PRODUCT DEVELOPMENT MUSAFIR
This case study was for Musafir, India to expand the business and develop the product offered through different market strategies, taking into account the Indian user behavior and the culture when it comes to traveling.
Musafir.com is an online travel agency and booking platform that provides a wide range of travel services to customers. It was founded in 2007 and is based in the United Arab Emirates. Musafir.com offers services such as flight bookings, hotel reservations, holiday packages, visa assistance, and travel insurance.
The platform aims to make travel planning and booking convenient and seamless for users, offering a user-friendly interface and a variety of travel options to choose from. Musafir.com caters to both domestic and international travel needs, serving customers in several countries.
Data: Flights over 3000 destinations, hotels in over 8500 properties, Holiday experiences and Visa procedures
How to differentiate Musafir India from other OTA
How to enlarge the data base
How can Musafir reach the top 5 OTA's in India in the next 5 years
INDIA'S INTERNET USERS
India has an internet user base of about 354 million people as of June 2015.
According to Google India, there were 35 million online shoppers in India in 2014 Q1 and is expected to cross 100 million mark by end of year 2016.
India has the third largest number of internet users after China and the U.S.
Indian consumers view the concept of package tours more as a sign of luxury.
Indian consumers are extremely price sensitive.
Customer service is extremely important
MAKE MY TRIP
48% of the market
Started in 2000
8,3 billion visitors in 2014
19% mobile basis
YATRA
24% of the market
Started in 2006
Has won 3 awards at the India Tourism Awards
Important local acquisitions
5,5 million users per month
CLEAR TRIP
18% of the market
Started in 2006
6 million users on Deskopt
2,5 millions on mobile per month
20% flights, 25% hotels, 50% train bookings
INTERNATIONAL COMPETITORS
Expedia
Trip Advisor
Skyscanner
Fare Compare
Akbartravels
Goibibo
Last Minute
Service 1: Flight + Cab (combo) Booking Service
Flight Bookings is the integral part of musafir.com. It comprises of 80% of share in the revenue generation and customer acquisition for the company.
This service can be integrated with cab booking services for pickup and drop from home to the airport. This service will provide convenience to the customer thereby increasing sales and customer loyalty towards musafir.com
Service 2: Provision For Offline Services By Setting Up Offices
Only 350 million users out 1.2 billion population of India are connected to the internet. Have the business (offline + online) to achieve higher expansion rate for the company in India.
If the offices are set up by entering into partnership with the reputed local Travel and Tourism company then the market penetration rate will be much higher and also saving time, money and manpower than in case of independent office.
Indian culture: Physical experience of the brand, premium service and personalization
Kiosks in malls and public areas
Service 3: Flight Booking Service Differentiation
Car rental services from the destination airport will also prove beneficial for the customer and add to their convenience and also it will save their time and money
Service 4: Corporate travel
Corporate Travel arm has the potential to be hugely profitable with lower margins than the retail arm but higher annual turnover: Margins lower than retail, Turnover higher than retail and Less interaction and support required by corporate clients.
GBTA upgraded its forecast for the second straight time projecting India’s total business travel spend to grow 9.8 percent in 2015 and 10.9 percent in 2016 – the first year of double-digit spending gains since 2011.
Other competitors, Concur and SAP, Makemytrip, Egencia, FCMTravel Solutions (link up with Flight center an Australian listed company)
JV with international companies specializing in Corporate Travel that do not have a base in India.
B2B model focusing on large online streamlined booking processes
Alternatively, the purchase of small set travel agencies in major cities in India with a portfolio of corporate clients will be an ideal way to establish a physical presence and create inorganic growth.
OVERVIEW
GOALS
DATA COLLECTION
THE TRAVEL INDUSTRY IN INDIA
E-COMMERCE IN INDIA
Online travel constitutes a sizable portion (87%) of this market today. Online travel market in India is expected to grow at a rate of 22% over the next 4 years and reach $12.2 billion in size by 2015.
NUMBER OF PEOPLE TRAVELING VIA AIRLINES
Online travel sales in India amounted to 5.37 billion U.S. dollars and are expected to grow to 30.61 billion U.S. dollars in 2016
TRANSPORTATION IN INDIA
FINDINGS
COMPETITORS
STRATEGIES
Mumbai, India 2015
Team members
Shishir Prajapati - Australia
Alejandra Vélez - Spain
Luz Maria Pérez - México
Anna Ebel - Russia
Siddhant Kamble - India
Natalia Cortes - Colombia