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

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

Hotels : Domestic and Intl Packages : Domestic and Intl Conferences and Events

Rail Bus Car Ancillary Services/Products

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

Transactions : 109,672 20% of Net Revenues

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

Source: PhoCusWright, 2010

MMT Service
System
Search Engine Booking Facility CRM

Interaction

Offering
Airline tickets Hotel reservations Holiday packages Railways tickets Bus tickets Car rentals Customer care support

Website UI Travel Executives Call Centers

Interface

Model Adapted from Service Design Offering by Dr. Daniela Sangiorgi, Lancaster University UK

Makemytrip.com Makemytrip store

Market Share
10%

18% 48%

24%
Indian OTA Market - $1 Billion
Source: PhoCusWright, 2010

Hotel

Transaction Traffic
60%

40%

Online
Offline

5%

Air ticket
10%

Online

Holiday Online Offline

Offline
95%

90%

Consumer Touch Points

Website/Mobile UI

Consumer

Store/ Travel Agents

Call Centre / Tele Agents

Addressing Grievances

24x7

Replacement arrangement Never downgraded Hotel de listed

Customer Care Support

Customer Feedback

Offers

MMT Cases

Specially Chartered In Trial phase flights, following success Popular among western of movie 3 idiots nationals >5000 passengers in 2 months travelled to Leh in 2010 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

78% 80% 76%

Internet Penetration

70% 58% 60%

50%
40% 30% 20% 36% 32%

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

7%

10% 0% US Japan Europe Brazil China India

Source: Internet World Stats

Country

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

International Travel US/Europe/NZ 45 50 yrs

Domestic Travel Religious Travellers 50+ yrs (Vaishnov Devi, Chardham) Weekend Getaways 20 35 yrs

South East Asia 30 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

OTA Usage
24 14

Air
Train Multiple

3 16 <5

Mode of Transport

<20
<40 24

Occurrence of Travel (Yearly)

Responses
Total Number of Respondents : 43 Cleartrip
2 5 4

Irctc Yatra

2 6 11

Airlines

Railways
Multiple Offline
24

12

18

Makemytrip
Multiple Offline

Preferred OTA

Service Type

5 1 2

Lengthy Useless Too much Sufficient

11 Acceptable 21 Bad Good 11

35

Processing & Speed Data Entry Process

4 1

Excellent
18

Good Satisfactory Very Bad Customer Care Support

20

Responses

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 travelers behavior and striking the right move would benefit travel agency greatly

Happy Tripping
Thank You