Make My Trip Business Model: How does MMT Make Money?
MakeMyTrip, a prominent player in the tour and tourism industry, started in 2000. How does it make money? In simple terms, MakeMyTrip’s business model is centered on its online travel services. It offers easy booking for holidays, flights, buses, cars, and trains, making ticket reservations convenient for Indians and improving travel conditions in the country.
MakeMyTrip has been a renowned Indian travel company since 2000. It offers excellent online travel services. Founded by Deep Kalra, it allows you to book flights, hotels, buses, and more. With 30+ franchised stores and 14 outlets in 28 cities, MakeMyTrip is your go-to travel guide. Their mobile app, launched in 2012, provides over 1 million routes across India, making travel convenient and cool for Indians. The company handles customer concerns directly through its verified online platform, ensuring a hassle-free travel experience.
- MakeMyTrip offers a range of services for its customers. This includes booking tickets for various travel modes like flights, trains, buses, and more. Additionally, you can reserve hotel rooms and hire cars. You can also explore holiday packages through MakeMyTrip.
- They also provide third-party services such as travel insurance and Visa assistance. This caters especially to those traveling abroad. MakeMyTrip aims to be a comprehensive platform catering to diverse travel needs.
Business Model of MakeMyTrip
MakeMyTrip’s business model is customer-centric and strategically focused. It offers a wide range of services, emphasizing customer satisfaction. The company benefits from India’s rapid digital travel growth, positioning itself strongly globally. Its strategy involves marketing, pricing, branding, promotion, and accessibility.
MakeMyTrip operates as an e-marketplace catering to a global audience, providing services at affordable rates. Promotion occurs through electronic banners, TV commercials, websites, and offline retail stores. The company’s elite brand status results from strategic planning, marketing schemes, and campaigns. MakeMyTrip stands as a leading player in the travel industry.
MakeMyTrip got $10 million in 2005, then $13 million in 2006, and another $15 million in 2007. The 2016 IPO brought $180 million, and the 2017 IPO raised $330 million. In total, they raised $548 million in five rounds of funding.
2. Customer Segments
MakeMyTrip serves a diverse customer segment, including people of all ages, particularly internet users and young individuals. Their corporate travel segment caters to corporate customers, focusing on Small and Medium Enterprises (SMEs).
3. Key Resources
MakeMyTrip’s growth and success are fueled by key resources, including its human resources and other organizational assets.
MakeMyTrip reaches customers through websites like MakeMyTrip.com. Other channels include easytobook.com and hoteltravel.com. They also use distribution channels like travel stores, call centers, travel agents, and mobile platforms.
5. Competitors Review
MakeMyTrip sets itself apart from competitors with a unique value system. Top 10 competitors include Yatra, Cleartrip, Booking.com, OYO, Travelguru, Cox & Kings, EaseMyTrip, Thomas Cook, Vista Rooms, and Expedia.
What is unique about the business model of MakeMyTrip
What sets MakeMyTrip apart is its focus on creating exceptional customer experiences. It stands out in the competitive market by showcasing customer testimonials highlighting positive feedback on its customer service managers. The emphasis on delivering great customer experiences is a significant advantage for the company.
MakeMyTrip also stands out through its continuous efforts to utilize various tactics and technologies to enhance its products and services. This commitment provides a considerable edge, particularly with its audience. Additionally, the company gives prominence to its retail stores, providing an advanced space to showcase its products. Combining customer-centric practices and technological innovations makes MakeMyTrip’s business model unique in the travel industry.
How does MakeMyTrip make money?
MakeMyTrip primarily generates revenue through fees charged on online bookings. While affordable flight tickets attract customers, the company purchases many tickets from private airlines, reduces the charge, and sells them to customers, earning a substantial commission fee.
The major source of profit comes from flight tickets. Although train ticket services are not offered due to limited options, the company has a vast network of 5,000 to 10,000 registered hotels and around 1,000 buses.
MakeMyTrip also earns revenue through marketing collaborations with companies like Tata, Kingfisher, SpiceJet, and others. Advertising holiday packages of various hotels on their website is another avenue for revenue generation.
In conclusion, MakeMyTrip is a leader in the Indian travel market, operating on a Business-to-Consumer digital business model. The company excels in online and offline platforms, contributing significantly to the 40% growth rate observed in the Indian travel market. MakeMyTrip’s effective marketing strategies have secured a substantial market share, resulting in robust revenue generation and a formidable position in the industry.