Makemytrip: Growth and

Sustainability

Group 5
Akash
Ganesh
Kapil
Madhav
Ruchika
Vinitha

Introduction

Air
Ticketing

Founded in April, 2000

Offices in 23 cities across India

4 international offices in New York, San

Francisco, Singapore and Sydney

Several franchise locations

Leading online travel company in India with

diversified portfolio

Growth across segments

250000

Revenues
200000 (USD)
150000
100000
50000
0

Air Ticketing
2014

Hotel and Packages

2015

Hotels
and
Packages

Ancillary
Services

2016

Other Segments

Services and
Products
Rail
Tickets

Car Hire
Bus
Tickets

Different Service Segments

Air Travel

Hotel and Packages

Other Segments

Domestic: Within India

International: From India
Inbound: Overseas to India

Hotels: Domestic and Intl

Packages:
Domestic and Intl
Conferences and Events

Rail
Bus
Car
Ancillary Services/Products

Transactions: 1,766,905
77% of Net Revenues

Transactions: 109,672
20% of Net Revenues

Rail Transactions: 185,948

Bus Transactions: 57,529
3% of Net Revenues

Source: PhoCusWright

Recent Performance Highlights

Transactions for MMT India Standalone Hotels booked Online increased by

292.7% YoY in 2Q17

Transactions for MMT India Standalone Hotels booked on Mobile increased by

453.6% YoY in 2Q17

Transactions for Hotels and packages increased by 172.7% YoY in 2Q17

Gross Bookings reached $493.5 million in 2Q17, representing a YoY increase of

16.9%. Gross bookings for Hotels and packages increased by 30.6% in 2Q17

Revenue increased by 30.2% YoY in 2Q17

Revenue less service costs increased 50.9% YoY in 2Q17

Revenue for Hotel and packages increased by 30.1% YoY in 2Q17

Revenue less service costs for Hotels and packages increased 73.4% YoY in 2Q17

Hotels and packages contribution increased to 52.0% in 2Q17

Business Model
Agent Model
Fees and commissions negotiated with travel suppliers for bookings made through websites or via other
distribution channels
Bulk purchase and hence, lower cost; sold to the customers with added commission charge

Merchant model
The revenue from the sale of tours and packages and hotel reservations is recognized on the customers departure
and check-in dates, respectively

Travel Store Model

Consult with sales representatives, receive comprehensive, real-time flight, hotel and package information as
well as information for other services and products, and make travel bookings, without prior appointment
Direct interface with the customers and in addition provides access to customers who prefer to meet
representatives to make travel bookings
As of March 31, 2016, the company has 16 company-owned travel stores and 49 franchisee-owned travel stores

Others (Promotions and loyalty)

Income from hotel vendors against online promotions of hotels brands on the website
Income from other sources, primarily comprising advertising revenue, income from rail and bus tickets reservation
and fees for facilitating website access to a travel insurance company
Loyalty points on current transactions that can be redeemed for future qualifying transactions

Service Blue Print

Backend operations

SWOT Analysis
Large customer base (maximum repeat
customers)
Best deals as compared to Yatra, Veenaworld,
Flamingo
Various discounts on same day booking
One of the earliest market entrants
International presence

Rapid growth rate in Wellness, Cruise and Medical

sector by 2020
Leisure and Business spending to grow by 7% by 2026
Estimated rise in Hotel bookings
Increasing per capita income

Strengths

Opportunity

Weakness

Threats

Hesitation to make online payments for the

packages
Poor feedback on cancellation/refund status,
have to be followed up several times

Direct service offerings by service providers

Rising Environment Concerns
Political Instability

Online Travel Opportunities

Industry Comparison

Hotels & Packages Segment

Comparison of the two main segments

Mobile Usage Data

Recommendations

Considering the 694% and 182% growth in mobile transactions for

hotels & flights respectively, MMT should focus on optimizing their
mobile app and making it user friendly

The hotels & packages segment of MMT is growing exponentially as

compared to the other segments and hence the company should
divert more resources to the hotels and packages services

Hotels in one of the least penetrated segments online and hence this
segment should be focused upon to reap higher returns

As per companys financial data, service costs are extremely high and
company should take adequate measure to bring down their costs to
improve their bottom line

Proposed System

Tap Tier 2 and tier 3 cities market with brick and mortar outlets

Develop CRM tool to capture buying behaviour of repeat customers and build customized
travel packages

Add cash on delivery feature in their model

Introduce stringent quality checks with feedbacks from customers after calls

Add pick and drop services to customers from railway stations or airports

In the Train booking vertical, provide added meal deals

Club with hotels and food chains to provide added services

Include 360 degree view of the hotel rooms or properties to rent

Include chat feature to help user in online process

For Rail booking, merge with Trainman ltd. which helps customers to book tickets with
some probability of confirmation

Improve the user search experience by introducing Voice search

To utilize the inventory to its optimum, provide bookings and renting for less than a day
based on hourly charges

THANK YOU