Introduction
Cleartrip is the only major Indian online travel agency owned by an e-commerce giant. Flipkart gives it things no rival has: a travel tab inside an app used by hundreds of millions of shoppers, Flipkart's payment stack, SuperCoins loyalty points (Cleartrip users earn 2 SuperCoins per ₹100 spent and can redeem them on bookings), and the reach of sale events like Big Billion Days. MakeMyTrip, the market leader, has stronger brand recall in travel, a larger hotel business and a profitable model.
The question is how Cleartrip should use Flipkart's ecosystem to win travellers from MakeMyTrip. Key objectives:
- Turn Flipkart's reach into repeat Cleartrip travellers, not one-time sale buyers.
- Use loyalty and payments to make Cleartrip the default for Flipkart's most valuable users.
- Do it without simply outspending MakeMyTrip on discounts.
Step 1
Clarify the Strategic Goals (3-4 minutes)
- Why it matters: MakeMyTrip's loyal frequent flyers and its occasional leisure travellers need different strategies.
- Expected answer: Urban, digitally active travellers who take three to eight trips a year and already shop on Flipkart.
- Impact on approach: We'll focus on the overlap between Flipkart's high-value shoppers and frequent travellers.
- Why it matters: Winning a first booking is easy with discounts; winning share of wallet requires habit.
- Expected answer: Share of the traveller's annual trips booked on Cleartrip.
- Impact on approach: Loyalty and cross-category value matter more than acquisition offers.
- Why it matters: Cleartrip doesn't control Flipkart's homepage, SuperCoins rules or payment products.
- Expected answer: Joint roadmap with Flipkart, subject to its own priorities.
- Impact on approach: Initiatives must create value for Flipkart too.
Strategic assumptions:
- The target is frequent travellers who are also active Flipkart shoppers.
- Cleartrip wins on ecosystem value (loyalty, payments, convenience), not on lowest price.
- Flipkart will invest if travel lifts its own engagement.
Practice similar questions
Subscribe to access the full answer