Make My Trip Dynamic pricing

MakeMyTrip is an Indian online travel company founded in 2000. The company, headquartered in Gurugram, Haryana, offers online travel services such as flight tickets, domestic and international vacation packages, hotel reservations, rail and bus tickets. MakeMyTrip is India’s first and largest travel company, accounting for approximately 47 percent of the market. A client is one out of every four travellers at an airport. They had 7 million monthly active users as of March 31, 2018, with 14 company-owned travel stores in 14 cities, over 30 franchisee-owned travel stores in 28 cities, and counters in four major airports in India. MakeMyTrip has offices in New York, Singapore, Kuala Lumpur, Phuket, Bangkok, and Dubai, among other places.

How to develop a general dynamic pricing model

A critical aspect in developing strategic goals that fit with corporate objectives. Profit maximisation is self-evident, right? However, you might also set goals for acquiring new clients or delighting existing consumers.
Once the answers to the aforementioned questions are received, the ML-based dynamic pricing model can be created. The model will anticipate whether someone will make a purchase at the best price at that time.

Dynamic pricing based on time

Time-based pricing is a pricing approach in which firms set variable prices for goods or services based on market demand.
At MakeMyTrip, one of the key components in providing a seamless and highly relevant user experience is to display the correct information to the user at the right time and with the right offers. Most of you would agree that booking a vacation or a business trip requires a significant amount of planning. The user preferences and choice vary depending on where, with whom, and in what context one is travelling. MakeMyTrip works to address this issue by taking into account user preferences, search history, and leveraging their years of travel booking experience.

Dynamic pricing based on groups

Customer segmentation is the practise of breaking a customer base into groups of people who are similar in specific marketing-related aspects. This can be as straightforward as a split A/B test or as complex as forecasting a higher readiness to pay based on machine type. When determining customer segmentation practises, information such as a customer’s demographics (age, race, religion, gender, family size, ethnicity, income, education level), geography (where they live and work), psychographic (social class, lifestyle, and personality characteristics), and behavioural (spending, consumption, usage, and desired benefits) tendencies are taken into account.

MakeMyTrip divided people into buckets to better understand what they might do differently for different user cohorts and how they could create a more appropriate product experience for users. Each user is divided into the following categories:

• When a user has not historically searched with us
• When a user has searched with us before
• Searched for a flight
• Searched for a hotel
• Searched for a holiday destination
• Searched for more than one i.e. flights and hotels both, hotels and holidays etc.
• When a user has searched and booked with us before and is coming back again
• When a user has an upcoming booking.
• If the booking was on the day of travel.

Benefits of Dynamic Pricing Model

1. It can be used to maximize profits

If competitors are selling goods or services at a considerably higher price, dynamic pricing might be used to maximise profits. If you know what potential customers want ahead of time, you can adjust product pricing based on their purchasing history.

2. It provides more insights into customer behaviors

With this additional data, more insights into client behaviour may be gleaned, increasing the likelihood of a sale.
Businesses who utilise machine learning-based models for dynamic pricing expect a 10% or greater increase in earnings, as well as a 10% increase in sales. This is done for your organisation by dynamic pricing, which modifies rates in real time.

3. It can be used as a way to boost sales

A lower price can occasionally stimulate slow sales, allowing a corporation to meet its sales revenue targets for a day, a month, or even longer. A straightforward flash sale is one method for encouraging the use of dynamic pricing at the site.

4. It can create higher levels of demand

If seats are still available on the day of the event, certain buyers may be able to get them at a discount. This allows you to maximise earnings while also taking advantage of whatever revenues are available at the time. This procedure is available at MakeMyTrip.