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DESIGN MANAGEMENT PROJECT
             With focus on Service and Experience Design




                    Online Travel Agency (OTA)
Company Profile
       MakeMyTrip (MMT) found in April, 2000

       Offices in 23 cities across India

       4 international offices in New York , San Francisco, Singapore and Sydney

       Several franchise locations

       Major market share

       Every eleventh domestic flights in India booked via MMT .


Source: Makemytrip.com
Offerings

                        Air Travel              Hotel and Packages               Other Segments



                                     •Hotels : Domestic and Int’l    •Rail
    •Domestic : Within India
                                     •Packages :                     •Bus
    •International : From India
                                     –Domestic and Int’l             •Car
    •Inbound : Overseas to India
                                     –Conferences and Events         •Ancillary Services/Products




                                                                     •Rail Transactions : 185,948
    •Transactions : 1,766,905        •Transactions : 109,672
                                                                     •Bus Transactions : 57,529
    •77% of Net Revenues             •20% of Net Revenues
                                                                     •3% of Net Revenues

Source: PhoCusWright, 2010
MMT Service
                                                                           Search Engine
                                                    System                Booking Facility
                                                                                    CRM




                   Interaction                                           Offering


                                                                                                     Airline tickets
                                                                                                 Hotel reservations
                                                                                                  Holiday packages
              Website UI
                                                                                                   Railways tickets
        Travel Executives
                                                                                                         Bus tickets
             Call Centers
                                                                                                         Car rentals
                                                                                             Customer care support
                                                    Interface


                                                                Makemytrip.com
Model Adapted from Service Design Offering                      Makemytrip store
by Dr. Daniela Sangiorgi, Lancaster University UK
Market Share

                                         10%


                             18%
                                               48%




                                   24%

                                                     Indian OTA Market - $1 Billion
Source: PhoCusWright, 2010
Hotel


Transaction Traffic                            40%
                                                       Online
                                                       Offline
                             60%




     5%
                Air ticket
                                         10%
                                                     Holiday
                 Online
                 Offline                             Online

          95%
                                                     Offline

                                   90%
Consumer Touch Points

                                    Website/Mobile UI




Consumer


                                             Store/ Travel
                                             Agents


                 Call Centre / Tele Agents
Addressing Grievances

24x7
Customer Care Support
                        Replacement arrangement

                        Never downgraded

                        Hotel de – listed




Customer Feedback
Offers
MMT Cases




Specially Chartered        In Trial phase            Positive response from
flights, following success Popular among western     customers
of movie 3 idiots          nationals
                                                     Plans to increase in this
>5000 passengers in 2     Growing Popularity among   segment
months travelled to Leh   Indians
in 2010
Rapidly Growing Middle Class

       Estimated to constitute around 25% of Total Households by 2015 and 46%by
       2025, controlling 44% and 58% of the total disposable income in the
       country.

       Growth in disposable income levels will drive future growth of Travel Market
       in India.




Source: McKinsey 2010
India Internet Penetration
                               78%     76%
                        80%

                        70%
 Internet Penetration




                                                58%
                        60%

                        50%
                                                          36%
                        40%                                       32%           Internet penetration in India - 7%
                        30%                                                     Number of users - 81,000,000
                        20%
                                                                           7%
                        10%

                         0%
                              US     Japan   Europe    Brazil   China   India


                                             Country
Source: Internet World Stats
Indian Holiday Behavior



Emotional Reasons                   Stress Reliever                  Planned Activity




                    Travel lovers                     Guilt Factor
Internet widely used for information

                                    Referrals, WOM
Buying Behavior                     Largely domestic travel

                                    Check 3 websites before successful booking


                         Travel and Age group


                                        Domestic Travel
 International Travel
                                        Religious Travellers – 50+ yrs
 US/Europe/NZ– 45 – 50 yrs
                                        (Vaishnov Devi, Chardham)
 South East Asia – 30 – 35 yrs
                                        Weekend Getaways – 20 – 35 yrs
Research Methodology

Primary research methodologies

Online Travel Agency (OTA) users consumer behavior.

Questionnaire about travel usage, occurrence of travel, preferred online
travel, service type etc.

Personal interview with the customers and stake holders.
Questionnaire Responses
                                              Total Number of Respondents : 43

                    2
            8
                               Everytime
                               Occasionally
                               Rarely
                        33

                                                     5
                                                                  Air
       OTA Usage
                                              24         14
                                                                  Train
                                                                  Multiple

                3

                         16             <5
                                              Mode of Transport
                                        <20
                                        <40
       24




   Occurrence of Travel (Yearly)
Responses
                                              Total Number of Respondents : 43


                             Cleartrip
             2   4                               2
         5                   Irctc
                                          6              11
                                                                     Airlines
                             Yatra
                                                                     Railways
   12                   18   Makemytrip                              Multiple
                                                                     Offline
             2               Multiple
                                                24

                             Offline


        Preferred OTA                                 Service Type
5
                 1
                     2
                              Lengthy
                                                     11
                              Useless                                     Acceptable
                                                                 21       Bad
                              Too much                                    Good

     35
                              Sufficient              11




                                                     Processing & Speed
  Data Entry Process

                                4   1

                                                  Excellent
                                           18
                                                  Good
                                                  Satisfactory
                         20
                                                  Very Bad

Responses                                       Customer Care Support
Interpretation

      OTA Service Usage/ Reach Matrix




      Usage for hotel and holiday services low.

      Scope for improvisation and development.

      Service design intervention could be a possible solution for
      the problem.
Approach

Creating value for the users with respect to
service provided.

Incorporating into existing business process .

Delivering with required quality.




                                                 Adapted from Vinai Kumar
Ideation
Solutions for problem areas in service were identified by ideation.

Customer Retention :

Improve satisfaction level of the customer and increase customer
retention for the hotel and holiday segment.

New Prospects :

New prospects in the service industry pertaining to hotel and
holiday segment.
     •    Cricket hospitality package

     •    Pilgrimage tourism package
Customer Retention Blue print
Pilgrimage Tourism Package
Conclusion
 Indian Travel Industry , greater potentials to be uncovered.

 Innovative packages, Convenient offers and lucrative deals

 Solutions , Outcome of research conducted in a small scale.

 Research needs to be taken forward and conducted in a large scale.

 Understanding traveler’s behavior and striking the right move would benefit
 travel agency greatly
Happy Tripping

             Thank You

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Makemytrip

  • 1. DESIGN MANAGEMENT PROJECT With focus on Service and Experience Design Online Travel Agency (OTA)
  • 2. Company Profile MakeMyTrip (MMT) found in April, 2000 Offices in 23 cities across India 4 international offices in New York , San Francisco, Singapore and Sydney Several franchise locations Major market share Every eleventh domestic flights in India booked via MMT . Source: Makemytrip.com
  • 3. Offerings Air Travel Hotel and Packages Other Segments •Hotels : Domestic and Int’l •Rail •Domestic : Within India •Packages : •Bus •International : From India –Domestic and Int’l •Car •Inbound : Overseas to India –Conferences and Events •Ancillary Services/Products •Rail Transactions : 185,948 •Transactions : 1,766,905 •Transactions : 109,672 •Bus Transactions : 57,529 •77% of Net Revenues •20% of Net Revenues •3% of Net Revenues Source: PhoCusWright, 2010
  • 4. MMT Service Search Engine System Booking Facility CRM Interaction Offering Airline tickets Hotel reservations Holiday packages Website UI Railways tickets Travel Executives Bus tickets Call Centers Car rentals Customer care support Interface Makemytrip.com Model Adapted from Service Design Offering Makemytrip store by Dr. Daniela Sangiorgi, Lancaster University UK
  • 5. Market Share 10% 18% 48% 24% Indian OTA Market - $1 Billion Source: PhoCusWright, 2010
  • 6. Hotel Transaction Traffic 40% Online Offline 60% 5% Air ticket 10% Holiday Online Offline Online 95% Offline 90%
  • 7. Consumer Touch Points Website/Mobile UI Consumer Store/ Travel Agents Call Centre / Tele Agents
  • 8. Addressing Grievances 24x7 Customer Care Support Replacement arrangement Never downgraded Hotel de – listed Customer Feedback
  • 10. MMT Cases Specially Chartered In Trial phase Positive response from flights, following success Popular among western customers of movie 3 idiots nationals Plans to increase in this >5000 passengers in 2 Growing Popularity among segment months travelled to Leh Indians in 2010
  • 11. Rapidly Growing Middle Class Estimated to constitute around 25% of Total Households by 2015 and 46%by 2025, controlling 44% and 58% of the total disposable income in the country. Growth in disposable income levels will drive future growth of Travel Market in India. Source: McKinsey 2010
  • 12. India Internet Penetration 78% 76% 80% 70% Internet Penetration 58% 60% 50% 36% 40% 32% Internet penetration in India - 7% 30% Number of users - 81,000,000 20% 7% 10% 0% US Japan Europe Brazil China India Country Source: Internet World Stats
  • 13. Indian Holiday Behavior Emotional Reasons Stress Reliever Planned Activity Travel lovers Guilt Factor
  • 14. Internet widely used for information Referrals, WOM Buying Behavior Largely domestic travel Check 3 websites before successful booking Travel and Age group Domestic Travel International Travel Religious Travellers – 50+ yrs US/Europe/NZ– 45 – 50 yrs (Vaishnov Devi, Chardham) South East Asia – 30 – 35 yrs Weekend Getaways – 20 – 35 yrs
  • 15. Research Methodology Primary research methodologies Online Travel Agency (OTA) users consumer behavior. Questionnaire about travel usage, occurrence of travel, preferred online travel, service type etc. Personal interview with the customers and stake holders.
  • 16. Questionnaire Responses Total Number of Respondents : 43 2 8 Everytime Occasionally Rarely 33 5 Air OTA Usage 24 14 Train Multiple 3 16 <5 Mode of Transport <20 <40 24 Occurrence of Travel (Yearly)
  • 17. Responses Total Number of Respondents : 43 Cleartrip 2 4 2 5 Irctc 6 11 Airlines Yatra Railways 12 18 Makemytrip Multiple Offline 2 Multiple 24 Offline Preferred OTA Service Type
  • 18. 5 1 2 Lengthy 11 Useless Acceptable 21 Bad Too much Good 35 Sufficient 11 Processing & Speed Data Entry Process 4 1 Excellent 18 Good Satisfactory 20 Very Bad Responses Customer Care Support
  • 19. Interpretation OTA Service Usage/ Reach Matrix Usage for hotel and holiday services low. Scope for improvisation and development. Service design intervention could be a possible solution for the problem.
  • 20. Approach Creating value for the users with respect to service provided. Incorporating into existing business process . Delivering with required quality. Adapted from Vinai Kumar
  • 21. Ideation Solutions for problem areas in service were identified by ideation. Customer Retention : Improve satisfaction level of the customer and increase customer retention for the hotel and holiday segment. New Prospects : New prospects in the service industry pertaining to hotel and holiday segment. • Cricket hospitality package • Pilgrimage tourism package
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  • 26. Conclusion Indian Travel Industry , greater potentials to be uncovered. Innovative packages, Convenient offers and lucrative deals Solutions , Outcome of research conducted in a small scale. Research needs to be taken forward and conducted in a large scale. Understanding traveler’s behavior and striking the right move would benefit travel agency greatly
  • 27. Happy Tripping Thank You

Hinweis der Redaktion

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  2. Growing Indian Middle class both in terms of volume as well as value.