PROJECT REPORT

MAKEKYTRIP.COM

SUBMITED BY!!
SUMIT KUMAR (11PGDM112)
POOJA GOYAL (11PGDM065)
RISHABH PANDEY (11PGDM087)
SURBHI GUPTA (11PGDM113)
RAHUL DUBEY (11PGDM083)
 Company Profile
MMT was launched in the US in 2000 to cater to the niche US-to-India
travel market. The company survived the dotcom bust and the 9/11
tragedy and was able to breakeven in 2002. The website emerged as
the foremost online travel service provider in the US-to-India market.
By 2004, it had garnered 3.5 per cent share of this NRI market (Rs.
4,500 crore/US$ 1 billion) which was dominated by ethnic agents who
were either consolidators (wholesalers) or sub-agents. With over
100,000 customers and 130,000 registered users in the US, Makemytrip
had a renewal rate of 30 per cent. NRIs could book tickets to India
online or could call travel consultants who were available 24x7 on the
US toll-free 1800-India-10. The company had offices in New York and
Sydney. According to Kalra, the factors which worked well for the
company were an all-pervasive entrepreneurial spirit along with
cohesive culture and homegrown HR practices. Employees were given
opportunity to be owners of the company by holding stocks.
 MMT INDIA OPERATIONS
In the meeting with the key members, a decision was taken to launch
the India website in September 2005. Kalra believed that there was a
strong indication of a healthy growth for travel products/services in
India. There was a compelling need to provide a platform for buying
and selling travel products/services. MMT identified the gap between
demand and supply and decided to offer a user-friendly and convenient
online interactive interface to the consumer. The company received an
investment of US $8 million (Rs. 352 million) from SB Asia Infrastructure
Fund (SAIF), a leading Asian private equity firm. Kalra justified his
decision to start operations in India thus: “The launch of MMT India
was not really a shift of focus; we wanted to launch the India business
because the time was just right.” Low-cost carriers (LCCs) had made air
travel cheaper, thus opening up the market for air travel and leisure
holidaying beyond visiting friends and family. The young India had more
disposable income and a greater desire to travel. The airlines’ move to
e-ticketing also paved the way for travel e-commerce. The travel
market was ready to evolve to the next level (online) and MMT was
preparing to launch at the most opportune time. As the first and only
comprehensive online travel site with real time booking for flights,
hotels, holidays, and cars, MMT was in the process of bringing a
revolution in the way travel products were bought in India.
 E-BUSINESS STRATEGY
With the advent of the Internet and plenty of web development
technologies around the world, e-business is the new mantra of
businesses in today’s world. The Internet has in many ways
facilitated the development of businesses worldwide that can
reach out to a wider consumer base and advertises their products
more effectively and efficiently. Corporate communications,
interface designs, cutting edge applications are also found on the
Internet. E business has been added as the latest domain in
business and has become a must-have in the highly competitive
technology driven open market. E Business Strategy can be
summarized as the strategies governing E Businesses through
calculated information dissemination.

Information dissemination has been widely regarded as the forte

of e-business, which uses information technology in a most
efficient manner. Not only has e-business has come to play an
important role in the world trade scenario; there is no business
without an accompanying e-business in today’s world. E business
gives a business the opportunity to open its portal to the global
market and become a part of the global business community. The
most important feature of e-business is that the helps businesses
move on to the international scene at minimal cost but with
maximum efficiency. E-business has achieved unprecedented
levels of success as business models, which have not been enjoyed
by any other business models. Some of the examples would be
MRP (Material Requirements Planning), EDI (Electronic Data
Interchange) or ERP (Enterprise Resource Planning). The
essential features of e-business strategies are supply chain
management and email marketing.

A state-of-the-art E Business
Strategy would generally include:
Supply chain management: effective management of the
supply chain can be handled with the help of e-business
strategies, which will ensure better coordination between the
wholesalers and the retailers of various products. Better
integration of the supply chain right from the source till the final
delivery of the product can be effectively implemented using e-
business strategy. This also brings us to the point of e- commerce
where a parallel network of buying and selling can be observed
using dissemination of information over the Internet. Everything
ranging from automobiles to electronic gizmos can be bought over
the Internet in a hassle free manner under the aegis of sound
supply chain management.

Customer service and customer relationship

management: effective e-business strategies would involve
better customer service and customer relationship management
ensuring the highest level of consumer satisfaction. E business is
targeted at providing the customer-friendly services, which would
include the timely delivery of goods right at the doorstep of the
consumer.
 Inventory and service management integration:
e- Business strategies can also help in better inventory and service
management integration through formulating specific plans for
inventory accumulation and purchasing machinery and
equipment which will avoid unnecessary purchases which can
lead to higher expenditures entailing different tax implications.

Tactical operations alignment: tactical operations directed

towards short-term goals as opposed to strategic planning aimed
at long term goals can be better coordinated implementing the e-
business strategies.

E-business diverges from the traditional sphere of business by

speeding up the business activities and giving a totally new
dimension and definition to businesses worldwide be it whether
partnerships, joint ventures or large corporations. The internet,
intranet, cellular networks and other forms of digital technology
have created a niche value chain among clients, employees,
suppliers, stakeholders and traders coordinated in the world of
web marketing. The tools and pillars of e-business strategies
include acceptance of payments over the Internet, online
advertising, on-line trading and auction deals over the Internet.
E-business strategies will also differ for small and medium-sized
businesses. Apart from regular sources, e-business strategies can
generate revenue from maintenance of current channel integrity,
revenue made from paid marketing alliances, revenues derived
from franchisees and subscriptions.
 BUSINESS MODEL
Gayatri Buddha termed MMT’s business model as a simple B2C. The
customer could use either MMT website or its call centre to book air
tickets, hotel rooms, and travel packages. There were three enabling
components: technology, people and process, and supplier relations.
The earlier experience in the US indicated that strong relationship with
suppliers such as domestic airlines including LCCs, international airlines,
and hotels would help the company run the business model.
Technology was identified as a cornerstone. MMT had already
developed proprietary technology which would help it link all supplier
sites to check the inventory and compare prices. In fact, the search
engine the company had developed would enable it to offer the lowest
possible price to the customer. The booking engine would also enable
customers to customize the booking of their flight and hotel packages
to maximize savings.

Being a travel commerce website, the company believed that its own
products would generate adequate revenue to successfully run the
business model without depending on revenue generated from selling
advertisement space on the website. The company believed that
placing of advertisements on the website might distract or divert
visitors from their main objective of searching or booking travel
products on MMT’s website. The other key component of the business
model would be employees having domain-specific skills in order to
help MMT develop and offer suitable products and services for the
travel consumer
A business model as a blend of three different streams including:-

 Value stream
 Revenue stream
 Logistic stream

Generally researchers observed 11 e-business models such as

 E-shop
 E-auction
 E-procurement
 E-mall
 Third party marketplace
 Virtual communities
 Value chain service provider
 Value chain integrators
 Collaboration platform
 Information brokerage
 Trust services

MAKEMYTRIP explored online broking model.

Their core E-Commerce business model was very simple and effective
B2C and even it complemented their travel products and services very
well.
Inventory and service
management
About Travel Partner Network
Power your site with MakeMyTrip’s cutting edge online travel booking
services via its partnership program called TravelPartnerNetwork. With
TravelPartnerNetwork you will get MakeMyTrip’s Hotel and Flight
Inventory, Online Booking Engine, Complete Backend Fulfillment and
Post Sales Services. All you need to focus on is getting customers to
your site and the fortnightly cheque for commissions earned from all
transactions done through your site.
 Tactical Operation
Partnership Benefits:
MakeMyTrip.com in a span of ten years has garnered a wealth of
experience and respect in the travel industry, and this success is in no
small part due to the diligence and efforts of our partners. These are just
some of the benefits our partners receive when they join hands with
MakeMyTrip.com:

 Association with the BIGGEST online travel brand in India

 Assistance from a team of technology and business experts

dedicated to the needs of the travel industry

 Best commissions on domestic flights as well as hotels

 Single platform for all GDS and Low Cost Carriers

 Instant invoicing of hotels and airline bookings

 Access to a user-friendly online travel portal

 Real-time booking of 3000+ hotels across India

 Access to over 50000+ hotels across the globe

 Online branch network management facility

 Revenue Model

 On Air Bookings the company gets 3% commission on gross fare

net of PSF with Rs 50 to Rs 100 as service fee from the customer
 MMYT generates the majority of hotel and package revenue
through its call centers and travel stores. Although only around
5% of transactions are executed through call centers and travel
stores, revenues from these transactions account for around 20%
of the total.
 Direct link between hotels’ central reservation systems and
MMYT’s booking system
 Revenues from other businesses include fees from travel
insurance companies, advertising revenues, and new service
offerings.
 The net revenue margin in the hotel business to decline from 14%
in FY10 to 13% in FY13e, which is conservative when compared
with an increase from 8.9% in FY08 to 14% in FY10
 MMYT’s focus is to expand its high-margin hotel business,
especially high-value international travel packages.
 Launched Websites for UAE and Canada
 The company is looking for selective merger and acquisition
opportunities to boost presence in its targeted overseas market.
 Acquired ticketvala.com to move into bus seat bookings.
 Competitors of Make My Trip

Yatra.com

Yatra.com was expected to be launched by August 2006 to help businesses and

consumers by offering travel-related information, pricing, availability and
reservations for airlines, hotels, railway, buses, and car rentals across 5,000 large
cities and small rural areas throughout India.

Travelguru.com

Travelguru.com was scheduled to be launched in December 2005. WestBridge

Capital Partners, a venture capital fund, was expected to provide funding to
Travelguru.com. Travelguru planned to offer services through the MICE (Meeting,
Incentive, Conference, and Event) team to arrange conferences, meetings, and
events for consumers or corporate clients. Services to be offered included the
following:

o planning a cost-effective budget

o assistance with airline bookings
o assistance with hotel bookings
o assistance with transportation
o planning sightseeing trips

Cleartrip.com

Cleartrip.com, another online travel agent, was planning to enter the market by
August 2006. This company was said to be funded by Ram Shriram’s Sherpalo
Ventures and Kleiner Perkins Caufield & Byers, two leading USbased venture capital
firms. Cleartrip.com was planning to allow customers to select from over 900
domestic hotels across India and a comprehensive selection of established network
carriers and LCCs operating in the domestic market. To provide superior choice,
Cleartrip.com was in talks with Abacus, Asia’s leading global distribution system, to
provide access to airline inventory and fares. Cleartrip.com planned to spend about
Rs. 30 crore14 (Rs. 300 million) in the first year on advertising.