In the era of globalization and advanced technology, the travel industry has become more accessible and efficient than ever before. With the increasing number of choices in travel services, the Internet has become the most convenient platform for customers to compare prices and make bookings for flights, buses, trains, and hotels. MakeMyTrip is one such online travel company that has been facilitating millions of travellers in India and abroad since its inception in 2000.
MakeMyTrip: An Overview
MakeMyTrip is a Delhi-based online travel company founded by Deep Kalra, an MBA from IIM Ahmedabad. The company began its journey in the US-India travel market, offering a range of products and services, including flight tickets, hotel bookings, and holiday packages. In 2005, MakeMyTrip expanded its operations to India and soon became one of the leading online travel companies in the country.
MakeMyTrip offers a one-stop-shop solution to its customers for all their travel needs. The company provides services for flight bookings, train and bus tickets, hotel reservations, holiday packages, and car rentals. With its user-friendly website and mobile app, customers can easily compare prices, read reviews, and make bookings in just a few clicks.
Business Model of MakeMyTrip
MakeMyTrip follows a Business-to-Consumer (B2C) business model, where it offers its products and services directly to the customers. The company has a wide network of suppliers, including airlines, hotels, bus and train operators, and car rental companies, which enable it to offer a comprehensive range of travel services to its customers.
The business model of MakeMyTrip is based on the following key elements:
- Customer Segment: MakeMyTrip serves a wide range of customers, including individual travellers, families, couples, and corporate clients. The company’s primary target audience is internet users and youngsters who prefer online booking and planning. Corporate clients, especially small and medium enterprises, are also a significant customer segment for MakeMyTrip’s corporate travel services.
- Value Proposition: MakeMyTrip offers a wide range of travel services at competitive prices, making it a convenient and cost-effective option for customers. The company provides value to its customers through its user-friendly website and mobile app, which offer a seamless booking experience, price comparison, and 24/7 customer support.
- Channels: MakeMyTrip uses various channels to reach its customers, including its website, mobile app, call centres, travel agents, and distribution partners. The company’s website and mobile app are the primary channels for bookings and inquiries, while call centres and travel agents provide customer support and assistance.
- Customer Relationships: MakeMyTrip focuses on building long-term relationships with its customers through personalized and customer-centric services. The company offers various features, such as trip ideas, trip assistance, and trip money, to facilitate customers in their travel planning and decision-making process.
- Revenue Streams: MakeMyTrip generates revenue through various sources, including ticket sales, hotel reservations, holiday packages, car rentals, and advertisements. The company earns a commission from its suppliers for each booking made through its platform.
Success Factors of MakeMyTrip
The success of MakeMyTrip can be attributed to various factors, including:
- Strong Brand Image: MakeMyTrip has established itself as a trusted and reliable brand in the online travel industry. The company’s strong brand image and reputation have helped it to attract and retain customers.
- User-friendly Platform: MakeMyTrip’s user-friendly website and mobile app have made it easy for customers to compare prices and make bookings. The company’s platform is designed to provide a seamless booking experience, making it a preferred choice for customers.
- Wide Range of Services: MakeMyTrip offers a comprehensive range of travel services, including flights, trains, buses, hotels, and holiday packages. This has helped the company to cater to the diverse needs of its customers and stay ahead of its competitors.
- Strategic Partnerships: MakeMyTrip has formed strategic partnerships with various suppliers, including airlines, hotels, and car rental companies, which enable it to offer competitive prices and a wide range of services to its customers.
- Focus on Customer Experience: MakeMyTrip focuses on providing a personalized and customer-centric experience to its customers. The company offers various features, such as trip ideas, trip assist, and trip money, to facilitate customers in their
Make My Trip Sources of Revenue:
Make My Trip earns its revenue primarily through commissions from its travel partners. The company charges a commission on every booking made through its platform, which varies depending on the type of service.
- Airline Ticketing: Make My Trip earns a significant portion of its revenue from airline ticketing. The company purchases flight tickets in bulk from airlines at a discounted rate and sells them to customers at a slightly higher price, earning a profit through the difference. Make My Trip’s commission on airline ticketing ranges from 5% to 10% of the ticket price.
- Hotel Reservations: Make My Trip also earns revenue from hotel reservations. The company has tied up with various hotels and charges a commission on every booking made through its platform. The commission rate varies depending on the hotel’s location, star rating, and room tariff.
- Bus and Train Ticketing: Make My Trip earns revenue from bus and train ticketing by charging a commission on every ticket sold through its platform. The company has partnered with various bus and train operators to provide a comprehensive range of travel options to its customers.
- Holiday Packages: Make My Trip offers holiday packages that include flight tickets, hotel reservations, and local transportation. The company earns revenue by charging a markup on the total package cost.
- Car Rentals: Make My Trip also earns revenue from car rentals by charging a commission on every booking made through its platform.
Make My Trip Strategies to Maintain Competitive Edge:
Make My Trip employs various strategies to maintain its competitive edge in the market.
- User-friendly Interface: Make My Trip’s platform is designed to offer a user-friendly interface, enabling customers to search, compare, and book travel services with ease.
- Price Comparison: Make My Trip’s algorithms analyze various factors such as price, availability, customer reviews, and ratings to provide the best possible travel options to its customers.
- Partnerships: Make My Trip has partnered with various airlines, hotels, bus and train operators, and car rental companies to provide a comprehensive range of travel options to its customers.
- Marketing and Promotions: Make My Trip invests heavily in marketing and promotions to increase its brand visibility and attract new customers. The company offers various discounts and deals to its customers, which helps to drive sales and revenue.
- Customer Service: Make My Trip places a strong emphasis on customer service, offering 24/7 support to its customers. The company’s customer service team is trained to handle various queries and issues, ensuring a smooth and hassle-free experience for its customers.
- Technology: Make My Trip invests in cutting-edge technology to stay ahead of its competitors. The company uses artificial intelligence and machine learning algorithms to personalize its services and offer a seamless experience to its customers.
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Wrapping Up
MakeMyTrip’s business model is a testament to its ability to adapt to the evolving landscape of the travel industry. By offering a comprehensive suite of services, investing in technology, and engaging users through strategic marketing, MakeMyTrip has become a household name in travel planning. As the industry continues to evolve, MakeMyTrip remains at the forefront, shaping the way people explore and experience the world.
Frequently Asked Questions(FAQs)
What services does MakeMyTrip provide?
MakeMyTrip offers a wide range of travel services, including flight bookings, hotel reservations, bus and train ticketing, car rentals, and holiday packages.
What is MakeMyTrip’s business model?
MakeMyTrip follows a Business-to-Consumer (B2C) model, directly offering its products and services to customers. The company earns revenue through commissions from its travel partners for each booking made through its platform.
How does MakeMyTrip earn revenue from airline ticketing?
MakeMyTrip purchases flight tickets in bulk at a discounted rate from airlines and sells them to customers at a slightly higher price, earning a profit through the price difference. The company charges a commission ranging from 5% to 10% of the ticket price.
What is the commission structure for hotel reservations on MakeMyTrip?
MakeMyTrip charges a commission on hotel reservations, and the rate varies based on factors such as the hotel’s location, star rating, and room tariff.
How does MakeMyTrip earn revenue from bus and train ticketing?
MakeMyTrip charges a commission on every bus and train ticket sold through its platform, having partnered with various operators to provide a comprehensive range of travel options.
What is the primary source of revenue for MakeMyTrip’s holiday packages?
MakeMyTrip earns revenue from holiday packages by charging a markup on the total package cost, which typically includes flight tickets, hotel reservations, and local transportation.
