Transcript of "Make My Trip - Successful Journey!!!!"
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Deep KalraFounder & CEO, MakeMyTrip.com There wasa time when Indian families would plan theirannual trip six months in advance, afterspending long, sweaty hours queuing up infront of ticket booths. It sure wasn’t easy.Today, the rise of Internet credibility coupledwith falling rates of air travel has helpedOTAs catapult to glorious success. And with aturnover of Rs 2,200 crore, MakeMyTrip.comhas been a pioneer in the OTA success story.With over 50 percent market share, it’s thesingle most recognized and trusted player inthe OTA industry
HISTORY• Conceived and founded in 2000 by Deep Kalra, MakeMyTrip.com began as a smallstart up in Delhi focussing on the non-resident Indian (NRI) market – specifically onpeople seeking an economical ticket to visit home.• MakeMyTrip.com made its India debut in September 2005 with its Lowest AirfareGuarantee.• MMT recorded sales of Rs. 1000 crore and break even in 2008.• A 50% growth was a stunning achievement for a company less than ten years old.• Today, it commands an impressive 4% share of the NRI travel business to Indiapegged at US$ 1 billion (Rs. 4800 crore).• MakeMyTrip.com soon diversified its online travel offerings to include domesticand international holiday packages and tours, as well as domestic andinternational hotels.• It aimed to offer a range of best-value products and services along with cutting-edge technology and dedicated round-the-clock customer support
INDIA OPERATIONS• A decision was taken to launch the India website in September 2005.• A time when low cost carriers (LCC’s) had made air travel cheaper.• There was a need to provide a platform for buying and selling travelproducts/services.• Indentified the gap between demand & supply.• Decided to offer a user friendly and conveniently online interactive to theconsumer.• Received an investment of US $8 million (Rs 352 million) from SB AsiaInfrastructure Fund.• Within a year of its launch MakeMyTrip has acquired over 200,000 delightedcustomers and sells over 3000 flight tickets, 200 hotel room nights and over 50holiday packages every day.• The site attracts over 1 Million unique visitors every month according toWebSideStory, HBx Analytics, an independent traffic-monitoring agency
MakeMyTrip’s Offerings• 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
BUSINESS MODEL• There were key enabling components: supplier, relations,technology process and people.• The earlier experience in the US indicated that strongrelationship with suppliers run the business model.• MMT had already developed proprietary technology whichwould help it link all supplier sites to check the inventory andcompare prices.• The company’s own products would generate adequaterevenue without depending on revenue generated fromselling advertisement space.• The other key component would be employees having domainspecific skills.
TECHONOLGY FRONT• MakeMyTrip.com is fully powered by Amadeus.• MMT had been operating its international bookings engineon Amadeus’s platform.• MMT decided to move its domestic airline booking engineonto Amadeus platform as well.• The website uses Amadeus web services 2.0 – a secondgeneration, state of the art global technology platform thatprovides full access to Amadeus content.• Amadeus Master Pricer, a cutting edge low fare search tool,helps customers to quickly and easily find options that suittheir travel needs and budget.• Amadeus also provides a dedicated 24x7 service team inIndia which is backed up regionally by an Asia Pacificsupport structure.• SAIF Partners and MakeMyTrip Ltd have invested $18.5million in iXiGO.com, a Delhi-based travel search engine.
TECHONOLGY FRONT• MMT has launched Apnaagent.com, a new B2B platform dedicated tostrengthening relationships with existing partners.• The company achieved gross bookings of US$ 742 million in the financial yearending March 2011, making it a dominant player in Indias OTA space.• OneAssist Consumer Solution has partnered with MakeMyTripto offer its‘assistance and protection’ products to MakeMyTrip customers.• OneAssist’s EveryDayAssist and TripAssist are particularly designed for travellers tosecure their wallet and smartphone data against loss or theft and protect themfrom worries related with such incidents.• Estimated that an additional investment in hardware costing approximately $360,000would increase the capacity of our technology platform to 1 million website requestsper day.• CRM system uses software by RightNowtm CRM, which integrates our sales, customerservice and fulfillment operations.• They also have “Verified by VISA” and “MasterSecure” payment gateways, whichprovides additional security for transactions via our Indian website using creditcards issued by Indian institutions.• They have integrated ERP application (which uses Microsoft DynamicsTM) withCRM system which enables our agents to create packages, make and amendbookings as well as attend to customer inquiries.
TRAVELAND TOURISMMARKET• In 2004 Foreign tourist arrival in India grew at 26.8 % to reach 3.46million and was projected to reach 7.02 million at the end of 2010.Currently FTA is growing at a pace of 7.4% till 2011.• As per BOI, number of outbound visits has grew 44% within thespan of 6 years totalling to 14.21 millions Indian nationals till 2011.• Majority of FTA in India are from USA, UK and Bangladesh whichconstitutes 34.88 % of the total visitors population.• Indian travelled abroad for three main reasons : Business, Leisureand visiting friends & relatives.• Indians made almost 850 million domestic trips in 2011; this wasabout 46 per cent higher than that in 2005.
Competitive Environment• Yatra.com: was expected to be launched by 2006.• Cleartrip.com: was planning to enter the market by August 2006.• Supplier’s Websites: 75 percent of the airlines tickets were sold fromairlines websites.• Travel Agents and Tour Operators: In 2004, there were 23,450 outlets oftravel agents and 4450 outlets of tour operators in India.• Currently have a travel agents’ network in India which we started in 2009,where approximately 9,300 travel agents across more than 700 cities andtowns in India.• In 2008, MMT launched “makemytrip.mobile,” our mobile serviceplatform, which allow customers to search, book and pay for Indiandomestic air tickets on their mobile phones at no additional cost.• As of March 31, 2011, there were more than 35,000 downloads of thisapplication.• As of March 31, 2011, we had various travel stores in 19 cities includingmetropolitan areas across India, which primarily sell packages.
MMT’S Strategy• Expand Our Hotels and Packages Business• Expand Our Service and Product Portfolio to EnhanceCross-Selling Opportunities.• Expand Our Travel Agents’ Network• Enhance Our Service Platforms by Investing inTechnology• Expand into New Geographic Markets• Pursue Selective Strategic Partnerships andAcquisitions
Number of Credit Cards and Debit Cards in IndiaTravel Products Sold by Online Travel Agents
MMT’S View of the Consumer• Short Lead-time for booking holidays (3-6 weeks).• Preference for pre-planned travel.• Attitude towards travel: giving importance to status.• Specific needs (e.g. dietary) because of their social /religious background.• No specific language problems: many indian spokeEnglish.• Preference for familiar Indian food.• Preference for travel agents or tour operators forbuying travel products even though they offeredlimited choices.
MMT’s View of the ConsumerENDURINGBENEFITSSTRONGENTRENCHMENTIN THE MINDSPACEVISITS TO SITEANDPURCHASINGREPEAT VISITSAND PURCHASESATISFACTION
BRANDING AND POSITIONINGValue Proposition• Empowering the travelers withrich information.• Offering travel superstore: buymultiple products across multiplebrands.• Providing opportunity for instantbooking with real time purchaseof all travel products, ticketsdelivered at doorstep.• Ensuring convenience of buyinganytime and anywhere.• Ensuring transparency andreliability.• Offering 24x7 customer service.Anticipated Outcomes• Redefining travel productsdistribution network.• Building efficiency in sales anddistribution to pass on benefits tothe customer.• Providing technology that bringsabout convenience betweenoffline and online processes.• Enhancing the reach of the traveland tourism market to remotelocations.• Tension free travel relatedproduct buying.• Hassle free service experience.
CHOICE OF TARGET CUSTOMER• Males living in Metros• Age group 24-44 years• Who are married• With a monthly household income of over Rs 30000.• From families which were internet savvy.• With usage beyond email.• Transacted on the internet before.• Deal Hunters• Early Adopters.
REVENUE SHARE FROM OFFERINGSAIR TRAVEL HOTEL & PACKAGES OTHER SEGMENTS•Domestic: Within India•International : From India•Inbound: Overseas to India• Hotels: Domestic & Int’l•Packages:-Domestic and International-Conferences and Events•Rail•Bus•Car•Ancillary Services/ Products•Transactions: 2,824,600•77% of Net Revenues•Transactions: 175,900•20% of Net Revenues•Rail Transactions: 185,948•Bus Transactions•3% of Net Revenues
CAMPAIGN DESIGN• Mission: Grab the attention of the consumer and inform about MMT’s USP –“lowest air fare provider”.• Message: The underlying factors behind the advertising campaign were thatcustomers were dual hunters and looked for the cheapest pricewith assurance. The campaign focused on the lowest airfare guarantee to pushtrials. “If you find a lower fare we pay the difference”- campaign wasdesigned to serve the purpose of grabbing the attention.
CAMPAIGN DESIGN403055515TVWebPrintOutdoorBTLPR & Others•Money: Rs 30 million on advertising and marketing activities duringthree months launch phase
Awards and Recognitions• Travel & Business• Best Domestic Tour Operator - Times Travel Honours 2011• Best Online Travel Service Firm - Times Travel Honours 2011• Great Places To Work 2011 - 3rd Best Company to Work for & #1 in ProfessionalServices• Superbrand India - 2009-10• Great Places To Work 2009 - #2 in Professional Services• Best Travel Website - CNBC Awaaz - 2008-09• Most Visited Travel Website - comScore - 2005-09• Most Preferred Online Travel Agency - Travel Biz Monitor Survey - 2008• Number One Online Travel Agency - JuxtConsult - 2008• Gold and Silver - Abby Award - 2007-08• Among the Top Ten Websites visited by Indians - comScore - 2007• Nominated World Travel Awards - WTA - 2007• Among 100 IT Innovators - NASSCOM - 2007• Best Online Travel Company - Galileo Express Travel World - 2007• Emerging India Award - ICICI Bank & CNBC TV18 - 2006• Asias Hottest Technology Startup - Red Herring - 2006
Awards and Recognitions• Airline• Singapore Airlines - Top agents award 2010-2011• Malaysia airlines - Top agent award 2010• Malaysia airlines - Top agent award 2009• Cathay Pacific - Outstanding performance in 2009• Air Canada - Outstanding Performance - 2008• Singapore Airlines - Top Passenger Agent - 2007-08• British Airways - Outstanding Revenue Contribution - 2007-08• Air Mauritius - All India Top Ten Agent//Top North India Sales Award - 2006-07//2007-08• Cathay Pacific - Outstanding Performance - 2007• Malaysia Airlines - Top Agent Award - 2007• Lufthansa - Outstanding Performance - 2006-07• Kingfisher Airlines - Outstanding Performance - 2006-07• Indian Airlines - Achieving Highest Domestic Passenger Sales - 2006-07• Air India - Outstanding Contribution to Passenger Sales - 2005-06• Jet Airways - Award of Excellence - 2005-06• Gulf Air - Continuous Support
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