Online Travel Agency (OTA)

DESIGN MANAGEMENT PROJECTWith focus on Service and Experience Design

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 .

Company Profile

Source: Makemytrip.com

Source: PhoCusWright, 2010

Offerings

•Domestic : Within India•International : From India •Inbound : Overseas to India

•Transactions : 1,766,905•77% of Net Revenues

Air Travel

•Hotels : Domestic and Int’l•Packages : –Domestic and Int’l–Conferences and Events

•Transactions : 109,672 •20% of Net Revenues

Hotel and Packages

•Rail•Bus•Car•Ancillary Services/Products

•Rail Transactions : 185,948•Bus Transactions : 57,529•3% of Net Revenues

Other Segments

MMT Service

OfferingInteraction

SystemSearch Engine

Booking FacilityCRM

Airline ticketsHotel reservationsHoliday packages

Railways ticketsBus tickets Car rentals

Customer care support

Website UITravel Executives

Call Centers

Interface

Makemytrip.comMakemytrip storeModel Adapted from Service Design Offering

by Dr. Daniela Sangiorgi, Lancaster University UK

48%

24%

18%

10%

Market Share

Source: PhoCusWright, 2010

Indian OTA Market - $1 Billion

Others

Transaction Traffic

95%

5%

OnlineOffline

Air ticket

40%

60%

OnlineOffline

Hotel

10%

90%

OnlineOffline

Holiday

Consumer Touch Points

Website/Mobile UI

Store/ Travel Agents

Call Centre / Tele Agents

Consumer

Addressing Grievances

Replacement arrangement Never downgraded

Hotel de – listed

x24 7Customer Care Support

Customer Feedback

Offers

Leh Bhutan Maldives

MMT Cases

Specially Chartered flights, following success of movie 3 idiots

>5000 passengers in 2 months travelled to Leh in 2010

In Trial phasePopular among western nationals

Growing Popularity among Indians

Positive response from customers

Plans to increase in this segment

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

Source: Internet World Stats

US Japan Europe Brazil China India0%

10%

20%

30%

40%

50%

60%

70%

80%78% 76%

58%

36%32%

7%

Country

Inte

rnet

Pen

etra

tion

Internet penetration in India - 7% Number of users - 81,000,000

Indian Holiday Behavior

Emotional Reasons Planned ActivityStress Reliever

Travel lovers Guilt Factor

Buying Behavior

Internet widely used for information

Referrals, WOM

Largely domestic travel

Check 3 websites before successful booking

International Travel

US/Europe/NZ– 45 – 50 yrs

South East Asia – 30 – 35 yrs

Domestic Travel

Religious Travellers – 50+ yrs(Vaishnov Devi, Chardham)

Weekend Getaways – 20 – 35 yrs

Travel and Age group

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.

Research Methodology

OTA Usage

Occurrence of Travel (Yearly)

5

1424

AirTrainMultiple

Mode of Transport

Questionnaire Responses

16

24

3

<5<20<40

Total Number of Respondents : 43

33

8

2

EverytimeOccasionallyRarely

4

18

2

12

5

2Cleartrip

Irctc

Yatra

Makemytrip

Multiple

Offline

Preferred OTA

11

24

6

2

AirlinesRailwaysMultipleOffline

Service Type

ResponsesTotal Number of Respondents : 43

5

12

35

LengthyUselessToo muchSufficient

1

18

20

4

ExcellentGoodSatisfactoryVery Bad

Data Entry Process

Processing & Speed

Customer Care SupportResponses

21

11

11

AcceptableBadGood

Usage for hotel and holiday services low.

Scope for improvisation and development.

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

Interpretation

OTA Service Usage/ Reach Matrix

Approach

Creating value for the users with respect to service provided.

Incorporating into existing business process .

Delivering with required quality.

Adapted from Vinai Kumar

IdeationSolutions 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

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

Conclusion

Thank You

Happy Tripping