Company and Industry analysis

Make my trip is a leading online travel service portal. It is mainly focused on the leisure and small
business travelers.

Short analysis of the travel and tourism market in India

India is the fastest growing tourism market in the world, second only to China. The UNTWO (United
Nations World Tourism Organization) predicts that India will account for 50 million outbound tourists by
2020. The market for travel and tourism in India is believed to grow at a CAGR of around 7.23% during
2017-2022.

To tap into the huge potential of travel and tourism market of India, there are many service based
companies fighting for the biggest chunk of its market share. One such service based industry is the
online travel industry. It primarily consists of travel e-commerce sites and review sites. Travel e-
commerce sites are into selling travel products such as hotels and flights. Travel review websites allows
people to write about their experience of hotels, restaurants and other hospitality purchases online.

Company Analysis

Make My Trip (MMT) founded by Deep Kalra in 2000, is an Indian online travel company. It provides
online travel services like flight tickets, domestic and international holiday packages, hotel reservations,
and rail & bus tickets. Since its inception, company has taken measures to grow the Online Travel
Agency (OTA) business in India, where internet penetration was low and people were highly hesitant to
do online transactions.

OYO, Treebo and Yatra are some of the close competitors of MMT. Below are the figures of revenue
generated by MMT and its the closest rival, OYO :

Companies Revenue in millions$ (in 2018)

MakeMyTrip 599.4
OYO 400

Evolution of growth strategy

Like aircraft ticketing, MMT charged an administration cost for inn booking and occasion bundles. It
guaranteed that the margins it produced using the lodgings and occasion bundles organizations was
twofold that of the margins produced using carrier ticketing. Over some stretch of time, MMT like other
worldwide online travel organizations reached the resolution that the contracting commissions from
aircraft ticketing would antagonistically affect the business later on. In addition, after the breakdown of
a main LCC in India called 'Kingfisher Airlines', the Indian air industry confronted a sharp decrease.
Maintaining focus on travel technology

MMT had its own innovation group that created different new highlights for the MMT service. It had its
very own innovation stage that incorporated the sales, customer service, and satisfaction activities.
MMT guaranteed that the innovation stage was versatile and could be moved up to deal with expanded
traffic and unpredictability of items with limited investment. In the mid 2010s, the group built up an
application called 'RoutePlanner' that enabled clients to see multiple routes for a similar starting and
destination pair that could be navigated utilizing different methods of transportation. Keeping the future
customer needs in mind, it developed mobile travel technology, along with interactive technologies that
enabled real-time content-generation and socialization for consumers.

Industry Analysis

The Online travel industry is a battlefield for a number of Online travel agencies. As internet is becoming
more and more accessible to a greater mass of people, internet based services are penetrating the
markets more than ever before. Due to ever rising competition there is a fierce price war among OTAs.
All of them are offering heavy discounts to undercut each other and win the maximum market share.

Suppliers and Customers

There is not a very significant cost to switch suppliers because the products like airlines, car, hotels that
MMT trades in are highly commoditized. Although travel agencies cannot typically buyout suppliers like
airlines and hotels. All in all, bargaining power of suppliers is low to moderate in this industry. To gain
even more power on the supply side, MMT can think of forward and backward integration to become
independent of the current suppliers.

Similarly, there is a very low switching cost for the customers hence there is little to no customer loyalty
for any brand. There are plethora of OTAs available on the internet and all of them are giving heavy
discounts to win the maximum market share. Customer will switch to the most cheapest and easy to use
alternative. Hence, customer bargaining power is very high in this industry.

Threat of new entrants

New entrant in this industry bring innovation, unique ways of doing things and putting pressure on
already existing players to adopt to the new technology at a lower cost or come with their own
innovation and provide new value propositions to the customers. To safeguard its competitive edge,
MMT has to invest a lot in R&D to innovate new products and services and give customers a reason to
always come back to the brand.

Threat of substitutes

The threat of a substitute product or service is high if it offers a value proposition that is uniquely
different from present offerings of the industry. MMT should be more service oriented than product
oriented and should understand the core need of customer rather than just focusing on what customer
is buying. Since, MMT and other players in this industry are more of a service provider than a direct
seller of products, they should work on enhancing their experience to attract and keep the customers.