MakeMyTrip has partnered with Flipkart where the online travel agent’s three brands MakeMyTrip, Goibibo and redBus will leverage the large customer base of Flipkart platform to drive online bookings in travel services. The new partnership will start with a roll-out of domestic flight bookings in the next few weeks, followed by Hotels, Bus and Holidays bookings.
Other details of the partnership are unclear. According to Flipkart CEO Kalyan Krishnamurthy, the partnership will help the company’s goal of being the one-stop destination for all digital transactions online. An IBEF report had estimated that the online travel space will account for 40 to 50 per cent of the total transactions by 2020, which could be the cause of Flipkart’s interest in the segment.
In February, MakeMyTrip began a partnership with budget hotel brand OYO, where OYO’s inventory of hotels across India, Malaysia and Nepal will be listed on MakeMyTrip and its brand Goibibo. OYO earlier featured on MMT’s site, but was delisted in 2015.
Additionally, PhonePe, the digital payments platform owned by Flipkart, announcing a tie-up with MakeMyTrip-owned online bus ticket booking service redBus last month.
Recently, MMT also rolled out a ‘Pay Later’ feature for travel payments which currently will be available to select users. It partnered with non-banking financial company (NBFC) Bajaj Finserv to enable this deferred payments feature.
For the quarter ended December 31, 2017 (Q3 FY18), MMT reported a net loss of US $45.3 million, as its profitability was weighed down by the increase of 144.6% in marketing and sales promotion expenses, which stood at $109 million, from $44.5 million in the same quarter last year. Hotels and packages continued to be the majority contributor to MMT’s revenue. Revenue from the segment stood at $83.8 million, up 136.4% from $35.4 million in the corresponding quarter last year. Gross bookings for hotels and packages stood at $367.8 million up 101.5% from $182.5 million in the same quarter last year, the increase was driven by the consolidation of the ibibo Group acquired in January 31, 2017. The total number of transactions stood at 3.2 million up 115% from 1.5 million in Q3FY18. On a sequential basis, it reduced from 3.5 million to Q2 FY18.