Services Marketing Case Study

Differentiating Services: Yatra.com’s ‘Click and Mortar’Model

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Abstract:
This case study focuses on Yatra.com’s differentiation strategies. Yatra.com became a formidable online travel service provider in India in just about 3 years. However, with increasing competition and intense rivalry, what is the best way to differentiate its services from the rivals?

The turning point for the Indian tourism industry came with the innovative campaign ‘Incredible India’ launched by the Department of Tourism in 2002. In the light of the transformation underwent by the Indian tourism and travel industry from an unorganised state to an organised one, hotels, travel agents and aviation witnessed a boom in their business. Also, the internet boom paved way for the emergence of online travel agents like MakeMyTrip.com and ClearTrip.com in India, who have been dominating the market for a long time. They made travelling a pleasure by offering various services to the tourists.

'Saving time and money' is no longer an appealing way of positioning any business, especially an online business. Rather, effectively creating a unique value proposition for the customers, places a company on a pedestal. And to do the same, any prudent company should constantly chart out ways of differentiating itself as it is imperative. However, the big question is, to what extent it would be able to bank on the model in the long run for generating revenues. Also, to what extent can a company in the services sector, that too which is acting only as a mediator differentiate its services.

Pedagogical Objectives:

• To assess the potential of the Indian tourism and online travel industry and the business of online travel agents
• To analyse the business model of Yatra.com and the ways in which it can differentiate itself in the long run.

Keywords : Services Marketing, Service Innovation, Service Differentiation, Online Travel Market in India, Business Model Innovation, Segmentation, Targeting and Positioning, Indian Tourism Industry, Business vs Leisure Travelers, Consumner Behaviour, Service Quality, Yatra.com, Value Proposition

Contents:

• Indian Tourism and Online Travel Industry: An Overview
• The Emergence of Online Travel
• Yatra.com – The Online Travel Agent’s Business Growth and Challenges
• Business Model of Yatra.com