How the EaseMyTrip Travel Unicorn Uses Pricing as a Growth Driver in Global Markets

The new EaseMyTrip online travel unicorn is aggressively expanding its international operations with its ability to offer lower service charges on airline tickets. The Delhi-based company entered the coveted unicorn club last week when its market cap crossed the billion dollar mark.

Besides its home market (India), EaseMyTrip is currently present in UAE, Singapore, UK, Philippines, Thailand and USA.

“To capture the international market, we plan to offer lower service charges on airline ticket bookings compared to larger players in these markets. We will be competing on the basis of price because we will be able to offer tickets at a much better price. , we will leverage the same efficiency and cutting edge technology that exists in the business to serve these six international countries, ”said Rikant Pittie, co-founder of EaseMyTrip.

He said having operational and technology teams in India would help the platform pay low service fees. In addition, it sets up low-cost subsidiaries and considerably smaller teams in each location to connect with local partners and local air carriers while partnering with local payment gateway providers to reduce costs. .

“We will be competing on the basis of price because we will be able to offer tickets at a much better price. So, for example, if the average ticket price in the US is $ 15, we would be able to offer tickets at $ 5 and still be profitable. Other back-end operational work will continue from the Indian office. We grew up in India not charging convenience fees and offering better prices. We can use the same strategy in other countries or charge a much lower service fee, ”Pittie added.

He said the company has always operated on a zero convenience fee model, while most other players in the industry try to become profitable through additional convenience fees.

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The company plans to launch localized travel search engines in every global market. The search engine developed for the United Arab Emirates is live and aims to open two more websites by December.

“We anticipate huge pent-up global demand for the travel and tourism industry by establishing our airline ticketing business in these countries. We might consider expanding into more viable countries if we see strong performance and added value from our existing subsidiaries, ”he said.

EaseMyTrip is a profitable online travel company that debuted in the public market amid the pandemic in March of this year with a 10% premium over the initial public offering (IPO) price of Rs 206 per share.

Shares of the Delhi-based company jumped 10% to a record market cap of Rs 7,700 crore on Friday, making it the first and only bootstrap travel tech unicorn in India.

“We are delighted because this (the unicorn status) reflects the confidence that our investors, partners and clients have placed in the company because the stock market is not under our control. In an industry that is experiencing sky-rocketing venture capital and private equity funding, we’re happy to stay 100% bootstrap, ”Pittie said.

Airline tickets represent more than 90 percent of the company’s revenue. Pattie said the focus is now on growing her non-air travel business, including hotels, buses, trains and vacations, in double digits. EaseMyTrip will leverage its existing customer base for cross-selling and work with its agent network for vacation bookings, which complements the company’s hotel and vacation business.

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