MakeMyTrip has seen year-on-year triple-digit growth in transaction volumes and reminded the markets that revenues will be hit as a result in the near-term.
CEO Rajesh Magow said in the 2016 Q2 earnings statement that:
“MakeMyTrip delivered strong transaction growth in India standalone hotels, particularly on mobile devices. We believe smart-phone penetration, driven by increasing affordability and performance, is driving an inflection point in India’s online travel opportunity.”
In the year to end-September, MakeMyTrip’s Indian business increased standalone hotel volumes by 168% compared with the same period last year. Within this, the increase in hotel bookings made by mobile was up by more than 400%.
In the year to end-September, MakeMyTrip’s Indian business increased standalone hotel volumes by 168% compared with the same period last year. Within this, the increase in hotel bookings made by mobile was up by more than 400%.
On the earnings call with analysts, Magow went into more detail about its mobile and app breakdown, noting that a few quarters ago mobile web was accounting for 60% of hotels transactions and the app 40%; in the July-Sept quarter the balance was 50-50 and he said that apps could be as much as 70% of its total mobile business within the next few quarters.
Magow was also keen to tell the analysts that a lot of the growth in mobile web and app transactions was coming from users in tier-2 and tier-3 cities, and that 30-40% of people booking via the app are new customers for MakeMyTrip.
The focus on apps is reflected in MakeMyTrip’s latest promotion, “The Great Indian Getaway” which is an app-only sale. It expects this to generate a five-fold increase in traffic to its app.
Read full article at: tnooz.com
