BTO - Buy Tourism Online 2011 Stazione Leopolda, a Firenze 1° e 2 Dicembre 2011 Speaker: Manish Kalra [India] Marketing Head MakeMyTrip.com Stazione Leopolda 1° Dicembre 2011, Day ONE Main Hall, i paesi B[R]IC 16.20 - 17.30 Il panel con la discussione sui paesi B[R]IC sarà introdotto da una ricerca commissionata da BTO – Buy Tourism Online 2011 a Pragma Market Research Company e a Episteme, il primo un istituto di ricerca tra i più attenti alle tendenze che ruotano attorno al viaggio, il secondo, diretto da Monica Fabris, ha elaborato i dati per proporli al pubblico “vestiti”, in modo da offrirci una chiave di lettura dinamica su quali potranno essere le prospettive future. La ricerca ha come tema lo stile dei viaggiatori dei paesi B[R]IC, Brasile, Cina e India, a seguire un dibattito. http://www.buytourismonline.com/il-programma-day-one-1-dicembre-2011/

1. Scoring on Indian Soil

2. Discussion Flow
 Field Report: India’s Economic & Travel
Potential
 Team Formation: MakeMyTrip.com
 Penalty Shootout: The Indian Traveler – From
MakeMyTrip’s Lens
 The Winning Team: MakeMyTrip & Tsucany

3. Field Report
A Decade of Phenomenal growth

4. In 2000, there were 5.5Million internet
users amongst a population of 1Billion
depicting a penetration of
0.5%
Almost 4 in 10 didn’t know how/have
interest in using PCs or Internet
By 2010, internet users increased to
100Million among the population of
1.18Billion with a penetration of
8.5%
Source: Internet world stats, PW Report 2008
Link: http://www.internetworldstats.com/asia/in.htm

5. India: 3rd Largest Internet Population & Low Internet Penetration
India: Low Internet Penetration India: Rapid Growth in Internet Users
Million Users
80% 78.2% 77.3% 120
100
100
60% 58.4%
81
80
62
40% 60
36.2%
31.6%
42
40
20%
20
8.5%
0
0%
2007 2008 2009 2010
Japan USA Europe Brazil China India
Source: Internet World Stats
India has the 3rd largest number of Internet users in the world, after
China and United States; expected to take over US in 4 years at
current growth rate

6. Number of mobile phone subscribers in 2000:
0.077 mn
Number of mobile connections by 2010 were more than:
660 mn
Source: Indian Business.nic, TRAI Report 09-10
Link: http://www.watblog.com/statistics-internet-and-mobile/; http://indiabusiness.asia/gartner-sees-mobile-users-at-993-mn-in-2014/

7. In 2000, outbound tourists
mn
amounted to:
4.42
Outbound tourist traffic grew at 12.79% per
India has one of the fastest growing outbound travel markets in
the world;
year spanningPacific Asia Travel Association (PATA)
according to the a 5-year period 2007-2011
In 2010, outbound tourists amounted to: 12.61 mn
Source: ITOPC.org, EuroMonitor Report 2010
Link: http://www.itopc.org/travel-requisite/outbound-tourism-statistics.html, http://www.asiatraveltips.com/news06/103-Reports.shtml

8. Estimations and Expectations For the Future
 In 2014 outbound traveler traffic would be: 18.2mn
 Internet users would be about 237 mn
 Aviation Industry will handle around 280 mn passengers by 2020
 India’s mobile subscriber base should grow to 993 mn by 2014
 By 2014, India is targeting 160 mn broadband connections, out of
which 60 million would come from wireless ...a 13 fold increase from
now
Growth is strong and will continue...
Source: DNA India / Gartner/ Economic Times/Ministry of Railways/, Frost & Sullivan/EuroMonitor Report 2010
Link: http://www.dnaindia.com/money/report_trai-broadband-plan-targets-75-million-users-by-2012_1478715
http://articles.economictimes.indiatimes.com/2010-09-02/news/27624281_1_internet-users-brici-digital-consumers-
brici-countries, http://business.mapsofindia.com/aviation/

9. Sharp Growth in Travel, A Rapid Shift To Online
Online Travel Segment Growing at 2.2x of Total Travel Market
Source: PhoCusWright, 2010

10. Travel Leading the E-Commerce Usage
Primarily driven by online travel
industry, contributing 76% to
total net commerce industry
Source: IAMAI
More than 3/4 of India’s total online population uses the internet to search
shop and buy their travel
(Src: IAMAI)

11. Team Formation

12. MakeMyTrip.com: Dominates India’s Fast Growing Online Travel Market (1)
 48% Market Share of Indian OTA (PW 2010)
 Strong Brand: 4th largest OTA in terms of market capitalization
(MMYT:: Nasdaq) in the world
 Only online travel brand selected as Superbrand in India for
2009–2010
 Most visited OTA website & the largest e-commerce company
in India with over 5 million MUVs (Source : May 2011
ComScore)
 Direct online traffic amounting to 50%+ Mix

13. MakeMyTrip.com: Dominates India’s Fast Growing Online Travel Market (2)
 Undisputed Online Travel Market Leader
 Largest seller of air tickets with 11.5% of all domestic
Others
passengers flown in June 2011 (Source : dgca.nic.in)
10%
 Gross Booking of $742 Million and a YoY transaction growth
Cleartrip of 76% in FY2011
18%
48%
 Superior User Experience
Yatra
24%  User-friendly interface
 Simple booking process, fast response time
 User generated reviews and content
Source: PhoCusWright, 2011
One out of almost every 8th passenger flying in India is a MMT customer
Src: Euro Monitor 2010

14. Continued Focus on Innovation
Product Innovation
 New, focused Package launches:  Launching of new, unexplored destinations
 Leh, Ladakh
 Bhutan
 Maldives
 Andaman
 Flight Plus Hotels Tab
 MMT Charter Flights
 Not offered by any other competitor
 Both Domestic + International destinations covered viz.
Andaman, Ladakh, Bhutan, Thailand, Maldives, Phuket
 Attractive Round Trip Option
 Charters running in full capacity
 Multiple Channels Expanding Reach
 Mobile Platform+ Website+ 31 Retail Stores+ 1000
people Call Centers+ 6000 B2B Agents

15. Marketing  Controlling cost per transaction and building the brand
 Co-marketing initiatives with tourism boards:
 Extending relationships with Tourism Boards – 15 so far
 Not only covering popular destinations but offbeat, unique
destinations as well like Tuscany, Turkey, Spain, Germany
 Designing comprehensive 360 degree online and offline initiatives to
promote the destinations
 Marketing innovation:
 Optimum & effective use of online as well as offline initiatives
 Loyalty program launched for its premium customers
 Privilege program launched to aid better conversion and sales
 The mantra going forward – Get Better Bang for Every Buck!

16. Content
Not just how much…
…but the focus is on how
usable is the content

17. Penalty Shootout

18. The Indian Traveller
Indians loveto try out
Indians are fond of new cuisines and
travelling. Even in times of flavours, once they step
global recession, two things did out of home. But at the end
not seem to be affected - the
Indian buying jewellery and the of the day they
love
Indian travelling abroad. their Indian Food.
What attracts Indians is a
great deal; they come
Indians always plan at the
with deep but prudent
last minute! If a trip is
pockets . If the destination is planned in advance, there
a shopping paradise, it is an will surely be changes last
added attraction. minute.

19. 40% Indians Induced by Promotions to Take Impulse Holiday
Cheap Fares by LCC Cheap Fares by National Carrier
Airline 44%
46%
Yes
No
Don’t Know/ Last Minute Availability*
Special Off-Season Hotel Rate Refused
43% Hotel 37%
* at desired hotel
Destination like Hongkong, Thailand, kenya and where getting visas and
Src: PhocusWright, 2008
visa on arrival are possible are the hottest places for Indians right now as
they can be booked in impulse

20. Outbound Travel Is Aspirational
 New destinations picking up: Europe, UAE and other Middle
Eastern countries, Egypt, Australia and Indonesia
 Families continue to lead: Accounting for nearly 32% of
outbound journeys for leisure in 2009
 Honeymooners: One of the fastest growing segments of
outbound leisure tourism
 Group Travel: Very Popular for first time traveler; particularly in
Gujarat, WB, and TN
Indian travelers are now the sixth largest spenders on hotels abroad, ahead
of travelers from countries such as the United Kingdom, France, Germany
and even Singapore.
(Source: Hotel Price Index by Hotels.com, the world’s leading hotel booking website)
Src: Euro Monitor 2010

21. The Bicycle Kick

22. Penetrating the Indian Market…
Designing Comprehensive Services and Relevant Product Offering
Continued Focus on Innovation
Create a Strong Travel Industry Partner
High Impact Marketing Initiatives
Focused Strategies to Drive Continued Growth

23. How to Win Over Indians!
 Value for money accommodation
 Late evening dinners
 Vegetarian food
 Sight seeing options
 Anything to do with CRICKET
 Last but not the least…what gets featured in BOLLYWOOD…

24. Winning Partnership with MakeMyTrip
 Joint Partnership with MMT in building brand Italy
 Creating partnerships to market Italy .. its more than
Rome!
 Best way to reach Indians
 Optimized Mix of Targeted Online and TV campaign
with a clear call to action and offers
 Utilize MakeMyTrip Expertise and understanding of
Indian Consumer and media, and run a Joint campaign
 Design products around ‘last minute’ and supply chain
management
 Support with Offline activations for brand Italy and Engage
customers online

25. A 360 Degree Approach
 Print Advertisement in Leading Publications
 CRM:
 Promotional offers on matrimonial sites, alliance partner sites
 Exclusive Promotional Offers to MMT database
 Promotional Offers on Leading Deal Sites
 Online Marketing:
 Display Advertising Campaign
 Search Engine Marketing
 Social Media Marketing
 Direct Marketing: Emailer, SMS Campaigns
 In Store Promotions, Mall Activations, RWA activations
 Familiarization tours for press and influencers
 Joint road shows in India in tier 1,2 and 3 cities