Highlights
Revival of Indian Online Travel Agencies in the Post-Pandemic Era
The Indian online travel agency (OTA) landscape has witnessed a remarkable resurgence as the pandemic, driven by the trend of ”revenge travel” and an increasing enthusiasm among Indians to undertake both leisure and business trips. This renewed appetite for travel has resulted in impressive growth for several major OTAs in the second quarter of FY25.
MakeMyTrip: Leading the Online Travel Market
MakeMyTrip (MMT) continues to dominate the online travel industry with outstanding performance. Recently, Ixigo has emerged as a formidable competitor, now recognised as the second-largest OTA measured by revenue. However, our primary focus remains on MMT’s notable achievements.
In Q2 FY25, MakeMyTrip reported revenues of ₹1,354 crore, after accounting for service costs. This quarter marked a remarkable milestone for MMT, with its profit after tax (PAT) surging nearly ninefold to $18 million compared to Q2 FY24.Key Highlights:
- Air Travel sector: experienced substantial growth of 25.2%, contributing ₹512 crore during this period compared to Q2 FY24.
- Hotel Bookings and Package Services: Generated ₹496 crore, reflecting a 15.3% increase from the previous quarter.
- Bus ticketing and other services: accounted for ₹210 crore and ₹185 crore, respectively.
Ixigo: A Rising Star in Online Travel
Ixigo has firmly positioned itself as the second-largest player among OTAs, with a remarkable revenue increase of 25.6%, reaching ₹206 crore in Q2 FY25, up from ₹164 crore in the same period last year. The company also reported profits of ₹13 crore during this timeframe.
Noteworthy Aspects:
- Train bookings: The primary revenue driver, contributing over half (53%) with earnings climbing by 19.1% quarter-on-quarter to ₹110 crore after service costs in Q2 FY25.
- Bus Ticket Sales: Increased considerably, soaring by 42.8%.
- Air Ticket Sales: Grew approximately 37.45%, generating revenues of ₹40 crore and ₹56 crore respectively.
EaseMyTrip: Modest growth Amidst Intense Competition
In contrast, EaseMyTrip showed stagnant growth with a marginal increase in revenue, rising from ₹130.7 crore last year to ₹131 crore this year during Q2 FY25. According to IFRS standards, their operational revenue was approximately ₹145 crore. Though, profits fell sharply by about 42.6% to ₹27 crore compared to ₹47 crore recorded previously.
Key Observations:
- Flight Ticket Sales: Declined significantly by 20% to ₹116.2 crore compared to Q2 FY24.
- Hotel Reservations: Experienced remarkable increases of 144%.
- Ancillary services: Grew by 64.5%.
yatra: Consistent Performance on NASDAQ
yatra, listed on NASDAQ but primarily operating in India’s market, achieved commendable results, showcasing 20% quarter-on-quarter growth, resulting in total revenues less service costs hitting ₹94 crore for Q2 FY25. Notably,if we exclude service costs,yatra’s overall figures reflect staggering gains reaching ₹236 crore for Q2 FY25.
Breaking Down Their Earnings:
- Air Ticketing: Contributed ₹43.3 crore.
- Hotels: Netted around ₹30 crore after discounts and fees.
- bus/Train Bookings: Brought in ₹7.5 crore, alongside additional operating activities, including advertising, yielding another ₹13.5 crore.
The revival of Indian online travel agencies demonstrates the sector’s resilience and adaptability in a post-pandemic world, setting the stage for continuing growth and innovation in the Indian online travel agency sector.
