Prashant Pitti’s voyage is a testament to the power of starting small and continually improving, leading to awe-inspiring achievements. What he has accomplished is nothing short of extraordinary – creating the country’s second-largest travel portal, a title he proudly holds, and also the fastest-growing travel portal in the nation, setting a new standard for success.

What sets Pitti’s creation apart is not just its impressive growth but also its relentless commitment to community values. This feat has been achieved without any external investor money, embracing profitable growth while remaining 100% bootstrapped until the IPO.

With 14 consecutive profitable quarters and an impressive 75% stake, Pitti’s company has achieved a turnover of 5907.7CR in 2023, with a profit of 103CR!

EaseMyTrip’s winning strategy is their customer-centric approach. In a world where companies often prioritize their bottom line over customer satisfaction, Pitti’s creation believes in delivering exceptional customer experiences.

Q: So, let’s start from the beginning – how did EaseMyTrip come to be?

A: After graduating, I moved to the US for a job at CapitalOne. Meanwhile, my two younger brothers, who were ten times more brilliant than me, started a small travel agency called Duke Travel Agency. We come from humble beginnings, just like many others. If it weren’t for Duke, I wouldn’t be here talking to you and this amazing audience.

Our journey into becoming an online travel portal began with a modest travel agency. People often ask me why my company is profitable while my competitors struggle and how we make money. The answer lies in where we started.

Before we dive in, I want to acknowledge something truly extraordinary about this audience. I’ve spoken at countless startup events, but what I see here today is truly exceptional! At most events, there’s often more crowd outside the hall than inside. But here, I didn’t see a single person outside; everyone was inside, engrossed in taking notes! It’s evident that people here are not just seeking fun, networking, and small talk; they genuinely want to learn. You represent the backbone of India – the MSMEs. And that’s where I find a deep connection to our own journey 14 years ago. We were once just like all of you, running a travel agency and contemplating how to improve the lives of travel agents.

We transitioned from a traditional travel agent to an online travel agent. If there’s one thing I want you to take away from my words today, it’s this – think ahead, envision where you want your business to be in the next ten years. Take your time, there’s no rush. Even if it takes months, it’s worth it. But first, have that vision. An entrepreneur’s job isn’t just to plan for the next year or two; it’s to think a decade ahead. That’s how you’ll start strategizing – by working backward.

Q: How can a business owner, constantly dealing with day-to-day issues and struggling to survive month-to-month, think ahead? What did you do during those initial years?

A: That’s a valid concern, as it’s easy to get caught up in the daily grind! In truth, the beginning is quite hands-on and involved. I learned from my father the importance of immersing oneself in every aspect and role within a business at least once. Seeing is one thing, but experiencing firsthand is another. You have to actively engage to truly learn. Take on the tasks of your executives, even if only for a day. This will help you identify areas for improvement. It’s these small changes that accumulate and lead to significant outcomes. Remember, it’s never one grand, magical event that transforms your business.

Q: You built EaseMyTrip in an industry already dominated by larger players. What made you believe, “They may be there, but we can also enter this space!”

A: From 2006 to 2008, Duke operated as a travel agency. From 2008 to 2011, EaseMyTrip exclusively served travel agents with its software. During those three years, we gained invaluable insights into business operations, built strong client relationships, and worked diligently during the day while dedicating our nights to developing a robust tech platform.

In 2011, it became clear to us that the target audience we had initially designed the platform for might not even be relevant in the next decade. The travel agency model was becoming obsolete. Despite our rapid growth (generating around 150CR in turnover), that realization led us to make the monumental decision of closing down that business, marking our most significant call to date.

We knew we had to shift our focus directly to the customers.

In 2011, we faced a loss of almost 80% of our travel agency clients. Nevertheless, we took the leap of faith, confident that we could carve out a unique space for ourselves.

Q: I understand the long-term perspective, but how did you reconcile the dilemma of letting go of a successful business because you foresaw a decline in demand?

A: It was an incredibly challenging decision, especially when you’re bootstrapped and facing financial constraints! To be honest, I’m not sure if I could make the same choice again. Perhaps it was the audacity of youth (I was only 24-25 at the time)… You could call it sheer foolishness. The outcome could have easily swung either way and perhaps more so in the opposite direction.

Yet, that’s the nature of building businesses!

In 2009, I had the opportunity of meeting Mr. Anil Kumble in Bangalore while he was playing casual Gully cricket. Witnessing someone of his caliber in such a setting left a lasting impact on me. I approached him and asked why he was participating. His response resonated deeply: “Prashant, in international matches, I will be allowed fours and sixes without complaints. But in this match, if people hit fours and sixes and I don’t take wickets, imagine the shame I would bring upon myself! This is how legends are made—you must continually seek ways to put yourself under pressure. There’s a substantial difference between being good and being great. Sometimes, you have to tread a tightrope that teeters toward foolishness. But it’s through these endeavors that you become a legend one day.

Q: We have several business owners in the travel industry here, and they went through a nightmarish experience during the pandemic when everything came to a halt. How did EaseMyTrip navigate through that challenging period?

A: The travel and tourism industry was hit hard during the pandemic, and we were no exception. Prior to COVID, we were the third-largest online travel agency (OTA), but we managed to secure the second position immediately after the pandemic hit.

During those initial months, we noticed a significant increase in call volumes. Customers were calling, demanding refunds, not realizing that we were only intermediaries between them and the airlines, that we only collect money from customers and then wait for reimbursement from the airlines before issuing refunds. However, the call volumes skyrocketed from 2,000 per day to 12,000 per day. People were stranded and desperate. In that critical moment, we made a bold decision. We had around 200CR in our bank account, which was accumulated profit. In the first week of April, we decided to allocate 130CR of that money for customer refunds, even before receiving reimbursement from airlines and hotels. Additionally, we allocated another 70CR to support the airlines in navigating through this challenging phase. Both the customers and the airlines are our partners, and we wanted to stand by them. It’s worth noting that we were a private company back then. When we approached the airlines for reimbursement, their response was, “Don’t ask for the money right now!” To which we replied, “We’ve come to give, not to take!” This strengthened our ties and reinforced our commitment to our partners.

Q: What led you to adopt this thought process and implement these initiatives?

A: Looking back, we realize that we might not be able to make the same decisions today. As a listed company now, there are certain limitations. However, at that time, we had a clear thought process. We believed that if COVID was going to end everything, then what was the point of holding onto that 200CR?! And if it wasn’t going to end everything, then we would eventually recover that money.

In July 2020, there was a Twitter uproar, with people tagging my competitors, saying things like, “EaseMyTrip has refunded my friend’s money, why aren’t you giving us our money back?!” A similar situation occurred during the second wave of COVID. People were still hesitant to travel and had concerns. To address this, EaseMyTrip introduced a policy where customers could claim a full refund on their airline tickets by uploading a legitimate doctor’s prescription for their illness. We faced heavy criticism from people, accusing us of being taken advantage of. However, we were willing to take that chance.

The result? We still have that policy in place on our portal, and I’m happy to say that cases of fake prescriptions are less than 0.5%!

Sometimes, customers make mistakes when booking their tickets, such as choosing the wrong location or date. Airlines are often inflexible in granting refunds in such cases. When customers reach out to us with these issues, we empathize with them and assure them that mistakes happen. We promise to help them get their money back and even email the airline on their behalf, cc’ing them as well. More often than not, customers manage to recover their money.

I share this example to highlight the insights gained from being a travel agent myself. Knowing the right words to use and understanding the industry intricacies work to our advantage. So, don’t forget to acquire in-depth knowledge of your industry and engage in hands-on work; it goes a long way.

The flywheel effect for EaseMyTrip is that we don’t need to advertise the fact that we don’t charge a convenience fee. It’s not explicitly mentioned on our website, but customers still know about it. They become our biggest marketers through word-of-mouth.

With a 93% repeat transaction rate, we have the utmost confidence that our customers stick with EaseMyTrip once they’ve used our services. We don’t have a leaky bucket. This eliminates the need for us to spend heavily on marketing.

Q: Any final words for this room full of MSME entrepreneurs?

A: Never underestimate the power of frugality. Being resource-constrained can propel you higher on the ladder because, indeed, success is a lousy teacher!

And always maintain a mindset of curiosity over caution. Stay open to learning and exploring new opportunities.

In conclusion, Prashant Pitti’s incredible journey with EaseMyTrip showcases the transformative power of starting small, constantly improving, and prioritizing customer satisfaction. From their humble beginnings as a traditional travel agency to becoming the nation’s second-largest travel portal, Pitti and his team have navigated through challenges, embraced strategic shifts, and built a company that exemplifies success.

As you embark on your own entrepreneurial path, let Pitti’s story inspire you to think ahead, immerse yourself in every aspect of your business, and never lose sight of the value of putting your customers first. The possibilities for growth and success are boundless when you combine passion, resilience, and a relentless pursuit of excellence.