Discounting is an easy tool but will always be short-lived: RailYatri CEO

With standardisation of service and convenience, more customers have started considering buses as an intercity travel option, Manish Rathi tells Shubhomoy Sikdar

Has the travel app industry reached a certain threshold where deep discounting is no longer a prerequisite for expansion? So what are the new drivers of loyalty?

We believe that the deeper quest is to understand your customer and create solutions which address a strong need of a customer segment. Discounts are always an easy tool available to achieve conversions however it will always be short lived since someone else will outnumber you soon. Hence we need to look at what is the bigger moat that my product or service has for which the consumer today is more than happy to pay a little more. We follow three primary pivots to generate customer loyalty — offer great product and service, ensure easy digital interaction to consume the product and communicate regularly post the first experience of the traveller. The customer is looking for more than just reaching their destination, it is the experience during their journey that makes a difference. We make sure that our passengers have the best experience when they travel with us. All our buses come equipped with tracking systems, on-board washroom, WiFi and infotainment besides the personalised service by trained staff. We ensure that most of our customers repeat their travel with us by providing three promises consistently — on-time performance, safety assured and personalised assistance.

How has the integration with IRCTC affected the margins and consequently, revenue? 

We have a profitable train ticketing business even with existing margins provided by IRCTC. However, train ticketing and train information also help us acquire customers up-stream and then be relevant to them even at later stages when they need repeat bookings or wish to take another mode of travel. The integration with IRCTC has helped us provide multi-modal mobility options for intercity travellers.

The railways are still used by many who are not well versed with or are sceptical of using online transactions. Is that segment also in your scheme of things?

You have rightly stated that while there is a large base of travellers who use digital booking platforms, there is still a sizeable segment that prefers to avail of services offered offline. We have been in discussion with IRCTC officials to create a service that allows travelers to book through call centres. In order to make it easy for them to book our IntrCitySmartBus, we have tied up with offline resellers across the country. Our bus lounges also help such customers walk-in to the lounges and book the services. The approach to outreach and awareness should be thought of in the offline mode. Our offline partners have signages, hoardings, brochures in their outlets so that intercity travelers can understand our services and book them conveniently. Our lounges exist in high traveler footfall zones and hence they can find us easily and meet at the lounge.

Travel ticket bookings is an area where a host of players compete. Where do you stand?

The RailYatri app is a complete solution for a train traveller and not just a train ticket booking platform. Our understanding of the domain and the predictive algorithms we have built help a traveller make an informed decision when they travel intercity. The problems we solve for travellers are wide. A long-distance traveller is worried about historical performance of the same train, the availability of a pantry car, confirmation probability, just to name a few. The post booking needs are another set in itself and that is where our live train status tool comes handy for both travellers and their family or friends who need to pick them up at the destination. 

Second, we have always taken a multi-modal approach. In the event that a user cannot find a train that fits her schedule, we provide alternative ways for her to travel and that is where InterCity buses come in. We believe that this integration of multiple modes of travel sets us apart from of our competitors. We are still in our primary growth phase, yet we have witnessed a 500 per cent year on year growth with over 4 million transactions taking place on our platform in a year. 

Does diversifying into buses show that the scope to grow with train bookings is limited?

I would love to answer this especially since this question points to the basic problem in intercity travel. Intercity travel in India has overcrowded trains at one end and has left 65 per cent average occupancy in buses on the other. Hence, we are putting stress on one mode and not making efforts to make the two modes comparable. The solution to intercity travel lies in making two primary modes comparable in terms of service and performance and leave the choice to the consumer. 

The bus industry is highly disorganised and, for the longest time, there has been no standardisation in the service. That was the need that we recognised and addressed with IntrCity by RailYatri. The addition of amenities such as in-bus washroom, comfortable flat beds, safety and tracking have helped a customer to consider bus as an option which quite a few of them would have ruled out otherwise. The on-time performance of buses have helped uplift the whole idea of bus travel.

The m-wallets and net-banking apps have registered healthy growth as far as travel bookings on their own apps are concerned. How big a threat is that for you?

We work with almost all of them and they are our demand contributors. We are the ones who own the product and the service and need to ensure that travellers get a great journey experience, while wallets, banks and super apps provide convenient buying options only. We will continue to co-exist and aid each other.