Growing Indian Middle class both in terms of volume as well as value.
DESIGN MANAGEMENT PROJECT With focus on Service and Experience Design Online Travel Agency (OTA)
Company Profile MakeMyTrip (MMT) found in April, 2000 Offices in 23 cities across India 4 international offices in New York , San Francisco, Singapore and Sydney Several franchise locations Major market share Every eleventh domestic flights in India booked via MMT .Source: Makemytrip.com
Offerings Air Travel Hotel and Packages Other Segments •Hotels : Domestic and Int’l •Rail •Domestic : Within India •Packages : •Bus •International : From India –Domestic and Int’l •Car •Inbound : Overseas to India –Conferences and Events •Ancillary Services/Products •Rail Transactions : 185,948 •Transactions : 1,766,905 •Transactions : 109,672 •Bus Transactions : 57,529 •77% of Net Revenues •20% of Net Revenues •3% of Net RevenuesSource: PhoCusWright, 2010
MMT Service Search Engine System Booking Facility CRM Interaction Offering Airline tickets Hotel reservations Holiday packages Website UI Railways tickets Travel Executives Bus tickets Call Centers Car rentals Customer care support Interface Makemytrip.comModel Adapted from Service Design Offering Makemytrip storeby Dr. Daniela Sangiorgi, Lancaster University UK
Market Share 10% 18% 48% 24% Indian OTA Market - $1 BillionSource: PhoCusWright, 2010
MMT CasesSpecially Chartered In Trial phase Positive response fromflights, following success Popular among western customersof movie 3 idiots nationals Plans to increase in this>5000 passengers in 2 Growing Popularity among segmentmonths travelled to Leh Indiansin 2010
Rapidly Growing Middle Class Estimated to constitute around 25% of Total Households by 2015 and 46%by 2025, controlling 44% and 58% of the total disposable income in the country. Growth in disposable income levels will drive future growth of Travel Market in India.Source: McKinsey 2010
India Internet Penetration 78% 76% 80% 70% Internet Penetration 58% 60% 50% 36% 40% 32% Internet penetration in India - 7% 30% Number of users - 81,000,000 20% 7% 10% 0% US Japan Europe Brazil China India CountrySource: Internet World Stats
Internet widely used for information Referrals, WOMBuying Behavior Largely domestic travel Check 3 websites before successful booking Travel and Age group Domestic Travel International Travel Religious Travellers – 50+ yrs US/Europe/NZ– 45 – 50 yrs (Vaishnov Devi, Chardham) South East Asia – 30 – 35 yrs Weekend Getaways – 20 – 35 yrs
Research MethodologyPrimary research methodologiesOnline Travel Agency (OTA) users consumer behavior.Questionnaire about travel usage, occurrence of travel, preferred onlinetravel, service type etc.Personal interview with the customers and stake holders.
Questionnaire Responses Total Number of Respondents : 43 2 8 Everytime Occasionally Rarely 33 5 Air OTA Usage 24 14 Train Multiple 3 16 <5 Mode of Transport <20 <40 24 Occurrence of Travel (Yearly)
Responses Total Number of Respondents : 43 Cleartrip 2 4 2 5 Irctc 6 11 Airlines Yatra Railways 12 18 Makemytrip Multiple Offline 2 Multiple 24 Offline Preferred OTA Service Type
5 1 2 Lengthy 11 Useless Acceptable 21 Bad Too much Good 35 Sufficient 11 Processing & Speed Data Entry Process 4 1 Excellent 18 Good Satisfactory 20 Very BadResponses Customer Care Support
Interpretation OTA Service Usage/ Reach Matrix Usage for hotel and holiday services low. Scope for improvisation and development. Service design intervention could be a possible solution for the problem.
ApproachCreating value for the users with respect toservice provided.Incorporating into existing business process .Delivering with required quality. Adapted from Vinai Kumar
IdeationSolutions for problem areas in service were identified by ideation.Customer Retention :Improve satisfaction level of the customer and increase customerretention for the hotel and holiday segment.New Prospects :New prospects in the service industry pertaining to hotel andholiday segment. • Cricket hospitality package • Pilgrimage tourism package
Conclusion Indian Travel Industry , greater potentials to be uncovered. Innovative packages, Convenient offers and lucrative deals Solutions , Outcome of research conducted in a small scale. Research needs to be taken forward and conducted in a large scale. Understanding traveler’s behavior and striking the right move would benefit travel agency greatly