MakeMyTrip: We didn’t want to compromise on market leadership: MakeMyTrip, CEO, Rajesh Magow | The Economic Times India

At a time when our focus was to drive hotel business from a growth perspective really aggressively, the market dynamics changed with the Ibibo group taking to a very aggressive pricing strategy in terms of acquiring customers in the hotel space and were more volume-focused. This was about a year before the merger.

In this market, the aggressive pricing strategy took us back to the drawing board and we were thinking about how we should react to this strategically. It wouldn’t help if we were not competitive in pricing, because Ibibo had also built the business well on hotel space with focus on mid-segment and budget-segment which was a high-growth category.

That’s when it all started and we also decided to go equally aggressive on pricing in the hotel space to retain market leadership. As a market leader, people expect you to offer the best prices. So we had to obviously, change our course which was tough, because we were constrained by virtue of being a listed company and we come under much greater scrutiny by public investors when we do that. So we took a call noting that market leadership was most important for us. Since there is a premium to the market leadership, that was one thing that we didn’t want to compromise.

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MakeMyTrip: We didn’t want to compromise on market leadership: MakeMyTrip, CEO, Rajesh Magow.