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FOUNDER

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 THE MBA IS A WONDERFUL DEGREE. YOU

CAN EITHER USE IT AS A NOOSE, OR YOU
CAN USE IT AS A INSURANCE. I WOULD
ALWAYS TEND TO USE IT AS A INSURANCE

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CAREER

BA from St Stephen's college, and

then an MBA from IIM Ahmedabad
Deep joined ABN Amro
worked for three years in banking
and explored various options in
marketing
He joined AMF Bowling, which
pioneered the concept of bowling
alleys in India

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Later an exciting opportunity came

NICHE MARKETING

MMT was launched in the US in 2000

to cater to the niche US-to-India travel
market.
foremost online travel service provider
in the US-to-India market
NRIs could book tickets to India online
or could call travel consultants who
were available 24x7 on the US toll-free
1800-India-10.
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Makemytrip.com Ad - US [www.keepvid.c

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MMT IN INDIA

launch of the Indian website in September

2005.
a strong indication of a healthy growth for
travel products/services in India.
MMT identified the gap between demand
and supply
Low-cost carriers had made air travel
cheaper
The airlines move to e-ticketing also
paved the way for travel e-commerce

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BUSINESS MODEL

MMTs business model is a simple B2C

The customer could use either MMT
website or its call centre to book air
tickets, hotel rooms, and travel
packages.
the company believed that its own
products would generate adequate
revenue to successfully run the
business model
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Headquartered in New Delhi, MMT had

INDIAN CONSUMER

Indian consumers are spending 15.6

per cent of their annual earnings for
vacation/eating out
consumers in the age group of 45-58
years were spending maximum on
vacations
Indian consumers have moved
towards using financial cards for their
purchasing activities and the most
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popular mode of payment was the

SEGMENTATION

Broadly divided into two major

segments: personal travel and
tourism and business travel
The personal travel and tourism
could be broadly categorized as (i)
those in which personal funds are
spent and (ii) those which involved
vacation at companys budget.
One of the significant drivers of
growing corporate travel was the
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strong growth of IT and IT enabled

INTERNET USAGE
YEAR

Users

Population

% Pen.

1998

1,400,000 1,094,870,677

0.1 %

1999

2,800,000 1,094,870,677

0.3 %

2000

5,500,000 1,094,870,677

0.5 %

2001

7,000,000 1,094,870,677

0.7 %

2002

16,500,000 1,094,870,677

1.6 %

2003

22,500,000 1,094,870,677

2.1 %

2004

39,200,000 1,094,870,677

3.6 %

2005

50,600,000 1,112,225,812

4.5 %

2006

40,000,000 1,112,225,812

3.6 %

2007

42,000,000 1,129,667,528

3.7 %

2009

81,000,000 1,156,897,766

7.0 %

81,000,000

6.9 %

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2010

1,173,108,018

MARGIN STRUCTURE

revenues were about 14 per cent of

the gross sales

4-8 per cent on air tickets,

8-12 percent on hotel bookings,

12-14 percent on both domestic and

international holiday packages.

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COMPETITIVE
ENVIRONMENT

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VIRTUOUS CYCLE

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POSITIONING

objective of the positioning strategy

was to occupy space in the mind of
the customer as the lowest air fare
provider in the country.

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VALUE PROPOSITIONS

Empowering the travellers with rich

information
Providing opportunity for instant
booking with real time purchase of all
travel products, tickets delivered at
doorstep
Ensuring transparency and reliability
Ensuring convenience of buying
anytime and anywhere

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PRODUCT OFFERINGS

Air tickets

Hotel reservations

Car/Taxi bookings

Holiday packages

Road-trips

Weekend breaks

B2B services
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ADVERTISEMENT

Had spent approximately Rs. 30

million in advertising and marketing
activities

40 per cent on TV,

30 per cent on the Internet,

5 per cent on outdoor,

5 per cent on print,

5 per cent on below the line (BTL)

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advertising,

CHALLENGES
the number of players was expected
to increase and competition would be
coming into its own.
Low internet penetration in India was
making the business more difficult for
OTS to reach the mass market.
Suppliers were selling their products
online; hence they would be posing the
biggest challenge to MMT and the
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intensity
of competition would increase

GDP: Total Contribution

The total contribution of Travel
&Tourism to GDP, including its wider
economic impacts, is forecast to rise
by 8.8% pa from INR3,680.4bn (4.5%
of GDP) in 2011 to INR8,523.1bn
(4.9%) by 2021.

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Employment: Total Contribution

The total contribution of Travel &
Tourism to employment, including
jobs indirectly supported by the
industry, is forecast to rise by 2.3%
pa from 37,655,000 jobs (7.5% of
total employment) in 2011 to
47,480,000 jobs (8.1%) by 2021.
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INTERNET ADVERTISEMENT

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PRINT ADS

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OUTDOOR ADVERTISEMENT

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REFERENCE

http
://www.financialexpress.com/news/makem
www.makemytrip.com

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