MakeMyTrip Hotel Inventory Tradeoff | Product Strategy Case

Table of contents

Should MakeMyTrip prioritize expanding its hotel inventory to offer more budget options or focus on adding luxury properties to attract high-value customers?

Strategic Thinking Market Analysis Data-Driven Decision Making Travel Hospitality E-commerce

Product Strategy Travel Tech Revenue Optimization Inventory Management Market Segmentation

Introduction

The trade-off we're examining today is whether MakeMyTrip should prioritize expanding its hotel inventory to offer more budget options or focus on adding luxury properties to attract high-value customers. This decision is crucial for MakeMyTrip's growth strategy and market positioning. I'll analyze this trade-off by considering user segments, business impact, technical feasibility, and long-term strategic implications.

Analysis Approach

I'll start by asking clarifying questions, then identify the trade-off type, analyze the product, and develop a hypothesis. From there, I'll define key metrics, design an experiment, plan data analysis, create a decision framework, and finally provide a recommendation with next steps.

Step 1

Clarifying Questions (3 minutes)

Context: I'm thinking about MakeMyTrip's current market position. Could you share our current market share in both budget and luxury segments?

Why it matters: Helps understand our strengths and growth opportunities Expected answer: Stronger in budget, room for growth in luxury Impact: Would influence which segment to prioritize

Business Context: Based on our revenue model, I assume luxury bookings have higher margins. Is this correct, and how significant is the difference?

Why it matters: Affects the potential revenue impact of each option Expected answer: Yes, luxury bookings have 2-3x higher margins Impact: Would make luxury expansion more attractive if true

User Impact: I'm curious about our user demographics. What percentage of our users are budget travelers vs. luxury seekers?

Why it matters: Helps align expansion with user needs and potential demand Expected answer: 70% budget, 30% luxury seekers Impact: Would influence which segment has more growth potential

Technical: Regarding inventory integration, are there significant differences in the technical requirements for adding budget vs. luxury properties?

Why it matters: Affects feasibility and timeline of implementation Expected answer: Luxury properties often require more complex integrations Impact: Could influence speed of expansion and resource allocation

Resources: Considering our current team structure, do we have more expertise in budget or luxury hotel partnerships?

Why it matters: Impacts our ability to execute effectively in each segment Expected answer: More experience with budget, but building luxury capabilities Impact: Might require additional hiring or training for luxury expansion

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