In 2015-16, MakeMyTrip has earned 51% revenue from hotels and packages and it is on its path to take this to 70% in the next two to three years, stated its year-end statement. “We have successfully reduced our dependency on the air side and increase exposure towards the hotels and packages segment that offer relatively higher margins in double digits,” said Rajesh Magow, Co-Founder & CEO-India, MakeMyTrip.
The Online Travel Agent (OTA) also remains strongly focused on strengthening its mobile technology and is constantly enhancing its systems to offer a seamless booking experience to the customers which has resulted in clocking nearly 27.5 million app downloads till date.
Magow added that last year (FY2016), 75% of our hotel transactions happened through the app and standalone hotels booked on mobile increased by 453.6% YoY in Q2 FY2017. We achieved very strong year on year growth in transactions for the hotel and packages segment, driven primarily by our standalone online hotel bookings, which represented over 90% of all segment transactions in Q2 FY2017. With 27% share of the online hotels market in India, our hotel inventory is growing month on month and currently stands at 33,000 domestic and 310,000 international hotels, he elaborated.
Demonetisation coupled with smartphone penetration and adoption led by young travellers is driving the shift from offline to online in the travel industry, reports the brand. “Young Indian travellers are also very spontaneous and social media driven, and this has been demonstrated by the surge in last minute bookings. With higher disposable income, people have started spending more time on their holidays (12-14 nights) by clubbing multiple destinations in their itinerary,” he stated.
He further added that the average holiday frequency has also gone up due to extended weekends and average vacation time period is up by 10%. More people are taking 3-4 long weekend breaks in a year and a couple of short-holidays, especially during the festive season. Strong advance purchase, rise in travel spends, lower airfares year-round, higher spending on luxury travel experience within India & abroad by travellers, rise in solo-women travel are some of the top trends we observed during this year. Going in 2017, we are bullish about the growth prospects once the demonetisation effects are settled.