Presented By: Mercury Abhinav Agarwal-043003 Abhinav Mittal-043004 Deepali Agarwal-043019 Abhinav Mahajan-043032 Ragini Pant-043042
Introduction
The Company
Customer Segments in Indian Travel Market
Indian Travel Market
International Travelers
Domestic Travelers
Inbound Travelers (Inbound Market)
Outbound Travelers ( more than 6 millions)
Holiday & Sightseeing
Business Travelers
Conference
Visiting friends & Relatives (VFRs)
Students
MMT s Business Model & Operations
Online Interface With MMT Makemytrip.com Interface
Offline (after sales) Interface
Customer Real Time Airline Booking Hotel Reservation System Car Rental interface MMT Sales (CSRs) MMT Ticketing Fed Ex
Customer
Airlines
MMT Sales Consolidators
MMT Operation
Car Rental
Web Site Content
Hotels
Tour Operation
Net Carrots
Using Websites for Service Delivery
Information
Read brochure/FAQ; get schedules/ directions; check prices
Payment
Pay by bank card Direct debit
Consultation
Conduct e-mail dialog Use expert systems
Billing
Receive bill Make auction bid Check account status Core
Order-Taking
Make/confirm reservations Submit applications Order goods, check status
Exceptions
Make special requests Resolve problems
Hospitality
Record preferences
Safekeeping
Track package movements Check repair status
CORE: Use Web to deliver information-based core services
Options for Service Delivery
There are 3 types of interactions between customers and service firms
Customer goes to the service provider (or intermediary) Service provider goes to the customer Interaction at arm s length (via the Internet, telephone, fax, mail, etc.)
Place vs. Cyberspace
Place - customers and suppliers meet in
a physical environment
Required for people processing services Offers live experiences, social interaction, e.g., food services More emphasis on eye-catching servicescape, entertainment
Cyberspace - customers and suppliers do
business electronically in virtual environment created by phone/internet linkages
Ideal for info-based services Saves time Facilitates information gathering May use express logistics service to deliver physical core products
E-Commerce: Factors that Attract Customers to Virtual Stores
Convenience (24-hour availability, save time, effort) Ease of obtaining information on-line and searching for desired items Better prices than in bricks-and-mortar stores Broad selection
Splitting Responsibilities for Delivering Supplementary Services
As created by originating firm As enhanced by distributor As experienced by customer
Core
Core
Situation Analysis of Travel Market (4C Framework)
Large and increasing NRI population People need service in less time. Outbound segment is price sensitive Corporate tie-up IRCT, Travelocity, Priceline and Expedia. Most of airlines and hotels encouraging direct online purchasing.
Customer
Competitors
USD 1.5 billion NRI market world wide Outbound traveling increased by 30 % In India Inbound and Outbound travel market growing 20 % annually.
Context
Company
Indias largest ecommerce company focused on NRI inbound travel MMT operates as a Two separate entities MakeMyTrip India and MakeMyTrip Inc.
Question 1
Can MMT sustain its business model by targeting only the inbound travelers or does it need to look at other markets?
Answer 1
They should focus on NRI/VFR segment But they should give options of extensive research on website for NRI Proactively give options to NRI s who book their tickets for a particular location in India Focus on inbound market But keep eye on Indian domestic market(50% of domestic travel market)
Domestic
Opportunities Growing demand
Threats Low PC penetration, Poor quality of Dial up access, Absence of proper Cyber legislation. Extremely high price sensitivity, Competition from existing brick-andmortar travel agents, Consumers are hesitant to purchase on Internet, Dependence on International market conditions, Competition from existing major players like Expedia, Travelocity and Priceline, Does not have the scale to bargain low prices with hotels, Will increase cost. All marketing done in US is conceptualized in India. Hotel quality and capacity in India, as compared to the foreign countries.
Outbound
6 million Indian travelling abroad (up from 5 million last year)
Inbound
90% of NRI/VFR plan their trips so sales are fairly stable and predictable, Increasing trend of NRI/VFR to explore India and take short vacations while visiting their family, NRI population in United States has doubled in the past decade and is expected to grow at 10% per year, NRI is US have gone an identity shift from south Asians to Indian Americans and thus their buying behavior is strongly influenced by the Internet-savvy American culture, Strategic alliance with brands that are associated with the Indian consumer in a unique way, Core competence in the Indian market, MMT s infrastructure has been build around the needs and requirements of the NRI/VFR customer.
Over 65% of online users researching information, give more credibility to User reviews, even in India
Source: Nielsen//NetRatings study Sept 2009
Provide travel inspiration section
Give downloadable mobile app
Bhutan partners MakeMyTrip
Source:BS Reporter / New Delhi March 12, 2011, 0:32 IST
We expect at least 2,500 people to visit Bhutan through MakeMyTrip during the two months said Marketing Officer Mohit Gupta Bhutan, in an effort to double foreign tourist arrivals from India in the next one year, has partnered travel portal MakeMyTrip to roll out summer packages, starting mid-May. We should try to tie up with State Tourism Departments (Incredible India!)
Answer 2
MMT Strategic Alliance
Offline Alliance with Coke ( Sharjah cricket series) Travel Channel for sify.com Weekend getaway suggestions for Maruti Udyog
With focus on cross-selling rather than revenue generation
Barriers to International Trade in Services
Operating successfully in international markets remains difficult for certain services despite efforts of the WTO and control relaxations Barriers include
Refusal by immigration offices to issue work permits Heavy taxes on foreign firms Domestic preference policies Legal restrictions Lack of broadly-agreed accounting standards Cultural differences (esp. for entertainment industry)
CHINESE DOMESTIC MARKET
Note: 37% of Ctrip s business comes from online transactions. While 63% of its revenue comes via offline business(call centre).
Customer Segments in Indian Travel Market
Indian Travel Market
International Travelers
Inbound Travelers (Inbound Market)
Outbound Travelers ( more than 4.5 millions)
Holiday & Sightseeing
Business Travelers
Conference
Visiting friends & Relatives (VFRs)
Students
Non Resident Chinese market
Largest number of expatriates in the world 3.6 million in USA According to a 2003 survey
35% traveller bought tickets and packages online Market expected to grow at 55% in next 2 yrs
MMT has good reason to believe that NRC will follow similar purchasing trends. Open office in Beijing
Rather than focusing on Australia, Singapore and Philippines, we will increase focus on outbound/domestic travel in India Open around 10 regional offices in India to resolve last mile problem. People in India like to visit & chat with the travel agents.
Thank You
