For Goibibo's flight booking service, should we focus on offering the lowest prices or on providing a wider range of premium airlines and services to attract high-value customers?

Introduction

The trade-off we're examining for Goibibo's flight booking service is whether to focus on offering the lowest prices or providing a wider range of premium airlines and services to attract high-value customers. This decision is crucial for Goibibo's market positioning and long-term growth strategy in the competitive online travel industry.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking Goibibo's current market position might influence this decision. Could you share our current market share and primary competitor in the flight booking space?

Why it matters: Helps determine if we need to differentiate or double down on existing strategy Expected answer: Mid-tier market share, competing with MakeMyTrip Impact on approach: Lower market share might push towards differentiation with premium options

• User Impact: Based on our user data, I'm assuming we have distinct user segments. What percentage of our users are price-sensitive vs. those who prioritize premium services?

Why it matters: Informs which strategy aligns better with our current user base Expected answer: 70% price-sensitive, 30% premium-seeking Impact on approach: High price sensitivity might favor lowest price strategy

• Technical Feasibility: Considering our current platform, I'm curious about our ability to integrate more premium airlines. How complex would it be to expand our airline partnerships and offer more premium services?

Why it matters: Determines the feasibility and timeline of implementing a premium-focused strategy Expected answer: Moderate complexity, 3-6 months integration time Impact on approach: Longer integration time might favor short-term focus on pricing

• Resource Allocation: Thinking about our team structure, how are our product and partnership teams currently allocated between managing existing relationships and seeking new ones?

Why it matters: Indicates our capacity to pursue new premium partnerships Expected answer: 70% managing existing, 30% seeking new Impact on approach: Limited capacity for new partnerships might favor optimizing current offerings

• Timeline and Urgency: Given the competitive landscape, I'm wondering about the urgency of this decision. Are there any upcoming market events or competitor moves that are driving this consideration?

Why it matters: Helps prioritize the decision and determine the scope of initial implementation Expected answer: Competitor launching premium service in Q4 Impact on approach: Urgent timeline might necessitate a phased approach, starting with quick wins