COMPANY OVERVIEW

An online travel
service portal

Focused on the leisure
and small-business
traveller coming to India

Deep Kalra, CEO of
MakeMyTrip (India)
Pvt Ltd. (MMT)

Objective to tap the
potential of the huge US$1.5
billion NRI market worldwide

THE TOURISM MARKET IN INDIA
Increased number of foreign tourists & increased travel by Indians to
domestic and overseas destinations.

In 2003, the number of Indians traveling abroad increased by 30% to
4.5 million.

Airlines receives 15% of their business through Internet sales.

In 2003, revenue generated $26 billion & 12% of travel services.

MAKEMYTRIP: THE COMPANY & THE PRODUCT
Offer competitively priced
V travel products – real time
booking capability.

Offer travel insurance, access to
V business lounges and valuable
shopping discount booklets

Entire facility of travel
V services through Internet.

V

Addition to Airline ticket,
MMT offers Hotel booking,
V Holiday packages, car rentals,
trains & cruises for Indian &
International destinations.

MMT launched www.indiaahoy.com a
B2B site offering Indian Hotels and
V
tour packages for international
agents

Allows online booking and
V confirmation, online Web
chat and toll free number.

Provide value added service like a
V free drop and pickup cab for its
clients

Also offers information visas,
passports, insurance, travel & finance

THE BUSINESSS MODEL & OPERATIONS
1

Created network of offices in New
Delhi, Mumbai & New York

2

Appointed franchise partners in US, UK,
Australia & India

3

Operates to separate entities:
MakeMyTrip - India & MakeMyTrip Inc.
(USA)

4

Three modes of communication to
reach sales/customer service team –
emails, Web chats and toll free number

Corporate
sales
Internet
sales

General
sales

Sales
Team
Daily sales target for the entire team

THE BUSINESSS MODEL & OPERATIONS
Constant monitoring of the service quality given to the customer
Lack a system to track timely customer follow-up

CONCERNED
AREAS

Delay in resolving a customer issue or query
Tracking customer buying and traveling habits

Technological advancement

Offline (After Sales) Interface

Online Interface with MMT
MakeMyTrip.com Interface
Real-Time Airline
Booking
Hotel Reservation
System

Customer

MMT
Sales (CRSs)

Car Rentals
Interface

Backend Operations

MMT
Ticketing

Customer

MMT Sales

Airlines

Consolidators

Web Site
Content

MMT
Operations

Car Rentals
Hotels

Tour
Operators

Net Carrots

Fed Ex

CUSTOMER SEGMENT & ADVERTISEMENT
Indian
Market

International
Traveler

Inbound
Traveler

Holiday

Business
Traveler

Conference
attendees

Domestic
Traveler

Outbound
Traveler

Students

VFRs

Others

CUSTOMER SEGMENT & ADVERTISEMENT
Low PC penetration, poor quality of dialup
access
Coke

Limited credit card usage on the
Internet
Pilgrimage
portal

CONCERNED
AREAS

Hesitation to make purchase on
Internet

Competition from traditional brickand-mortar travel agent

Fluctuating international market conditions

BCCI

MMT

Matrimon
ial portal

Maruti
Udyog

COMPETITION
Expedia

Less competition from
US market
CONCERNED
AREAS

Aggressive advertising
campaigns

Orbit

MMT
Travelocity

Large customer base

Priceline

MOVING ON
Targeting inbound travellers
To move from 90-10 % split of revenues between
air tickets and travel service to a 70-3- percent split
Domestic tour packages to NRI travellers

Targeting NRI/VFR tourist segment

Expansion of operations within India

Targeting European Market

4 P’s ANALYSIS - MARKETING
4 P’s

DESCRIPTION / STRATEGY

REMARKS

PRODUCT






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

Save money
Save time
Save energy
Convenient
Travel easier

PRICE




Best Price offers
No middleman involved
Customer can choose as per budget & their income
Affordable to all class of customers

Best deal
Affordable
Quickly available

PLACE





Internet marketing
Online e-portal / e-business
Dedicated 24*7 customer care support
20 offices in India & 2 international offices
Franchise across various location

No queues
Anywhere
Anytime
Anyplace


Promotion through social sites like Facebook, Twitter, You Tube, Magazine
Sales promotions
 Festival discount
 Round trip ticket discount
 Best deal of the month
 Special offers to different holiday destination

PROMOTION

Online website
Travel agents
Communication
Awareness

3P’s OF SERVICE MARKETING
3 P’s
PEOPLE

PHYSICAL EVIDENCE

PROCESS

DESCRIPTION / STRATEGY
• Self service marketing – no direct interaction
• Travel agents – distributors & dealers
• 24*7 customer care service

• Customer care service
• National and International Offices
• Travel Agents offices

• Easy and simple process
• Mode of payment by any bank and any card
• MakeMyTrip on Mobile

SERVICE MARKETING STRATEGY TO CREATE BRAND VALUE
Travel Insurance

• Short term travel insurance
• Offers the latest travel and health oriented information

International SIM
Card

• Country specific mobile connection before departure
• Fulfilling customers specific communication needs when traveling
abroad

Forex Card

• Online purchase & transactions facility
• Instant & convenient access to your money in the currency of your
choice

MakeMyTrip
Credit Card
MakeMyTrip
Gift Vouchers

• Welcome gifts
• Accelerated reward point system (Repeated Purchase)
• Discount vouchers
• Individual Gifting (Birthday, Anniversary, Honeymoon, Wedding, etc.)
• Corporate Gifting

QUESTION 1

Can MMT sustain its business model by targeting
only the inbound travelers, or does it need to look at
other markets and segments? If yes, which segments
would you recommend? If no, can they grow within
the inbound segment?

QUESTION 1
1

In 2004, 3 million inbound travelers were seen visiting India.

2

In 2007, this figure is estimated to go up to 5 Million at roughly
30% CAGR.

3

So, We think MMT can sustain business model by focusing on
Inbound Travellers.

4

There’s also a segment MMT can go for. Medical and Health
Tourism is the sector MMT hasn’t been looked up at.

QUESTION 1
5

India provides high quality health services with affordable
prices. Demand for Health Tourism is non-seasonal

6

MMT can also tie up with giant Hospital chains to provide
overseas customer with HEALTHY DEAL!!!

7

Due to changes in trends in IT, foreign travel of Resources is the
need

8

Corporate tie ups with middle level IT companies who lack
Travel Department, MMT can provide them with Travel
Solutions.

QUESTION 1
CONSUMER BEHAVIOUR

For long term
success, MMT
will have to
change its
strategy

• The study by PhoCusWright in November 2003 found that flight and rental cars are
the travel services most likely to be purchased online, while offline channels still
dominate the travel activities category

COMPETITION
• The aggressive advertising campaigns from the competitor like Expedia can take the
MMT market share

CHANGES IN INDUSTRY
• The airlines might provide substantial discounts on their websites and take MMT out
of business if they don’t diversify

EMERGING MARKETS
• The high growth in India outbound travel might make this as big if not the biggest
segment in next few years. MMT cannot afford to leave this segment untargeted

QUESTION 2
Ad revenues have never been core to MMT’s
business plan. However, MMT’s role in promoting
some leading NRI-focused brands suggests that this
might be another avenue that Kalra could
investigate. Does MMT need to look at advertising as
a revenue generator?

QUESTION 2: SOME STATISTICS
1

Internet channel has grown the fastest since 2001,taking share
away from most traditional channels.

2

Internet advertising grew at an annual clip of 18% from 2001-2006
and only cable TV (10%) was close to a double digit growth rate.

3

Total US internet advertising was $21.2 Billion in 2007, a 26%
increase over 2006.

4

Consumer related advertising made up 55% of revenue.

5

Fostering strategic Brand alliance associated with the Indian
consumers is a right strategy to go ahead with.

QUESTION 2
LET’S LOOK AT BRANDS BEING ADVERTISED

1. COKE:

Coca Cola Revenue Year over Year
Globally
7.56

 Coke Registered 11 percent drop in sales after the
pesticide allegations in India in 2003

5.2
4.36

 As we can see the revenues have fallen for coke,
coke needed to pump up on marketing to persuade
the customer. Hence they needed good online and
offline reach.
 Being a good influencer for NRI and VFRs, MMT
could have been a channels coke could use in those
times.

2003

2004

4.26

2005

2006

QUESTION 2
2. MATRIMONIAL PORTALS:
 Matrimonial sites following their inception were booming due to
innovative means of finding alliance.
 Also the penetration of Internet was increasing which led to growth in
Matrimonial top line (2 million matches till date for Shaadi.com)
 There’s also a trend of marrying an Indian bride or an Indian
Bridegroom for Overseas NRI people.
 MMT would be a great point to tap such customers.

QUESTION 3
Can MMT’s business model work in other countries, in particular China,
Singapore, and the Philippines? Are there any differences in consumers
and segments in these countries that would render the model inadequate?
What might need to be changed in other countries? Could MMT expand in
a modular manner by replicating their business with overseas residents of
other countries?

QUESTION 3

CHINA

• Overseas Chinese population is 50 millions which
is majorly present in Thailand, Indonesia,
Malaysia, USA and Singapore (Source:
wikipedia.org)
• Consumer segment is nearly the same due to the
similar demographics and geographies
• Setup for MMT would suffice for Chinese Market
• Addition of cheap deals for the day would
increase the top-line, which can boost their
Chinese customer base.
• Outbound customers would be more than
inbound customers, hence they’d have to focus on
them.

SINGAPORE POPULATION

QUESTION 3

Total Population ('000)

Singapore Residents ('000)

6,000.0

5,000.0
4,000.0

SINGAPORE

3,000.0
2,000.0
1,000.0
0.0

1970
(Census)

1980
(Census)

1990
(Census)

2000
(Census)

2010
(Census)

• As you can see from the demographics,
population of Singapore is pretty less.
• Singapore is seen as a tourist destination, hence
there would be more non-citizen travelers visiting.

• Hence, MMT has to use their network of offices
worldwide to capture inbound travelers from all
over the world.

QUESTION 3

PHILIPPINES

• With more than 100 million Filipinos living in
Philippines, there are well About 10% i.e. 10
million people living abroad (many were
temporarily moved for work and many settled
abroad permanently)
• From those living overseas 34% people live in USA,
11% in Middle East and 15 % in South East Asian
Countries (Source : CIA Fact book)
• So, we can see a great amount of Non Resident
Filipino Potential for inbound travellers.
• MMT model for India would remain nearly the
same in case of Philippines.

THANK YOU!