DILIP SOMAN, ATUL WADHWA, AND BHAVNA HINDuJA

" " MyTr i p.com

, , " i , 'cs portal, has demonstrated spectacu lar resu/ ts in, the first few years of
" the future brings new challenges in their quest for growth. Should they
I""lu: player and develop new value-added services, or should they look to
, ,''\lIIcnts? Should they change the business model and look for new sources
"/'( l/( /U S that they cannot grow by doing more of what they've been doing,
the question is-what do they need to do next?
It t ,01MakeMyTrip (India) Pvt. Ltd. (MMT), glanced contentedly at vari-
, I,,, it'Sabout his fledgling company displayed on abulletin board in his
, 1\1MT is an online travel company focused on the leisure and small-
t~~', '"Iling to India. In its very first year of operation in 2000, MMT had
Iddi,' , l.irgest e-commerce company. Presently catering to the lucrative
1;;,11.1,,'(NRI) market in the United States, the company aims to tap the
1111),." US$1.5 billion NRI market worldwide. As Kalra looked back at
11,,,1MMT had passed along the way, he stumbled on a headline that
I" .rctive business-man's attention:
,., I bookings up 250 percent in FY '03 ( The Economic Times, May 15,
[." 111IH'dthrough the article, he thought about several strategic ques-
II I I continue to target NRIs? Or, should they expand horizons and
'1/' I"mist market from the United States, the United Kingdom, and
. . ,1 , I lite company continue to be an India-focused company, or was it
'ilI;,;1 III",about competing with global giants like Expedia and Travelocity?
11\1" kd i n India
Illurism industry has been booming due to a rush of foreign tourists
"I by Indians to domestic and overseas destinations. Currently, it is
,p,I,,',lry. In 2003, the number of Indians traveling abroad increased by
!iJ [lltll,on. A recent surge in the Indian economy had raised middle-class
'I,'\i",, more households to spend on vacations abroad or at home. At the
11:,i; i' ,'mergence as a global information technology hub and an aggres-
IIIIJl<lignby the government are credited with changing India's image
",,,01of snake charmers to a modem economy, consequently sparking
I' ,'rSl'as travelers. Moreover, domestic tourists are also fueling the
)1 III the recent past, domestic airfares in India had been substantially
1\)1', percent. However, the industry is awaiting a revision to the dollar
ii"lll" regulation applicable for inbound travels. As a form of price dis-
j(,. III!"" who travel abroad can purchase fares in Indian rupees, while NRIs
j lil,II.11I Origin (PIOs) have to buy tickets in dollar denomination. This
.t ','/1 as a constraint on further growth in the demand for travel.?
hy Dilip Soman, professor of Marketing and Corus Entertainment, and of
./:,'\ "lid Atul Wadhwaand BhavnaHinduja, Class of 2005MBAstudents, Rotman
I ,rlllvcrsityof Toronto.It ismeant tobeusedasabasisforclassroomdiscussion, and
I,d,' effectiveor ineffectivemanagement situations. Copyright 2005DilipSoman,
, . i l linduja.
, ",,"-resident Indians, thetermused todescribepeoplewho hold Indianpassports,
"" , ""lI1tries for taxand employment purposes. If theseNRIsdecideto takecitizen-
I "''',' ries, theyceasetobeNRIs.However, under anewGovernment of Indiascheme,
, r'It )(Persons of Indian Origin) status, whichgives themmany of thebenefitsavail-
\ 'Il(4), "Travel,TourismIndustry AwaitsRevisioninDollar DenominatedAirfares"
""",\ ,imes.com/2004/0l/23/travel-top.html).
523
524 Case 6 MakeMyTrip.com
The distribution of travel services in India is fragmented and prCdtlill"
retailer based. Though there are a few national companies, most are small, ill'!t I" ,
businesses. While airlines, railways, hotels, and car rentals supply their trawl '
to the industry, the consolidators, travel agents, and online travel portals . III,
these services to the customers. The travel industry has experienced drastic ,1110 I I
in the manner in which airlines sell their tickets. In the 1990s, airlines depend- I''''
solidators (who sold to agents/dealers for retail sales) for most of their li~I, I
With all major international airlines reducing commissions, consolidators II 1,,1 I,
agents across the country have tightened their belts. The fact that airlines h,t ' I I
undercutting fares on the Internet suggests that agents may soon become ndlll, I
Currently, margins are being squeezed and airlines are using the Internet to n.11 I,
elers directly, thus eliminating the role of a consolidator. Airlines receive ]5 I"I
their business through Internet sales. As a result, retail margins have reduced I,
cent for individual travelers. Travel agents sell airline tickets at cost to corpor.u- !,
ers, charging a 1 to 2 percent service fee and have expanded their travel servr.- II
ings to hotel bookings, car rentals, and tour packages in order to earn profits II' II
segment.
A study suggests that India's Internet population is around 46 mill ,Ii II .
However, these users predominantly use email applications, but don't condu. I' .
transactions.I Even so, online travel bookings in India have witnessed mo II,
250 percent jump to 50,000 bookings from 2002 to 2003. In 2003, online travel gt'l" I
US$26 billion in sales and 12 percent of all travel services were bought on the IItI, ,
This percentage is expected to reach 30 percent by 2008. However, out of a tot. il "I,
20 million air bookings in India every year, online travel bookings constitute- .,
miniscule portion. High cost of e-commerce, lack of proper systems, and low aW .11' ,
are the main obstacles to growth of online bookings. Equally so, the disinterrn. IIII
of the travel industry is a double-edged sword for travel portals. While it leads 1,1 I. io
deals on the Internet, something realized by most customers today, travel pOI t. tI I.
stiff competition from travel service providers, such as hotels, that guarantee l(t III
the discount received from intermediaries.
Makemytrip: The Company and the Product
MMT offered competitively priced travel products, supported by real-time bookin. . 'I
bility, convenience, and stellar customer service, and had generated a turnover 01 I'
million (US$O.5 million) in its first four months of operations. The portal (see I: htI1 I
provides its customers the entire gamut of travel services through the Internet by 11'\ I
ing other technologies. In addition to airline tickets, MMT offers over 1,500 dlllll' l-
and international hotels at negotiated rates, hundreds of attractive holiday P'" I"
car rentals, trains, and cruises for Indian as well as international destination: II
unique feature of the portal is that it allows online booking and confirmations. I''''I' I
the-clock customer support, online Web chat and a toll-free number. MMT is OIH' ,.r "
few travel service providers that acknowledges the fact that inbound travelers pit I. ,
agent at the destination rather than the origin, which gives MMT the added adv.ut .
over other travel agencies. They have recently soft-launched www.indiaahoy- \""
business-to-business (B2B) site offering Indian hotels and tour packages for 1111, It
tional travel agents in Australia.
MMT bundles its basic travel reservation offering with travel insurance, ill' \
business lounges in India for all travelers, and valuable shopping discount bot" I, I
Apart from these basic services, MMT believes that it offers an unsurpassed Cll I, '"
service experience through a variety of media. Their customer service represeur.u.
(CSRs) are accessible 24/7 throughout the year through their toll-free numb. I
India as well as the United States. The CSRs are equipped to handle almost all\ ,"
tomer questions, including questions about flight schedule changes, itineraries. ii, .1.
3"India's Net Population Will BeSecond to China's by 2006," Courtesy: NASSCOM: Strategic 2001I,. ,.
The ITIndustry inIndia (http://www.financialexpress.com/fe_full_story.php?contecUd=59545).
Case6MakeMyTrip.com 525
#1.1
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, -IIIUIT 1 The Makemytrip. Com Web Page
IIInigncurrency exchange rates, and time zone differences. CSRsrecon-
-I"1.1'. 72hours before departure. Theportal is aone-stop shop for all travel-
f "'''I 1 II,Iiion. It offersinformationabout travel-related issues likevisas, passports,
, 11.,\,(,1, and finance(incollaborationwith aretail financial servicescompany).
Idll', Ih. lt it is different fromother Indian travel portals as it provides value-
I' '"". 1ikeafreedrop andpickup cabfor itsclients. Thecompany goestheextra
. _". . ",d . "1 ,1 \ . rluc toits customers' travel experience during their visit toIndia with its
1 \ '1 '" promotional program.f
1\1,",-. Model and Operation
!1111 NI~Iand international market, MMT has created a network of offices in
'II. . ~umbai, and New York.In addition, it has appointed franchise partners
III", ities in the United States, the United Kingdom, Australia, and India.
I,,. IIl',lVilyon itsnetwork of leading tour operators toprovide travel-related
"' huliaand over 30international countries. Moreover, thecompany exploits
. . ,I"'IIu-chnology, using India's natural cost advantage toservice its customers
'dCarrots Loyalty Services (a service provider to MMT) has specially tied up with exclusive
",,' welLknown establishments that provide discount coupons and freebies for MMT's customers.
based in high-cost economies. Kalra attributes MMT's success to the SOLI I"I 1'.
strategic decision totarget NRI customers and subsequently supplementing II \ ,I ~
depth knowledge of this target audience, coupled with rigorous processe~11,,1
trade relationships. MMT's operations arerepresented schematically in Exhil:
The sales team consists of three divisions-Internet sales, corporate ..d,
general sales. MMT ensures a dedicated set of executives to service the sop! \, -
corporate and general sales business. Tnterms of human resources, Kalra blII' .".
promoting fromwithin tofoster individual growth within theorganization.
MMT believed in the "no-individual-sales-target" model to ensure high I,
customer service that may get neglected in a drive to compete for sales. Serv 10, o:!i
(for schedule changes, following up on reconfirmations, itinerary confirmat'1\
are estimated to form40 percent of the total calls received. Instead of alloca1111' ,,~
vidual sales targets to its sales staff, MMT sets adaily sales target for the en1111 I. b
that is divided proportionately among the three shifts. In general, the nil',I,1Ll!
achieves 55to60percent of thedaily sales target due totimezone differences. III..
to encourage teamperformance, MMT rewards all itsemployees upon achiev.-.
the company's sales target; such rewards form10to 15percent of an ernplovo I
package.
MMT operates as two separate entities: MakeMyTrip-India and MakeMy1111 '
(USA). Due to cost and labor advantages, MMT-India offers call center facd.I,.
MMT Ine. However, most airlines traveling fromtheUnited States toIndia do 11,,1 \
mit tickets to besold in India for travel originating outside thecountry-this 1"'1'
MMT Ine. tosource ticketsfromconsolidators within theUnited States. A transu- I
ingmechanism has been set inplacethat allows MMT-Indiatobill MMT Ine. f(l! ,II
services rendered and tickets sourced inIndia, when permitted. Thus, both COIIII' ,.
filetheir individual balance sheets in therespective countries.
Sumit Gupta, Head, Financeand Accounting, believes that MMT's profital-uu
directly linked tosales volumes. MMT's current revenue model depends heavilv ..,.
USoperations that generate about 90 percent of its sales, while the Indian OP'i.II,
526 Case 6 MakeMyTrip.com
OnlineInterface with MMT Offline (after sales) Interface
Makemytrip. com Interface
Real-TimeAirline
Book:
BackendOperations
MMT
Operations
t
Hotels
EXHIBIT 2 MMT's Business Model and Operations
;-~".::
. ~--. :~~'. ~
~':-:..~~
_ _ _ : ~F ~ ~'$!1~'
"
Case 6 MakeMyTrip.com 527
III,'only 8 to 10percent. MMT's Australian initiative is still in its infancy, con-
percent of the company's turnover. MMT is funded primarily by private
dhless than 5percent of bank loans (usually overdraft associated with day-to-
".!lions). In order to minimize costs and ensure high levels of customer
I"III,MMT is in the process of making key investment decisions. One of the crit-
iments considered by MMT is the setting up of an entity that will allow it to
IIIkets directly from airlines, thus eliminating consolidator fees. The initial
, ,'lit required for this initiative is estimated to be in the region of US$300,OOOto
'" '11(JIl, and it is expected to translate into savings of 2 percent on air tickets
I trorn consolidators. Further, in order to address existing operational issues and
, Ihl' team's efficiencies, MMT is planning to make a series of investments in
I ')',Iealadvancements in the region of US$200,OOOin 2004 and US$300,OOOin
I , \ (If Joshi, Chief Operating Officer, is particularly interested in the movement
!. ", iu. itions in the distribution costs of the airline industry. Due to increasing com-
., III the airline industry, the market has seen the airline ticket distribution costs
>I, Ifrom 9 percent to almost 0 percent in the past decade. Direct sales to cus-
ihrough the Internet contribute to 30 percent of an airlines' total revenue. The
IIIIIustry, even today, relies heavily on travel agents and other distributors for
,. II of their sales. On the same note, travel agents have come a long way, altering
II ve-nue model from commissions earned from consolidators and airlines to
~. '")',service fees to customers for their ticketing services while investigating best
>I,droutes. Typically, a customer pays between US$1Oand US$20 to the travel
. I "" hisservices.
\, uvities with various suppliers (e.g., consolidators and airlines for tickets, hotels
,. ",dguides and rooms, taxi operators for car rentals) need to be coordinated and
i , . i package to customers. With the size of operations increasing manifold, there is
IlIgneed for asoftware system that integrates various departments within MMT
..lilly. Moreover, although MMT has serviced 30,000 NRIs in the United States in
I, I threeyears, it does not track repeat purchases. MMT is currently implementing
, uuner Relationship Management (CRM) process that will allow it to track
. "', 111 its customers' buying and traveling habits.
IMTprovides its customers with three modes of communication to reach MMT's
.ustomer service team---emails, Web chats and toll-free numbers. Emails and
I ,".ions are saved in MMT's system for constant monitoring of the service quality
II'<Ithecustomers. All phone calls are recorded for quality control purposes. Each
" Ihl' four Assistant Sales Managers randomly listen to 15to 20calls serviced by
t "desexecutive over aspan of two weeks to provide them with critical feedback.
"I, Cautam, Deputy Manager, Quality, is cognizant of the fact that although this
. helps address the quality of customer contact, MMT currently lacks asystem to
u.ucly customer follow-up. Another cause of concern for MMT is the turnaround
I ikcnby the sales executive to resolve acustomer issue or query. This delay is due
u.. inaccessibility of relevant information required by the sales executive. This
1Il,'liontypically needs to be gathered from various departments to ensure satis-
I\ customer service.
. '''Iller Segments and Advertising
III'Iian travel market can be classified into two broad categories-"international
1"ls"(those crossing international borders) and "domestic travelers" (those travel-
uhinIndia). The international travelers can be further classified as "inbound trav-
(those who travel into India from overseas) and "outbdents of India who travel
Il.ilionally). Domestic tourism is growing, and this seems to provide agood oppor-
I lor technologically advanced travel portals like MMT to focus on customer loy-
nul maximize the Internet's ability to drive repeat purchases by getting instant
I,'lIlt'f feedback. Convenience and good deals fueled by changes in lifestyles of
j,1I1',have changed consumer behavior toward transacting on the Internet.
n cr, the Indian domestic traveler is susceptible to a number of constraints that
528 Case 6 MakeMyTrip.com
makes this segment difficult for MMT to penetrate-namely, lowPCpen
quality of dialup access coupled with increased competition among In
Providers (ISP ) that lead to cramming ahigher number of users with th
width at the backbone. Moreover, the absence of proper cyber legislatio-
international standards isinhibiting credit card usage ontheInternet.
Intheoutbound segment, there arecurrently sixmillion Indians tra-
from India (up fromfive million last year). Countries in Asia Pacific(e.
Malaysia, Hong Kong) along with acouple of Middle Eastern countries re
ferred tourist destinations. However, one of the critical challenges faced
catering to this segment is that of extremely high price sensitivity an
competition fromtraditional brick-and-mortar travel agents. Whilethera
adoption in India is healthy, most people are still hesitant to make pure
Internet.
Theinbound market in India in 2001-02was 2.42million arrivals. TI
further segmented into six broad categories-holiday and sightseeing, bi
elers, conference attendees, students, visiting friends and relatives (VFRs),
Exhibit 3gives details on the NRI populations worldwide. Although resid
ous parts of the Middle East (UAE, Oman, Bahrain, Saudi Arabia, Kuwait
the top of thelist of NRIs traveling toIndia, thoseresiding intheUnited Ki
the United States are an important group for MMT. The fact that 90pe
NRI/VFR segment plan their trips inadvance implies that sales fromthis~
fairly stableand predictable. Theremaining 10percent areemergency cases
mates that an RI/VFR traveler spends approximately US$I,200per pers.
most of which is the cost of the air ticket. More recently, there has been ar
trend among RI/VFR travelers toexplore India and takeshort vacations
ing their family. This provides MMT with another opportunity to serve th
within India. MMT estimates theaverage spends of this group of RIswlu
takeshort vacations within India to beclosetoUS$I,800per person. Finallj
mate that anon- RI traveling to India would spend approximately U5$2,21
son. However, hotel quality and capacity in India remains an issue if MMT
target larger segments-it isestimated that LasVegashas 130,000room-night
India has only 120,000room-nights, of Four- or Five-star hotel standard.
The RI population in the United States has doubled in the past
currently, it ishome toover two million NRIs, of which 67percent havetravel
onceover thepast two years. Thepopulation figureisexpectedtogrowat 10F
year. Over thepast few decades, NRIs residing in theUnited Stateshaveund
identity shift from"SouthAsians" to "Indian Americans" and thus, their buyiru
EXHIBIT 3: NRI Popu lati on and Ar r i vals
Cou ntr y of Resi dence NRI Popu lati on (i n Mi lli ons) NRls Vi si ti ng Indi a ('000) % of NRI Vi si tor s fr om I
Middle East 1 . 5
USA 2. 5
United Kingdom 1 . 5
F arEast and Southeast Asia 2
Sri Lanka and Nepal 1
Europe 1
Africa 1
Canada 1
Australia 0. 5
Others 0. 7
Total 12.7
308. 81
63. 50
57. 76
61 . 86
21 . 94
1 8. 63
1 1 . 23
8. 82
8. 36
1 1 6. 77
677.68
45. 57%
9. 37%
8. 52%
9. 1 3%
3. 24%
2. 75%
1 . 66%
1 . 30%
1 . 23%
1 7. 23%
100
Sources: December 2003, Deep Kalra's presentation in TiEcon Indian 2003; and Tourist Statistics 2002, Ministry of Tourism and Culture, Gove
of India.
Case 6 MakeMy~rip.com 529
lrongly influenced by the Internet-savvy American culture. A US survey done in 2003
1 . Ii, ated that 35 percent of travelers purchased tickets and packages online, which is pro-
,Iod to expand to 55 percent in the next two years. MMT has good reason to believe that
I'ls residing in the United States follow similar purchasing trends. It enjoys a 5 percent
1I.lIketshare in the top 30 NRI-populated cities in the United States. According to a study
-uducted by Simmons Research in 2002, the earning capacity of these NRIs has increased,
1 \ "raging US$88,000 as compared to the national average of US$51,900. Expedia and
h.ivclocity are major players in the US market.
In contrast to the situation in the United States, NRIs in the Middle East are pri-
"Idrily blue-collar workers or laborers, many of whose compensation package includes
"III' paid trip to India per year. These tickets are arranged by employers who source
tlwl11from a preferred set of vendors,making the Middle East a difficult market to pen-
.u.rte into. .
Initially MMT targeted all three markets-domestic travelers, inbound, and out-
Io,"md Indian travelers. Kalra felt that if they had relied entirely on the foreign tourist
"t.lrket, they would have been hit very hard by the fluctuating international market
.onditions. But today, he is very clear about the strategic focus on the NRI/VFR seg-
I1l1'nt since he believes this segment has tremendous growth potential. Moreover,
IMT's infrastructure-fully integrated back-office function, business-to-consumer
(1 I2C) sales model, lack of offices in India, service-oriented sales team, relationships
with airlines and consolidators, technology, etc.-have been built around the needs and
H'quirements of the NRI/VFR customer. Keyur Joshi indicates MMT's priorities in
u-rrns of customer segments as NRIs in the United States, the United Kingdom, and the
~liddle East, and American tourists/visitors traveling to India. Although MMT has
II'tldy access to the NRI segment in the United States; it is unclear if it should expand its
,dferings to NRIs traveling to destinations other than India. If they did, they would
have to compete with Expedia, Travelocity, and Priceline, who already have a large cus-
tomer base. Hence, these companies are able to purchase hotel nights and other travel
'('rvices in bulk and retail the same to customers. MMT currently does not have the
..(ale to bargain the same low prices with hotels and will, therefore, be expensive on
these routes when compared to Expedia. Kalra wonders if it is feasible for MMT to
move in this direction.
All the MMT advertising done in the United States is conceptualized in India.
I>evika Khosla (Head, Content) bases the company's advertising and communication
<trategy on three pillars--convenience of 24/7 service, reliability, and competitive pric-
IIlg(see Exhibit 4 for sample advertising).
In order to foster growth, MMT has formed strategic alliances with brands that
.ire associated with the Indian consumer in a unique way. For example, its offline
.illiance with Coke is based on specific promotion schemes, like the cricket series
played routinely in Sharjah. MMT also operates as the exclusive travel channel for
Sify.com and provides weekend getaways for Maruti Udyog (a major Indian automo-
bile manufacturer). Apart from these three prime alliances, MMT has also tied up with
matrimonial and pilgrimage portals.
EXHIBIT 4 Sample MMT Advertising
--------- ~. . -- -----. . . - . ._~_---- ~. . .------ ~- ~- ~- - - ~
< - :~ :oL ; ::::t.i:'
. :- - - ;:'-7'---
1 -1 "--:-- _
530 Case6MakeMyTrip.com
Consumer Behavior and Decision Making
A study carried out by PhoCusWright in November 2003 on "Exploring 1111
Travelers" found that consumers use the Webearly in the travel planning pron"" ,
immediately after deciding to take avacation.f The most common topics for Wd, I,
research are the vacation arrangements themselves (air ticket, hotel, etc.), follow-
destination information. Approximately half of the respondents indicated 111.11
start with flight arrangements first when assembling a vacation. Hotel and r(,III. J i
planned second and third, respectively. The study also revealed that flight an. I ,.
cars are the travel services most likely to be purchased online, while offline ell. ""
still dominate the travel activities category. Despite the availability of one-stop I,
shopping, consumers still tend to purchase different travel services on different
Fewer than 30 percent of consumers have purchased a travel package of some '.'."
summary, consumers in the US market highly favor online travel agencies ,II"I
tination Web sites for the purchase of vacation packages. A study conducted 1.\
Nielsen indicates that the reason why general sites like Travelocity and Expedi.. .11
popular is because the air travel category is so driven by consumer awareness II
ad recall fromcontinuous exposure to these brands ishigh, and their names arc 1/1,
to come to the minds of people who seek information on airfares.f
Competition
Ever since its inception, MMT has been the only travel portal focusing on the NI':III!
ket. This gives MMT a competitive edge over its international competitors SI" I,
Expedia, Travelocity, Orbit, and Priceline. MMT currently enjoys a2.55percent u. . : ,
share, and Mr. Joshi is of the opinion that even if domestic competition replicate- II"'.
model, they would find themselves on alearning curve in order to function effi. 1<'1,11
Moreover, MMT faces relatively less competition from US travel agencies becau- II,
only agencies surviving there are bucket shops-small agents with specific mark- i
or mega portals like Travelocity and Expedia that have only online oper.II"",
Companies like Expedia rely heavily on buying tickets in bulk at discount prio-. "
then reselling them at higher margins. The margins allow it to undercut its cornpvru.
outspend them for product development, and drive hard bargains with struggliru; "I
pliers. Expedia is known for its aggressive advertising campaigns that run ,I, 'I'
online, TV,press, and outdoor media to convey to its customers that it has all th ,.'."
and ideas to let travelers book aperfect trip online.
Moving On
As Kalra contemplates his next move in this ever-evolving online travel busiru-. (
thinks of the various options available to him. Firstly, the inbound and outbound 1101
national travel market in India is growing at the rate of 20 percent annually. Curuuu
inbound travelers pay avery high price for travel services since intermediaries sil . r. , ,
off 50 percent of their charges. Kalra feels that MMT is in a good position to 1 I~' iI"
Internet to reduce these distribution layers while retaining ahealthy 20percent 111.1'1 "
on travel services.
Secondly, MMT would like to move from a 90-10 percent split of revenue- I
tween air tickets and travel services to a 70-30 percent split. While only 20 percc.u , f
NRI/VFR travelers use additional travel services (e.g. car rentals), non-NRls arc III,. ,
likely to consume additional high-margin services. In light of the rising trend t(lll.,' I
exploring India besides visiting family and friends, MMT could expand the S,'I' ,. ,
offering to NRI travelers-by providing domestic tour packages in addition to II""
international travel-related needs, since the travel-related services offer higher m. u:
than ticketing services. The margins on domestic travel service vary across segml ,01
5YacationPackages: A Consumer Trackingand Discovery Study, November 2003, PhoCus Writht Ill'
VividenceCorporation (www.phocuswriht.com).
6A. c. Nielsen, Winning B(r) and Brand Equity Model, 20Q.!(http://www.imscart.com/hoteIJeserv .I.
software_artide_9.htm).
Case 6 MakeMyTrip.com 531
III travelers generate margins between 15 and 25 percent, the NRI/VFR
i r l!Ii'illl' margins as high as 50 percent. Kalra wondered what additional
I I,,,,ducts and services might be introduced into the product portfolio to
, \. dlll' from the NRI/VFR segment. Thirdly, the outbound international
,I, IISgrowing rapidly. Currently, MMT has its representatives in three
'1'111 (rom their corporate headquarters in New Delhi, and tapping this
"I. . r would require it to expand its operations within India. And, finally,
"'Id.llt'S the European market. MMT is most likely to face stiff competition
I, , .11111 Travelocity who are able to bargain deals with hotels and car rental
I. t- 1 on their large customer bases. However, they have not penetrated
I, "' Ill,lrket as yet.
I " sustain its business model by targeting only the inbound travelers, or
I ,,','(Ito look at other markets and segments? If yes, which segments would
'oI'"l1cnd? If no, how can they grow within the inbound segment?
, ,,1/<' .have never been core to MMT's business plan. However, MMT's role
'",'lllIg some leading NRI-focused brands suggests that this might be
, , ,'\ ,"lLIethat Kalra could investigate. Does MMT need to look at advertis-
, "'\ ('nue generator?
'''' J ', business model work in other countries, in particular China,
1"10' . ind the Philippines? Are there any differences in consumers and seg-
, 110 rlu-sc countries that would render the model inadequate? What might
I' ,I,,<hanged in other countries? Could MMT expand in a modular manner
I I" ,Ii Iflgtheir business with overseas residents of other countries?