Did you know, EaseMy Trip have made 4000cr while being bootstrapped. EaseMytrip is one of the few companies who are able to becaome the market leader while being completely bootstrapped, so how did they acheive this. Here is the story of EaseMy trip , how it started, how it dominated a clustered market while being a late comer. Here is the story of EaseMytrip.
Nishant Pitti, Prashant Pitti, and Rikant Pitti came up with the concept for EaseMyTrip as they were ordering plane tickets for their father’s regular business travels and saving money in the process. Initially operating as a travel agency out of their garage, the couple lost all of their money in the first three months. Later, referrals from family and friends were helpful, and a big turnaround occurred when an airline spotted many bookings originating from a single email account and approached the Pitti brothers to become its travel partners.
“My youngest brother Rikant decided to start EaseMyTrip while he was studying in school — in the 12th grade. I was in the US, working for a bank. Rikant and Nishant started this company. Then I quit my job and started to work in the company,” Prashant Pitti, whole-time Director of EaseMyTrip, told.
If you go ahead an buy a flight ticket from X place to Y place from MakeMytrip, ClearTrip or other platform they ask for a convinience fee, which can be ₹800 till ₹1000 rupee per ticket, so if you are going with a family of 4 to somewhere abroad it will cost you ₹4000 just by convinience fee, Most of this company earn there profit by these hidden fee only, unlike cleartrip. Cleartrip is much cheaper that its competitors as it does not take any convinience fee, so how does it make its profit?
EaseMytrip when started had 0.3% as their EBITA, The comapny became accustomed on living on low margins, they adjusted themself to such a way that they could live off low margin at that period of time EaseMytrip was B To B. EaseMy trip served as a link for the travel agents and the airline such that it gave the travel agents a reasonable profit , and keep some of the profit with itself, Here is a image which illustrates this strategy
Credits:Aevy TV
Later on it directly connected the consumer with the busness, basically it started its B to C offshoot where they made high amout of margin, what differentiated them from the rest were — low prices , Better consumer expereince, 50% refund in case of a cancellation due to health reason , all this contrubuted to their consumer satisfaction rate.
EaseMyTrip was custumer centric, its founders had been Travel agents earlier and knew the painpoints on the consumer in the travel market. They were one of the first companies to itself set up there call centre, They believed in the phylosophy that higher custumer satisfaction rate directly implies high repetation rate,this resulted in higher LTV(Cusumer lifetime value
credits:Aevy tv
EaseMyTrip partnered with Air Deccan, which offered tickets ranging from Rs 500 to Rs 700. However, they quickly ceased offering such low pricing since their profits were fast dwindling. EaseMyTrip was forced to recruit new travel agents and cut its commission rates as a result of this unfortunate turn of events. It collaborated with many other offline travel agents who the company with a cash advance. It then used this money to buy tickets in bulk from the airlines, resulting in a significant discount. It provided the majority of the early financial flow, and the brothers were able to generate a respectable profit.
EaseMytrip was one of the only ticketing platform which was able to create an IPO . The IPO that was valued at Rs 510 crore and got listed on the domestic stock exchanges in 2021. The company was announced as the fastest-growing online travel agency in May 2021. It collaborated with some other companies like Airbnb, Yatra, and Oyo Rooms to form the Confederation of Hospitality, Technology, and Tourism Industry (CHATT), which is deemed to be an industry body for the tourism sector in India.
