MakeMyTrip, India’s leading online travel agency, has positioned itself as a significant player in the competitive Indian online travel industry. With a net worth of $3.65 billion, MakeMyTrip’s success can be attributed to its effective marketing strategy, which focuses on market segmentation, competitive analysis, and promotional campaigns to cater to diverse traveler preferences.
The online travel company engages customers through various digital channels, including social media platforms, to maintain a strong connection throughout the customer journey. By targeting tech-savvy individuals who value convenience and seek value-conscious deals, MakeMyTrip prioritizes safety in travel arrangements, ensuring the satisfaction of its buyer persona in India.
Although the majority of MakeMyTrip users in India are males aged between 25 and 39, the company aims to provide personalized experiences for customers of all ages. Leveraging search engine optimization (SEO), social media marketing, email marketing, and paid advertising campaigns, MakeMyTrip enhances online visibility, engages with customers, and drives conversions effectively in its marketing strategies.
Key Takeaways:
- MakeMyTrip is a significant player in the Indian online travel industry, with a net worth of $3.65 billion.
- The company’s marketing strategy focuses on market segmentation, competitive analysis, and promotional campaigns.
- MakeMyTrip engages customers through various digital channels, maintaining a strong connection throughout the customer journey.
- The majority of MakeMyTrip users in India are tech-savvy males aged between 25 and 39.
- The company employs SEO, social media marketing, email marketing, and paid advertising campaigns to enhance online visibility and engage with customers.
MakeMyTrip’s success can be attributed to its deep understanding of customers’ individual requirements, as it caters to a diverse audience, including young professionals, families, and adventure seekers. The company’s mobile app and website are user-friendly, providing optimized experiences for its users.
MakeMyTrip leverages customer data to personalize user experiences, leading to higher engagement and customer satisfaction. The comprehensive travel services provided by MakeMyTrip, including flights, hotels, holiday packages, and more, cater to diverse travel preferences and budgets.
The company prioritizes both customer acquisition and retention through personalized recommendations, loyalty programs, and exceptional customer service. MakeMyTrip collaborates with brand ambassadors like Alia Bhatt and Ranveer Singh for marketing campaigns and maintains an active presence on major social media platforms such as Facebook, Instagram, and Twitter.
MakeMyTrip invests significantly in search engine optimization (SEO) to ensure high visibility in travel-related searches. The company is also expanding to new destinations, both domestic and international, to meet evolving travel preferences. Gathering feedback through post-booking surveys and encouraging customer reviews helps MakeMyTrip improve services and build trust with its customers.
Looking towards the future, MakeMyTrip’s marketing strategies emphasize experiential marketing campaigns and sustainability initiatives for future growth. With tech-driven travel advancements, niche travel segment growth, and voice search integrations predicted for the industry, MakeMyTrip is poised to leverage technology and innovative customer experiences to maintain its market leadership position in the Indian travel industry.
Key Takeaways:
- MakeMyTrip targets a diverse audience, including young professionals, families, and adventure seekers.
- The company’s mobile app and website provide optimized, user-friendly experiences.
- MakeMyTrip leverages customer data for personalization, leading to higher engagement and customer satisfaction.
- The company offers comprehensive travel services to cater to diverse travel preferences and budgets.
- MakeMyTrip prioritizes customer acquisition and retention through personalized recommendations, loyalty programs, and exceptional customer service.
MakeMyTrip Company Highlights
Founded in 2000 by Deep Kalra, MakeMyTrip Inc. is a leading online travel agency based in Gurgaon, Haryana. With a customer-first ethos, MakeMyTrip provides a wide range of travel services, including flight tickets, holiday packages, hotel reservations, rail and bus tickets. The company has established its presence across India through 65 retail stores in 50 cities and has expanded its reach globally with offices in New York City and Sydney.
MakeMyTrip holds a significant market share of close to 25% in the OTA hotel booking segment, a testament to its popularity and reliability. In 2019, the company generated a revenue of $104.95 million, with a net income of $338.76 million. With a dedicated workforce of 3051 individuals, MakeMyTrip manages to sell over 12,000 flight tickets, 1,000 hotel room nights, and more than 100 holiday packages daily.
In addition to its strong online presence, MakeMyTrip maintains a physical presence with 14 company-owned travel stores in 14 cities and over 30 franchisee-owned stores across 28 cities. The company also operates counters in four major airports within India. Furthermore, MakeMyTrip has established operational offices in international cities such as New York, Kuala Lumpur, Singapore, Bangkok, Phuket, and Dubai, ensuring a global footprint.
MakeMyTrip’s business model primarily focuses on B2C services, catering directly to customers’ travel needs. The revenue model is diversified, with 66% derived from airline ticket sales and 34% from non-air sources. The company also earns revenue through commissions from travel agencies and direct customers. This customer-centric approach, combined with strategic marketing methods, has helped MakeMyTrip build a loyal customer base and establish itself as a trusted name in the online travel industry.
| Year | Revenue (in USD millions) | Net Income (in USD millions) | Number of Employees |
|---|---|---|---|
| 2019 | 104.95 | 338.76 | 3051 |
Market Overview of Online Travel Industry
The travel and tourism sector is a thriving industry that continues to experience significant growth. With projected revenue of US $31.45 billion by 2027, the travel and tourism sector is poised for a Compound Yearly Growth Rate (CAGR) of 12.18% between 2023 and 2027. This upward trajectory indicates promising revenue growth and ample opportunities within the online travel industry.
In the online travel industry, leading companies like MakeMyTrip play a crucial role. MakeMyTrip is India’s premier online travel agency, with a substantial online presence and nearly eight million monthly visitors to its website. The company offers a wide range of services, including flight tickets, bus tickets, hotel accommodations, holiday packages, and vehicle rentals through its user-friendly platform encompassing its website, mobile app, and physical stores.
One of MakeMyTrip’s key competitive advantages lies in its dynamic pricing model, which sets it apart from its rivals in the industry. This model allows MakeMyTrip to offer customized experiences to each client based on market dynamics, ensuring a tailored and personalized journey for travelers.
Competitive Landscape in the Online Travel Industry
The online travel industry is fiercely competitive, with several key players vying for market share, service quality, and technological advancements. MakeMyTrip faces competitors such as Yatra, Booking.com, Cleartrip, Expedia, Travelguru, and EaseMyTrip. These industry giants constantly innovate and leverage their strengths to stay ahead.
In terms of revenue strategies, MakeMyTrip focuses on selling products under five broad categories and offering differentiated features. Additionally, the company adopts a competitive pricing strategy by bundling products and setting fixed prices. This multifaceted approach ensures that MakeMyTrip remains competitive and appeals to a wide range of customers.
Market Share and Revenue Streams of MakeMyTrip
MakeMyTrip holds a solid 24% market share in the domestic flight ticketing market. The company generates revenue through various segments, with a 65% contribution coming from domestic and international air ticket sales. The remaining 35% is generated through segments like advertising, hotel booking commissions, rail and bus ticket sales, and travel insurance commissions.
Despite the challenging impact of the COVID-19 pandemic on the travel industry, MakeMyTrip’s revenues have more than doubled, underscoring its resilience and ability to adapt to changing market conditions.
| Revenue Breakdown | Percentage |
|---|---|
| Domestic and International Air Tickets Sales | 65% |
| Advertising | — |
| Hotel Booking Commissions | — |
| Rail and Bus Ticket Sales | — |
| Travel Insurance Commissions | — |
| Others | 35% |
MakeMyTrip’s revenue streams are diversified, and the company continues to explore new avenues for growth and expansion within the online travel industry.
Market trends play a crucial role in the online travel industry. Staying abreast of these trends is essential for companies like MakeMyTrip to stay competitive and effectively meet customer demands. By analyzing market dynamics, MakeMyTrip can make informed decisions and develop strategies that cater to the evolving landscape of the travel industry.
Business Model and Revenue Streams of MakeMyTrip
MakeMyTrip, one of the leading online travel companies, has built a robust business model that allows it to generate revenue from multiple streams. By strategically combining its offerings, MakeMyTrip has created a sustainable and lucrative financial model that drives its success in the travel industry.
One of the primary revenue streams for MakeMyTrip is its commission-based model. The company earns a significant portion of its revenue by charging commissions ranging from 5% to 10% on airline ticket sales made through its platform. With over 12,000 flight tickets sold daily, this commission-based revenue stream plays a crucial role in driving MakeMyTrip’s financial growth. While the commission earned on railway tickets is lower, it still contributes to the company’s overall revenue.
Moreover, MakeMyTrip generates revenue through hotel booking commissions. Although not a primary source due to customer preferences for direct bookings, MakeMyTrip still earns commissions from hotel reservations made through its platform. The commission rates vary based on factors such as location, star rating, and room tariff.
In addition to commissions, MakeMyTrip leverages its platform for advertising and promotional activities. By partnering with companies like Tata, Kingfisher, SpiceJet, and others, MakeMyTrip generates revenue through marketing partnerships. These collaborations allow the company to showcase promotional offers and encourage customer engagement.
MakeMyTrip also offers value-added services to enhance the customer experience. These services, such as visa processing and travel insurance, contribute to the company’s revenue streams. By providing these additional offerings, MakeMyTrip caters to the evolving needs of travelers while generating additional income.
Furthermore, MakeMyTrip has expanded its global presence with offices in New York, Kuala Lumpur, Singapore, Bangkok, Phuket, and Dubai. This global expansion allows the company to tap into various markets and diversify its revenue streams.
In summary, MakeMyTrip’s business model incorporates various revenue streams, including commissions, advertising, and value-added services. By strategically aligning its offerings, the company ensures a steady and substantial income, contributing to its financial success and enabling continued growth in the competitive online travel industry.
Growth Strategies of MakeMyTrip
MakeMyTrip, a leading player in the online travel industry, has implemented a range of growth strategies to solidify its position in the market and enhance its offerings. These strategies encompass various aspects such as technological innovation, strategic acquisitions, marketing, and branding.
Technological Innovation
MakeMyTrip understands the importance of technological advancements in the travel industry. The company has continuously invested in innovative solutions to enhance the customer experience. One example is their user-friendly platform, which enables seamless navigation and easy bookings. Additionally, MakeMyTrip leverages big data and artificial intelligence to provide personalized recommendations, ensuring a tailored experience for each user.
Strategic Acquisitions
MakeMyTrip’s strategic acquisitions have played a pivotal role in expanding the company’s services and market reach. Notably, the acquisition of Ibibo Group’s India operations in 2016 valued MakeMyTrip at $1.8 billion. This acquisition allowed MakeMyTrip to consolidate leading travel brands like Goibibo, Redbus, Ryde, and Rightstay under one umbrella, creating a comprehensive one-stop-shop for Indian travelers.
Marketing and Branding
A robust marketing and branding strategy has been fundamental in establishing MakeMyTrip as a trusted and recognized brand. The company has effectively used various marketing channels, including digital marketing campaigns and endorsements by popular celebrities like Ranveer Singh, Alia Bhatt, and Diana Penty in their TV commercials. These efforts have significantly contributed to increasing brand recognition and attracting a wider audience.
MakeMyTrip has successfully executed its growth strategies, resulting in impressive achievements. In Q3 of 2018 alone, MakeMyTrip sold 5.5 million room nights, 10 million air tickets, and 11 million bus tickets, showcasing the company’s substantial market presence and customer demand.
Furthermore, MakeMyTrip’s official Facebook page has accumulated more than 2.5 million likes, and their official YouTube channel has reached over 1.5 million views with 42K subscribers. These metrics highlight the strong engagement and following that MakeMyTrip has garnered.
MakeMyTrip’s commitment to sustainable growth is evident in their positive impact on the environment. Through a dedicated tree plantation drive, the company has planted 1 million trees in Rajasthan over 10 years, aligning with the goals of the environmentally conscious millennials who are a key target market for MakeMyTrip.
With a 42% market share in the e-travel industry in India, MakeMyTrip continues to dominate the online travel sector. The company’s future growth plans include doubling its growth relative to the underlying travel market, as well as targeting operating margins of 17-18% in the medium term and approximately 20% in the long term.
MakeMyTrip’s focus on technological innovation, strategic acquisitions, marketing, and branding have proven to be integral to their growth and success. By leveraging these strategies effectively, MakeMyTrip solidifies its position as a leader in the online travel industry and continues to provide innovative solutions and exceptional experiences to its customers.
Competitive Analysis of MakeMyTrip
MakeMyTrip, as India’s leading online travel agency, operates in a highly competitive online travel market. The company faces strong competition from key players such as Yatra, Cleartrip, Expedia, and others. These competitors offer similar travel services and solutions, aiming to capture a share of the growing online travel market.
Despite the competition, MakeMyTrip has managed to establish itself as a dominant player in the industry. With nearly eight million monthly visitors to its site, MakeMyTrip has a significant advantage in terms of brand recognition and customer base.
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Yatra | Wide range of travel services, strong customer loyalty | Limited international presence, smaller customer base |
| Cleartrip | User-friendly interface, innovative features | Less diverse travel offerings, limited market share |
| Expedia | Global presence, extensive hotel options | Less focused on the Indian market, limited local partnerships |
MakeMyTrip differentiates itself through its customer-centric approach, reliable platform, and continuous innovation. The company’s dynamic pricing model allows it to adapt to market trends, providing customers with customized experiences and competitive pricing. MakeMyTrip also offers access to over 1,84,000 hotels and custom holiday packages for both domestic and international destinations, further enhancing its value proposition.
In addition to its online presence, MakeMyTrip utilizes a multichannel distribution strategy, selling its travel products through mobile apps, physical stores, wholesalers, and retailers across the country. This broad distribution network strengthens MakeMyTrip’s market reach and brand visibility.
MakeMyTrip Products and Services
MakeMyTrip, a leading player in the online travel industry, offers a diverse range of travel-related services to cater to the needs of its customers. With its user-friendly platform and extensive partnerships, MakeMyTrip aims to provide a seamless travel booking experience.
Flights
MakeMyTrip offers a comprehensive selection of flight tickets, covering both domestic and international destinations. Customers can choose from a wide range of airlines and avail of competitive prices, making it convenient to book their preferred flights.
Hotels
When it comes to hotel reservations, MakeMyTrip leaves no stone unturned. With a vast inventory of hotels, ranging from budget accommodations to luxury resorts, customers can find the perfect place to stay. MakeMyTrip’s user-friendly platform allows travelers to compare prices, read reviews, and make informed decisions.
Bus Tickets
MakeMyTrip also caters to travelers who prefer bus travel. With their extensive network and partnerships with bus operators, customers can conveniently book their bus tickets for various destinations. The platform provides options for different bus types, seat selection, and real-time availability updates.
Holiday Packages
For those who prefer hassle-free travel planning, MakeMyTrip offers a wide range of holiday packages. From domestic getaways to international tours, customers can choose from curated itineraries that include flights, accommodations, local transportation, sightseeing, and more. These packages ensure a memorable and well-organized travel experience.
Mobile Solutions
MakeMyTrip understands the importance of mobile solutions in today’s fast-paced world. Their travel mobile app allows customers to access all their services on the go. From flight and hotel bookings to bus ticket reservations, customers can enjoy the convenience of booking and managing their travel plans directly from their mobile devices.
MakeMyTrip’s continuous efforts to enhance user experience and provide innovative travel solutions have made it one of India’s best travel portals. With a customer-centric approach and a wide range of products and services, MakeMyTrip aims to make travel planning and booking a breeze for travelers across the globe.
Challenges Faced by MakeMyTrip
MakeMyTrip, a prominent player in the online travel industry, has encountered several challenges in its journey to become a market leader. These challenges arise from intense competition, regulatory hurdles, and economic factors that impact the travel and tourism sector.
Intense Competition
MakeMyTrip operates in a highly competitive environment, facing competition from both domestic and international online travel agencies. Rival companies constantly strive to capture market share and attract customers through various strategies and offerings. This intense competition drives MakeMyTrip to continuously innovate and differentiate itself to maintain its position as a leading online travel platform.
Regulatory Hurdles
The travel and tourism industry is subject to various regulations and compliance requirements. MakeMyTrip must navigate these regulatory hurdles to ensure its operations adhere to legal frameworks. This includes compliance with government policies related to travel, visas, and safety standards. Stringent regulations can pose challenges in terms of operational efficiency and adapting to evolving compliance requirements.
Economic Factors
Economic factors significantly impact the travel industry, and MakeMyTrip is not immune to their effects. Economic downturns, fluctuations in currency exchange rates, and changes in consumer spending patterns can all impact the demand for travel services. Additionally, events such as global pandemics or policy changes can disrupt the travel ecosystem, requiring MakeMyTrip to swiftly adapt its strategies to mitigate the impact of these economic factors.
MakeMyTrip recognizes the importance of addressing these challenges to sustain its growth and success. The company employs agile strategies and leverages its expertise to overcome these hurdles and maintain its leadership position in the online travel industry.
| Challenges Faced by MakeMyTrip | Solutions Implemented |
|---|---|
| Intense competition from other online travel agencies and international giants | Continuous innovation, differentiation, and enhancing customer experience through technology integration and personalized services |
| Regulatory compliance related to travel and tourism | Establishing robust internal processes to ensure compliance with government regulations and staying abreast of policy changes |
| Economic factors impacting the industry | Implementing agile strategies, diversifying revenue streams, and adapting to changing consumer preferences and economic conditions |
Conclusion
MakeMyTrip, founded by Deep Kalra in 2000, has emerged as a leading player in the online travel industry. With 30+ franchised stores and 14 outlets across 28 cities, MakeMyTrip has established a strong presence in the market. The company’s mobile app, launched in 2012, provides over 1 million routes across India, offering a convenient and accessible travel experience for users.
MakeMyTrip’s success can be attributed to its commitment to innovation and customer satisfaction. The company has raised a total of $548 million in funding, enabling it to invest in advanced technologies such as AI and machine learning. These technologies enhance the mobile experience, ensuring personalized recommendations and seamless booking processes for users.
In line with the global trend towards sustainable travel, MakeMyTrip is also championing eco-friendly initiatives. By promoting sustainable travel options and partnering with responsible suppliers, the company aims to contribute to a greener future. MakeMyTrip’s dedication to sustainability extends to its geographic expansion strategy, targeting emerging markets where sustainable travel is gaining traction.
Looking ahead, MakeMyTrip is well-positioned for future growth and success. With a diverse customer segment and a focus on Small and Medium Enterprises (SMEs) in the corporate travel segment, the company has ample room for expansion. By diversifying into related services and leveraging its large user base, MakeMyTrip aims to capture a significant share of the travel market. With its solid foundation, innovative approach, and customer-centric mindset, MakeMyTrip is poised to continue its upward trajectory in the online travel industry.
