Make My Trip (MMYT) is the dominant OTA in a fast-growing Indian Travel ecosystem.
Here are 5 key takeaways from Make My Trips 3Q24 Earnings report:
1) Total bookings grew 20% YoY.
Air bookings grew 18% YoY. This comprised a 10% growth in air segments flown and an 8% increase in ticket prices. MMYT continues to grow faster than competitors that are 1/10th its size.
Hotel and package bookings grew 25% YoY. Room night bookings grew 18% and prices grew 7% YoY.
Bus ticketing booking grew 23% YoY. Prices only grew 2% YoY, so volume growth contributed the rest.
2) Revenues grew 26% YoY. The Take Rate increased to 10.3% from 9.8%. Hotel and bus take rate increased, while air take rate decreased.
3) Total Marketing spending only grew 14% and signals falling competitive intensity. As a percentage of gross bookings, total marketing spending fell to 4.9% vs. 5.2% in 3Q23. As a comparison, this metric was 8.8% in 3Q20.
4) Operating income grew 248% YoY and operating margin grew to 10.6% from 3.8%.
5) Earnings Per Share grew to $0.22 from the previous year's breakeven quarter.
These results are important because MMYT is likely a key beneficiary of secular growth in Indian travel.
How India Travels
Source: Booking.Com
Source: Booking.Com
The combination of rising incomes and the natural human desire for travel and exploration will result in significant growth in travel demand this decade.
Source: Booking.Com
McKinsey expects the Indian outbound market growth over the next 20 years to repeat Chinese outbound growth over the past 20 years.
Source: McKinsey
Aviation capacity measured by seats per capita is significantly underpenetrated compared to other markets.
Source: Indigo Air
With an order book of > 1000 planes, the Indian aviation fleet is likely to more than double by 2030.
Source: Cirium Fleets Analyser
Similar to aviation, the supply of rooms compared to global peers is significantly underpenetrated.
Source: Indian Hotels
Branded room supply is forecasted to grow by MSD to 2030.
Source: Indian Hotels
Both Indian and International brands are investing in upper-midmarket and midmarket room supply. Luxury room supply is forecasted to grow the slowest.
Source: Hotelivate Trends
Direct and OTA channels will be the key beneficiaries of the travel market moving from offline to online.
Source: ONDC
Make My Trip will be the key player as the growth unfolds over the next decade.
Thanks for reading.