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In its series of digital initiatives and tie-ups, State Bank of India, country’s largest bank, partnered with online travel company MakeMyTrip.com to capitalise on the business opportunities of the booming e-commerce and m-commerce ecosystem.
The alliance includes partnership with personal banking unit for consumer facing propositions – including EMIs on purchase of holidays & international travel, customized travel products like Forex cards and travel products that inspire SBI customers to travel.
It also includes partnership with SME & Acquiring Business -- MMT suppliers, such as 2-3 star hotels, franchisees, Trade & Travel partners will get access to SBI products, loans, bank guarantees, PoS payment instruments at preferential rates and partnership with cards for promoting card usage which will help in pushing the agenda of a less cash economy.
Arundhati Bhattacharya, Chairman, SBI said, “Travel forms an integral part of a customer’s lifecycle and comprises almost 65% of the total e-Commerce market today. Our alliance with MakeMyTrip will work towards providing value to each of the stakeholder along the entire value chain of travel and tourism business, starting from hotels, travel agents, tour operators besides the end-consumers and our customer-base.
“SBI aims at becoming a “One Stop” solution provider for the entire range of financial needs of e-Commerce players as well as our customers in the market.”
Deep Kalra, Chairman & Group CEO – MakeMyTrip, elaborated, “MakeMyTrip constitutes about 46% of the bookings in the online space and a lot of product work is being done in the $22-23 billion travel industry ecosystem…”
With increasing disposable household incomes, consumers are undertaking more frequent travels and vacations. In addition, with growth in e-commerce and smartphones, the online travel segment is expected to grow at a much faster rate.
According to PhocusWright, India is forecasted to have 1 billion online users by 2030. This growth, led by one of the youngest global populations who love their smartphones, is expected to add 300 million new online shoppers in the same time frame. At the same time, India’s travel market is forecasted to grow to $27.5 bn by 2016 (at a CAGR of 12% from 2014-2016), with growth of online markets at 1.5x the total market. PhocusWright also estimates MakeMyTrip’s market-share at 47%. Domestic travellers are expected to contribute around 84.7% of total tourism revenue by 2024 according to a report by Corporate Catalyst (India), SBI said in a statement.
MakeMyTrip customers will be able to access special offers from SBI on debit/credit cards and personal financing.
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