Why has MakeMyTrip's international flight booking volume declined by 25% this quarter despite stable search traffic?

Introduction

MakeMyTrip's international flight booking volume has declined by 25% this quarter despite stable search traffic. This significant drop in conversions requires a thorough investigation to identify the root cause and develop effective solutions. I'll approach this analysis systematically, examining both internal and external factors that could be impacting our booking funnel.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonality at play. Has this 25% decline been compared to the same quarter last year?

Why it matters: Seasonal fluctuations could explain the drop without indicating a deeper issue. Expected answer: Yes, it's been compared year-over-year. Impact on approach: If not seasonal, we'll focus more on recent changes or market shifts.

• Considering the stable search traffic, I'm curious about the conversion funnel. Has there been any change in the click-through rate from search results to the booking page?

Why it matters: This could pinpoint where in the funnel we're losing potential bookings. Expected answer: CTR has remained stable. Impact on approach: If CTR is stable, we'll investigate issues further down the funnel.

• Given the international focus, I'm wondering about currency fluctuations. Have there been any significant changes in exchange rates that might be affecting pricing?

Why it matters: Currency changes could make flights appear more expensive, deterring bookings. Expected answer: Some minor fluctuations, but nothing drastic. Impact on approach: If currency isn't a major factor, we'll look more closely at internal pricing strategies or competitor actions.

• Thinking about user segments, I'm curious if this decline is uniform across all traveler types. Are we seeing any differences between business and leisure travelers?

Why it matters: Different segments may be reacting to different factors, helping us narrow down the cause. Expected answer: The decline is more pronounced in leisure travel. Impact on approach: If leisure is more affected, we'll focus on factors that impact discretionary travel decisions.