 "Priority is to build the brand, become the most respected in the segment: Stuart Crighton")
For the third largest online travel company, Cleartrip has maintained a low profile.
We have probably been very PR-shy. Our philosophy is that there is a lot more to do than there is to say. You can go and carpet-bomb the whole of India with advertising but that doesn’t translate into revenue. We started our television campaign in November 2012. We have not been on TV for two years. We have focused a lot more on online marketing. Certain products like domestic airlines do very well in the online space. But when you start looking at hotel accommodations, that is still very much offline. We realise we need to start communicating with a wider audience because these products are going to move online at some point.
Are you looking at a distinct brand positioning?
The first objective is introduction; to say, this is who we are, this is what we do. We are not trying to say we are any one thing at this point. In the next three to six months, we will see more strategic communication. A significant part of our investment is in technology. Of the total marketing spend, 70 per cent is online and 30 per cent offline.
Are you content with the market share you have?
We don’t lose sleep over market share. It does not translate into revenue. Currently, in domestic air, we have around 27 per cen share, in hotels we are the second largest with 19-20 per cent and the international air bookings market share is around 20 per cent. We try to stay ahead of the curve by understanding how consumers are going to shop. To work with a lot of affiliates which will divert a lot of traffic but not translate into transactions is adding to your costs. It can distort the perceived market share. You have to convert the customer.
What is the division between your ticketing and non-ticketing revenue?
Around 65 per cent revenue is air and the rest is (from) accommodation. It is an evolving equation. The latter is very under-served. But we have to be realistic. Hotel and accommodation is still in a growth state in India. Our focus is to make transactions more efficient and acquire customers at a low cost. That is why technology is more important and we have to keep investing in it. It is not just a marketing game.
Are you planning any acquisition?
We did two last year. We have not made an announcement about it. That, again, is very typical of us. We want to do stuff, introduce it to the customer and then talk about it.
Which area of business is it?
It is very complementary to what we are doing. I can’t be more ambiguous, can I? But you will see the benefits of it coming through this quarter.
Will you go for a public listing like MakeMyTrip did and Yatra plans to do in future?
The famous question. Right now, our focus is on building brands. It (listing) is not a driving force, not a burning ambition. Why do we do an IPO (public offer)? To create liquidity, access funds. All these things can be done in a private market as well. There is an option of an IPO but there has to be a compelling reason for it.
From the time you started, have things turned out as you’d expected?
There have been lots of big surprises along the way. The growth of e-commerce in India in general has been slower than we anticipated. But that is changing, as we are building better infrastructure, broadband. Not very long ago, we were on dial-up connections. At that time, when we looked at our website, we thought we have to have a very light and functional site, which doesn’t keep cutting and dropping off. The fundamental picture is unbelievably exciting, so if it takes another three to five years to meet your expectations of where the market should be, it is enough motivation. As much as there are huge opportunities, there are huge challenges.
What is the biggest challenge for Cleartrip?
I think it is just focus, as there are so many directions to go. There are opportunities that provide short-term revenue but do not give sustainable opportunities. There can be a temptation to go for these but we have to be very disciplined with what we do and do not want to do.
Compared to your peers, you continue to work with a small team.
We took a decision that all technology will be developed in-house. We have tried to scale our business using lots of technology and not using a lot of manpower. We try to be extraordinary with the ordinary. As a consumer, it matters to you that you get to your booking cleanly and transparently. More important, you are concerned about how your refunds, amendments, cancellations are managed. If I can move all of the cancellations and amendments to an online platform, the benefit to me is enormous from a cost perspective because I am not investing in ramping up huge call centres but, more importantly as a consumer, the last thing you want to do is pick up the phone to the call centre. It is not about the latest marketing campaigns but nailing this. And, it is not easy, we have a long way to go. This is the stuff that bothers us.
You have faced a lot of challenges in the past. How has that affected you as a person?
I have experienced competitive challenges in the nature of building the business, legal challenges of a personal nature, which has been very unpleasant. You get angry but at the end of the day, the only way to respond to it is to build your business. If you let it become personal, you will sit at home in your rocking chair, getting grey hair. But these are insignificant things. The overwhelming business we are building here is so compelling and exciting that it takes your mind off these things.
Do you ever think of doing something else and leave Cleartrip behind, maybe?
I think we have so much to do here; we have a very nice team. We want to be the most respected travel booking company. We are very committed to do what we are doing.