Company Profile

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Overview:

Travelling Pandas is a social travel company founded in 2019. Their primary focus is group trips designed for young adults aged 20–40, but also cater to other age groups and offer customisations for private tours. Currently, they operate in Tier 1 and Tier 2 cities in India, with exciting destinations spanning India, Southeast Asia, and the UAE. This year, the plan is to expand operations to include Korea, Japan and Europe.

What stage is the product at currently?

The company has achieved product market fit with over 300 successful tours and 4 Cr (USD 479k) in revenue (FY 23–24). Currently, looking at early scaling. The company is bootstrapped, with no outside funding to date.

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Current User journey ​

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Users

This section explores the different users that Travelling Pandas caters to and their ICPs

Groups chosen for interviews and surveys​

Criteria: People who have a past history of domestic and international travel

1. 6 existing customers of the company. Interviewed over the phone.
2. 1. 2 people who have travelled only once
   2. 2 people who have travelled twice
   3. 2 people who have travelled 4 times
3. 4 existing customers have travelled with the company. Data collected via surveys (Google Forms)
4. 1. Questionnaire link
   2. Response data
5. 18 non customers who have sparingly taken group travel holidays. Data collected via surveys (Google Forms)
6. 1. Questionnaire Link
   2. Response data
7. 1 operator from a competitor company. Interviewed over the phone.
8. 1 business that was interested in group off-sites for team building and currently uses traditional travel companies. Interviewed over the phone.

ICP 1: Mr. & Mrs Smith

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ICP 2: Miss Selmon

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ICP 3: Mr Phoebe Buffet (B2B)

ICP 4: Mr Miyagi

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​Ranking ICPs

Ranked based on the following criteria:

1. Adoption curve: How quick are they to use the product?
2. Frequency of use-cases: How often do they need the services being offered?
3. Appetite to pay: Can they afford to and are willing to pay for the product?
4. TAM: The total addressable market based on demographic data.
5. Distribution potential: How quickly, easily and sustainably can we spread the product to this group?
6. Past experience: How has the company's experience been with this group on past trips?

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Summarising insights from end users

1. Instagram was the most used app on people's phones. Only 2 people out of the 26 interviewed mentioned Facebook.
2. Group travel was the second most preferred after travelling with your spouse or partner.
3. People would prefer/consider group travel for the following reasons:
4. 1. "To avoid self-planning,reasons:"
   2. "want to explore new place with new people, I like meeting new people"
   3. "Company, you get other travellers to chill with, especially if they're of the same age and vibe"
   4. "Ease of planning"
   5. "Safety"
   6. "Custom curated packages"
   7. "Cost effective"
   8. "People around you in times of emergency"
   9. "Will travel if it is a woman only group"
5. Concerns people had with group travel
6. 1. "People of different age groups not be able to mingle"
   2. "Too many men, too few women"
   3. "Safety, not sure why type of people would show"
   4. "Not getting along with other folks in the group, boredom, poor organization, out of my control"
7. Challenge people face when booking holidays
8. 1. "Planning takes too long. For groups, - difficult to align on a time and plan"The
   2. "finalizing groups, location, people and optimized itinerary covering all the spots in proper budget"
   3. "Deciding where to go, whom to go with, expenses, procuring visa"
   4. "Finding the best deal and convenient dates."
   5. "Hotels are unpredictable and expensive"
9. Concerns their family and family members have
10. 1. Safety
    2. Hygiene
    3. Company reputation
    4. Cost
11. On average, people took 3–4 travel holidays a year
12. The average budget per holiday was Rs 30,000
13. 82% of users said they prefer learning about travel opportunities via social media.
14. Instagram and YouTube are the most used apps for travel inspiration. Only one respondent mentioned Pinterest.
15. What do people look for in a group travel company?
16. 1. Reputation: Do they have good reviews? Have they done enough trips?
    2. Price of the package
    3. Quality of stay and food
    4. Activity options
17. Users trust the following websites or publications for travel:
18. 1. Google
    2. Make My Trip
    3. Trip Advisor
    4. Booking.com
    5. Reddit
19. All the people who have travelled with the company have referred at least one more person.
    

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Insights from an operator/competitor:

1. Users are looking for reputed travel companies. Having testimonials and google reviews is important.
2. Aesthetic Instagram feeds do not lead to conversion. Need to ensure that the feed has enough pictures of real customer at holiday destinations.
3. The barrier for entry in market is quite low for such businesses. It is easy to start but difficult to sustain and grow.
4. Customers are looking for bang for their buck
5. Customer want 5 star facilities at 1 star rates
6. Customers do not want to go to offbeat locations they want to go to places they see on Instagram.
7. Many of the people who work for you learn the craft and start similar companies of their own. This fragments the market further.

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Market

This section explores the Total Addressable Market, the serviceable portion and the obtainable portal from it. We also discuss the core value proposition of the product and the marketing pitch.

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​TAM (Total Addressable Market):

All travellers looking to book group tours regardless of location, budget, etc

1. India's total population is 1.4 billion.
2. The company is primarily aiming to target young adults. And defines young adults as anyone being between 20 and 40.
3. People aged 20–40 make up 40% of the total Indian population.
4. Which makes the TAM = 450,000,000 (450 million).
5. Source

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SAM (Serviceable Addressable Market):

A more realistic cut of the TAM based on region, age, budget, etc.

1. The total population in Tier 1 and Tier 2 cities is 200,000,000 (200 million).
2. Within Tier 1 and 2 cities, 20-40 year olds will make up 40% of the population.
3. The total population of 20–40 year olds is 80,000,000 (80 million).
4. People from the above who want to group travel among other modes of travel ( Rentals, Hotels, Camping, and cruises) and can afford it. Let's say 50% of the population.
5. Half of the population of 20–40 year olds is  40,000,000 (40 million)
6. Source

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SOM (Serviceable Obtainable Market or Share of Market):

Portion of the SAM that the company can obtain.

1. The travel industry is extremely fragmented, with endless competition. 
2. 1. There are about 365 registered travel companies in India. 
   2. Let’s assume 70% of them are in Tier 1 and Tier 2.
   3. So the total number of companies in T1 and T2 is 252
   4. Out of the above, let's say 100 such companies focused on group tourism (Removing all the visa and immigration companies, traditional travel, cruises, etc)
   5. Source
3. So realistically, I would say that the company can aim capture 1% of the SAM 
4. Which brings the total to 400,000 users 
5. Average ticket size of Rs 22,000 (USD 280)
6. The total market in USD for SOM is USD 110,000,000 (110 million)​

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Some Competitors

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Redefined Mission Statement:

To ignite the spark of shared adventure, fostering unforgettable experiences that forge lifelong bonds and transform lives through the power of travel and community!

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​Core Marketing Pitch:

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Here is what sets us apart:

1. Honest Pricing: No hidden costs. We always prioritise your comfort. Our transparent pricing ensures you get the best deals.
2. Tending Destinations: No more tourist traps! We take you to the hottest Instagramable spots.
3. Forever Friendships: Our trips are not just vacations; they are journey's to build lifelong bonds. Travel does not have to be solo; find your squad here.
4. Proven success: Over 6,000 happy travellers served. We created experiences you want to relive with your new travel buddies.

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Acquisition Channel Design

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Current acquisition channels:

1. Instagram ads
2. 1. Pain points: current investment is very low (USD ~7k ), and ads are not targeting new audiences. Multiple existing targeted users called out after seeing the same ad again after being converted.
3. Word of mouth (referrals)
4. 1. Pain points: no formal referral program.

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The company does not have an active website at this point. It was decommissioned during the pandemic and never started again!

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Are Travelling Pandas ready for acquisition?

1. Is your product pulling in enough people?
2. 1. Yes, over 300 completed trips so far.
3. Are customers bragging about the product?
4. 1. Yes, strong word-of-mouth. Everyone interviewed has always referred other people, even if they have travelled once. Strong trust in the brand.
5. Is the customer willing to pay?
6. 1. Customers have displayed their willingness to pay. They consider our travel packages to be the best in class. The packages are rated high on affordability and even higher on the facilities provided.
7. Does the product do what it says?
8. 1. One customer said the following when asked about their experience with Travelling Pandas and if they would think of using a competitor product:!
   2. 1. "Once you travel in Mercedes, Alto mein beitne ke liye taklif hoga!"
   3. Another customer said that.
   4. 1. "I was presently surprised at the quality of hotels for the price I paid."
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Early Scaling Experiments:

Current budget USD 7184 → New Budget USD 20,000

1. Instagram ads: My ICPs spend their most time here
2. 1. Target lead generation with custom Instagram landing pages since a website does not exisit.
3. Target google search and youtube: My ICPs spend their most time researching here.
4. 1. Target high volume searches with low competition
   2. Capture leads with built in forms
5. Build a formal referral program. My customer are already actively referring, I want to turn them into brand advocates.
6. Invest in paid content with leading travel blogs, seeding the lead generation form within the pages
7. 1. Example: "20 things to take to your next Ladhak trip"
8. Developing the official company website and creating content to drive organic growth.
9. Partner with travel influencers, giving them free trips in exchange for a YouTube video promotion of the company.

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Channel Selection Framework:​

Out of the above, only Instagram ads are being used today. The rest are intended to be experiments. We will use this framework to decide how much money to allocate and which ones to prioritise during execution.

Instagram Ads

Current CAC: Rs 833 (~ USD 10), the company spends USD 600 in ads and gets around 60 customers

LTV: Rs 44,000 (~ USD 530), average cost of a trip is 22,000 a customer at minimum takes 2 trips.

Ratio 53:1, which is a great sign, probably means that we are underinvesting and we can grow faster by increasing marketing spend.

1. Change the current goal of ads from driving engagement to generating qualified leads.
2. Dividing lead generation into 2 different strategies
3. 1. Instant Forms
   2. Calls

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Google Ads

Currently, no Google ads are running. We want to start small here to see how we get conversions. We will be using performance max campaigns to increase results.

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Target 1 (Google Ads): People looking for Adventure

Demographics: People aged 25–35, college degree, working professionals, urban areas

Interests: Adventure Travel, Backpacking, Cultural Experiences, Budget Travel, Social Media (Active on travel forums & blogs)

Search terms to target: group travel, backpacking trip with friends, best tour packages, best places to travel 2024

Goals: Lead generation

Sample Ad Copy

Headline: Ladakh backpacking trip with friends

Description: Escape to to the stark beauty of Ladakh, explore snow capped mountains and scenic lakes. Explore nature at it finest, Expertly planned group trips for budget-savvy adventurers. Free consultation!

Call to Action: Plan your dream trip today!

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Target 2 (Instagram Ad): People looking to meet new people through travel

Demographics: Age 20-30, College Students/Young Professionals, Following Travel Influencers

Interests: Instagrammable destinations, festivals, food experiences, concerts, events.

Targets: Lookalike Audiences based on existing customer profiles or travel influencer followers, Hashtags related to #travel #travelgram #travelsquad #groupadventure #wanderlust #squadgoals #travel #travelblogger #traveladdict #igtravel

Goal: Lead generation

Sample Ad Copy

Images: Stunning image carousel of pictures from previous trips.

Description: Create memories that last a lifetime with a group trip to Bali. Explore, party, relax, make memories. Let us handle the details.

Call to action: Call us to know more!

Target 3 (Both Google and Instagram):

Demographic: Aged 30-40, High income/double income, professionals

Interests: Group getaways with friends and family, experiential travel, Active life style, off the beat destinations

Search terms: unique experiences Bali, off beat Ladhak, group travel packages.

Goal: Lead generation.

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Sample Ad Copy

Headline: Join us for an unforgettable Thailand adventure!

Description: Forget tourist traps! Explore ancient temples, swim in hidden lagoons. Learn how to cook the local cuisine. Exciting group tours to Thailand designed for curious minds.

Call to action: Discover Thailand your way. Book now!

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Referral Design

Triggers for referral

User Story 1:

1. User sees Travelling Pandas ad or is referred by someone
2. User booking a group trip
3. User has good time on trip
4. User is sent a quick survey via email rate their experience
5. User rates 5 stars
6. User books another trip

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Trigger for referral: 5 Star rating

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User story 2:

1. User sees Travelling Pandas ad or is referred by someone
2. User booking a group trip
3. User has good time on trip
4. User is sent a quick survey via email rate their experience
5. User ignores the email
6. User books another trip

Trigger for referral: Booking another trip

Referral Flow:

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1. Platform currency: travel credits; 1 travel credit = 1 rupee. Coupons, Cash in bank
2. Once the user reaches a trigger point, they are sent an email with a link to the referral portal
3. They are then asked to refer one for more friends.
4. The referral will be staged with with the following rewards:
5. 1. Get 1500 travel credits for 3 referrals
   2. Get 2500 travel credits for 5 referrals
   3. Get 5000 travel credits for 10 referrals
   4. Get 50% off coupon for 15 referrals, to be used within the next 3 months.
   5. Get a free trip under Rs. 25,000 for 30 referrals, to be used within the next 3 months.
   6. Once someone reaches the 50 mark, they can then become agents, and agents get 5% cash for every referral.
   7. Once an agent reaches 100 referrals, they become a preferred partner. A preferred partner get direct access to all the partners of the company (cabs, hotels for specific locations)
   8. Preferred partners can then build their own packages and run their own trips.
   9. 1. Partners will be trained by travelling pandas.
      2. All packages will have to go through reviews.
      3. They will keep 80% of the money earned from the trips, and 20% will be given to travelling pandas.
      4. The Travelling Pandas portion of the share will drop by 2% every year until it reaches 6% and will be capped at this.
      5. All trips will have to be done under the Traveling Pandas brand name.
      6. All payments will flow through the Travelling Pandas payment portal.
   10. Each partner will be restricted to a specific destination until they don't complete 100 trips to that location.
   11. After 100 trips they can then move to the next location with the same 80/20 revenue split with the 2% drop in share every year until 6%.

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Organic Traffic

1. To build organic traffic the company will start with creating a website.
2. Hiring freelance writers to add content around different destinations that the company serves.
3. Each content will end in tour packages for upcoming tours to the destination.
4. Video journals will be created with highlights from each batch per country and composed into a single video. These video journals will be constantly updated.
5. Video testimonials will be created from the most highly activated users from each trip and directly added to the Instagram feed.
6. Instagram feed will be upgraded to add more pictures of actual travellers and quotes from their experiences to add more social validation and build reputation.
7. Merchandising will also go a long way in brand building. Creating souvenir tshirts, key chains, maps, pins of specific locations with Travelling Pandas branding.
8. 1. Some merchandises like bag pins will be given off for free in every trip.
   2. Others like maps and tshirts will be included as an optional buy with minimal price. Thsirts not more than Rs 400 (USD 5.00). Maps not more than Rs 250 (USD 3.00)

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Travel blogs

1. Partner with leading travel bloggers from India to create unqiue promotional content.
2. List of top travel bloggers in the country (reference only)
3. Bring bloggers on free group tours with content as exchange.
4. Pick the top 2 travel bloggers in Tier 1, Tier 2 and possible event tier 3 cities, with instagram following between 8-20k.
5. These budding explorers will be happy to travel in exchange for content while they build their own career along the way.
6. This target audience will be easy to work with compared to more established ones.

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Execution is the key to success!

1. Increasing competition: As overall demand for travel increased many more companies are likely to enter the market.
2. Regulatory changes: High volumes of international travel could leading increasing taxation on international spends.
3. As Travelling Pandas continues to expand its operations to more destination cost will mount.
4. Focusing on customer experience and limitings losses will be key to success in this phase. It is very easy get carrier away by dreams of rapid expansion.
5. The company has to double down and build an excellent operations team.
6. At least 1 social media expert and 1 content writer need to be hired to begin with.
7. If not a direct hire then the team should get a freelance SEO expert onboard.

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