Marketing Mix of Yatra and 7Ps (Updated 2024)

The Marketing mix of Yatra analyses the 7Ps of Yatra, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Yatra. Yatra.com was founded in 2006 by Dhruv Shringi, Sabina Chopra, and Manish Amin as an Indian online travel destination site, search engine, and travel agency. It is a public entity based in Gurgaon, Haryana, and has expanded to become one of the top three Indian travel websites.

The company is capitalizing on the fact that a substantial portion of the market still uses traditional booking methods. Therefore, most of Yatra’s marketing and sales strategies are inclined toward tapping this market. With the better travel packages and price discounts that Yatra offers to users in line with customers’ expectations, its sales continue to attract more and more people daily.

About Yatra

• Type: Online travel agency
• Industry: Travel
• Founded: August 2006
• Founders: Dhruv Shringi, Manish Amin, and Sabina Chopra
• Headquarters: Gurugram, Haryana, India
• Area served: India
• Key people: Dhruv Shringi (Chairman) and Rajesh Magow (CEO)
• Number of employees: 3,000

Competitors

• Cleartrip
• Tripadvisor
• MakeMyTrip

Yatra Product Strategy

Yatra.com offers its users various products, mainly from the Hotels, Trains, Flights, Holidays, and bus sectors. You can make your online bookings and authentic information to enable you and new customers to make informed decisions during your tours, destinations, and travel organization Yatra online now. Yatra.com’s products are available in many countries under several brands: TravelGuru, Yatra, Adventure Nation, TSI, and Adventure Nation.

In a nutshell, Yatra.com is a one-stop shop for all your tours and travel needs. From hotel room booking through air tickets to holiday packages and car rentals, Yatra.com offers you everything you need as a traveler. The company can offer users reservations for at least 3,000 hotels throughout India and beyond. It provides real-time access to about 100,000 hotels in the world, thus making it one of the largest hotel consolidators in India and beyond.

The new Product Mix of Yatra in 2024 is as follows (Source).

1. Airline Reservation and Flight Ticket Booking: Yatra provides online services for airline reservations and flight ticket bookings, making air travel more accessible for leisure and business travelers.
2. Hotel Bookings: The company has a substantial presence in the hotel booking sector, offering domestic and international hotel reservations.
3. Holiday Packages: Yatra also curates and offers various packages catering to travelers’ diverse needs and preferences.
4. Ground Transportation Services: This includes booking facilities for buses, trains, inter-city, and point-to-point cabs, enhancing the overall travel experience for their customers.
5. Additional Travel Services: Yatra extends its offerings to include in-city activities, homestays, and cruise bookings.
6. Corporate Travel Services: With a strong portfolio of over 800 large corporate customers, Yatra is India’s leading corporate travel services provider.
7. Extensive Hotel and Homestay Network: Yatra boasts approximately 105,600 hotels and homestays contracted in about 1,490 cities across India and around 2 million hotels globally, making it India’s largest platform for domestic hotels.

Yatra Pricing Strategy

Yatra mainly generates revenues from adverts and affiliations, offering many tools for website owners to use for affiliation. Such tools allowed Yatra online to affiliates, including the latest creatives and social media platforms, dynamic booking engine websites, mobile phones, etc. Affiliates are paid on a commission basis, with Rs 270 to 400 paid for domestic flight bookings, while Rs 1000 is paid as commission for each international flight or holiday booking. Rs500 is the commission for domestic hotels.

Yatra’s pricing and sales, marketing strategy, and distribution strategy can be outlined with the following key aspects:

1. Market Share Expansion in Air Travel: Yatra has consistently grown its market share in the air travel sector. In the second quarter of 2024, the company reported a significant 31.2% year-over-year increase in air passenger bookings. This growth outperformed the industry’s overall growth rate, indicating a competitive pricing strategy contributing to increased market share.
2. Softening of Air Ticket Prices: There has been a noticeable softening in air ticket prices, particularly for international travel. This change is primarily attributed to the increased deployment of airline capacity, leading to more competitive pricing. Yatra has adapted to this market shift, balancing ticket pricing with demand stimulation.
3. Corporate Travel Sector Growth: Yatra has further solidified its position in the corporate travel sector, securing new corporate accounts with substantial potential annual billing. This suggests a targeted pricing strategy within the corporate travel segment, focusing on volume and value-based pricing to attract and retain large corporate clients.
4. Focus on Quality and Diversification in Hotel Bookings: Revenue from Yatra’s hotel and packages business showed significant growth, attributed to the recovery in domestic travel and the addition of new distribution partners. The focus on selling better quality hotels for business travelers indicates a strategic pricing approach that aligns with its clientele’s evolving preferences and requirements.
5. Adaptation to Economic Trends: Despite global economic trends like decreasing inflation and consistent growth in India’s GDP, Yatra’s pricing strategy appears adaptive and responsive to macroeconomic conditions. The company’s approach seems to be in sync with the growth in discretionary spending, particularly in travel and dining out, which is a crucial driver for the industry.

Yatra Place Strategy

Yatra.com is mainly an Indian travel online site but also serves other countries. It offers deals and allows users easier and smoother tourist plans worldwide. The company is interested in the number of regions it is in and ensures that it provides its users with the best deals. All travelers who are frequent internet users can make Yatra.com their booking office.

Yatra’s place strategy can be summarized in five key points:

1. Strong Corporate Presence: Yatra has established a robust presence in the corporate travel sector, serving many of India’s top 100 listed companies. This includes three of the big four accounting firms and three of the top five technology companies in the country. This strong corporate client base demonstrates Yatra’s strategic focus on high-value business travel services.
2. Geographic Expansion: The company has expanded its operational footprint across various regions, including Africa and Asia. This global expansion strategy diversifies its market presence and enhances its service offerings to multinational corporations, indicating a strategic approach to geographic and customer diversity.
3. Investment in B2B Opportunities: Post-IPO, Yatra allocated a substantial amount towards mergers and acquisitions, explicitly targeting the B2B space. This move aims to expand its product platform for business travel customers, indicating a strategic investment to strengthen and broaden its service offerings in the corporate sector.
4. Growth in Air Travel and Hotel Bookings: Yatra has seen a significant increase in air passenger bookings and growth in its hotel and packages segment. This growth is attributed to both a recovery in domestic travel and the addition of new distribution partners, showing a strategic focus on expanding its core service areas.
5. Focus on Consumer Brand and Discretionary Spend: With a rise in discretionary spending, particularly in travel and dining, Yatra is well-positioned to capitalize on this trend. The company’s strategy includes leveraging its consumer brand to capture a more significant market share, particularly in India’s robust economic growth and increasing per capita GDP.

Yatra Promotion Strategy

Partnerships are some of the most critical marketing, promotional, and branding strategies used in the mix. An example of a value chain partnership includes the holiday-cum shopping card product between Yatra and SBI Bank, the largest bank in India.

Another digital marketing strategy involves acquiring already established websites and organizations within the industry. So far, it has made about three acquisitions- MagicRooms.in (a global distribution system provider), Travel Services International (ticket consolidator firm), Travelguru.com, and BuzzInTown.com (an Indian events & entertainment portal website).

Yatra also contracts celebrities to endorse the brand in promotional activities and advertising campaigns. Such endorsements include Salman Khan- a superstar Bollywood actor who, in 2012, became not only a brand ambassador but also a shareholder of the travel website. Boman Irani is another Bollywood actor on record who has been a Yatra.com ambassador.

Yatra.com has been involved in sports marketing as an official on-site, social media marketing, and travel partner of Rajasthan Royals IPL powerhouse.

The company is managing to create a Facebook page promotion revolving around the trips and advertising the “Happy Travellers” tagline. This promotion is in conjunction with Facebook ads, which have contributed about INR 1.5 million in additional monthly revenue for the company.

Some Recent Video ads and Print ads for Yatra are:

Yatra People Strategy

The “People” component of the Service Marketing Mix for Yatra, a prominent travel services company in India, focuses on employees, customers, and their overall interaction. This element is crucial in service businesses like Yatra, where human factors directly influence customer experience. Here are some key points regarding the “People” aspect of the marketing mix for the Yatra online name:

1. Customer-Centric Approach: Yatra places a strong emphasis on understanding and meeting the needs of its customers. The company invests in market research and customer feedback mechanisms to ensure its services align with customer expectations.
2. Trained and Knowledgeable Staff: Yatra ensures that its staff, including customer service representatives, travel consultants, and support personnel, are well-trained and knowledgeable. This includes training in soft skills, product knowledge, and customer handling techniques to ensure high-quality service delivery.
3. Professionalism and Courtesy: Employees at Yatra are expected to maintain high professionalism and courtesy. This is crucial in creating a positive customer experience, from initial inquiries to post-service support.
4. Empowerment of Employees: Yatra believes in empowering its employees to make decisions that enhance customer satisfaction. This empowerment allows for more personalized and efficient customer service, as employees can take immediate action to resolve issues or cater to customer needs.
5. Diverse Team: Recognizing the diverse needs of its customer base, Yatra has a diverse team that can cater to various cultural, linguistic, and personal preferences of its customers. This diversity helps in providing more personalized and effective service.
6. Customer Relationship Management (CRM): Yatra invests in CRM systems to better understand and manage its interactions with current and potential customers. This technology aids in personalizing services, addressing customer needs promptly, and building long-term relationships.
7. Feedback and Continuous Improvement: The company actively seeks customer feedback through various channels and uses this feedback for continuous improvement. This includes improving service delivery, employee training programs, and customer experience.
8. Brand Ambassadors: Beyond its employees, Yatra also works with brand ambassadors and influencers who resonate with its target audience. These partnerships help in enhancing the company’s image and reach, contributing to a broader and more engaged customer base.
9. Community Engagement: Yatra engages with the community through various CSR activities, showing its commitment to societal welfare. This positively impacts the community, boosts the company’s image, and strengthens customer relationships.
10. Innovation in Service Delivery: The company encourages innovation among its staff to improve service delivery. This could be through new technologies, creative travel packages, or unique customer engagement strategies.

Yatra Process Strategy

The “Process” component of the Service Marketing Mix for Yatra encapsulates the operational and service delivery mechanisms and business strategies that the company employs to ensure a seamless, efficient, and satisfying customer experience. It includes the steps and procedures involved in booking, managing, and delivering travel services to satisfied customers. Here are some key points regarding the “Process” aspect of the marketing mix for Yatra:

1. Online Booking System: Yatra’s online booking system is user-friendly and designed to facilitate easy search, comparison, and booking of travel services, including flights, hotels, holiday packages, and more. This system allows customers to make informed decisions at their convenience.
2. Customer Support and Service: Yatra provides multi-channel customer support, including phone, email, and live chat, to assist customers throughout their travel booking process and beyond. This ensures that customer inquiries and issues are addressed promptly and effectively.
3. Automated Notifications and Updates: Customers receive computerized notifications and updates regarding their bookings, such as confirmation emails, reminders, and alerts on changes. This keeps customers informed and enhances their travel experience.
4. Secure Payment Process: Yatra has implemented a secure and streamlined payment process that supports various modes of payment, ensuring customer data protection and convenience.
5. Customization and Personalization: Yatra offers customized travel solutions and packages based on customer preferences and behavior. The process involves collecting customer data and preferences to tailor services that meet their needs.
6. Feedback and Review Mechanism: After the completion of services, Yatra encourages customers to provide feedback and reviews on their experience. This process helps the company in quality assurance and service improvement.
7. Mobile App Accessibility: Yatra’s mobile application enhances the booking process by providing a convenient and accessible platform for customers to manage their travel arrangements.
8. Travel Documentation Assistance: Yatra assists customers with necessary travel documentation, such as visa applications and travel insurance, making the process smoother and less stressful for travelers.
9. Cancellation and Refund Process: The company has a clear and transparent cancellation and refund policy detailing the process for customers to cancel their bookings and receive refunds. This process is designed to be customer-friendly, ensuring trust and reliability.
10. Continuous Process Optimization: Yatra continuously reviews and optimizes its processes based on customer feedback, technological advancements, and market trends. This approach ensures that the company remains competitive and continues to improve its service delivery.

Yatra Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix for Yatra encompasses the tangible and intangible elements that customers use to evaluate the service quality and authenticity of the company’s product offerings. Physical evidence is crucial in building trust, credibility, and a positive brand image among satisfied customers in a primarily online travel service provider like Yatra. Here are some key points regarding the “Physical Evidence” aspect of the Yatra marketing strategy:

1. Website and Mobile App Interface: Yatra’s website and mobile app’s design, functionality, and user experience serve as critical physical evidence. A well-designed interface that is easy to navigate reinforces the brand’s professionalism and commitment to customer satisfaction.
2. Booking Confirmation and Travel Documents: The immediacy, design, and clarity of booking confirmations, e-tickets, vouchers, and travel itineraries provided to customers act as proof of purchase and service quality.
3. Customer Reviews and Testimonials: Published customer reviews, ratings, and testimonials on Yatra’s website and third-party platforms serve as social proof and build trust with potential customers.
4. Brand Imagery and Marketing Materials: Using consistent and high-quality imagery, logos, and marketing materials across various platforms enhances brand recognition and perception.
5. Physical Touchpoints: Even though Yatra operates primarily online, any physical touchpoints, such as branded merchandise, information kiosks at airports, or even the appearance and behavior of staff during any in-person interactions, contribute to the overall physical evidence.
6. Corporate Office: Yatra’s corporate offices’ location, architecture, and interior design also reflect the company’s image and ethos. While not directly experienced by all customers, they contribute to the brand’s professional image and are often featured in media and corporate communications.
7. Customer Support Infrastructure: The accessibility, responsiveness, and quality of customer support, including the appearance and professionalism of customer service representatives (even in a virtual setting), are tangible evidence of the company’s commitment to service quality.
8. Affiliations and Partnerships: Partnerships with reputable airlines, hotels, and other service providers, as well as memberships in recognized industry associations, reinforce Yatra’s credibility and reliability.
9. Security Certifications and Badges: Displaying security certifications and badges on the website, especially during the payment process, provides tangible evidence of Yatra’s importance on customer security and data protection.
10. Success Stories and Case Studies: Sharing success stories, case studies, or highlighting reels of customers who have had memorable experiences with Yatra can be robust physical evidence of the brand’s value proposition.

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