Photo Credit: MakeMyTrip Group CEO Rajesh Magow at Skift India Summit. Skift
MakeMyTrip is using a weaker domestic air travel environment to push deeper into hotels, buses and cabs -- the parts of India’s travel market where it believes the bigger long-term opportunity lies.
The company, India's largest online travel agency, reported gross bookings of $2.7 billion for the September quarter, its fiscal second quarter, up 21% year over year on a constant-currency basis, while adjusted operating profit reached $46.2 million.
Non-air businesses made up 63.2% of the gross bookings mix, up from 61.5% a year earlier.
Similar to the first quarter, air travel was the soft spot in the second quarter. Domestic air departures in India fell 7% and international departures dropped 4%, while fares rose roughly 25%-30%. MakeMyTrip said it held more than 30% of domestic air-ticketing share.
Hotels and packages now make up about 40% of the business. Stand-alone hotel room nights grew 18.6%, with domestic room nights up more than 20%.