This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MakeMyTrip Won by Waiting for Indian Market

When you started this business the customers were generally Americans traveling to India. Now more of your business is Indians traveling domestically. How did this switch come about?

Kalra: To be candid, we were waiting for the Indian market to open up. The nonresident Indian market, or Indian folks in the U.S. coming back home, was really one part of the business plan, not the entire business plan. It would be fair to say it was like one-third of the business plan. But when we launched in India in 2000, we realized we didn't have enough people buying. We had lots of lookers but very few bookers. So we waited patiently, focused entirely on the U.S. market, built a business around this and waited for the Indian market to open up. Really it was a couple of events that convinced me that the market was ready, most notably the advent of budget carriers. That really helped us because now the content was not available to the traditional travel agents so easily, and we could use technology and pull all the content together and really solve customer problems. The second thing was that Indians had started buying online on the Indian government railway site.

Who are some of your major competitors?

Kalra: We have two Indian-grown companies that are venture-funded competing with us. One is half our size and the other is about a third our size. The rest of the market, or around 10%, is comprised of Expedia (EXPE - Get Report) and Travelocity in India, who have been there for a couple of years, albeit keeping a low profile. And also there are a host of other smaller companies.

Now that you've gone public, what are your growth plans from here?

Kalra: On the products side, we are really going to focus a lot more on the accommodations, which is hotel and packages. It's a higher-margin business. Of course, we will keep selling air tickets and bus tickets because this gets people in the door, but then we will cross-sell them hotels and packages. We also would like to expand in the region and go beyond India and look at the region, which is Southeast Asia and the Middle East, where our customers are traveling.

-- Reported by Gregg Greenberg in New York.

Readers Also Like:

Follow TheStreet.com on Twitter and become a fan on Facebook.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
EXPE $98.90 0.00%
GE $26.80 0.00%
MMYT $23.45 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs