The travel industry in India is a vibrant sector of the market and has also seen significant growth in recent years due to the promotion of government campaign “Incredible India.”
Travel and tourism industry in India is on the edge of turning into a major global destination making it one of the most profitable industries. This specific industry contributes about 6.23% to the country’s GDP because of the substantial amount of foreign exchange that occurs due to the tourist visit in India.
Indian tourism bagged 5th rank in long-term growth and is expected to be ranked as the second largest employer by 2019 along with a 22% increase in tourist arrivals per year by 2010.
Welcome to MakeMyTrip
MakeMyTrip is an online travel company which was founded in 2000. The Indian online travel company is headquartered in Gurgaon, Haryana providing services that include flight bookings, hotel bookings, domestic and International holiday packages, railway and bus bookings.
As of 2018, The company founded by Deep Kalra has around 14 company-owned travel agencies in 14 cities and over 30 franchise-owned outlets in 28 cities. MakeMyTrip also has counters in 4 major airports in India.
MakeMyTrip franchise was founded by Deep Kalra, who was an alumnus of IIM-Ahmedabad. In 2000, the company was launched in the US market so that they could provide their services to the Indian community overseas who wanted to travel from Us to India.
MakeMyTrip commenced their operations in India in September 2005 by providing flight tickets to Indian travellers. In addition to this, the company also focused on non-air businesses by offering holiday packages and hotel bookings. On 17 August 2010, MakeMyTrip got listed on NASDAQ after its IPO (Initial Public Offering).
In 2011, MakeMyTrip created and launched their travel app for all mobile devices and also acquired three companies – Luxury Tours and Travels Private Limited in Singapore, ITC Group Hotel Travel Group and ETB Group.
In September 2014, MakeMyTrip invested $15 million into an innovation fund in order to support travel groups. Through this fund, MakeMyTrip acquired MyGola, a travel planning website in April 2015. The employees of MyGola was then absorbed into the MakeMyTrip team.
In 2016, two of India’s largest travel portals merged through a stock transaction. The companies were MakeMyTrip and Ibibo Group. MakeMyTrip shareholders acquired 60% stake and Ibibo Group 40%
What is the USP of MakeMyTrip franchise?
Well-recognised brand name
MakeMyTrip is one of the few online travel companies that offer travel solutions by a team of highly skilled and experienced travel professionals. The company is more than a travel portal, it is a brand that has successfully managed to provide one-stop-travel-store by providing various travel products and services across India. MakeMyTrip got its pioneer brand name by focusing on providing the best travel solutions with cutting-edge technology and 24*7 dedicated customer support.
Provides a plethora of travel products and services in India
MakeMyTrip is an Indian online travel company who are dedicated to providing an array of travel products and services in a continuous effort to grow and maintain its market position and brand name.
The wide range of products offered by the company to all the Indian travellers are:
- Domestic and international flight tickets
- Domestic and International holiday packages
- Domestic and international hotel bookings
- Domestic Bus and Railway ticket bookings
- Hiring a private car or renting taxis
- Travel insurance
- Gift cards for special occasions
- Tourist visas
- Exploring cities with MakeMyTrip app
- Search for the best available home and villas in any city across India.
- Exclusive MakeMyTrip charter products
- Specially designed packages for people travelling in groups for meetings or conferences or exhibitions.
What are the benefits of owning a MakeMyTrip franchise?
MakeMyTrip franchise owners can enjoy numerous advantages in comparison to any other travel agency. They are:
- Operational support will be provided by dedicated business teams
- State-of-the-art technology will be used to provide a stronger interface with customers
- One-time solutions regarding any holiday services inquiries will be provided by a dedicated team from MakeMyTrip
- MakeMyTrip’s regional team will be there to support and guide the franchise in its day-to-day operations
- Marketing support will be provided by MakeMyTrip for local promotional activities, designing the outlet as per MakeMyTrip’s identity, media support for regional and national print campaigns
- Adequate training and recruitment will also be done by MakeMyTrip in order to familiarise the staff with MakeMyTrip guidelines, product training workshops will also be conducted and other regular training programs will be conducted at the franchise location by MakeMyTrip experts.
- The franchise can also earn rewards and bonuses which will be linked to their performance and the franchises will be allowed to participate in MakeMyTrip franchise meets to get to know the other outlets as well.
What are the requirements for starting a MakeMyTrip franchise?
Before we get into the basic requirements for the outlet, here are a few other important requirements that MakeMyTrip company requires from its franchisees:
- The outlet should be on high street preferably on the main road.
- The outer or exterior of the outlet should have space where the MakeMyTrip glow sign board can be put up in a way which is visible to all the people.
- The building interior should be in accordance with MakeMyTrip brand guidelines and the cost should be given be the franchise owners.
- There should be a power backup for the building or the outlet.
The area required to set up a MakeMyTrip franchise outlet in Tier 1, Tier 2 and Tier 3 cities is 400-600 Sq.ft. The area required to set up a MakeMyTrip franchise outlet in small towns is 250-400 Sq.ft.
Skills or experience required
- People who are actively seeking partnership with a growing travel company
- People who are passionate about the travel industry
- The candidates appointed by the franchise should possess the following qualities:
- Adequate business acumen
- Impressive business track record
- High leadership skills
- Exceptional management capabilities
- Should be flexible enough to adapt to the environment that is constantly changing and evolving in the travel industry.
Franchise owners who already possess a travel agency license will be given first preference, but people who are displaying an interest in owning a MakeMyTrip franchise and who are also willing to acquire a travel agency license or who are ready invest in an existing registered travel agency will also be given partnership.
Regions of operations
They have outlets in Gurgaon, Delhi, Mumbai, Pune, Gujarat, Goa, Daman and Diu, Chattisgarh, Kolkata, Chennai, Bangalore, Uttar Pradesh, Himachal Pradesh, Telangana, Kerala, Madhya Pradesh, Bihar, Jharkhand, Rajasthan, Sikkim, Odisha, Manipur, Mizoram, Assam and many more.
- MakeMyTrip will provide guidelines for recruiting employees for the job role.
- Buddy training program will be provided to franchise employees so that they can understand the various aspects of the travel business.
- Constant product training workshops will be conducted by MakeMyTrip so that the staffs are familiar with each one of them.
- Regular training programs will be conducted at the franchise by MakeMyTrip experts.
Minimum staff requirement for MakeMyTrip franchise
The minimum staff required at a MakeMyTrip franchise outlet is around 9-10 employees.
How much does it cost to start a MakeMyTrip Franchise in India?
The non-refundable franchise fees and the projected fitment cost differs from one tier to another.
- Franchise fees (non-refundable) = Rs.10,00,000
- Projected fitment cost = Rs.4,00,000
- Franchise fees (non-refundable) = Rs.7,50,000
- Projected fitment cost = Rs.3,00,000
- Franchise fees (non-refundable) = Rs.5,00,000
- Projected fitment cost = Rs.1,50,000
- Franchise fees (non-refundable) = Rs.3,00,000
- Projected fitment cost = Rs.1,00,000
Franchise terms and conditions
The term of the agreement for a MakeMyTrip franchise is for 3 years. The agreement can be renewed post 3 years based on the franchise’s performance.
Profitability for a travel agency franchise explained through a hypothetical example
Total investment done in a travel agency franchise = Rs.10,00,000
Expenses incurred in a month
- Rent paid for a 500 Sq.ft of area = Rs.70,000
- Salaries paid to 8 employees (Rs.10,000*8) = Rs.80,000
- Miscellaneous expenses = Rs.20,000
Total expenses incurred in a month = Rs.1,70,000
Income earned in a month
- Average footfall of customers in a travel agency per day = 10 people
- Average amount that a single person spends (flight or train or bus tickets, hotel bookings, visa process, etc.) = Rs.10,000
- Total income earned in a month (Rs.10,000*10) = Rs.1,00,000
Total income earned in a month (Rs.1,00,000*30) = Rs.30,00,000
Gross profit for the month
Gross profit for the month (25% of Rs.30,00,000) = Rs.7,50,000
Total profit for the month
Total profit for the month (Rs.7,50,000 – Rs.1,70,000) = Rs.5,80,000
You can get back your entire investment within 1-2 months.
MakeMyTrip franchise is given to people who are entrepreneurs passionate about growing along with them in the travel industry. The main key reason for you to open a MakeMyTrip franchise is because of the brand name you will be associated with and in an industry which is expected to have a stronger growth rate over the next decade.
The process of owning a MakeMyTrip franchise is:
- Fill up the franchise application
- Have a discussion with MakeMyTrip business team
- A final meeting at the MakeMyTrip head office
- The signing of the franchise agreement
- Finding the best location for the franchise and finalising the same
- Getting the interior work done within the MakeMyTrip guidelines
- Recruiting and training of MakeMyTrip franchise staff
- Handing over of the project and
- Launching your own MakeMyTrip franchise outlet
MakeMyTrip is a company which is dedicated and focused on providing one-stop-solutions for all your travels needs ranging from flight/bus/rail ticket bookings to both domestic and international hotel bookings to helping customers with tourist visas and many more using top-notch operational tools integrated with a dedicated team of MakeMyTrip experts who are highly skilled and has tremendous experience in the ever-changing and evolving travel industry.