I don’t know how our parents used to travel without any of the online platforms for bookings and payments. Or maybe I rely too much on websites and apps to pre-plan my travels. But hey – it’s convenient and quick – pretty efficient, right? One such online travel platform is Goibibo.
It was founded in 2009 by Ashish Kashyap. Initially part of the Ibibo Group, Goibibo quickly rose to prominence in the travel industry by focusing on simplifying travel bookings for Indian consumers.
Over the years, it has become a key player in the online travel agency (OTA) sector, offering a range of services including flight bookings, hotel reservations, bus tickets, and more. The core reason for its success is because it has been able to blend technology with user experience, providing customers with a seamless booking process.
Though today Goibibo is a significant part of the MakeMyTrip group, following a merger in 2017, it still has a distinct and memorable brand identity.
Market Entry
In 2009, online travel booking was still in its nascent stages in India. But people had begun to explore the convenience of online services, driven by increasing internet penetration and the convenience of online bookings.
However, the market was still largely untapped, with a significant portion of the population relying on traditional travel agents. Goibibo recognized this opportunity and positioned itself to cater to this emerging trend.
Though consumer trust and technology adoption took some time to build, Goibibo invested in the right marketing strategies that helped it become a major brand – according to an August 2024 report, it did a revenue of $75 million!
STP Analysis of Goibibo
Segmentation
Goibibo’s major segments include:
- price-sentitive budget travelers looking for affordable options
- business travelers who require quick and efficient booking processes, and
- families seeking comfortable and convenient stays.
Targeting:
The platform offers a wide range of budget-friendly options to attract price-conscious travelers. It also features a dedicated section for business travelers with go-biz that highlights quick booking options, last-minute deals, and properties that cater to corporate needs.
For families, Goibibo highlights properties that offer amenities such as swimming pools, play areas, and proximity to tourist attractions, making it an appealing choice for family vacations.
Positioning:
The brand’s messaging revolves around convenience, affordability, and variety, which are communicated through its user-friendly app and website. It has a robust technology platform that ensures a smooth user experience.
Competitor Analysis
Key Competitors
Goibibo operates in the highly competitive Indian online travel market, where it faces stiff competition from major players like MakeMyTrip, Yatra, and Cleartrip. These companies offer similar services, including flight, hotel, and bus bookings, and have established a strong presence in the market.
MakeMyTrip is arguably Goibibo’s biggest competitor, especially since the two companies merged in 2017 under the MakeMyTrip brand, although they continue to operate as separate entities. Yatra and Cleartrip also offer comprehensive travel solutions, making them formidable rivals in the industry.
Comparative Analysis
While Goibibo has a significant user base, it lags slightly behind MakeMyTrip in terms of overall market dominance. Yatra and Cleartrip also hold substantial market shares, though they are generally considered smaller players compared to MakeMyTrip and Goibibo.
When it comes to service offerings, Goibibo is known for its aggressive pricing, frequent discounts, and a user-friendly platform, which have helped it carve out a niche for itself. However, MakeMyTrip’s broader range of services and strong brand loyalty give it an edge.
Goibibo has employed several strategies to stay competitive in this crowded market:
- Forming strategic partnerships and alliances, such as its merger with MakeMyTrip, which allowed it to leverage synergies and reduce competition.
- Maintaining competitive pricing through discounts and cashback offers, making it an attractive option for budget-conscious travelers.
- Investing heavily in technology to enhance the user experience, such as offering quick refunds and a smooth booking process.
These strategies, combined with a strong focus on customer satisfaction and innovative marketing campaigns, have enabled Goibibo to remain a key player in the Indian online travel industry despite the intense competition.
Marketing Mix
Product:
Goibibo offers a comprehensive range of travel-related services. From booking flights and hotels to arranging bus journeys, cabs, and holiday packages, their platform covers all the essentials for a traveler.
What sets Goibibo apart is its user-friendly interface and additional features like GoCash, a rewards program, for with Kashyap says –
| “The thinking there was very simple i.e. if I am spending INR 100 a day on acquiring new buyers from Google and Facebook, can I move this money to this wallet called GoCash? The viral effect of that campaign was huge. Of course, there were lots of nitty-gritties in terms of execution. But that really helped us back in 2013 to suddenly take off.” |
Price:
Goibibo employs various models, including discounts, seasonal promotions, and dynamic pricing. Their loyalty program, GoCash, allows users to accumulate points for every booking, which can be redeemed for discounts on future purchases. This pricing strategy is designed to attract price-sensitive customers while retaining loyal ones.
Place:
They have a robust website and a mobile app with 4.6 stars rating and 5 Cr+ downloads that make booking travel easy and convenient. Additionally, Goibibo has partnered with various airlines, hotel chains, and bus operators, which helps in offering a wide range of choices to its users.
They also rank the hotels based on user’s feedback. So, the more number of people that used the app and left reviews, the better the app experience became.
This was intentional on the part of the founder to make Goibibo a buyer-facing company. This extensive network ensures that Goibibo is a one-stop shop for travel bookings.
Promotion:
As an online platform, Goibibo majorly leverages a mix of digital marketing strategies. In June 2024, here’s how the SEO for its website looked like:
This is good because:
- The number of page visits is more than 1, meaning that the customers are interested in what they’re seeing.
- The average visit duration shows active interest of the customers in buying the services through Goibibo.
- The bounce rate is also good, meaning that the website is created intuitively.
The brand also has a strong social media presence. goibibo has 94.8K followers on Instagram with a good engagement rate.
They create posts on trending topics:
And also engaging ones like this:
Contests, quizzes and polls are also a part of the mix, to create an more interactive experience. They also do a weekly post like this which helps in brand recall as well as tapping into aspirations of travellers:
Their reels also get amazing views and reach. For instance, valuable itineraries like this. On friendship day, they hosted the Friendship Day Comedy and shared a snippet here. This shows that they really understand their audience and create relatable content that consistently gets likes, shares, and comments.
Offline, Goibibo uses traditional advertising channels like TV and print media to reach a broader audience. They have also partnered with major celebrities for endorsements:
This heavily lends credibility to the brand and also helps in expanding reach and increasing brand recall with celebrity association.
In a Nutshell
Goibibo’s success can be attributed to its technological innovations, effective loyalty programs, and strategic partnerships. Their use of AI for personalization, robust customer engagement strategies, and forward-looking market plans are key factors in their growth and market position.
It shows that emphasizing technology, building strong customer relationships through loyalty programs, and adapting to market changes can significantly enhance brand performance and market presence.
Now on to you:
- What strategies can be employed to create or enhance a loyalty program that boosts customer retention and engagement?
- How can partnerships with complementary brands help in expanding market reach and reducing competition?
- What mix of digital and traditional advertising channels can be most effective for reaching a broader audience and enhancing brand credibility?
Key Takeaways from Goibibo’s Marketing
- Integrate Technology:
Use AI-driven personalization to enhance customer experience and drive conversions.
- Leverage Loyalty Programs:
Implement loyalty programs to boost customer retention and long-term engagement.
- Form Strategic Partnerships:
Partner with complementary brands to expand your market reach and reduce competition.
- Utilize Customer Feedback:
Actively use customer reviews and feedback to build trust and improve your offerings.
- Diversify Marketing Channels:
Employ a mix of digital and traditional marketing strategies to reach a broader audience.
