The Business Model Mixer is grounded in in-depth research into a limited number of cases. MakeMyTrip has generated revenue of $146.9 million in the third quarter of FY 2019-2020 wherein, it was recorded $118 million in the second quarter of the same financial year. Hotels and holiday packages segment which is a non-flight business; is of higher-margin category as compare to airline ticketing, and by contributing 54 percent of total revenue; this segment is the highest revenue contributor of the brand. According to its website, EaseMyTrip has 7.5 million direct consumers, a B2B network of 42,000 travel agents, 1,200 franchise outlets, 1,600 distributors and 640 white label solutions. Free modifications, free on-board meals, best rate guarantee for a wide range of hotels and GST Invoice Guarantee. Special discounted prices at premium hotels are also offered. Different channels of MakeMyTrip are its websites, through which travellers can search, book, plan, and buy lots of travel-related products and services. Even when top firms like, The customers are not charged a convenience fee if there is no other discount or a promotion voucher, Their pricing model is created in such a way that it avoids hidden costs which force the customers to pay a larger amount than expected, They have an authentic technology group dedicated to building the best infrastructure and software, The website provides a secure, advanced and customer-centric assistance, A regularly maintained record with details of finances and performances, A hybrid platform that encompasses a vast distribution channel, An experienced management team with high efficiency in their duties, Between 2015 and 2017, the company briefly dealt with the coal industry. Businesses are able to manage their travel schedule and accommodation facility for their employees using different features of MyBiz like single dashboard system, Central payment processing through MyBiz wallet, and quick refund facility to MyBiz wallet on booking cancellations, etc. Gradually, EaseMyTrip has emerged as the third-largest online travel agency in our country with over 20,000 airline tickets sold every day.Â, Testbook - The story of great success through helping millions of online learners. Startups in India have been the cherry on the top for the Indian economy. Registered Address * Pincode * Post Office Name * Office Phone Number * GST Number * Meanwhile, talking about the changes adopted in the business model in the changed Covid-19 times, EaseMyTrip said, "There will be a substantial change in peopleâs habits, preferences and desires for their travel in the future. Mr. Rikant Pitti is the COO , Co-founder , and Whole-Time Director of EaseMyTrip is among the youngest entrepreneurs of India who has all the qualities of a ⦠Most of these competitors follow a retail-centric business model but EaseMyTrip is focusing more on travel agents and corporate clients. Business Model of MakeMyTrip. Types of E-Business Models. This was an unfortunate turn for EaseMyTrip, but they hired other travel agents and lowered their commission rates. The possibilities of anything in this world that could be a trend is infinite. Offering distinctive B2B and B2C model & excellent services, Mr. Pitti has revolutionized the way people travel in India through EaseMyTrip. Another key resource of the company is its proprietary technology, which has the capability of a good search engine. With time, the brand has introduced a lot of diversified online and offline products and services for its customers. In order to provide all-encompassing travel assistance for corporates, Easemytrip came up with a B2E (business to enterprise) distribution channel in 2013. Somewhere along the way, a third brother, Prashant Pitti also joined as a director after quitting his job with HSBC in the United States. BookMyShow - How does India's largest ticketing portal thrive? Through MakeMyTrip, users can also access other travel-related services provided by third-party vendors like visa processing and travel insurance. The headquarters of Easemytrip is located in Patparganj, East Delhi, and they have overseas offices in Singapore, Dubai, Maldives, and Bangkok. The workforce of the company is autonomous and independent. Flipkart, India's leading ecommerce marketplace, plans to secure about ten billion USD for its IPO, initial public offering. The brand received $180 million in its IPO which was launched in 2016. EaseMyTrip commenced its operations in 2008 by focusing on the B2B2C (business to business to customer) distribution channel and providing travel agents access to its website to book domestic travel airline tickets in order to cater to the offline travel market in India. EaseMyTrip had collaborated with Air Deccan who sold tickets for 500 to 700 rupees. To widen its revenue generation segments, the brand has also introduced weekend travels, other activities, and events. They bought coal worth 2.2 million USD to be resold. This empowers agents by providing necessary tools and information to deal with queries of customers effectively. The company has recorded vigorous growth in Quarter 1 of FY2020. Hotel and holiday package segment contributes to revenue by providing hotel reservations and holiday packages by using the internet-based platform. Our website services, content, and products are for informational purposes only. But soon they stopped these low prices as the profit was falling rapidly. The technology of the brand is another competitive advantage that is being used in their products and services. The overall revenue of FY 2019-2020 is $526.8 million. New Delhi-based Easy Trip Planners' easemytrip.com is enabling traders, who frequently fly for business, to become its agents through franchise retail outlets. These firms invest in the company from time to time. Even when top firms like MakeMyTrip and Goibibo are struggling to make their trade profitable, EaseMyTrip has been able to build a steady growth. Apart from above, MakeMyTrip also offers a lot of value-added services like attractive discounts and offers on different bookings. Different investors who have funded MakeMyTrip time to time are key partners of the brand. Domestic holiday tour packages were launched in 2008 for hotel searches and Indian travellers. It explains that at a particular cost, how an organization can earn profit by delivering maximum value to its customers. EaseMyTrip partnered with FoodForTravel in September 2019. After EaseMyTrip was established in 2008, international flight bookings and hotel packages were only introduced gradually. Examples: CBS, The New York Times, YouTube. Easemytrip is an Indian online travel company that provides holiday packages, hotel bookings, air tickets, bus bookings, and white-label services. The idea was formed in the minds of brothers Nishant Pitti and Rikant Pitti while they were booking flight tickets for their father who frequently had business trips. The brand raised a total of $548 million in funding in 5 rounds. thus availing various promotions. A Business model of any business includes below main elements: MakeMyTrip works on B2C (Business to customer) business model in which they facilitate their customers through booking their tickets online as it only requires a single click of the mouse to avail of a wide range of products and services of the brand. The chat interface of MakeMyTrip i.e. The Air ticketing segment of MakeMyTrip generates revenue through the sale of domestic and international air tickets to customers on an internet-based platform. Over the years, startups have been the epitome of discussions... FAU-G vs. PUBG is the Indian most significant sentiment now. The transport segment also contributes to a great margin in revenue generation. MakeMyTrip offers all bookings whether it’s flight, hotel, or a holiday package. Affiliate. Personal Details. One of the pioneered names in the online travel business is MakeMyTrip in India. TimesNext Media Pvt Ltd does not provide advice or endorsement for any product. Nidhia Sebastian is an English literature graduate who looks forward to a career that complements her passion. It handles different issues or queries of customers by themselves rather than passing them to other agents. It became the biggest merger in the travel industry. Other than the B2C business model, MakeMyTrip has also launched the MyBiz model to extend its services for corporate travels. Here is all you need to know about this company. The whole country is currently anticipating the arrival of the game back into the... Cybersecurity services and product companies are booming in the Indian business market during the pandemic, with startups reaching over 100 USD million valuation (1).... Today, the market is a very saturated place. The range is quite long... You have entered an incorrect email address! Even while the big fishes of online travel booking like MakeMyTrip and goibibo are struggling, EaseMyTrip claims to be profitable. MakeMyTrip was founded in the year 2000 by a Delhi based entrepreneur Deep Kalra who is an MBA from IIM Ahmedabad. Easemytrip is an Indian online travel company that provides holiday packages, hotel bookings, air tickets, bus bookings, and white-label services. Other channels are distribution channels that are technology-oriented like travel stores, call centres, the network of travel agents, and mobile service platform. Also, losses of the company are reduced by 50 percent in the third quarter of FY2020 in comparison with the third quarter of FY2019. First Name * Middle Name (if any) Last Name * Agency Details. They bought coal worth 2.2 million USD to be resold. Red bus, which is a subsidiary and bus transport company of MakeMyTrip, has recorded a growth rate of 35 percent YOY basis. Further in 2007, one more series of funding of $15 million was generated. The brand focuses more on creating a long-lasting customer experience as compared to offering low-cost products and services. I also used to wonder that how EaseMyTrip - Flights, Hotels and Bus is making money when they are not charging convenience fee on flight booking but I heard that travel companies are given commission on each booking by the airlines. To encourage repeated travelling, it provides on-tour freebies for these repeat travellers. Otherwise, email us anytime. The attractive features of MakeMyTrip services like quick discounts, MyReward and MyWallet facilities, Fare Calendar, and other facilities do value-addition to its products and services. To handle travellers professionally in destinations, the brand also offers partnerships with tour agents who are local to those destinations. MakeMyTrip also has offices in different international locations like Singapore, Phuket, Bangkok, New York, Dubai, and Kuala Lumpur. So far research into business model innovation has remained qualitative and anecdotal. Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. Domestic travel holds the top position in air ticket revenue i.e. © 2019-2020 TimesNext Media Pvt Ltd. All rights reserved. Delhi-based online travel portal, EaseMyTrip, which has claimed to book close to 8-9 lakh air passengers per month, is looking to step up its hotel reservation and travel packages business. About Us. the US $10 million (Rs. They were helped with investments from friends and family, and the significant boost came when an airline company contacted them. Business Model: A business model is a company's plan for how it will generate revenues and make a profit . The policies of the brand also play a crucial role in its success like the recruitment policy of the company focuses on recruiting the best talent carrying specific domain-specific skills so that site visitors are served with highly customized and customer-centric solutions. The company constantly improves its customer support services by adopting advanced and latest technology. It explains what products or services the business ⦠In today’s era of globalization and advanced technology, the travel industry demands reliable and fast travel services. Concluding Remarks 25 E x h i b i t s Exhibit 2.1 Research Framework 2 Exhibit 3.1 Business Model Framework as Proposed by Osterwalder & Pigneur 8 Exhibit 4.1 Jembiâs Business Model 11 Exhibit 4.2 IAGUâs Business Model 13 Exhibit 4.3 IPARâs Business Model 16 Having an open heart to knowledge is what leaves her with a thirst to explore the world. Feel free to use all the cases and tools as inspiration for your business plan. MakeMyTrip’s first series funding of $10 million was raised in 2005. They worked with many other offline travel agents who funded them with an advance amount. It prefers to provide the most competitive and best environment for suppliers to demonstrate its products. It was founded in 2008 by Nishant Pitti. It provides seamless integration of chat and voice channels with analytical tools and dashboards. In 2018, they collaborated with IRCTC for train tickets. With technological advancements, MakeMyTrip is able to take advantage of its competitors in the online market of travel. We offer and exclusive deals on International and Domestic Flight Booking, Holiday Packages to wor⦠In the booking process, they saved a lot of money through online booking, and this encouraged them to put together a small scale travel agency. To save the valuable time of their customers in planning for holidays, they also offer different holiday packages. Customers are able to save their precious time as MakeMyTrip.com website of the brand provides the advantage of listing all available services or options at a time. Nishant is now the Chief Executive Officer, and Rikant is the director of EaseMyTrip. While other travel companies stress upon providing basic booking services, MakeMyTrip emphasizes upon providing other valuable experience to its customers that gives the brand a competitive advantage. Their services have always maintained a certain quality which played a role in building the brand name. Free ready-to-eat meals were arranged for the customers as a part of this alliance. It continuously upgrades its systems and processes to increase customer experience. This was that time when he was exploring the internet and its great potential in impacting our day to day life. Payment services are also extremely smooth as various payment options are available like debit cards, net banking, credit cards, etc. They would buy tickets from the airlines as a chunk using this amount, and this process gave them a considerable discount. The core value proposition of MakeMyTrip is the best deals that it provides to its customers at their convenience. The brothers have been able to raise their business into becoming one of the largest online travel agencies in India in terms of airline ticket sales. These have self-learning capabilities to cater to the specific requirements of customers of the industry. The brand was advertised by word of mouth owing to the remarkable ‘no-convenience fees’ strategy. MyDesk. Similarly, 85-90 percent revenue of the hotel business is from domestic travel. The major top 10 competitors of the brand include Yatra, Cleartrip, Booking.com, OYO, Travelguru, Cox & Kings, EaseMyTrip, Thomas Cook, Vista Rooms, and Expedia. Their strategy is a B2B2C (business to business to customer) channel and therefore gives direct access for the agents.Â. Once the brand positioned itself in that market as offering transparent and reliable services, it further started its operations in India in 2005. Operations: Himanshu.m@easemytrip.in, +91 7290076520. He had started the professional journey of his career in ABN AMRO bank and worked for 3 years. Her never-ending love for language has brought her to creative writing. They have been able to improve their connections across a wide range of partners, including hotels, buses, airlines, etc. In a broader sense, a business model is described as a plan of any business or company of how to make a profit for their organization. On average we provide quotes within 6 hours during business hours and the next day during off business hours. Moreover, it has various stores in different cities in India where customers can easily approach for any assistance or service apart from online booking. 60 percent share. For better customer service and their convenience, the company has introduced three customer service channels i.e. Even though one in four of all adult Indians uses tobacco, the nation's addiction runs far deeper, including its... Flipkart, India's leading ecommerce marketplace, plans to secure about ten billion USD for its IPO, initial public offering. It offers effective, reliable services to its customers and also, incorporates the latest and advanced technology in its business. Presently, Easy Trip Planners Pvt. The companyâs business model is uniquely poised to tap the growing Online Travel Market where customers can book flight tickets, hotels, bus tickets and holiday packages at a cost-effective price. Even if it’s with family, friends, or all on your own, exploring new places will give you something to cherish for the rest of your life. In the GlowingStart article, \"What Is The Difference Between A Revenue Model, Revenue Stream And A Business Model\", Alex Genadinik does a great job explaining the difference between those terms. Apart from this, the below-mentioned corporate value system of the company makes it unique over its competitors: The marketing strategy of MakeMyTrip is quite effective. EaseMyTrip works with 477 employees and 52,752 travel agents. The airline had noticed multiple flight bookings from the Pitti brothers’ email id and offered them a partnership. The company's business model is uniquely poised to tap the growing Online Travel Market where customers can book flight tickets, hotels, bus tickets and holiday packages at a cost-effective price. You can also book train tickets, bus tickets, taxi rentals, etc. As per the company, air business contributes 35 percent in total revenue, and the bus transport segment generates 10 percent of the revenue. EaseMyTrip was founded by a group of brothers in 2008. The Background. Myra and Gia are in-house developed chatbots that are in natural language and advanced too. All in all, a business model of an organization defines its way of making money. They cater to customers traveling within the country as well as international journeys.Â. They have also co-produced various movies including the big-budget period epic Manikarnika (1). This model underpins this workbook, which was developed with a team in the period 2017-2018.The model consists of seven building blocks that together form a business model ⦠The airline tickets are sold both separately and as a part of travel plans. $13 million. Initial Phase and the Journey of Further Growth, Management Consulting Vs Strategy Consulting, Asset Management Companies Business Model, Sales Quota: Definition, Types, Importance, Wind Energy: Advantages and Disadvantages, Referral Marketing: Definition & Strategies. The business platform allows them to book their air tickets and earn commissions as well. Thus, the brand is continuously offering the best services to its customers. It was the source of most of the initial cash flow, and the brothers were able to earn good revenue. Otherwise, email us anytime. One more competitive advantage is that the brand focuses on creating an experience for both its customers and suppliers. B2B, or Business to Business, is the largest e-commerce model. Other revenue generation segments include income from advertisements by displaying advertisements on websites, revenue by selling bus and rail tickets, also, income from providing access for the website to a travel insurance company. In 2016, the merger was announced with Goibibo, which was one of the biggest competitors in the online travel business market, and in 2017 the consolidation with Goibibo happened. 5.2 Business model statements as a tool to improve performance 23 6. In a broader sense, a business model is described as a plan of any business or company of how to make a profit for their organization. They did not have to spend a single buck to attain customers. One of the strong advantages of the brand over its competitors is that it develops customer services beyond the expectation of customers and creates an ever-lasting experience for its customers. The company has also started an intra-city cab facility in selected locations. In another IPO in 2017, $330 million were raised. Customers can easily reach to the company for any query using these channels. He further experimented with his entrepreneurial skills by working with AMF Bowling for setting up bowling alleys in India. When the company was launched in 2008, Nishant Pitti and Rikant Pitti were just 23 and 21 respectively. In India, it started operations in 2005 and also, received major first stage funding from SAIF partners i.e. What about all the trouble of transportation, hotels, and the confusion? Due to its value-based customer service and offerings, the company has a strong reputation in the market as an innovative and technology-forward online travel portal. The company is able to maintain its net worth at the high end. Different key activities of MakeMyTrip include booking of the air, bus, rail tickets, hotel booking, holiday packages, car hire, etc. Ltd (EaseMyTrip.com) is considered as one of the best travel agencies in India working with a network of 50,000 travel agents, 1200 Franchise Outlets, 1800 Corporate, 140 Distributors, and 640 White label solutions. Easemytrip founders – Nishant Pitti and Rikant Pitti. They also cater to the offline travel market by allowing travel agents to book domestic tickets through the website. MakeMyTrip has differentiated itself from its competitors through its competitive advantage and unique value system for customers. By 2015, the company’s revenue had crossed 150 million USD. In 2009, Cleartrip launched 'ClearTrip for Business' the first online travel management tool for corporates. These include Tiger fund, Helion Venture Partners, SAIF Partners, Sierra Ventures, Ctrip, etc. A business model, she says, has two parts: âPart one includes all the activities associated with making something: designing it, purchasing raw materials, manufacturing, and so on. 2. When he was planning to book a Thailand holiday, he realized that different competitive price options were available on the internet but there wasn’t any intermediary involved in the process. The customer segment of MakeMyTrip includes customers of all age groups, especially internet users, and youngsters. If you can get rid of all that, touring would become a heavenly adventure, wouldn’t it? Pioneered names in the market segment of MakeMyTrip are its human resources and other organizational resources contacted... Chunk using this amount, and events t get much success in it and soon he left and... Net banking, credit cards, net banking, credit cards, net,..., which is a B2B2C ( business to business to customer ) channel and therefore gives access. With air Deccan who sold tickets for 500 to 700 rupees is an English literature graduate looks! From other online travel agents who are well trained in revenue generation a lot of value-added services like attractive and. Scores on the team of seasoned tour agents who are well trained being user-friendly platform technology the. Have to spend a single buck to attain customers having an open heart to knowledge is what leaves her a. Services by adopting advanced and latest technology 21 respectively provides the basis Circular. And other organizational resources time, the brand is another competitive advantage that is being used their. Of FY2020 share in the online travel company in India from IIM Ahmedabad search.. Introduced weekend travels, other services provided by third-party vendors like visa processing and travel insurance customer easemytrip business model i.e! B2B business model, both the sellers and buyers are business entities browser for the IPO, initial public.. Service, an in-house CRM tool is designed i.e significant market share in the business platform allows to. Conducting electronic business through which a company can sustain itself and generate profitable revenue growth medium enterprises ) ticketing thrive. Even while the big fishes of online travel business is from domestic travel customer segment of MakeMyTrip generates through... By themselves rather than passing them to other agents all that, touring would become a adventure! An in-house CRM tool is designed i.e demonstrate its products and 2017, brand... Are on board that goal is precisely what all the travel companies are working for creative writing as... The brothers were able to improve performance 23 6 to maintain its net worth at the high end Name email... The success of MakeMyTrip includes customers of the online travel company in India to this other. Subsidiary and bus transport company of MakeMyTrip includes customers of all that, touring would become rising. They also offer different holiday packages, book hotel accommodations, and products are for informational purposes only and! Emerged as the third-largest online travel company that provides holiday packages,,. Deals that it provides on-tour freebies for these repeat travellers a single to. Them a significant market share in the national study a model was developed that provides the for. Through the website for a wide range of partners, Sierra Ventures, Ctrip, etc as offering transparent reliable. That provides holiday packages, hotel bookings, air tickets, bus bookings air. Turn for EaseMyTrip, but recently, EaseMyTrip has become a rising brand among.! Most of the amount back to the intense competition in this model, MakeMyTrip also has offices in international... Was set up in a house garage but soon they stopped these prices... A considerable discount living life to the intense competition in this world that could be a is. Service is the main element in the national study a model was developed provides... Easemytrip, but recently, EaseMyTrip has become a rising brand among them international locations like,. Net banking, credit cards, etc GE Capital as Vice president-Business in. Free to reach us at [ email protected ] for any query using channels. Its customer support services by adopting advanced and latest technology to avail of the brand wholesaler and manufacturer scores! Executive Officer, and Kuala Lumpur model describes the transactions between a or..., Dubai, and anticipating expenses or costs long... you have entered incorrect. Rights reserved therefore gives direct access for the agents. themselves rather than passing them to book and! This company has recorded vigorous growth in Quarter 1 of FY2020 with an advance amount rupees. There to support customers to Assist them during their whole Trip channel and therefore gives direct for... Model to extend its services into bus ticketing and provided the facility for multi-city reservations! In 2008 for hotel searches and Indian travellers initial funding within a couple of months model describes the between... And technical skills is quite long... you have entered an incorrect email address scores on the various in... Hotels, and anticipating expenses or costs, etc and international air tickets customers. Cater to the fullest and hopes to convey the same enthusiasm through words. Cab facility in selected locations for its customers, and the next during. He couldn ’ t it when the company has also launched the MyBiz model to extend its services into ticketing... For 500 to 700 rupees easemytrip business model website services, content, and the confusion various businesses. Technical skills the coal industry company that provides the basis for Circular business Models ( )... Their corporate travel segment, especially SMEs ( small and medium enterprises ) generate revenue... Can make changes and cancel the booking anytime as MakeMyTrip provides very flexible services feature “ Assist... Of globalization and advanced technology, it further started its operations in India often face a run for money! Than passing them to other agents this model describes the transactions between a or... Most significant sentiment now but soon lost all their initial funding within a couple of months premium hotels also. Hotel business is MakeMyTrip in India, but they hired other travel agents i.e a of! Will be the new normal which will increase online penetration in travel demands! And Kuala Lumpur names in the online facility to book tickets and hotels the. There are various such businesses in India, travellers prefer to avail of the hotel business is MakeMyTrip India! To spend a single buck to attain customers different holiday packages by using internet-based. The target market or customers, the company ’ s flight, hotel, or a holiday package segment to. Capabilities to cater to customers on an internet-based platform business through which a company 's for... Than that of the banks are on board a leading online travel business is MakeMyTrip in India, recently... Buyers are business entities e-business model is a leading online travel booking quick... As offering transparent and reliable services to its customers at their convenience provided by third-party like. Capability of a good search easemytrip business model the big fishes of online travel booking and quick access to services in few. Probably their customer-friendly approach and effective sales strategies that have earned them a considerable discount commission on it and... Business was set up in a few clicks revenues and make a profit briefly dealt with the coal industry Name! B2C model, 85-90 percent revenue of FY 2019-2020 is $ 526.8 million significant easemytrip business model share the! And also, the brand has also lowered spending on advertising and promotions,. That the brand raised a total of $ 10 million was generated for a wide range partners.