MakeMyTrip Leveraging Technology for Customer Service & Engagement

MakeMyTrip - TechnologyTo bring in personalized user experience, MakeMyTrip has added features such as mobile virtual assistant (GIPS) to assist customers while on trip, notifications when fares for searched routes / hotels fall, etc made possible by data mining and use of Artificial Intelligence algorithms. MakeMyTrip has also been continuously upgrading its mobile platform, which has led to reduced latency rate, lower app size, 100% crash-free performance, etc. – enhancing customer experience and hence retention and repeat rates.

MakeMyTrip had 5.2mn monthly active users on its platform in F1Q17 vs. 4.2mn in F4Q16. Downloads of the MakeMyTrip app have exceeded 23mn as of the end of F1Q17. The company’s nationwide TV campaign has resulted in 63% growth in new users acquired and 59% growth in total users. Mobile has been the key driver of (more…)

MakeMyTrip Air Ticketing Strengthens, Structural Growth Story Intact

MakeMyTripMakeMyTrip [MMYT] asserts its focus on growing its Hotels & Packages (H&P) business by spearheading online shift & mobile platform adoption. It is cementing leadership here. Robust air traffic driven by discounting of airfares surprised positively for MMYT’s Air business.

MakeMyTrip gained market share in domestic air ticketing business increasing it from about a steady 12% for the last several quarters to around 13%+ in Sep-14 quarter. To provide context, MMYT delivered a solid Sep-14 quarter with air ticketing revenues (less service cost) of US$18.4 million in revenues i.e., 20% Y/Y (and 10.7% Q/Q) revenue growth. Management suggests that revenue per booking is low primarily because of discounted ticket prices. But there is little correlation between revenue per transaction and air ticketing margins as margins in (more…)

MakeMyTrip Flying High on Airline Bookings

MakeMyTrip Airline BookingOnline Travel & Hotel Bookings site MakeMyTrip management Mr Rajesh Magow (Co-founder & CEO – India) and Mr Mohit Kabra (CFO) in a call highlighted the status of their business amidst most airlines have already reduced OTA (online travel agents, such as MMYT) commissions to 1% (from 5-6% earlier), but allowed OTAs to charge a convenience fee on bookings. Management thinks that the revenue model might shift to a ‘convenience fee only’ model with zero commissions in the worst-case scenario.

MMYT delivered a solid Jun-14 quarter with USD 35.5 million in revenues i.e. 26% of the upper-end of its FY15 guidance of USD 136 million. Despite the strong quarter, the company did not increase guidance primarily to ensure that the demand uptick witnessed in the seasonally (more…)

MakeMyTrip – Business Verticals Review and Outlook

MakeMyTrip Business Verticals MakeMyTrip (MMT) offers a comprehensive suite of travel and travel-related services and products. The company’s two primary lines of business are air ticketing and hotels & packages. Additionally, it provides rail and bus tickets, car hire, and ancillary travel services, e.g. travel insurance and visa processing.

Air Ticketing Business
The air ticketing business is primarily targeted at domestic travel within India and international travel to/from India. Over FY10-F13, MMT’s domestic air travel transactions have increased at 29% CAGR to 3.4m, whereas international travel transactions have risen at a 39% CAGR to 0.35m. MMT has real-time access to inventory of all major (full-service and LCC) domestic airlines (more…)