good
example were one factor could be classes as political and environmental at the same time). These
are just some of the issues marketers are facing within this factor. More and more consumers are
demanding that the products they buy are sourced ethically and if possible from a sustainable
source.

For Aviation Industry:

The increase in the global warming due to increase in the number of aero planes flying in the air.
This makes bad effect on our atmosphere.

2) The sudden and unexpected behavior of the atmosphere and the dependency on whether.
3) Shortage of the infrastructural capacity

4) Tourism saturation.

For Udchalo: Not every area is facilitated with airport. Majority of army people come from
backward and rural areas. Thus this is one of the factor that make people go for trains and not for
planes, thus affecting the sales of the company.

4.2.6 Legal Factors

Legal factors include - health and safety, equal opportunities, advertising standards, consumer
rights and laws, product labeling and product safety. It is clear that companies need to know what
is and what is not legal in order to trade successfully. If an organization trades globally this
becomes a very tricky area to get right as each country has its own set of rules and regulations.

For Aviation Industry:

1) FDI limits

2) Bilateral treaties

3) Airlines acquisitions and the leasing cost.

For Udchalo: Company shouldn’t hide any information from the customer. Neither it should
misuse the information of the customer. Army is very critical matter thus needs to be handled
carefully.
4.6 SWOT Analysis of Airline Industry

STRENGTH
 Fastest transportation service.

 Highly trained staff.

 Ticket pricing is on the hand of players.

 No substitute for international travelers as efficient as airlines.

 Concentration on customer satisfaction.

WEAKNESS

 High maintenance cost.

 Labor intensive industry.

 Directly dependent on some other industries like tourism and corporate travelers.

 High wages paid to the staff.

OPPORTUNITIES

 Percentage of people travelling in airline is increasing gradually.

 Increase in per capita income will generate more passengers to airlines.

 Airline can be used for cargo.

  Large Untapped Indian market.

 FDI‟s in Indian airline industry.

THREATS

 Raising fuel costs.

 Exchange rate fluctuations

.
 Taxes imposed by the government.

 High competitive industry because of large number of players.

4.6.1 KEY SUCCESS FACTORS

Key success factors describe main parts of performance that are important for the firm to
achieve its objectives and mission. Top level management absolutely considers these
factors daring the setting overall goals. These key success factors give a widespread
knowledge for the entire company. Therefore, any action that the firm commences must
make sure constantly greater performance in these key parts if not the firm may not be
competent to accomplish its goals and theses may full to achieve its mission. In the
service/ airline industry, predominantly the capital intensive , the key success factors are
described below.

4.6.1.1 Strong Management:-

There must be strong management of everything that is advantages for the organization.
The airline has at all the time evaded, disdained and vogue everything that may increase
costs and makes difficult the basis travels plan. Management ranks are inclined, healthy
compensated and significantly productive.
Thus to cope with the fluctuations in the prices of the tickets, the agency needs to be
always ready. A strong management is obviously is the matter of concern in that case.

4.6.1.2 Capable Workforce:-

Highly qualified and competence workforce is very essential in this industry or service
oriented industry. They must possess strong communication skills and soft spoken with
customers. There must be training programs focusing to enhance their abilities and skills
and this campiness must be customer focused and they cannot leave the organization and
create difference.

4.6.1.3 Service Promotion:-

The promotion in this industry is mainly targeted to enhance the base of loyal customers
and also focused to the regular high-revenue customer. As for udChalo, Armed Forces
Personals and their dependents, Ex-servicemen are their customers, thus the service
promotion has to be carried out in the army cantonments.

4.6.1.4 Financial Management:-

Thriving management of this factor facilitates agencies to regulate investment for growth.
There is accountability of the unit revenue to compute the profitability. This is calculated
by revenues minus all the expenses divided by the total seats or tickets sold.

4.6.1.5 Efficient Management of Cost:-

Maximizing revenues by implying creative and competitive, pricing structure to attract

all the profitable segments and sustaining frequent and profitable customer base is most
important key success factor for this industry. Efficient management cost by focusing on
the price hedging during volatile periods and maintaining fuel procurement is an
important factor.

CHAPTER 5
DATA ANALYSIS &RESULT
DATA ANALYSIS & RESULTS

Table 5.1 On the basis of Age

Age Respondent
18-25 10
26-35 18
36-45 25
46-55 5

Respondent

9% 17%
18-25
26-35
36-45
43%
31%
46-55

Interpretation: From the above fig it is clear that the 43%of people are from the age group
36-45 which means they need to focus on the other age group as well.
Table 5.1.1 On the basis of category

Rank Category Respondent

Officers 5
JCO 10
Jawans 35

Respondent

10%
Officers
20% JCO
Jawans
70%

Interpretation: From the above fig it is clear that the company Udchalo need to focus on that
20% and 10% of people who are not very much interested in the company.
Table 5.1.2 On the basis of preference

Which of the brand do you primarily use for

air ticket booking? Respondent
Udchalo 15
Make My Trip 20
Veer Trip 4
Sainik udaan 0
Yaatra 1
Goibigo 10

Chart Title

Udchalo
20%
30% Make My TRIp
2%
0% Veer Trip
8%
Sainik udaan
Yaatra
40% Goibigo

Interpretation: It is clear from the above fig that the top 3 travel booking platform which
customers generally prefer are Make My Trip, Udchalo and Goibibo.
Table 5.1.3 On the basis of satisfaction level

How would you rate defence discount

provided by udchalo? Respondent
Highly satisfied 10
Satisfied 18
Dissatisfied 12
Neutral 10

Respondent

20% 20%
Highly satisfied
Satisfied
Dissatisfied
24%
Neutral
36%

Interpretation: From the above fig it is clear that only 20% of people are highly satisfied
from udchalo service and 24% are not satisfied with their service , hence the company needs
to upgrade their service.
Table 5.1.4 On the basis of udchalo service

How do you rate udchalo customer care

service? Respondent
Excellent 9
Above Avg 7
Average 20
Poor 0
Below Avg 0

Respondent

0%
Excellent
25%
Above Avg
Average
56%
Poor
19%
Below Avg

Interpretation: It is clear that 56% of people feels that the customer care service provided by
udchalo is average and 25 feels that they provide excellent service.
CHAPTER 6
FINDINGS
 FINDINGS

1. The age category that we selected is from range 18-25, 26-35, 36-45and46-55 in which
25 customers to fall in the category of age group between 35-45.
 Interpretation: The company need to focus on other age group of customer
also.
2. There are basically three class of customers define in the questionnaire i.e. officers,
JCOs and jawans. There were 35 jawans and around 10 JCOs who were familiar with
the brand Udchalo.
 Interpretation: It is clear that the company Udchalo need to focus on that 20%
and 10% of people who are not very much interested in the company.

3. On the basis of preference it is clear that 40% of people uses Make My Trip to book
their air tickets which means that the company Udchalo need to focus on their
promotional aspects.
 Interpretation: It is clear that the top 3 travel booking platform which
customers generally prefer are Make My Trip, Udchalo and Goibibo.

4. As providing service is important part for every organization to retain their customers
for longer period therefore from the collected data it is clear that 56% of customers says
that udchalo provide average service to their customers which means that they need to
work on their service aspect.
 Interpretation: It is clear that only 20% of people are highly satisfied from
udchalo service and 24% are not satisfied with their service , hence the company
needs to upgrade their service.

5. 36% of people are satisfied with the discount provided by udchalo.

 Interpretation: It is clear that only 20% of people are highly satisfied from
udchalo service and 24% are not satisfied with their service , hence the company
needs to upgrade their service

6. High level income group customers were not involve in booking air ticket.
 CHAPTER 7
CONCLUSION & RECOMMENDATION
CONCLUSION & RECOMMENDATIONS

Conclusion
This study attempts to understand the drivers for the preference of online booking for
travel and tourism. There has been a spurt of travel booking portals in India, facilitating
customers for booking of travel and accommodation. Essentially, these travel portals
offer packages/products which include travel & accommodation, apart from acting as
an interface for rail, road and air booking. The values that draw customer to travel portal
are attractive offers, generally a bundle of offerings, & ease of booking. In this
empirical research, using structural equation modelling, advance booking facility,
discounting, and time saving have emerged as significant factors that lead to increase
in online travel booking to be a preferred choice over offline booking or via travel agent.
The study recommends travel portals to focus on these dimensions.
The second purpose of this research is to identify the factors affecting customer
satisfaction for online travel agencies in India. It helped in guiding existing online travel
agencies and future entrants to have an in-depth understanding of customer satisfaction
and customer loyalty in their domain.

Recommendations
1. Provide more awareness programs.
2. Udchalo must provide pre LTC CLAIM process online.
3. Make ease of documentation for customer so that it will be easy for customer to
book the ticket.
4. Providing offline counters in high altitude and remote areas of North India.
5. Avoid high frequency of technical error regarding booking air ticket.
6. Company policy must be smooth and updated time to time.
7. There are many competitor like goibibo and Veertrip which provide more
discount than Udchlo, so therefore udchalo should provide some extra benefit
to attract their customers.
8. In many state in India where Udchalo Offline Counter are not Presents. So they
need to establish the offline counter.
 BIBLOGRAPHY

1. Li, Hongxiu, and Reima Suomi. "Customer’s perceptions and intentions on

online travel service delivery: an empirical study in China." Integration and
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2. Lee, Won Seok, et al. "Determinants of systematic risk in the online travel
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3. Maxwell, Bernadett. "Business Plan Analysis of a New Venture for an Online

Travel Accommodation Reservation Service." (2011).

4. Bhatti, Mansoor Nazir, Muhammad Imran Qureshi, and Khalid Zaman. "Future
of air travel industry: relation of growth and consumer
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review." Open journal of business and management 3.1 (2015).

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QUESTIONARE NET PROMOTER SCORE

Q1. What is your age?

a) 18-24
b) 25-34
c) 35-44
d) 45-54

Q2. Rank category

a) Officers
b) Jco
c) Nco

Q3 Years of service?
a) 0-10
b) 10-15
c) 15-20
d) 25-30
e) 30-35

Q4 How often do you book Air Ticket?

a) Once In two months
b) Once in three months
c) Twice in 6 months
d) Once in year
e) Twice in year

Q5. Which of the brand do you primarily use for Air Ticket booking?

Q6. In general, what come to your mind when you think of udChalo?

Q7 On a scale of 0-10 how likely is it that you would recommend udChalo to a friend/colleague?

0 1 2 3 4 5 6 7 8 9 10
Where 0 means worst and 10 means best.

Q8. How would you rate Defence discounts provided by udChalo?

a) Highly Satisfied
b) Satisfied
c) Dissatisfied
d) Neutral
e) Highly Dissatisfied

Q9. How would you rate udChalo’s customer care service?

a) Excellent
b) Above Average
c) Average
d) Below Average
e) Poor
f) I haven’t received any service
e) Poor

Q10 Reason for above selection?

Q11. On a scale of 0-10 rate your experience on udChalo website?

1 2 3 4 5 6 7 8 9 10
Where 0 is worst and 10 is best.

Q12. Why did you give that rating?

Q13. On a scale of 0-10 rate your experience on udChalo Application?

0 1 2 3 4 5 6 7 8 9 10
Where 0 is worstt and 10 is best

Q14. Why did you give that rating?

Q15. What would be your first preference to book flight ticket?

a) Website
b) Application