Online travel aggregator MakeMyTrip (MMT) has reported revenue of $118 million for the quarter ended September 30, 2019, an increase of 13.8% YoY. The company saw losses of $36.8 million, slightly lower from losses of $47 million in the same quarter last year. Total adjusted revenue increased by 13.1% year-on-year; adjusted operating loss decreased to $19.3 million from $25.4 million YoY.
Adjusted revenue for hotels and packages increased by 1.9% YoY in the quarter ended September 30 to $87.1 million in the quarter ended September 30. Adjusted revenue margin, however, decreased to 22.7% YoY in the quarter ended September 30, from 24.4% in the same quarter last year. Revenue from hotels and packages increased by 4.2% to $46.8 million in the quarter ended September 30.
- Gross bookings increased by 9.6% YoY, driven by 12% increase in the number of hotels room-nights YoY
- Nearly 7.4 million room nights booked despite lower marketing spend to achieve efficiencies, and seeing weak outbound demand in the traditionally weak second quarter.
- For international hotel bookings, the room night growth was at about 60%.
Revenue from the air ticketing business increased by 12% YoY to $46 million, while adjusted revenue increased by 16.7% YoY.
- The company said that the increase in adjusted revenue was due to an increase in gross bookings of 22.4% which was mainly driven by growth in outbound air ticketing business.
- In the domestic air ticketing business, the company saw a growth of over 7%, which it claimed far outpaced the market’s growth, which was less than 3% during the quarter. Further, our as we continued to focus on driving online penetration in this largely off-line market segment.
- International air ticketing segment grew by over 36% as a result of using the international inventory build of Ctrip, which owns 49% of MakeMyTrip.
Revenue from bus ticketing business increased by 20.4% YoY to $14.3 million; adjusted revenue increased by 37.4% YoY.
- Gross bookings for redBus increased by 33.4% YoY driven by the continued offline to online shift within this travel segment, as well as new supply additions from nontraditional bus markets in Southern and Western India.
Chatbot usage volumes saw a quarter-on-quarter increase of 15% on Goibibo. The company said that comprehension rates in identifying customer queries on the chatbot, including complicated travel queries, have reached 89% for MakeMyTrip and about 95% on Goibibo.
- 90% of customer queries on Goibibo were resolved using automated tools.
- MakeMyTrip’s customers can now send their queries via voice message in addition to text format.
- These improvements were driven by using “cutting-edge, natural language processing models,” the company said.
Not worried about the CCI inquiry: The Competition Commission of India launched an inquiry into MMT, Oyo after prima facie finding that the companies were violating competition norms. This inquiry was initiated after a complaint from the Federation of Hotel & Restaurant Associations of India (FHRAI). However, the company said that it will cooperate with the CCI and, “we don’t really see any concern out there, and we should kind of be able to get through the inquiry in due course of time”.
Trip Money: MMT launched Trip Money, which provides instant digital travel loans within five minutes of application. This new program has launched across 60 nationwide locations and is popular for travelers making their first international trip and with families taking a domestic holiday, the company said.
**(Update on November 6: The adjusted revenue figure for hotels and packages was misreported. The error has been fixed)