MakeMyTrip Sees Surge in Indian Outbound Travel Market and Record Profits
2025-01-24
MakeMyTrip, a prominent player in the travel and tourism industry, recently conducted an earnings call for the third quarter of fiscal year 2025, shedding light on various aspects of its business performance and market trends. The call featured key executives such as Vipul Garg, Rajesh Magow, Mohit Kabra, and other notable figures.
The focus of the earnings call was on the positive outlook for Indian travelers' willingness to travel, the growth in domestic and international tourism in India, and favorable macro trends. MakeMyTrip reported a significant growth rate of 26.8% in gross booking value in constant currency terms during the quarter. The company achieved an all-time high adjusted operating profit of $46 million, marking a 38% year-on-year growth.
The growth of travel and tourism in India had been primarily driven by seamless connectivity facilitated by investments in infrastructure. The number of Indian travelers going abroad had been on the rise, with projections suggesting India would become the world's fifth-largest outbound travel market by 2027. The international outbound business of India had been performing well, with strong growth in international air ticketing and hotel revenue.
MakeMyTrip had been introducing customer-friendly features like part payment on international tickets and enhancing accommodation offerings. The company had seen healthy attach rates for products like travel insurance and ForEx, driving growth in these segments. Additionally, MakeMyTrip had been focusing on expanding its market share, reaching new customer segments, and leveraging AI through its GenAI strategy to enhance the booking experience.
Despite challenges like currency fluctuations and competitive intensity in the travel industry, MakeMyTrip had been successful in maintaining its market share and driving growth across various business segments. The company's strategic focus on customer experience, market expansion, and innovation had contributed to its strong performance in the dynamic travel and tourism landscape.
Overall, MakeMyTrip's earnings call had highlighted the company's resilience, growth trajectory, and strategic initiatives to capitalize on emerging trends in the travel industry. With a customer-centric approach, innovative product offerings, and a focus on market expansion, MakeMyTrip had continued to position itself as a leading player in the evolving travel and tourism sector.