Market Potential Analysis of E-Rental Business for Travel Equipments in Thailand

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Kornparn Khormun
Supatcharajit Jitpraphai

Abstract

          Travel overseas is a beneficial activity to explore new experience and different cultures. There are necessary several expenses that travelers have to pay for their overseas trips such as accommodations, airfare, local transport and dining etc. Moreover, cost of travel equipments including oversized luggage, seasonal clothes and accessories are added cost. It is not value for money to spend for these equipments which are needed only a short period of time. Thus, it is an idea to start up a rental business of travel equipments via the Internet in Thailand to fulfill untapped needs of budget and infrequent travelers who have quality concerns. In this paper, the concept of sharing economy is critically discussed. Besides, 7Ps of the service mix is thoroughly reviewed in data analysis. The objective of this study is to explore market potential and possibility of this business. A quantitative method is carried out via online questionnaires to gather information about customer needs and business environment for strategic planning of the E-rental business. In addition, some entrepreneurs of rental businesses concerning travel equipments are interviewed to enhance the understanding of consumer behaviors. The findings indicate that there is a limited business potential. However, an enormous size of target market and other significant factors sufficiently make this business attractive to SME entrepreneurs or investors. The business offers a new option of equipment service for travelers. It provides a unique experience with a service standard. To be successful, the business requires a proper strategy to attract prospective customers and compete against competitors or substitute products in the online rental service.

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