You are currently viewing Strong recovery in domestic demand boosts MakeMyTrip – PhocusWire

Strong recovery in domestic demand boosts MakeMyTrip – PhocusWire

MakeMyTrip says pent-up demand and festive travel drove its “best operating profit quarter” in the pandemic.

Adjusted operating profit for Gurugram-based MakeMyTrip was just over $13 million for its Q3, 2022 fiscal year, compared to $5 million year-on-year and $6.6 million on Q2, 2022.
The company says it generated revenue of $115 million in the quarter ended December 31, 2021, up 103% on the same quarter in 2020.
Gross bookings for the company increased 93% year-on-year to $1.16 billion in Q3 and were up 57% on the previous quarter.

Deep Kalra, group executive chairman, says: “While the current Omicron wave has impacted consumer sentiment for leisure travel from January 2022, we continue to observe demand for domestic essential travel.
“Leisure travel has understandably taken a backseat temporarily. That said, overall travel sentiment remains moderately high, with people waiting to hit the road again, as the situation begins to ease out in the coming months.
Revenue from air ticketing increased by 51% year-on-year to $27 million and was up 29% on the previously quarter.

Hotels and packages revenue increased 176% year-on-year to $67 million, up 101% on Q2, 2022.

Bus ticketing revenue was also up with MakeMyTrip reporting a 45% increase year-on-year to $15 million for Q3, up 75% compared to the previous quarter.

The company says economic conditions caused by lockdowns and travel restriction impacted revenue across its segments in the quarter ended December 31, 2021 compared to the same quarter in 2019.

It adds that the outlook remains uncertain because of the pandemic and the likelihood of new variants, the rate of vaccination and the resulting impact on consumer confidence and the travel industry.
Kalra also notes that online penetration in India had increased over the pandemic with more online transactions coming from Tier two and three cities.
“We are focusing on growing the penetration of online travel bookings by making the end-to-end process of planning and booking travel simple and convenient for buyers across Tier 1, 2, 3, and the hinterland.”

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