PROJECT REPORT
MAKEKYTRIP.COM SUBMITED BY!! SUMIT KUMAR (11PGDM112) POOJA GOYAL (11PGDM065) RISHABH PANDEY (11PGDM087) SURBHI GUPTA (11PGDM113) RAHUL DUBEY (11PGDM083)
MMT was launched in the US in 2000 to cater to the niche US-to-India travel market. The company survived the dotcom bust and the 9/11 tragedy and was able to breakeven in 2002. The website emerged as the foremost online travel service provider in the US-to-India market. By 2004, it had garnered 3.5 per cent share of this NRI market (Rs. 4,500 crore/US$ 1 billion) which was dominated by ethnic agents who were either consolidators (wholesalers) or sub-agents. With over 100,000 customers and 130,000 registered users in the US, Makemytrip had a renewal rate of 30 per cent. NRIs could book tickets to India online or could call travel consultants who were available 24x7 on the US toll-free 1800-India-10. The company had offices in New York and Sydney. According to Kalra, the factors which worked well for the company were an all-pervasive entrepreneurial spirit along with cohesive culture and homegrown HR practices. Employees were given opportunity to be owners of the company by holding stocks.
In the meeting with the key members, a decision was taken to launch the India website in September 2005. Kalra believed that there was a strong indication of a healthy growth for travel products/services in India. There was a compelling need to provide a platform for buying and selling travel products/services. MMT identified the gap between demand and supply and decided to offer a user-friendly and convenient online interactive interface to the consumer. The company received an investment of US $8 million (Rs. 352 million) from SB Asia Infrastructure Fund (SAIF), a leading Asian private equity firm. Kalra justified his decision to start operations in India thus: “The lau nch of MMT India was not really a shift of focus; we wanted to launch the India business because the time was just right.” Low -cost carriers (LCCs) had made air
travel cheaper, thus opening up the market for air travel and leisure holidaying beyond visiting friends and family. The young India had more disposable income and a greater desire to travel. The airlines’ move to e-ticketing also paved the way for travel e-commerce. The travel market was ready to evolve to the next level (online) and MMT was preparing to launch at the most opportune time. As the first and only comprehensive online travel site with real time booking for flights, hotels, holidays, and cars, MMT was in the process of bringing a revolution in the way travel products were bought in India.
With the advent of the Internet and plenty of web development technologies around the world, e-business is the new mantra of businesses in today’s world. The Internet has in many ways facilitated the development of businesses worldwide that can reach out to a wider consumer base and advertises their products more effectively and efficiently. Corporate communications, interface designs, cutting edge applications are also found on the Internet. E business has been added as the latest domain in business and has become a must-have in the highly competitive technology driven open market. E Business Strategy can be summarized as the strategies governing E Businesses through calculated information dissemination. Information dissemination has been widely regarded as the forte of e-business, which uses information technology in a most efficient manner. Not only has e-business has come to play an important role in the world trade scenario; there is no business without an accompanying e- business in today’s world. E business gives a business the opportunity to open its portal to the global market and become a part of the global business community. The most important feature of e-business is that the helps businesses move on to the international scene at minimal cost but with maximum efficiency. E-business has achieved unprecedented levels of success as business models, which have not been enjoyed by any other business models. Some of the examples would be MRP (Material Requirements Planning), EDI (Electronic Data Interchange) or ERP (Enterprise Resource Planning). The essential features of e-business strategies are supply chain
management and email marketing.
Supply chain management: effective management of the supply chain can be handled with the help of e-business strategies, which will ensure better coordination between the wholesalers and the retailers of various products. Better integration of the supply chain right from the source till the final delivery of the product can be effectively implemented using e business strategy. This also brings us to the point of e- commerce where a parallel network of buying and selling can be observed using dissemination of information over the Internet. Everything ranging from automobiles to electronic gizmos can be bought over the Internet in a hassle free manner under the aegis of sound supply chain management. Customer service and customer relationship management: effective e-business strategies would involve better customer service and customer relationship management ensuring the highest level of consumer satisfaction. E business is targeted at providing the customer-friendly services, which would include the timely delivery of goods right at the doorstep of the consumer.
Inventory and service management integration: e- Business strategies can also help in better inventory and service management integration through formulating specific plans for inventory accumulation and purchasing machinery and equipment which will avoid unnecessary purchases which can lead to higher expenditures entailing different tax implications. Tactical operations alignment: tactical operations directed towards short-term goals as opposed to strategic planning aimed at long term goals can be better coordinated implementing the e business strategies. E-business diverges from the traditional sphere of business by speeding up the business activities and giving a totally new dimension and definition to businesses worldwide be it whether partnerships, joint ventures or large corporations. The internet, intranet, cellular networks and other forms of digital technology have created a niche value chain among clients, employees, suppliers, stakeholders and traders coordinated in the world of web marketing. The tools and pillars of e-business strategies include acceptance of payments over the Internet, online advertising, on-line trading and auction deals over the Internet. E-business strategies will also differ for small and medium-sized businesses. Apart from regular sources, e-business strategies can generate revenue from maintenance of current channel integrity, revenue made from paid marketing alliances, revenues derived from franchisees and subscriptions.
Gayatri Buddha termed MMT’s business model as a simple B2C. The
customer could use either MMT website or its call centre to book air tickets, hotel rooms, and travel packages. There were three enabling components: technology, people and process, and supplier relations. The earlier experience in the US indicated that strong relationship with suppliers such as domestic airlines including LCCs, international airlines, and hotels would help the company run the business model. Technology was identified as a cornerstone. MMT had already developed proprietary technology which would help it link all supplier sites to check the inventory and compare prices. In fact, the search engine the company had developed would enable it to offer the lowest possible price to the customer. The booking engine would also enable customers to customize the booking of their flight and hotel packages to maximize savings. Being a travel commerce website, the company believed that its own products would generate adequate revenue to successfully run the business model without depending on revenue generated from selling advertisement space on the website. The company believed that placing of advertisements on the website might distract or divert visitors from their main objective of searching or booking travel products on MMT’s website. The other key component of the business
model would be employees having domain-specific skills in order to help MMT develop and offer suitable products and services for the travel consumer
A business model as a blend of three different streams including:
Value stream
Revenue stream
Logistic stream
Generally researchers observed 11 e-business models such as
E-shop
E-auction
E-procurement
E-mall
Third party marketplace
Virtual communities
Value chain service provider
Value chain integrators
Collaboration platform
Information brokerage
Trust services
MAKEMYTRIP explored online broking model. Their core E-Commerce business model was very simple and effective B2C and even it complemented their travel products and services very well.
About Travel Partner Network Power your site with MakeMyTrip’s cutting edge online travel booking services via its partnership program called TravelPartnerNetwork. With TravelPartnerNetwork you will get MakeMyTrip’s Hotel and Flight Inventory, Online Booking Engine, Complete Backend Fulfillment and Post Sales Services. All you need to focus on is getting customers to your site and the fortnightly cheque for commissions earned from all transactions done through your site.
Partnership Benefits: MakeMyTrip.com in a span of ten years has garnered a wealth of experience and respect in the travel industry, and this success is in no small part due to the diligence and efforts of our partners. These are just some of the benefits our partners receive when they join hands with MakeMyTrip.com:
Association with the BIGGEST online travel brand in India Assistance from a team of technology and business experts dedicated to the needs of the travel industry Best commissions on domestic flights as well as hotels Single platform for all GDS and Low Cost Carriers Instant invoicing of hotels and airline bookings Access to a user-friendly online travel portal Real-time booking of 3000+ hotels across India Access to over 50000+ hotels across the globe Online branch network management facility
Revenue Model
On Air Bookings the company gets 3% commission on gross fare net of PSF with Rs 50 to Rs 100 as service fee from the customer
MMYT generates the majority of hotel and package revenue through its call centers and travel stores. Although only around 5% of transactions are executed through call centers and travel stores, revenues from these transactions account for around 20% of the total.
Direct link between hotels’ central reservation systems and MMYT’s booking system
Revenues from other businesses include fees from travel insurance companies, advertising revenues, and new service offerings.
The net revenue margin in the hotel business to decline from 14% in FY10 to 13% in FY13e, which is conservative when compared with an increase from 8.9% in FY08 to 14% in FY10
MMYT’s focus is to expand its high -margin hotel business,
especially high-value international travel packages.
Launched Websites for UAE and Canada
The company is looking for selective merger and acquisition opportunities to boost presence in its targeted overseas market.
Acquired ticketvala.com to move into bus seat bookings.
Competitors of Make My Trip Yatra.com
Yatra.com was expected to be launched by August 2006 to help businesses and consumers by offering travel-related information, pricing, availability and reservations for airlines, hotels, railway, buses, and car rentals across 5,000 large cities and small rural areas throughout India.
Travelguru.com
Travelguru.com was scheduled to be launched in December 2005. WestBridge Capital Partners, a venture capital fund, was expected to provide funding to Travelguru.com. Travelguru planned to offer services through the MICE (Meeting, Incentive, Conference, and Event) team to arrange conferences, meetings, and events for consumers or corporate clients. Services to be offered included the following: o o o o o
planning a cost-effective budget assistance with airline bookings assistance with hotel bookings assistance with transportation planning sightseeing trips
Cleartrip.com
Cleartrip.com, another online travel agent, was planning to enter the market by August 2006. This company was said to be funded by Ram Shriram’s Sherpalo Ventures and Kleiner Perkins Caufield & Byers, two leading USbased venture capital firms. Cleartrip.com was planning to allow customers to select from over 900 domestic hotels across India and a comprehensive selection of established network carriers and LCCs operating in the domestic market. To provide superior choice, Cleartrip.com was in talks with Abacus, Asia’s leading global distribution system, to provide access to airline inventory and fares. Cleartrip.com planned to spend about Rs. 30 crore14 (Rs. 300 million) in the first year on advertising.
