An online travel
Focused on the leisure
traveller coming to India
Deep Kalra, CEO of
Pvt Ltd. (MMT)
Objective to tap the
potential of the huge US$1.5
billion NRI market worldwide
THE TOURISM MARKET IN INDIA
Increased number of foreign tourists & increased travel by Indians to
domestic and overseas destinations.
In 2003, the number of Indians traveling abroad increased by 30% to
Airlines receives 15% of their business through Internet sales.
In 2003, revenue generated $26 billion & 12% of travel services.
MAKEMYTRIP: THE COMPANY & THE PRODUCT
Offer competitively priced
V travel products – real time
Offer travel insurance, access to
V business lounges and valuable
shopping discount booklets
Entire facility of travel
V services through Internet.
Addition to Airline ticket,
MMT offers Hotel booking,
V Holiday packages, car rentals,
trains & cruises for Indian &
MMT launched www.indiaahoy.com a
B2B site offering Indian Hotels and
tour packages for international
Allows online booking and
V confirmation, online Web
chat and toll free number.
Provide value added service like a
V free drop and pickup cab for its
Also offers information visas,
passports, insurance, travel & finance
THE BUSINESSS MODEL & OPERATIONS
Created network of offices in New
Delhi, Mumbai & New York
Appointed franchise partners in US, UK,
Australia & India
Operates to separate entities:
MakeMyTrip - India & MakeMyTrip Inc.
Three modes of communication to
reach sales/customer service team –
emails, Web chats and toll free number
Daily sales target for the entire team
THE BUSINESSS MODEL & OPERATIONS
Constant monitoring of the service quality given to the customer
Lack a system to track timely customer follow-up
Delay in resolving a customer issue or query
Tracking customer buying and traveling habits
Offline (After Sales) Interface
Online Interface with MMT
CUSTOMER SEGMENT & ADVERTISEMENT
CUSTOMER SEGMENT & ADVERTISEMENT
Low PC penetration, poor quality of dialup
Limited credit card usage on the
Hesitation to make purchase on
Competition from traditional brickand-mortar travel agent
Fluctuating international market conditions
Less competition from
Large customer base
Targeting inbound travellers
To move from 90-10 % split of revenues between
air tickets and travel service to a 70-3- percent split
Domestic tour packages to NRI travellers
Targeting NRI/VFR tourist segment
Expansion of operations within India
Targeting European Market
4 P’s ANALYSIS - MARKETING
DESCRIPTION / STRATEGY
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
Best Price offers
No middleman involved
Customer can choose as per budget & their income
Affordable to all class of customers
Online e-portal / e-business
Dedicated 24*7 customer care support
20 offices in India & 2 international offices
Franchise across various location
Promotion through social sites like Facebook, Twitter, You Tube, Magazine
Round trip ticket discount
Best deal of the month
Special offers to different holiday destination
3P’s OF SERVICE MARKETING
DESCRIPTION / STRATEGY
• Self service marketing – no direct interaction
• Travel agents – distributors & dealers
• 24*7 customer care service
• Customer care service
• National and International Offices
• Travel Agents offices
• Easy and simple process
• Mode of payment by any bank and any card
• MakeMyTrip on Mobile
SERVICE MARKETING STRATEGY TO CREATE BRAND VALUE
• Short term travel insurance
• Offers the latest travel and health oriented information
• Country specific mobile connection before departure
• Fulfilling customers specific communication needs when traveling
• Online purchase & transactions facility
• Instant & convenient access to your money in the currency of your
• Welcome gifts
• Accelerated reward point system (Repeated Purchase)
• Discount vouchers
• Individual Gifting (Birthday, Anniversary, Honeymoon, Wedding, etc.)
• Corporate Gifting
Can MMT sustain its business model by targeting
only the inbound travelers, or does it need to look at
other markets and segments? If yes, which segments
would you recommend? If no, can they grow within
the inbound segment?
In 2004, 3 million inbound travelers were seen visiting India.
In 2007, this figure is estimated to go up to 5 Million at roughly
So, We think MMT can sustain business model by focusing on
There’s also a segment MMT can go for. Medical and Health
Tourism is the sector MMT hasn’t been looked up at.
India provides high quality health services with affordable
prices. Demand for Health Tourism is non-seasonal
MMT can also tie up with giant Hospital chains to provide
overseas customer with HEALTHY DEAL!!!
Due to changes in trends in IT, foreign travel of Resources is the
Corporate tie ups with middle level IT companies who lack
Travel Department, MMT can provide them with Travel
For long term
will have to
• The study by PhoCusWright in November 2003 found that flight and rental cars are
the travel services most likely to be purchased online, while offline channels still
dominate the travel activities category
• The aggressive advertising campaigns from the competitor like Expedia can take the
MMT market share
CHANGES IN INDUSTRY
• The airlines might provide substantial discounts on their websites and take MMT out
of business if they don’t diversify
• The high growth in India outbound travel might make this as big if not the biggest
segment in next few years. MMT cannot afford to leave this segment untargeted
Ad revenues have never been core to MMT’s
business plan. However, MMT’s role in promoting
some leading NRI-focused brands suggests that this
might be another avenue that Kalra could
investigate. Does MMT need to look at advertising as
a revenue generator?
QUESTION 2: SOME STATISTICS
Internet channel has grown the fastest since 2001,taking share
away from most traditional channels.
Internet advertising grew at an annual clip of 18% from 2001-2006
and only cable TV (10%) was close to a double digit growth rate.
Total US internet advertising was $21.2 Billion in 2007, a 26%
increase over 2006.
Consumer related advertising made up 55% of revenue.
Fostering strategic Brand alliance associated with the Indian
consumers is a right strategy to go ahead with.
LET’S LOOK AT BRANDS BEING ADVERTISED
Coca Cola Revenue Year over Year
Coke Registered 11 percent drop in sales after the
pesticide allegations in India in 2003
As we can see the revenues have fallen for coke,
coke needed to pump up on marketing to persuade
the customer. Hence they needed good online and
Being a good influencer for NRI and VFRs, MMT
could have been a channels coke could use in those
2. MATRIMONIAL PORTALS:
Matrimonial sites following their inception were booming due to
innovative means of finding alliance.
Also the penetration of Internet was increasing which led to growth in
Matrimonial top line (2 million matches till date for Shaadi.com)
There’s also a trend of marrying an Indian bride or an Indian
Bridegroom for Overseas NRI people.
MMT would be a great point to tap such customers.
Can MMT’s business model work in other countries, in particular China,
Singapore, and the Philippines? Are there any differences in consumers
and segments in these countries that would render the model inadequate?
What might need to be changed in other countries? Could MMT expand in
a modular manner by replicating their business with overseas residents of
• Overseas Chinese population is 50 millions which
is majorly present in Thailand, Indonesia,
Malaysia, USA and Singapore (Source:
• Consumer segment is nearly the same due to the
similar demographics and geographies
• Setup for MMT would suffice for Chinese Market
• Addition of cheap deals for the day would
increase the top-line, which can boost their
Chinese customer base.
• Outbound customers would be more than
inbound customers, hence they’d have to focus on
Total Population ('000)
Singapore Residents ('000)
• As you can see from the demographics,
population of Singapore is pretty less.
• Singapore is seen as a tourist destination, hence
there would be more non-citizen travelers visiting.
• Hence, MMT has to use their network of offices
worldwide to capture inbound travelers from all
over the world.
• With more than 100 million Filipinos living in
Philippines, there are well About 10% i.e. 10
million people living abroad (many were
temporarily moved for work and many settled
• From those living overseas 34% people live in USA,
11% in Middle East and 15 % in South East Asian
Countries (Source : CIA Fact book)
• So, we can see a great amount of Non Resident
Filipino Potential for inbound travellers.
• MMT model for India would remain nearly the
same in case of Philippines.