Innovation in MakeMyTrip.com

By Akash Nag Chaudhuri – 140101012

Ayush Kumar Singh- 140103043

Badam Sowmya- 140101039

Deepa Menon- 140103053

Kartik Awasthi-140102059

Rajat Agrawal-140101124

Rohit Ninan Thomas-140103039

Group 2 – Section C

About the Enterprise…

'Memories unlimited', Makemytrip.com is more than just a travel portal

Also a one-stop-travel-shop which offers a variety of international as well as domestic travel products and services in India.

International and Domestic Air Tickets  Holiday Packages and hotels  Domestic Bus and Rail Tickets

Private Cab Rentals

Contd..

Road-trips Weekend breaks (via short stay holidays) B2B services (to access the above products through its

extranet, IndiaAhoy.com) Mobile Solutions

Mobile application which makes the travel e-comm much more easier and convenient

The official website

Values of makemytrip.com

Innovation here.. Idea was to provide a complete travel solution with convenience as the key

driver

An online portal for airline ticketing was introduced separately in 2 different versions of the websites -for both U.S and India

Before the entry of MakeMyTrip.com, each individual airline had its own

websites, but MakeMyTrip.com brought all of them in one space

Though it initially started with airline alone, it later extended itself to Hotels, Bus, Rail and other Combo and Holiday packages

It makes the online ticketing process extremely user friendly, which includes options like sorting the flights based on fare, timings, schedule etc.

Discounts that can be availed include coupons and offers for frequent travelers

contd… Recently started expanding their value added services by extending provisions for

the customers in serving the complete trip including pick in and drop from their homes to the airport and vice versa

Provides opportunity for instant booking with real time Providing technology. It even introduced convenience between purchase of all travel products, tickets delivered at doorstep

Offering travel superstore: this enables the travellers or customers to buy multiple products across multiple brands

Ensured convenience of buying by adopting the 'anytime and anywhere' strategy

Unbeatable offerings like money-back guarantee (MBG) (where 20 per cent cash back on hotels and holidays bookings were provided if MMT failed to deliver the promise) , Visa-Kingfisher offer (20 per cent cash back to all customers who would use their Visa credit card to book any ticket on Kingfisher Airlines through makemytrip.com)

Need for innovation A strong indication of an ambitious growth for travel products and

services in the country.

Identified the gap that was prevalent between demand and supply and then decided to offer a convenient, user-friendly online interactive interface to the consumer

Right time when Low-cost carriers had made air travel cheaper

Young India had more disposable income to spend and a greater desire to travel.

Almost 98 per cent of the outbound travel from India was by air.

Indians travelled abroad for three main reasons: Business, leisure, and visiting friends and relatives

Contd.. Domestic air traffic grew at 24.2 per cent from around 32.09 million passengers to

39.86 million during 2004 – 2005.

The same time, international traffic also rose from 16.63 million to 19.41 million passengers

Forecasts on the same predicted that the air traffic in India would grow by 5 million passengers each year for the next decade

The decision to allow private airlines to fly on international routes was expected to facilitate more flow of air passengers.

The initiatives taken by the Aviation Ministry to modernize 80 airports was believed to help the growth of India’s international air traffic.

Strong growth of IT and IT enabled services which demanded more corporate travel

Indian consumers were moving towards the use of financial cards compared to cash for their purchasing activities

Online Travel Market of India (2012-2013)

Indian Online Travel Market Size

Type of Innovation Technology was identified as the corner stone for innovation

Simple B2C business model which enables it to offer the lowest possible price to the customer

Falls into the category of Service Innovation, Breakthrough Strategy - a large, discrete step change in performance, technology and value provided to users

Successful Service Innovation

Relevance of Innovation The internet penetration rate during that time was going at a highly increasing pace

( from around 1.4 million in 1998 to almost 39.2 million by 2004). The figure was expected to continuously shoot up

The percentage of gross booking for leisure/unmanaged business travel in India were expected to reach double digit even before 2010

A recent study by the IAMAI ( Internet & Mobile association of India) reported that people within the age group of 26-45 were the highest purchasers for hotel rooms online.

Earlier, approximately more than two-thirds of the airlines tickets were sold via the direct websites of the airlines and the remaining through non-airline sites. Makemytrip.com identified this opportunity as one of their most apt entry points.

Though LCC(Low Cost Carriers) posed a great challenge to them, makemytrip.com foresaw some major hybrid models in this, since they knew that LCCs were looking for alliances and tie-ups

The Virtuous cycle.. makemytrip.com believed that there was a virtuous cycle working in the travel

market. So it designed to close this particular loop

Enduring Benefits

Strong enrichment in

the mind space

Visits to site and

purchasing

Customer Satisfaction

Repeated visits and purchase

Sustainability of Innovation According to the internal revenue estimation, contribution of air

tickets were estimated to be around 85 per cent and hotels and holidays – around 15 per cent.

Domestic booking was expected to dominate with a share of 90 percent compared to international booking’s 10 per cent

Suitable promotional offers from time to time

Tie up with I-mint, the largest consumer reward programme which aided the consumers to add and redeem on more points on every purchase of travel products, shopping, fuel, and mobile phones etc.

Super Saver programme and Super Tripper offers as regular features

Contd..

Build an excitement with every customer they meet and also to build empathy via relevance

Tallest claim in the market - “If you find a lower fare we pay the difference”.

Always works with his suppliers to make the best out of a tough situation.

Even during a state of high growth for the company, keeps a watch on the costs.

Competitors for Makemytrip.com Yatra.com

- One of the strongest competitors now for makemytrip.com

- Have tie-ups with more than 1000+ hotels in India

- Differentiation point - provides to the consumer more information which makes the travel decision easier

Travelguru.com

- Offer services through the MICE (Meeting, Incentive, Conference, and Event) team for consumers or corporate clients

Cleartrip.com

Individual airline websites

Travel agents and Tour Operators

Challenges for Makemytrip.com The online travel e-commerce in India is expanding. Hence, the number of

players are definitely expected to increase and competition would be coming into its own

Low internet penetration in rural India (since makemytrip.com also provides online bookings for other means of transport , apart from airline service)

Suppliers are selling their products online. Also, the airline websites have a provision of discounted tariffs for round trip booking most of the times

Hybrid Online Transaction Service provider models might evolve in the future

Recommendations for Makemytrip.com Indian travel customers always stand out unique and distinct for the following reasons:

Short lead-time for booking holidays (3-6 weeks)

Preference for pre-planned travel

Attitude towards travel: giving importance to status and chooses among Business and Economy classes based on this

Specific needs (e.g., dietary), for e.g. because of their social/ religious background

Does not pose an issue on specific language problems: most of the Indians are well educated and are well –versed in English

Preference for familiar Indian food – Indian flavor and spices are always preferred and are considered close to the heart of most of the Indians

Preference for travel agents or tour operators for buying travel products even though they offer limited choices.

Contd…

A better replacement service provision, without making the customer lose his time especially in the cases of unanticipated cancellation of flights.

Gifting the customers, especially to frequent customers in the form of materialistic goodies, or even short trips with reasonable discounts, surprise holiday trips at lower tariff rates

Publicize and advertise in media, their most valued customers by conducting an yearly event where the customers who have utilized their service to the maximum are being recognized and awarded or so

Conducting lucky draw events for the travelers frequently. Surprise gifts can also be awarded even while during every fly

The site can go ahead with keeping a few seats vacant till the last minute for customers who might want to book flights on an urgent basis, keeping a reasonable rate ( as in similar to the ‘tatkal‘ service provided by the Indian railways)

Thank You