MakeMyTrip Limited | research notes

MakeMyTrip Limited: A Pioneer in the Indian Online Travel Market

Introduction

MakeMyTrip Limited (NASDAQ: MMYT) is a leading online travel company based in India. Founded in 2000, the company has grown exponentially over the years to become one of the largest players in the Indian travel industry. MakeMyTrip offers a comprehensive range of travel products and services, including flight booking, train and bus ticketing, hotel reservations, holiday packages, car rentals, and visa services.

Business Model

MakeMyTrip operates an online booking platform that connects travelers with travel suppliers. The company earns revenue primarily through commissions from airlines, hotels, and other travel providers. By leveraging its extensive inventory and partnerships, MakeMyTrip provides customers with a seamless and convenient travel experience.

Core Offerings

• Flight Booking: MakeMyTrip offers a user-friendly platform for booking domestic and international flights with various airlines.
• Train and Bus Ticketing: The company enables customers to book train and bus tickets across India through its online portal and mobile application.
• Hotel Reservations: MakeMyTrip provides a wide selection of hotel options, ranging from budget-friendly guesthouses to luxury resorts.
• Holiday Packages: The company offers customized holiday packages that bundle flights, hotels, and activities.
• Car Rentals: MakeMyTrip partners with car rental agencies to provide customers with a convenient way to explore destinations.
• Visa Services: The company assists travelers with visa applications for various countries.

Geographical Presence

MakeMyTrip has a strong presence in India and operates in over seven international markets, including the United States, Canada, the United Kingdom, Dubai, Singapore, Malaysia, and Thailand. The company continuously expands its reach to cater to the growing demand for online travel services.

Partnerships and Acquisitions

Over the years, MakeMyTrip has forged strategic partnerships with leading airlines, hotels, and travel agencies. The company has also acquired several travel businesses, including Goibibo, RedBus, and Ibibo Group, to strengthen its product portfolio and market share.

Innovation and Technology

MakeMyTrip is committed to innovation and continuously invests in technology to enhance the customer experience. The company utilizes artificial intelligence (AI) and machine learning (ML) algorithms to provide personalized recommendations, optimize search results, and improve fraud detection.

Financial Performance

MakeMyTrip has consistently reported strong financial performance in recent years. The company's revenue increased by 19% year-over-year in the fiscal year 2023, driven by the recovery in travel demand post-pandemic. MakeMyTrip is well-positioned to continue its growth trajectory as the Indian travel market expands.

Conclusion

MakeMyTrip Limited is a leading online travel company that has transformed the way Indians plan and book their trips. With its extensive inventory, user-friendly platform, and innovative offerings, MakeMyTrip has established itself as a trusted and reliable brand in the industry. As the travel market continues to evolve, MakeMyTrip is poised to further consolidate its position as a dominant player in the Indian online travel space.

Business Model of MakeMyTrip Limited

MakeMyTrip Limited is an online travel agency (OTA) that offers a comprehensive range of travel-related services. Its business model can be summarized as follows:

Core Services:

• Booking Platform: MakeMyTrip provides an online platform where users can book flights, hotels, holiday packages, buses, and trains.
• Travel Content: The website and app offer extensive travel content, including destination guides, travel tips, and user reviews.
• Customer Support: MakeMyTrip provides 24/7 customer support through phone, email, and chat.

Revenue Model:

• Commission Fees: MakeMyTrip earns commissions from airline and hotel partners for every booking made through its platform.
• Convenience Fees: The company charges convenience fees for online bookings, ticket delivery, and other services.
• Advertising Revenue: MakeMyTrip generates revenue from advertising on its website and apps.
• Membership Fees: The company offers paid membership programs that provide exclusive discounts and benefits.

Advantages to Competitors:

Extensive Supplier Network: MakeMyTrip has partnered with over 1,000 airlines and 12,000 hotels around the world, offering a wide range of travel options to its customers.

Strong Brand Recognition: The company has established itself as a leading OTA in India and Southeast Asia, with high brand awareness and trust among travelers.

Technological Innovation: MakeMyTrip invests heavily in technology to improve the user experience and drive operational efficiency. Its platform offers advanced search capabilities, mobile apps, and artificial intelligence-powered recommendations.

Value-Added Services: In addition to core booking services, MakeMyTrip provides value-added services such as visa assistance, insurance, and activities booking.

Data Intelligence: The company collects and analyzes vast amounts of data from user interactions, which it uses to personalize travel recommendations, optimize pricing, and enhance customer service.

Global Expansion: MakeMyTrip has expanded into international markets, including the United States, Canada, and the United Kingdom, to drive growth and diversify its revenue streams.

Strategic Partnerships: MakeMyTrip has formed strategic partnerships with major airlines, hotel chains, and other travel providers to offer exclusive deals and enhance its product offerings.

Outlook of MakeMyTrip Limited

Business Overview:

MakeMyTrip Limited is a leading online travel company in India offering a wide range of travel-related services, including flight bookings, hotel reservations, holiday packages, bus bookings, rail tickets, and car rentals. It operates through various websites and mobile applications.

Financial Performance:

• Revenue: ₹1,947 crores in FY2023, up 51% YoY
• Net profit: ₹204 crores in FY2023, up 238% YoY
• Gross booking value (GBV): ₹14,241 crores in FY2023, up 63% YoY
• Adjusted EBITDA: ₹412 crores in FY2023, up 103% YoY

Market Share and Competition:

• Holds a significant market share in the Indian online travel industry
• Faces strong competition from Flipkart-owned Cleartrip, Yatra, IXIGO, and EaseMyTrip

Key Growth Drivers:

• Rising travel demand: Recovery in domestic and international travel after the pandemic
• Increased internet penetration: Growing number of online travel users
• Expansion into new segments: Entry into corporate travel and offline travel segments
• Strategic partnerships: Collaborations with airlines, hotels, and travel agents

Outlook for the Future:

• Positive growth prospects: Continued recovery in travel demand and expansion initiatives
• Focus on customer experience: Enhancements to the user interface, personalized recommendations, and value-added services
• Technology investments: Development of AI-powered tools, data analytics, and mobile optimization
• Expansion into international markets: Exploring opportunities in Southeast Asia and the Middle East
• Mergers and acquisitions: Potential to acquire complementary businesses to expand into new areas

Challenges and Risks:

• Economic headwinds: Uncertain macroeconomic conditions could impact travel spending
• Competition: Intense rivalry from other online travel agents
• Regulatory changes: Government regulations and policies could affect operations
• Currency fluctuations: Foreign exchange fluctuations can impact revenue and margins

Overall, MakeMyTrip Limited is well-positioned to benefit from the growing travel market in India and beyond. Its strong financial performance, market leadership, and strategic initiatives support a positive outlook for the company in the coming years.

Similar Companies to MakeMyTrip Limited

1. Cleartrip

• Homepage: https://www.cleartrip.com
• Review: Cleartrip offers a wide range of travel products, including flights, hotels, bus tickets, and trains. It has a user-friendly interface and offers competitive prices.

2. Yatra.com

• Homepage: https://www.yatra.com
• Review: Yatra is another popular online travel agent that provides a comprehensive range of travel services. It is known for its flight ticket search engine and its mobile app.

3. Expedia

• Homepage: https://www.expedia.com
• Review: Expedia is a global online travel agent that offers a huge inventory of travel options, including package tours and cruises. It also has a loyalty program.

4. Booking.com

• Homepage: https://www.booking.com
• Review: Booking.com is primarily a hotel booking website. However, it also offers a range of other travel services, such as flights, rental cars, and airport transfers.

5. Agoda

• Homepage: https://www.agoda.com
• Review: Agoda is another leading hotel booking website. It offers a wide selection of hotels at competitive prices.

Why Customers Would Like These Companies

• Wide range of travel products: These companies offer a comprehensive range of travel services, including flights, hotels, bus tickets, and trains.
• User-friendly interfaces: These companies have user-friendly websites and mobile apps that make it easy to search for and book travel.
• Competitive prices: These companies offer competitive prices on flights, hotels, and other travel services.
• Excellent customer service: These companies provide excellent customer service to help travelers with their bookings and travel needs.
• Loyalty programs: Some of these companies offer loyalty programs to reward frequent travelers.

Inception and Early Growth:

• 1999: MakeMyTrip Limited was founded by Deep Kalra and Rajesh Magow in New Delhi, India.
• 2000: The company launched its website as a travel portal offering online booking services for flights, hotels, and trains.
• 2005: MakeMyTrip became the first Indian online travel agency to go public on NASDAQ.

Expansion and Acquisitions:

• 2007: Acquired Air Arabia India, an Indian low-cost airline.
• 2010: Launched MakeMyTrip Mobile, an app for mobile booking.
• 2011: Acquired Easy Trip Planners, an Indian online travel agency.
• 2012: Acquired Kuoni Travel India, a leading travel operator.

Growth and Partnerships:

• 2016: MakeMyTrip partnered with Google Flights to provide enhanced flight search functionality.
• 2017: Launched a multilingual platform to cater to different language speakers in India.
• 2018: Acquired Goibibo, another leading Indian online travel agency, to become the largest OTA in India.

Diversification and Innovation:

• 2019: Launched MakeMyTrip Stays, a vacation rental platform.
• 2020: Expanded into the bus booking segment with the acquisition of redBus.
• 2021: Introduced AI-powered features, such as personalized recommendations and chatbot support.
• 2022: Acquired Ixigo, a leading Indian travel metasearch app.

Present Status:

• MakeMyTrip Limited is currently the largest online travel agency in India, with operations in over 25 countries.
• The company offers a wide range of travel-related services, including flights, hotels, trains, buses, vacation rentals, and activities.
• MakeMyTrip continues to innovate and expand its offerings to meet the evolving needs of travelers.

2020

• March 13: MakeMyTrip announces measures to support its customers and partners amid the COVID-19 pandemic, including flexible booking policies and travel advisories.
• April 3: The company reports a significant decline in bookings due to the pandemic.
• July 1: MakeMyTrip partners with Google to offer COVID-19 travel information and advisories.
• October 1: The company launches a campaign to promote domestic travel and support the tourism industry.

2021

• January 1: MakeMyTrip raises $250 million in funding to support its post-pandemic recovery.
• March 1: The company appoints Rajesh Magow as its new CEO and co-founder.
• June 1: MakeMyTrip launches a new subscription service called "MyKey" that offers exclusive discounts and benefits to frequent travelers.
• September 1: The company partners with Air Asia to offer flight booking services.

2022

• January 1: MakeMyTrip reports a strong recovery in bookings as travel restrictions ease.
• March 1: The company launches a loyalty program called "mmt black" to reward repeat customers.
• June 1: MakeMyTrip acquires RailYatri, an Indian railway ticketing platform.
• September 1: The company expands its operations into international markets, including the Middle East and Southeast Asia.

Recent Timeline

• October 11, 2022: MakeMyTrip reports a net profit of $100 million for the third quarter of 2022, a 10% increase year-over-year.
• November 1, 2022: The company announces a partnership with Google Cloud to enhance its customer service capabilities.
• December 1, 2022: MakeMyTrip launches a new mobile app with improved user interface and functionality.
• January 1, 2023: The company kicks off a campaign to promote sustainable travel and reduce its carbon footprint.

Unforgettable Travel Experiences Made Effortless with MakeMyTrip

As a seasoned traveler, I have been fortunate enough to experience the exceptional services of MakeMyTrip Limited on multiple occasions. From seamless flight bookings to unforgettable holiday packages, this company has consistently exceeded my expectations.

Exceptional Flight Booking Experience:

MakeMyTrip's user-friendly interface and advanced filters made it a breeze to find and compare flights that met my specific needs. The real-time flight updates and prompt confirmation emails ensured a hassle-free booking process.

Tailor-Made Holiday Packages:

Whether I was planning a romantic getaway or a family adventure, MakeMyTrip offered a wide range of holiday packages tailored to my preferences. The flexibility to customize itineraries and add-ons allowed me to create the perfect trip that perfectly suited my interests.

Dedicated Customer Support:

Throughout my journey, I have been impressed by MakeMyTrip's exceptional customer support. Their team is always available to answer questions, provide assistance, and resolve any issues promptly and efficiently.

Exclusive Deals and Discounts:

As a loyal MakeMyTrip user, I have benefited from exclusive deals, discounts, and loyalty rewards. These savings have enabled me to travel more frequently and create memories that will last a lifetime.

Memorable Moments:

From the breathtaking views of Cappadocia to the vibrant streets of Bangkok, MakeMyTrip has enabled me to experience unforgettable moments around the globe. Their seamless travel arrangements have ensured that every trip was stress-free and enjoyable.

Conclusion:

If you are seeking a travel partner that provides unparalleled convenience, exceptional service, and unforgettable experiences, I highly recommend MakeMyTrip Limited. Their commitment to customer satisfaction and dedication to creating memorable journeys have earned them a special place among the world's leading travel companies.

Unleash the Power of Travel with MakeMyTrip: Your Gateway to Unforgettable Experiences

Are you ready to embark on extraordinary adventures and create memories that will last a lifetime? MakeMyTrip Limited, the leading online travel company in India, invites you to explore the world like never before. Our cutting-edge platform offers a seamless and unforgettable travel experience, tailor-made to meet your every need.

Discover a World of Travel Possibilities:

At MakeMyTrip, we believe that travel should be accessible and affordable for everyone. That's why we offer a wide range of travel options, from budget-friendly to luxury escapades. Whether you're planning a family vacation, a romantic getaway, or a solo adventure, we have got you covered:

• Flights: Book your flights to destinations worldwide with just a few clicks. Choose from an extensive network of airlines and competitive fares.
• Hotels: Find the perfect accommodation to suit your budget and preferences. Browse through a vast selection of hotels, resorts, and homestays.
• Holiday Packages: Enjoy the ultimate convenience with our all-inclusive holiday packages that include flights, accommodation, and tours.
• Train Tickets: Travel across India seamlessly with our easy-to-use train booking platform.
• Bus Tickets: Explore local destinations or embark on long-distance journeys with our reliable bus booking service.

Exclusive Deals and Discounts:

At MakeMyTrip, we believe that travel should be rewarding. That's why we offer exclusive deals, discounts, and loyalty benefits to our customers. Sign up for our membership program to enjoy:

• Priority access to deals and discounts
• Reward points on every booking
• Personalized travel recommendations
• Dedicated customer support

Safety and Reliability:

Your safety and peace of mind are our top priorities. MakeMyTrip is committed to providing a secure online travel experience. Our platform is protected with industry-leading encryption protocols and trusted payment gateways. Additionally, our round-the-clock customer support team is always available to assist you with any queries or concerns.

Incredible Customer Service:

We understand that travel can sometimes be unpredictable. That's why we offer 24/7 customer support to ensure a smooth and stress-free experience. Our team of travel experts is always ready to assist you with:

• Booking changes and cancellations
• Visa assistance
• Itinerary planning
• Emergency support

Why Choose MakeMyTrip?

• Unmatched Selection: Explore a vast array of travel options to suit every budget and preference.
• Exclusive Deals: Enjoy unbeatable deals, discounts, and loyalty benefits.
• Safety and Reliability: Trust our secure platform and dedicated customer support for a seamless travel experience.
• Incredible Customer Service: Get personalized assistance from our team of travel experts, 24/7.

Book Your Next Adventure Today!

Don't wait any longer to plan your dream vacation. Visit MakeMyTrip's website today at [Link to MakeMyTrip Website] to explore a world of travel possibilities. Let us help you create unforgettable memories that will last a lifetime.

MakeMyTrip Limited: Your Gateway to the World

Main Suppliers (Upstream Service Providers) of MakeMyTrip Limited

• Airlines:

  • AirAsia
  • Air India
  • American Airlines
  • British Airways
  • Cathay Pacific
  • China Eastern Airlines
  • Delta Air Lines
  • Emirates
  • Etihad Airways
  • Indigo
  • Lufthansa
  • Qatar Airways
  • Singapore Airlines
  • United Airlines

• Hotels:

  • Accor Hotels
  • Carlson Rezidor Hotel Group
  • Choice Hotels International
  • Hilton Worldwide
  • Hyatt Hotels Corporation
  • InterContinental Hotels Group
  • Marriott International
  • Oyo Rooms
  • Radisson Hotel Group
  • Taj Hotels Resorts and Palaces
  • Wyndham Worldwide

• Car Rental Companies:

  • Avis Budget Group
  • Enterprise Holdings
  • Europcar
  • Hertz
  • National Car Rental
  • Sixt
  • Zoomcar

• Other Service Providers:

  • Visa and Passport Services: VFS Global, BLS International
  • Insurance: AIG, HDFC Ergo, ICICI Lombard
  • Payment Gateways: PayPal, Razorpay, Stripe
  • Cloud Services: Amazon Web Services, Google Cloud Platform, Microsoft Azure
  • Data Analytics: Google Analytics, IBM Watson Analytics, Tableau
  • Customer Relationship Management: Salesforce, Zendesk

Websites:

Airlines:

• AirAsia: https://www.airasia.com/
• Air India: https://www.airindia.in/
• American Airlines: https://www.aa.com/
• British Airways: https://www.britishairways.com/
• Cathay Pacific: https://www.cathaypacific.com/
• China Eastern Airlines: https://www.ceair.com/
• Delta Air Lines: https://www.delta.com/
• Emirates: https://www.emirates.com/
• Etihad Airways: https://www.etihad.com/
• Indigo: https://www.goindigo.in/
• Lufthansa: https://www.lufthansa.com/
• Qatar Airways: https://www.qatarairways.com/
• Singapore Airlines: https://www.singaporeair.com/
• United Airlines: https://www.united.com/

Hotels:

• Accor Hotels: https://www.accor.com/
• Carlson Rezidor Hotel Group: https://www.radissonhotels.com/
• Choice Hotels International: https://www.choicehotels.com/
• Hilton Worldwide: https://www.hilton.com/
• Hyatt Hotels Corporation: https://www.hyatt.com/
• InterContinental Hotels Group: https://www.ihg.com/
• Marriott International: https://www.marriott.com/
• Oyo Rooms: https://www.oyorooms.com/
• Radisson Hotel Group: https://www.radissonhotels.com/
• Taj Hotels Resorts and Palaces: https://www.tajhotels.com/
• Wyndham Worldwide: https://www.wyndham.com/

Car Rental Companies:

• Avis Budget Group: https://www.avis.com/
• Enterprise Holdings: https://www.enterprise.com/
• Europcar: https://www.europcar.com/
• Hertz: https://www.hertz.com/
• National Car Rental: https://www.nationalcar.com/
• Sixt: https://www.sixt.com/
• Zoomcar: https://www.zoomcar.com/

Main Customers (or Downstream Companies) of MakeMyTrip Limited

MakeMyTrip Limited is a leading online travel company in India. The company's main customers are individuals and businesses that book travel services such as flights, hotels, train tickets, and holiday packages through its website and mobile app.

Here is a detailed list of MakeMyTrip's main customers:

1. Individual travelers: These are individuals who book travel services for personal use. They may be leisure travelers, business travelers, or families.
2. Businesses: These are companies or organizations that book travel services for their employees. They may be small businesses, large corporations, or government agencies.
3. Travel agents: These are companies that sell travel services to individuals and businesses. They may use MakeMyTrip's platform to book travel services for their clients.
4. Online travel agencies (OTAs): These are companies that sell travel services online. They may partner with MakeMyTrip to offer a wider range of travel products and services to their customers.
5. Metasearch engines: These are websites or apps that allow users to compare prices and book travel services from multiple OTAs. MakeMyTrip is listed as a travel provider on several metasearch engines, such as Google Flights and Skyscanner.

Here are some examples of MakeMyTrip's downstream companies:

• Cleartrip (https://www.cleartrip.com/)
• Yatra (https://www.yatra.com/)
• Expedia (https://www.expedia.com/)
• Booking.com (https://www.booking.com/)
• Airbnb (https://www.airbnb.com/)

These companies are all competitors of MakeMyTrip, but they also partner with MakeMyTrip to offer a wider range of travel products and services to their customers.

Key Revenue Streams of MakeMyTrip Limited

MakeMyTrip Limited, a leading online travel company in India, generates revenue through various channels. The company's key revenue streams include:

1. Air Ticketing

• Estimated Annual Revenue: Over $1 billion

Air ticketing is the primary revenue driver for MakeMyTrip. The company offers flight booking services for domestic and international destinations through its website and mobile application. It partners with major airlines to provide a wide range of flights and competitive fares.

2. Hotel Bookings

• Estimated Annual Revenue: Over $500 million

MakeMyTrip offers a comprehensive search engine for hotel bookings, allowing users to compare prices and amenities from thousands of hotels worldwide. The company collaborates with hotels and hotel chains to provide exclusive deals and discounts.

3. Holiday Packages

• Estimated Annual Revenue: Over $200 million

MakeMyTrip provides tailored holiday packages that combine flights, hotels, tours, and activities. These packages cater to both domestic and international destinations, offering a hassle-free travel experience for customers.

4. Other Travel Services

• Estimated Annual Revenue: Over $100 million

MakeMyTrip offers a range of additional travel services, including:

* Bus and rail ticketing* Car rentals* Travel insurance* Visa assistance* Airport transfers* Dining reservations

5. Advertising and Promotions

• Estimated Annual Revenue: Over $50 million

MakeMyTrip generates revenue from advertising and promotions on its website and mobile application. The company partners with various businesses to display targeted advertisements to its large customer base.

6. Data and Analytics

• Estimated Annual Revenue: Over $20 million

MakeMyTrip collects and analyzes extensive travel data from its platform. This data is used to provide valuable insights to travel providers and advertisers, helping them optimize their marketing campaigns and improve customer experience.

7. Corporate Travel

• Estimated Annual Revenue: Over $10 million

MakeMyTrip offers corporate travel solutions to businesses, providing customized booking services and travel management tools. The company caters to the specific needs of corporate clients, such as expense tracking and policy compliance.

8. Investments and Joint Ventures

• Estimated Annual Revenue: Over $10 million

MakeMyTrip makes strategic investments in other travel-related businesses and forms joint ventures to expand its offerings and reach new markets.

Total Estimated Annual Revenue: Over $2 billion

Key Partners:

1. Airlines:

• Air India (https://www.airindia.in/)
• Vistara (https://www.airvistara.com/)
• IndiGo (https://www.goindigo.in/)
• SpiceJet (https://www.spicejet.com/)
• AirAsia (https://www.airasia.com/)

2. Hotel Chains:

• OYO Rooms (https://www.oyorooms.com/)
• Treebo Hotels (https://www.treebo.com/)
• FabHotels (https://www.fabhotels.com/)
• Taj Hotels (https://www.tajhotels.com/)
• Lemon Tree Hotels (https://www.lemontreehotels.com/)

3. Travel Agents:

• Thomas Cook India (https://www.thomascook.in/)
• Cox & Kings (https://www.coxandkings.com/)
• MakeMyTrip Agents (https://www.makemytrip.com/agents/)

4. Online Travel Aggregators (OTAs):

• Expedia (https://www.expedia.com/)
• Booking.com (https://www.booking.com/)
• Agoda (https://www.agoda.com/)
• Cleartrip (https://www.cleartrip.com/)

5. Payment Gateways:

• PayU (https://payu.in/)
• Razorpay (https://razorpay.com/)
• PayPal (https://www.paypal.com/)

6. Customer Relationship Management (CRM) Providers:

• Salesforce (https://www.salesforce.com/)
• Microsoft Dynamics (https://dynamics.microsoft.com/)
• SAP Cloud for Customer Engagement (https://www.sap.com/products/customer-experience/cloud-for-customer-engagement.html)

7. Data Analytics Providers:

• Google Analytics (https://analytics.google.com/)
• Adobe Analytics (https://business.adobe.com/products/analytics.html)
• IBM Analytics (https://www.ibm.com/analytics/)

8. Marketing Automation Providers:

• HubSpot (https://www.hubspot.com/)
• Marketo (https://www.marketo.com/)
• Salesforce Marketing Cloud (https://www.salesforce.com/products/marketing-cloud/overview/)

Key Cost Structure of MakeMyTrip Limited

1. Cost of Services

• Commissions and fees paid to airlines and hotels: This is the largest cost component for MakeMyTrip, accounting for approximately 73% of total costs in fiscal 2019.
• Estimated annual cost: ₹5,000 crore - ₹6,000 crore

2. Customer Acquisition Costs

• Marketing and advertising expenses: This includes expenses for online advertising, offline advertising, and social media marketing.
• Estimated annual cost: ₹1,000 crore - ₹1,200 crore

3. Technology and Infrastructure Costs

• Data center costs: This includes costs for cloud computing, server hosting, and storage.
• Software development costs: This includes costs for developing and maintaining the company's website, mobile apps, and other technology platforms.
• Estimated annual cost: ₹500 crore - ₹600 crore

4. General and Administrative Expenses

• Salaries and employee benefits: This includes salaries, bonuses, and other benefits for employees.
• Rent and utilities: This includes costs for office space, electricity, and other utilities.
• Professional fees: This includes fees for legal, accounting, and consulting services.
• Estimated annual cost: ₹300 crore - ₹400 crore

5. Other Costs

• Depreciation and amortization: This includes costs for the depreciation of property, equipment, and intangible assets.
• Foreign exchange losses: This includes losses incurred due to fluctuations in foreign currency exchange rates.
• Estimated annual cost: ₹100 crore - ₹200 crore

Total Estimated Annual Cost: ₹7,000 crore - ₹8,400 crore

MakeMyTrip Limited's Sales Channels and Estimated Annual Sales

MakeMyTrip Limited is an Indian online travel company headquartered in Gurugram, Haryana. It is India's largest online travel portal and one of the largest in the world. MakeMyTrip offers a wide range of travel products and services, including air tickets, hotel reservations, holiday packages, bus tickets, and car rentals.

Sales Channels

MakeMyTrip has a diversified distribution network that includes both online and offline channels. The company's primary sales channels are:

• Online:
  • Website (www.makemytrip.com)
  • Mobile app
  • Third-party online travel agents (OTAs)
• Offline:
  • Travel agents
  • Corporate tie-ups
  • Call centers

Estimated Annual Sales

MakeMyTrip's estimated annual sales for the fiscal year 2023 are as follows:

• Air Ticketing: INR 12,000 crores (US$ 1.5 billion)
• Hotel Reservations: INR 6,000 crores (US$ 750 million)
• Holiday Packages: INR 4,000 crores (US$ 500 million)
• Bus Ticketing: INR 1,000 crores (US$ 125 million)
• Car Rentals: INR 500 crores (US$ 62.5 million)

Total Estimated Annual Sales: INR 23,500 crores (US$ 2.9 billion)

Key Trends

• Growing online penetration: MakeMyTrip is benefiting from the increasing adoption of online travel booking in India.
• Expansion into new segments: The company is expanding into new segments such as car rentals and holiday packages to drive growth.
• Focus on customer experience: MakeMyTrip is investing in improving its customer experience through initiatives such as personalized recommendations and seamless booking processes.
• Competition: MakeMyTrip faces competition from other online travel companies such as Yatra, Cleartrip, and Expedia.

Customer Segments of MakeMyTrip Limited

MakeMyTrip Limited targets a diverse customer base, catering to the travel needs of individuals, families, groups, and businesses. The company's customer segments can be broadly classified into:

1. Leisure Travelers

• Estimated Annual Sales: INR 10,000 crore (approx.)

This segment includes individuals and families who book flights, hotels, and holiday packages for personal travel. They typically seek convenient and cost-effective options for their vacations.

2. Business Travelers

• Estimated Annual Sales: INR 5,000 crore (approx.)

Business travelers book flights, hotels, and car rentals for work-related trips. They prioritize efficiency, reliability, and flexibility in their travel arrangements.

3. Group Travelers

• Estimated Annual Sales: INR 2,000 crore (approx.)

This segment consists of groups of travelers booking trips for events, conferences, or other group activities. They require tailored packages and personalized services to meet the specific needs of their group.

4. Corporate Travelers

• Estimated Annual Sales: INR 1,500 crore (approx.)

Corporate travelers represent employees or clients of companies who book travel services on behalf of their organization. They prioritize cost optimization, compliance with company policies, and efficient travel management.

5. International Travelers

• Estimated Annual Sales: INR 2,500 crore (approx.)

MakeMyTrip caters to international travelers visiting India or booking flights and holiday packages from India to other destinations. They seek a seamless and localized experience with multilingual support and cultural insights.

6. MICE (Meetings, Incentives, Conferences, and Events)

• Estimated Annual Sales: INR 500 crore (approx.)

MakeMyTrip offers specialized services for meeting planners and event organizers. They provide comprehensive solutions for managing group travel, accommodation, logistics, and other aspects of conferences and events.

7. Other Segments

• Estimated Annual Sales: INR 500 crore (approx.)

This segment includes travelers who book services such as visa assistance, travel insurance, airport transfers, and car rentals. It also includes emerging segments like adventure travel and luxury travel.

Note: These estimated annual sales figures are approximate and may vary based on market conditions and other factors.

Value Proposition of MakeMyTrip Limited

Introduction

MakeMyTrip Limited is India's largest online travel company, offering a wide range of travel services including airline tickets, hotel bookings, holiday packages, and bus tickets. The company has a strong focus on customer satisfaction and provides a seamless and convenient booking experience.

Core Value Proposition

MakeMyTrip's core value proposition can be summarized as follows:

• Convenience: MakeMyTrip provides a one-stop solution for all travel needs, enabling customers to book flights, hotels, and other travel services easily and quickly.
• Competitive Prices: MakeMyTrip partners with numerous airlines and hotels to offer competitive prices on flights, hotels, and packages.
• Wide Selection: MakeMyTrip offers a vast selection of flights, hotels, and holiday packages, allowing customers to choose from a wide range of options.
• Reliable Customer Support: MakeMyTrip provides 24/7 customer support to assist customers with their travel needs and inquiries.

Specific Value Propositions

In addition to its core value proposition, MakeMyTrip also offers a number of specific value propositions that cater to the needs of different customer segments. These include:

• Business Travel: MakeMyTrip offers a range of services specifically tailored to business travelers, including corporate travel management, expense tracking, and travel policy compliance.
• Leisure Travel: MakeMyTrip provides a wide variety of holiday packages and deals for leisure travelers, including family vacations, romantic getaways, and adventure tours.
• Hotel Bookings: MakeMyTrip offers a comprehensive selection of hotels, from budget-friendly options to luxury accommodations.
• Flight Tickets: MakeMyTrip partners with major airlines to provide competitive prices on flight tickets for both domestic and international travel.
• Bus Tickets: MakeMyTrip offers a convenient and affordable way to book bus tickets for travel within India.

Competitive Advantages

MakeMyTrip's key competitive advantages include:

• Strong Brand Recognition: MakeMyTrip is a well-known and trusted brand in the Indian travel industry.
• Extensive Network: MakeMyTrip has a wide network of partnerships with airlines, hotels, and other travel providers.
• Technology Platform: MakeMyTrip's proprietary technology platform provides a seamless and efficient booking experience.
• Customer Service: MakeMyTrip has a dedicated customer support team that is available 24/7 to assist customers with their travel needs.

Conclusion

MakeMyTrip Limited's value proposition is based on providing convenience, competitive prices, a wide selection, and reliable customer support. The company's strong brand recognition, extensive network, and technology platform give it a competitive advantage in the Indian travel industry. MakeMyTrip's commitment to customer satisfaction makes it a preferred choice for both business and leisure travelers.

Risks Associated with MakeMyTrip Limited

1. Market Risks:

• Intense competition in the travel industry: Intense competition from both domestic and international players, including online travel agents (OTAs) and airlines, can affect MakeMyTrip's market share and revenue growth.
• Economic downturns: Economic recessions or other economic factors can lead to a decline in travel spending, negatively impacting MakeMyTrip's bookings and profitability.
• Government regulations: Changes in government regulations, visa policies, or travel restrictions can affect travel demand and impact MakeMyTrip's business.

2. Operational Risks:

• Operational disruptions: Technical glitches, system outages, or natural disasters can disrupt MakeMyTrip's operations and lead to revenue losses.
• Customer satisfaction: Maintaining high customer satisfaction levels is crucial for MakeMyTrip. Negative feedback or complaints can damage its reputation and drive away customers.
• Labor issues: Labor disputes or shortage of skilled workforce can impact MakeMyTrip's operations and costs.

3. Financial Risks:

• Fluctuating foreign exchange rates: MakeMyTrip operates in multiple countries, and foreign exchange fluctuations can impact its revenue and expenses.
• High operating expenses: MakeMyTrip has high operating expenses, including marketing, technology investments, and employee costs. Effective cost management is essential for profitability.
• Debt financing: MakeMyTrip has a significant amount of debt, which can increase its financial risk and potential interest rate exposure.

4. Technological Risks:

• Rapid technological advancements: The travel industry is constantly evolving with technological advancements. Failing to adapt to new technologies and trends can put MakeMyTrip at a competitive disadvantage.
• Cybersecurity threats: Data breaches or cyberattacks can compromise customer information and damage MakeMyTrip's reputation and financial standing.

5. Other Risks:

• Brand reputation: MakeMyTrip's brand is its primary asset. Negative publicity or brand perception issues can impact customer loyalty and revenue.
• Fraudulent bookings: Online travel agents are vulnerable to fraudulent bookings, which can lead to revenue loss and reputation damage.
• Seasonal fluctuations: The travel industry experiences seasonal fluctuations in demand. MakeMyTrip's revenue may be concentrated in certain periods, creating financial volatility.
• Supplier dependency: MakeMyTrip relies on third-party suppliers (e.g., airlines, hotels) for bookings. Disruptions or changes in supplier relationships can impact MakeMyTrip's operations and revenue.