MakeMyTrip Set to Outpace Competitors
MakeMyTrip achieved its highest-ever quarterly gross bookings of over USD 2 billion in the first quarter of this fiscal year. The company’s group chief executive, Rajesh Magow, anticipates that MakeMyTrip will grow at twice the rate of the travel industry in the foreseeable future. He attributes this growth to increased international travel, trips and vacations taken by young Indians, and the company’s “innovative” products and services.
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To pivot to its next growth phase, the company plans to expand into diversified segments such as hotels, homestays, its B2B corporate business, intercity cabs, and bus transport. Magow also highlighted the increasing significance of international travel as a revenue generator for the company, which is expected to contribute a larger share of the total revenue in the coming months.
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MakeMyTrip aims to add more international hotels through direct contracts in destinations popular among Indian travellers. Magow emphasized that international hotels play a significant role in generating revenue for the company. In addition to focusing on popular global destinations, the company is also looking to expand its hotel supply through direct contracts in markets such as France, Switzerland, the US, and the UK, as well as other destinations, including Vietnam, Kazakhstan, Turkey, and Azerbaijan.
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During the company’s earnings call, Magow reported that MakeMyTrip’s gross booking value for the first quarter exceeded USD 2.4 billion, growing 22 percent yearly in constant currency. The adjusted operating profit also increased, reaching USD 39.1 million, up 30 percent from the previous year.
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With around 35,000 rooms available in the homestays category, the company sees ample opportunities not only in the corporate business, intercity cabs, and bus transport but also in the homestays category. Magow believes that domestic tourism growth will continue, particularly with the budget’s emphasis on infrastructure spending, and the company plans to leverage its existing playbook for domestic flights and hotels.
