Gamification and our Travel Industry: How the industry leader does it?

MakeMyTrip: A Journey of Growth Driven by Innovation and Gamification

MakeMyTrip (MMT), India's leading online travel company, has transformed the travel booking experience for millions of users since its inception in 2000. Founded by Deep Kalra, the company initially focused on serving the U.S.-India travel market before expanding domestically. Over the years, MakeMyTrip has grown into a dominant force in India’s travel industry, thanks to its relentless pursuit of innovation, user experience enhancements, and the incorporation of gamification elements.

A Rapid Growth Story

MakeMyTrip's growth trajectory has been nothing short of remarkable. From its early days catering to international travellers, the company expanded rapidly in the domestic market, particularly after India's internet boom in the late 2000s. In 2010, MMT went public on NASDAQ, raising approximately ?650 crore, marking a major milestone in its growth.

Over the years, MakeMyTrip continued to innovate, expanding its service portfolio to include flights, hotels, holiday packages, and bus bookings. This diversification, along with strategic mergers and acquisitions—such as the merger with competitor Ibibo Group in 2016—helped the company solidify its position as India’s largest online travel platform.

As of 2023, MakeMyTrip commands a 31% market share in India’s online travel booking industry, generating a revenue of over ?5,000 crore annually.

Gamification: Driving Customer Engagement and Loyalty

One of the key drivers of MakeMyTrip’s success has been its use of gamification. By integrating game-like elements into its mobile app and loyalty programs, MakeMyTrip has enhanced user engagement, drove bookings, and fostered customer loyalty.

1. Loyalty Programs with a Gamified Twist

MakeMyTrip’s “MyRewards” program is a prime example of gamification. Users earn points for every booking, which can be redeemed for discounts, free travel services, and exclusive offers. The program features tiered levels, akin to video games, where users unlock new rewards as they accumulate points. This gamified structure encourages repeat bookings and rewards loyalty, resulting in a 30% increase in repeat customers since its launch.

2. In-App Challenges and Quests

MakeMyTrip has introduced interactive in-app challenges that reward users for completing specific travel-related tasks, such as booking flights to new destinations or participating in seasonal campaigns. Users earn points, badges, or special rewards for completing these challenges, which enhances engagement and keeps users returning to the app. This has led to a 25% increase in app engagement since the introduction of these features.

3. Travel Quizzes and Personalized Recommendations

MakeMyTrip has further embraced gamification through its popular “Travel Quiz” feature, which engages users by helping them discover their ideal destinations. The quiz incorporates personalized recommendations based on user preferences and past travel behaviour. This gamified approach to product discovery has not only increased user engagement but has also led to a 15% rise in cross-selling of holiday packages.

Post-COVID Recovery and Expansion

The COVID-19 pandemic dealt a severe blow to the travel industry, but MakeMyTrip adapted quickly by launching safe travel initiatives, flexible bookings, and “Work from Anywhere” packages. The company’s digital-first approach and continued focus on customer engagement through gamification played a crucial role in its post-pandemic recovery.

By mid-2022, MakeMyTrip reported a 60% recovery in domestic travel bookings, largely driven by its gamified app experience and strong customer loyalty. The company also expanded into new verticals, such as experiences and activities, to tap into the growing demand for localised travel during the pandemic.

Key Lessons for the Travel Industry

1. Leverage Gamification for Customer Engagement: Gamified features such as challenges, loyalty programs, and quizzes can significantly boost user engagement and encourage repeat bookings.
2. Personalize the Travel Experience: Use customer data to tailor travel recommendations and gamified challenges based on individual preferences.
3. Focus on Building Loyalty: Reward loyal customers with points, badges, and tiered rewards to foster long-term relationships and drive repeat business.
4. Adapt to Market Changes: Embrace digital solutions and innovate to meet changing customer needs, particularly in the face of global challenges like the pandemic.