Why has MakeMyTrip's hotel booking conversion rate dropped by 15% over the past month?

Introduction

MakeMyTrip's 15% drop in hotel booking conversion rate over the past month is a critical issue that demands immediate attention. This analysis will systematically identify, validate, and address the root cause while considering both short-term fixes and long-term strategic implications.

I'll approach this problem by first clarifying key details, ruling out external factors, and then diving deep into the product, user journey, and metrics. From there, I'll generate data-driven hypotheses, conduct root cause analysis, and propose validation methods and solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this 15% drop been compared to the same period last year?

Why it matters: Seasonal trends could explain the conversion rate change. Expected answer: Yes, it's been compared and the drop is still significant. Impact on approach: If seasonal, we'd focus on year-over-year comparisons.

• Considering user segments, I'm curious if this drop is uniform across all user types. Have we seen any particular user segment more affected than others?

Why it matters: Identifies if the issue is global or specific to certain users. Expected answer: The drop is more pronounced in first-time users. Impact on approach: We'd focus on the onboarding and first-time user experience.

• Thinking about recent changes, have there been any significant updates to the hotel booking flow or pricing algorithm in the last 1-2 months?

Why it matters: Recent changes could directly impact conversion rates. Expected answer: A new pricing algorithm was implemented 6 weeks ago. Impact on approach: We'd scrutinize the impact of this algorithm change.

• Considering technical aspects, has there been any change in how we're tracking or calculating the conversion rate?

Why it matters: Ensures we're comparing apples to apples in our metrics. Expected answer: No changes in tracking or calculation methods. Impact on approach: We'd focus on actual user behavior changes rather than measurement issues.