make my trip business model
DESCRIPTION
IT ModelTRANSCRIPT
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PRESENTATION ON MAKE MY TRIP
Presented By:
Anurag Kumar Verma - 221031
Anvesh Reddy Methuku - 221032
Apoorva Gupta - 221033
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Historical Evolution
Started operations in
US in 2000
2011-2013 made 5
acquisitions.
In 2011, focus on
mobile apps.
In 2010, Makemytrip
went public, listed
on NASDAQ
Slowly also offered
non business
packages
Started operations in
India in 2005
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Business Model
Interaction
System
Makemytrip Interface Offering
Search Engine
Booking Facility
CRM
Airline Tickets
Hotel
Reservations
Holiday Packages
Railway Tickets
Bus Tickets
Car Rentals
Customer Care
Support
Website
Call Centres
Travel Executives
Makemytrip.com
Makemytrip
Stores
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Marketing Strategy
Mission:- Gra the attetio of the user ad ifor aout MMTs USP- lowest air fare provider.
Message: The underlying behind the advertising campaign were that consumers
were dual hunters and looked for the cheapest price with assurance.
if you fid the lower fare we pay the differee was desiged to serve the purpose of grabbing the attention.
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Brief Financial Summary:
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Segment wise revenue
Air Ticketing
Domestic:
International
Revenue: $60.9million
No of Transactions:3794.1
Hotels And Packages
Hotels: Domestic and international
Packages
Conferences and Evets
Revenue: $164.1 million
No of Transactions: 568.1
Other Segments
Rail
Bus
Car
Revenue: $3.8 million
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Revenue
Revenue increased by 16.4% in 2013 to $228.8 million over revenue of $196.6 in 2012
Major source of revenue has been the hotel booking and the packages
The company ended the year at the loss of $27.6 million as compared to profit of $7 million
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Porters Model
Industry Rivalry
Threat of New
Entrants
Bargaining Power of
Customers
Threats of Substitutes
Bargaining Power of Suppliers
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Threat of New Entrants
Threat of new entrants is moderate:
It demands huge capital requirement to set up an e-commerce based online travel portal
Developing web portals, mobile applications and maintaining 24x7 customer support requires expertise
Brand establishment requires value addition which has to be unique from the existing market players
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Threat of Substitutes
Threat of substitutes is low:
Airline companies, Travel companies, Hotels could pose a threat as substitutes Considering the complexity involved in the online business model, substitutes
may restrict to their conventional platform
Substitutes cannot offer product comparisons to the customer as they focus on their individual products
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Bargaining power of Suppliers
Bargaining power of suppliers is High:
Suppliers provide the actual products and set the base prices on which MMT earns margins
Any fluctuations in the prices or the quality of the products from the suppliers could adversely affect the business
Role of suppliers is crucial in maintaining B2B relations which is the core activity in online travel business
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Bargaining power of Customers
Bargaining power of customers is low:
Since MMT offers the lowest prices available in the market, there is nothing customer could bargain
Base prices are already fixed by the suppliers and the role of customers on influencing the buying decision is limited
Product customization is very low in online travel market which further reduces the power of the customers
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Industry Rivalry
Industry rivalry is moderate:
Being the market leader with a market share of 47%, MMT attracts high customer visibility
Competitors such as yatra.com, cleartrip.com are the market challengers having a market share of 20% each
Maintaining the top position in the market from the competitors is the prime focus
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focus this yea fo MakeMyTrip is to move
beyond customer satisfaction
and towards creating
customer DELIGHT!!
Consolidation, dynamic packaging, offering more for less, creating a memorable experience
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ADVERTISING STRATEGY
With more and more players entering the segment, it is necessary to advertise to ensure you have captured sufficient mind-share.
Again, the product basket that we offer is growing and our customers have to be updated accordingly.
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WAY AHEAD
In the coming 2 years, revenues from air ticketing and hotels & packages ill hae an eual shae of 50:50, Deep Kalra, CEO & Founder of the ticketing company said
in May this year.
The online ticketing company, which at the time of going public three years ago had 85% of its revenues coming
from air ticketing,
now gets only 68% from selling flight tickets. Whereas
revenues from hotels and packages have gone up.
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13% of Total Domestic Online Hotel Booking
via mobile
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Customer Centric Strategies to Drive Online
Hotel Booking
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THANK YOU