India’s leading travel service provider, MakeMyTrip announced financial results for the second quarter of FY19 with a surge of 25.3% in adjusted revenue reaching $160.1 million as compared to last year’s $139.2 million. The fiscal quarter that closed on September 30, 2018, reported a surge in its Gross Bookings by 26.9% year over year after touching $1.2 billion for the firm. Subsequently, the travel firm curbed its losses 24.5% with $47 million as compared to a loss of $62.3 million in the same quarter in the corresponding year.
Deep Kalra, Group Chairman and Group CEO commenting on the financial upshot, said
The MakeMyTrip Group continued to improve upon its strong operating and financial performance during the quarter by continuing to build efficiencies in our operating costs while maintaining healthy growth.
MakeMyTrip Q2 FY18-19 traits:
- Air ticketing business revenue shot up to $41.1 million in the quarter, (29.5% YoY)
- Hotels and packages business saw an increase of $44.9 million,
- Revenue from the bus ticketing business was $11.8 million,(53.3% YoY)
- Personnel expenses saw a decline of 0.9% to $28.7 million,
- Marketing and sales promotion expenses decreased by 61.4% to $44.8 million,
- Operating Activities reduced by $39.8 million in Q2.
The e-travel company has expanded its product offering by soft-launching a new category of attractions and activities on its Android app that includes tickets for theme parks and group walking tours. The product was developed to bolster customer engagement by the firm.
MakeMyTrip’s brand pilots 63 % of the country’s combined air and hotel bookings online. This massive share in the market is significantly impacted by its Redbus brand with about 70 % in the country’s e-ticketing bus segment. Additionally, the merger of Goibibo, its then-biggest rival, attributed to its current dominance in the market. Besides, Cleartrip ranks the second followed by Yatra in the third. Altogether, both have a 26% share in the industry.
Travel Industry Insights:
The e-travel space contributes a major share of 88% growth of the Indian e-commerce industry. Asia-Pacific possesses the highest growth potential in the online travel market share, India and China being the most lucrative markets. According to a report released by management consulting firm Praxis Global, the online travel market in the country, steered by flight and hotel aggregators, is likely to hit $13.6 billion by 2021 and will account for almost 43% of India’s total travel category. India’s online travel market stood at $5.71 billion in 2015.
The Praxis report further stated that a number of hotel rooms booked in India, both online and offline, surpassed a figure of 11.4 million in 2016, while the number of flights touched 99.9 million.
Domestic flights, which accounted for over 45% of the overall travel market in 2015, is estimated to grow at a CAGR of 15% with international flights at 12%, and hotel bookings at 19% during the period of 2015-2021. Online hotel bookings during 2015 accounted for only 27%.