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SUSHIL RAI
make my trip.COM
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MAKE MY TRIP - Avitel Post Studioz Ltd..flv
AGENDAHISTORY
PRODUCTS OFFERINGS
BUSINESS MODEL
TECHNOLOGY FRONT
TRAVEL AND TOURISM
COMPETITIVE ENIVIRONMENT
STRATEGY
VIEW OF CONSUMER
BRANDING & PORTFOLIO
TARGET CUSTOMER
REVENUE SHARE
CAMPAIGN DESIGN
Deep KalraFounder & CEO, MakeMyTrip.com There was a time when Indian families would plan their annual trip six months in advance, after spending long, sweaty hours queuing up in front of ticket booths. It sure wasn’t easy. Today, the rise of Internet credibility coupled with falling rates of air travel has helped OTAs catapult to glorious success. And with a turnover of Rs 2,200 crore, MakeMyTrip.com has been a pioneer in the OTA success story. With over 50 percent market share, it’s the single most recognized and trusted player in the OTA industry
HISTORY• Conceived and founded in 2000 by Deep Kalra, MakeMyTrip.com began as a small
start up in Delhi focussing on the non-resident Indian (NRI) market – specifically on people seeking an economical ticket to visit home.
• MakeMyTrip.com made its India debut in September 2005 with its Lowest Airfare Guarantee.
• MMT recorded sales of Rs. 1000 crore and break even in 2008.• A 50% growth was a stunning achievement for a company less than ten years old.• Today, it commands an impressive 4% share of the NRI travel business to India
pegged at US$ 1 billion (Rs. 4800 crore).• MakeMyTrip.com soon diversified its online travel offerings to include domestic
and international holiday packages and tours, as well as domestic and international hotels.
• It aimed to offer a range of best-value products and services along with cutting-edge technology and dedicated round-the-clock customer support
INDIA OPERATIONS• A decision was taken to launch the India website in September 2005.• A time when low cost carriers (LCC’s) had made air travel cheaper.• There was a need to provide a platform for buying and selling travel
products/services.• Indentified the gap between demand & supply.• Decided to offer a user friendly and conveniently online interactive to the
consumer.• Received an investment of US $8 million (Rs 352 million) from SB Asia
Infrastructure Fund. • Within a year of its launch MakeMyTrip has acquired over 200,000 delighted
customers and sells over 3000 flight tickets, 200 hotel room nights and over 50 holiday packages every day.
• The site attracts over 1 Million unique visitors every month according to WebSideStory, HBx Analytics, an independent traffic-monitoring agency
MakeMyTrip’s Offerings
• International and Domestic Air Tickets, • Holiday Packages and Hotels• Domestic Bus and Rail Tickets• Private Car and Taxi Rentals• MICE (Meetings, Incentives, Conferences & Exhibitions)• B2B and Affiliate Services
B2C BUSINESS MODEL
WEBSITE / MOBILE UI
STORE / TRAVEL AGENTSCALL CENTER / TELE AGENTS AGENTS
CONSUMER
BUSINESS MODEL
OFFERINGINTERACTION
INTERFACE
SEARCH ENGINCEBOOKING FACILITY
CRM
AIRLINE TICKETS HOTEL RESERVATIONS
HOLIDAY PACKAGESRAILWAY TICKETS
BUS TICKETSCAR RENTALS
CUSTOMER CARE SUPPORT
MAKEMYTRIP.COMMAKEMYTRIP STORE
WEBSITE INTERFACETRAVEL EXECUTIVES
CALL CENTERS
SYSTEM
BUSINESS MODEL• There were key enabling components: supplier, relations,
technology process and people.• The earlier experience in the US indicated that strong
relationship with suppliers run the business model.• MMT had already developed proprietary technology which
would help it link all supplier sites to check the inventory and compare prices.
• The company’s own products would generate adequate revenue without depending on revenue generated from selling advertisement space.
• The other key component would be employees having domain specific skills.
TECHONOLGY FRONT• MakeMyTrip.com is fully powered by Amadeus.• MMT had been operating its international bookings engine on
Amadeus’s platform.• MMT decided to move its domestic airline booking engine onto
Amadeus platform as well.• The website uses Amadeus web services 2.0 – a second
generation, state of the art global technology platform that provides full access to Amadeus content.
• Amadeus Master Pricer, a cutting edge low fare search tool, helps customers to quickly and easily find options that suit their travel needs and budget.
• Amadeus also provides a dedicated 24x7 service team in India which is backed up regionally by an Asia Pacific support structure.
• SAIF Partners and MakeMyTrip Ltd have invested $18.5 million in iXiGO.com, a Delhi-based travel search engine.
TECHONOLGY FRONT• MMT has launched Apnaagent.com, a new B2B platform dedicated to strengthening
relationships with existing partners.• The company achieved gross bookings of US$ 742 million in the financial year ending
March 2011, making it a dominant player in India's OTA space. • OneAssist Consumer Solution has partnered with MakeMyTripto offer its ‘assistance and
protection’ products to MakeMyTrip customers.• OneAssist’s EveryDayAssist and TripAssist are particularly designed for travellers to secure
their wallet and smartphone data against loss or theft and protect them from worries related with such incidents.
• Estimated that an additional investment in hardware costing approximately $360,000 would increase the capacity of our technology platform to 1 million website requests per day.
• CRM system uses software by RightNowtm CRM, which integrates our sales, customer service and fulfillment operations.
• They also have “Verified by VISA” and “MasterSecure” payment gateways, which provides additional security for transactions via our Indian website using credit cards issued by Indian institutions.
• They have integrated ERP application (which uses Microsoft DynamicsTM) with CRM system which enables our agents to create packages, make and amend bookings as well as attend to customer inquiries.
TRAVEL AND TOURISM MARKET
• In 2004 Foreign tourist arrival in India grew at 26.8 % to reach 3.46 million and was projected to reach 7.02 million at the end of 2010. Currently FTA is growing at a pace of 7.4% till 2011.
• As per BOI, number of outbound visits has grew 44% within the span of 6 years totalling to 14.21 millions Indian nationals till 2011.
• Majority of FTA in India are from USA, UK and Bangladesh which constitutes 34.88 % of the total visitors population.
• Indian travelled abroad for three main reasons : Business, Leisure and visiting friends & relatives.
• Indians made almost 850 million domestic trips in 2011; this was about 46 per cent higher than that in 2005.
Business Travel and Tourism 2000 2001 2002 2003 2004 2005 2015
Personal Travel and Tourism 596.4 651 708 791 908.1 1034 3748.7
Business Travel and Tourism 101.6 94.2 86.8 96 114 134 402
Corporate 90 83.6 76.8 84.8 101.1 118.9 361.3
Government 11.7 10.7 10 11.2 12.8 15.1 40.9
Govt Expenditures - Individual 7.4 8.7 8.7 9.9 10.7 12.2 37.6
Visitor Exports 142.4 142 142 141.5 159.5 175.8 697.3
Total Travel & Tourism Consumption 949.5 990.2 1032.3 1134.4 1306.2 1490 5287.8
SEGMENTATION OF TRAVELERS
Competitive Environment• Yatra.com: was expected to be launched by 2006.• Cleartrip.com: was planning to enter the market by August 2006.• Supplier’s Websites: 75 percent of the airlines tickets were sold from airlines
websites.• Travel Agents and Tour Operators: In 2004, there were 23,450 outlets of travel
agents and 4450 outlets of tour operators in India.• Currently have a travel agents’ network in India which we started in 2009, where
approximately 9,300 travel agents across more than 700 cities and towns in India.
• In 2008, MMT launched “makemytrip.mobile,” our mobile service platform, which allow customers to search, book and pay for Indian domestic air tickets on their mobile phones at no additional cost.
• As of March 31, 2011, there were more than 35,000 downloads of this application.
• As of March 31, 2011, we had various travel stores in 19 cities including metropolitan areas across India, which primarily sell packages.
MMT’S Strategy • Expand Our Hotels and Packages Business• Expand Our Service and Product Portfolio to Enhance
Cross-Selling Opportunities.• Expand Our Travel Agents’ Network• Enhance Our Service Platforms by Investing in
Technology• Expand into New Geographic Markets• Pursue Selective Strategic Partnerships and
Acquisitions
Number of Credit Cards and Debit Cards in India
Travel Products Sold by Online Travel Agents
PRESENT MARKET SHARE
MMT’S View of the Consumer
• Short Lead-time for booking holidays (3-6 weeks).• Preference for pre-planned travel.• Attitude towards travel: giving importance to status.• Specific needs (e.g. dietary) because of their social /
religious background.• No specific language problems: many indian spoke
English.• Preference for familiar Indian food.• Preference for travel agents or tour operators for buying
travel products even though they offered limited choices.
MMT’s View of the Consumer
ENDURING BENEFITS
STRONG ENTRENCHMENT
IN THE MIND SPACE
VISITS TO SITE AND
PURCHASING
REPEAT VISITS AND PURCHASE SATISFACTION
VIRTUOUS CYCLE
BRANDING AND POSITIONINGValue Proposition
• Empowering the travelers with rich information.
• Offering travel superstore: buy multiple products across multiple brands.
• Providing opportunity for instant booking with real time purchase of all travel products, tickets delivered at doorstep.
• Ensuring convenience of buying anytime and anywhere.
• Ensuring transparency and reliability.• Offering 24x7 customer service.
Anticipated Outcomes• Redefining travel products
distribution network.• Building efficiency in sales and
distribution to pass on benefits to the customer.
• Providing technology that brings about convenience between offline and online processes.
• Enhancing the reach of the travel and tourism market to remote locations.
• Tension free travel related product buying.
• Hassle free service experience.
CHOICE OF TARGET CUSTOMER
• Males living in Metros• Age group 24-44 years• Who are married• With a monthly household income of over Rs 30000.• From families which were internet savvy.• With usage beyond email.• Transacted on the internet before.• Deal Hunters• Early Adopters.
REVENUE SHARE FROM OFFERINGSAIR TRAVEL HOTEL & PACKAGES OTHER SEGMENTS
•Domestic: Within India•International : From India•Inbound: Overseas to India
• Hotels: Domestic & Int’l•Packages:-Domestic and International-Conferences and Events
•Rail•Bus•Car•Ancillary Services/ Products
•Transactions: 2,824,600•77% of Net Revenues
•Transactions: 175,900•20% of Net Revenues
•Rail Transactions: 185,948•Bus Transactions•3% of Net Revenues
CAMPAIGN DESIGN
• Mission:
Grab the attention of the consumer and inform about MMT’s USP – “lowest air fare provider”.
• Message:
The underlying factors behind the advertising campaign were that customers were dual hunters and looked for the cheapest price with assurance.
The campaign focused on the lowest airfare guarantee to push trials. “If you find a lower fare we pay the difference”- campaign was designed to
serve the purpose of grabbing the attention.
CAMPAIGN DESIGN
40
30
5
5
515
TVWebPrintOutdoorBTLPR & Others
•Money: Rs 30 million on advertising and marketing activities during three months launch phase
Awards and Recognitions
• Travel & Business
• Best Domestic Tour Operator - Times Travel Honours 2011• Best Online Travel Service Firm - Times Travel Honours 2011• Great Places To Work 2011 - 3rd Best Company to Work for & #1 in Professional Services• Superbrand India - 2009-10• Great Places To Work 2009 - #2 in Professional Services• Best Travel Website - CNBC Awaaz - 2008-09• Most Visited Travel Website - comScore - 2005-09• Most Preferred Online Travel Agency - Travel Biz Monitor Survey - 2008• Number One Online Travel Agency - JuxtConsult - 2008• Gold and Silver - Abby Award - 2007-08• Among the Top Ten Websites visited by Indians - comScore - 2007• Nominated World Travel Awards - WTA - 2007• Among 100 IT Innovators - NASSCOM - 2007• Best Online Travel Company - Galileo Express Travel World - 2007• Emerging India Award - ICICI Bank & CNBC TV18 - 2006• Asia's Hottest Technology Startup - Red Herring - 2006
Awards and Recognitions• Airline
• Singapore Airlines - Top agents award 2010-2011• Malaysia airlines - Top agent award 2010• Malaysia airlines - Top agent award 2009• Cathay Pacific - Outstanding performance in 2009• Air Canada - Outstanding Performance - 2008• Singapore Airlines - Top Passenger Agent - 2007-08• British Airways - Outstanding Revenue Contribution - 2007-08• Air Mauritius - All India Top Ten Agent//Top North India Sales Award - 2006-07//2007-08• Cathay Pacific - Outstanding Performance - 2007• Malaysia Airlines - Top Agent Award - 2007• Lufthansa - Outstanding Performance - 2006-07• Kingfisher Airlines - Outstanding Performance - 2006-07• Indian Airlines - Achieving Highest Domestic Passenger Sales - 2006-07• Air India - Outstanding Contribution to Passenger Sales - 2005-06• Jet Airways - Award of Excellence - 2005-06• Gulf Air - Continuous Support
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