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Case Code: MKTG366
Case Length: 20 Pages 
Period: 2000-2017   
Pub Date: 2017
Teaching Note: Available
Price:Rs.500
Organization : MakeMyTrip Private Limited
Industry : Online Travel Industry
Countries : India 
Themes: Services Marketing  
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

MakeMyTrip- Leading the Indian Online Travel Industry, but Weak on Profits

 
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INTRODUCTION

 
In October 2016, India’s leading OTA (Online Travel Agency) , MakeMyTrip Private Limited (MMT), acquired its key rival the Ibibo Group’s India travel business in an all-stock deal worth US$ 1.8 billion. This was the biggest consolidation in the Indian OTA space and resulted in all travel brands under the Ibibo Group such as Goibibo, redBus, and Ryde coming under MMT (See Exhibit I for Information on Ibibo Group’s Travel Brands). All the brands of the combined entity were expected to remain operational; the top management of MMT remained the same and Ibibo Group’s shareholders got 40% of the stake in the combined entity. Apart from being in a stronger position to negotiate prices and commissions, the combined entity was expected to be more effective in combatting competition.

Established in 2000 by Deep Kalra (Kalra), MMT was launched with two sites – one for the Indian market and one for the US market. The company’s early years were tumultuous and the lack of prospects in India prompted Kalra to shut down the Indian website for a few years. After the Indian online travel industry picked up, MMT’s India site was launched again in 2005 with venture capital support and it offered flight ticketing, hotel room booking, and holiday packages.

 

 
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