Large online travel platforms like MakeMyTrip and Ibibo get 40%-80% of their transactions (for domestic flights or hotel bookings) through a mobile device. This differentiates the Indian market from some developed markets like the US and puts it closer to the Chinese market, in our view. India is a "mobile first" market ? the bulk of new Internet users gain access through a mobile device, given the increasing proliferation of cheap smartphones.
According to MakeMyTrip, direct and organic traffic across all devices is 90% of total traffic (vs. 78% two quarters ago). However, conversion rates, especially for standalone hotel bookings, are better on a mobile platform. Further, it has indicated that repeat rates for mobile are 1.5x those from desktops. MakeMyTrip has been investing heavily in acquiring new customers on its mobile platform (including first-time users) and expects better lifetime value from such customers thanks to better conversion and repeat rates in the long run.
