MakeMyTrip Set to Grow at Twice the Industry Rate
MakeMyTrip, which reported its highest-ever quarterly gross bookings exceeding $2 billion in the first quarter of this fiscal year, is poised to grow at twice the rate of the travel industry, according to Group CEO Rajesh Magow. He attributed this optimistic outlook to rising international travel, multiple trips and vacations by young Indians, and the company's innovative products and services.
The travel company plans to accelerate its growth through diversified segments such as hotels, homestays, B2B corporate business, intercity cabs, and bus transport. Magow highlighted international travel as a key revenue driver, expected to contribute an even larger share of total revenue in the coming months.
“Consistent profitability at scale marks a new phase for MakeMyTrip”, Magow stated. “Our focus now is on accelerating growth. International travel, which currently accounts for 37% of our flight revenue, up from 25% pre-Covid, will play a significant role. With visa issues being resolved and many countries viewing Indian tourists as a major source market, we anticipate a rise in international travel’s revenue share”.
Magow noted that international hotels are increasingly contributing to revenue. The company plans to expand its hotel offerings through direct contracts in popular destinations for Indian travelers. “Last year, we directly contracted approximately 1,500 hotels in eight countries and 12 cities. We aim for a similar number this year. By leveraging consumer insights, we tailor services to Indian travelers. We plan to increase our direct hotel contracts in international markets such as France, Switzerland, the US, the UK, Vietnam, Kazakhstan, Turkey, and Azerbaijan,” he explained.
During the company's recent earnings call, Magow reported a gross booking value of over $2.4 billion for the first quarter, reflecting a 22% year-on-year growth in constant currency terms. Adjusted operating profit was $39.1 million, up 30% from the previous year.
“Our strategy of catering to various travel use cases and targeting different demand segments across multiple customer touchpoints is driving sustained growth. A broad spectrum of travel products is helping us increase the wallet share of Indian travelers”, Magow said.
MakeMyTrip currently offers around 35,000 rooms in the homestays category, presenting a significant growth opportunity alongside corporate business, intercity cabs, and bus transport. “With the focus on infrastructure spending in the budget, domestic tourism growth will continue, and we will leverage our existing playbook for domestic flights and hotels”, Magow added.