MakeMyTrip padded profits, misled customers, allowed ‘bad actor’ hotels in its platform: Report
The report by Morpheus Research involving 103 interviews revealed ongoing violations, including a new undisclosed CCI probe with a report expected in early 2026.
- Mar 31, 2026,
- Updated Mar 31, 2026 1:53 PM IST
A report into MakeMyTrip (MMYT) revealed that the travel platform padded profits through accounting methods, downplayed competition while quietly losing market share, misled customers via manipulative dark patterns, and allowed problematic hotels to proliferate on its platform. It continued to engage in anti-competitive practices despite a significant penalty and a stop order from the Competition Commission of India (CCI) in 2022, stated Morpheus Research.
The report involving 103 interviews revealed ongoing violations, including a new undisclosed CCI probe with a report expected in early 2026.
"After extensive research, we believe the evidence justifies a short position in shares of MakeMyTrip," said Morpheus Research. "This is a typical short-seller report and the company doesn't respond to such reports," a MakeMyTrip spokesperson told Business Today.
PRICE PARITY CLAUSE
In October 2022, MMYT was fined approximately $26 million (over Rs 244 crore) by the CCI for anti-competitive and abusive practices, it said. The regulator ordered MMYT to end the “price parity” clause, which prevented hotels from offering lower room prices outside MMYT’s platform. However, evidence suggested MMYT has openly defied this order, the report alleged.
Reports in August 2025 indicated that price parity persisted, supported by a hotel contract publicly available on a MMYT subsidiary’s website, which was removed two days after the report. Hotel executives and former MMYT employees confirmed that price parity enforcement continued daily, and that hotels allegedly received a “parity score”.
Managers from Pride Hotels and Suba Hotels, representing about 164 properties, confirmed that price parity remained part of their contracts with MMYT. A leader from the Federation of Hotel and Restaurant Associations of India (FHRAI) stated that MMYT ignored regulatory orders, maintaining this practice. Industry insiders revealed that non-compliance could result in lower rankings or reduced business on MMYT’s platform.
A former MMYT employee alleged the company sometimes matched hotel rates without permission when price parity demands were slow to be met. The report cited a competitor from ClearTrip who noted that MMYT targeted top sellers and reduced visibility for hotels refusing to comply. This enforcement was reportedly supported by upfront deposits, termed “money in the bank,” securing exclusive rates and inventory during peak seasons.
FINANCIAL CONCERNS
Financial concerns included MMYT’s failure to provision for the full $26 million (over Rs 244 crore) fine and accrued interest, risking incinerating 60% of its 2025 net income. MMYT has a $20 million (over Rs 188 crore) receivable from the now-insolvent airline Go Air that competing OTAs have completely written off. MMYT has provisioned for only half of the balance with the remainder representing customer deposits for bookings through MMYT.
MMYT’s use of “adjusted” financial metrics differs markedly from industry peers, inflating profitability by adding back customer acquisition costs. Since December 2021, these adjustments have accounted for 76% of MMYT’s quarterly adjusted profits, compared to 11% and 18% for Booking and Expedia respectively. The company also issued zero-coupon convertible notes with a high conversion price, potentially resulting in a $1.4 billion (over Rs 13,172 crore) cash outlay in 2028.
MMYT'S COMPETITION
In July 2025, MMYT’s CEO stated the company only “theoretically” faced competition, claiming no real OTA rivals exist in India. However, executives from Booking have publicly highlighted India as a key market. Former MMYT employees acknowledged that the company has been challenged by Booking and its subsidiary Agoda, which have allegedly triggered a price war reducing MMYT’s hotel commissions from around 35% to as low as 18%. MMYT’s market share with Marriott Hotels declined from 38% in 2022 to 31%, while Booking’s share increased.
CUSTOMER SAFETY
MMYT has also been criticised for failing to protect customers from “bad actor” hotels, the report revealed. An analysis of reviews for 3,679 hotels found nearly 10% reported serious issues including women’s safety concerns, extortion, and other unethical practices. According to a former employee, MMYT rarely banned such hotels. In January 2026, MMYT introduced AI-powered women-focused safety features, but 113 hotels in three metro cities with documented women’s safety complaints remained listed on the platform.
The company faced numerous legal cases, negative reviews, and social media criticism over opaque refund policies. An AI analysis of over 1,700 reviews highlighted refund problems, including long delays and outright denials.
A report into MakeMyTrip (MMYT) revealed that the travel platform padded profits through accounting methods, downplayed competition while quietly losing market share, misled customers via manipulative dark patterns, and allowed problematic hotels to proliferate on its platform. It continued to engage in anti-competitive practices despite a significant penalty and a stop order from the Competition Commission of India (CCI) in 2022, stated Morpheus Research.
The report involving 103 interviews revealed ongoing violations, including a new undisclosed CCI probe with a report expected in early 2026.
"After extensive research, we believe the evidence justifies a short position in shares of MakeMyTrip," said Morpheus Research. "This is a typical short-seller report and the company doesn't respond to such reports," a MakeMyTrip spokesperson told Business Today.
PRICE PARITY CLAUSE
In October 2022, MMYT was fined approximately $26 million (over Rs 244 crore) by the CCI for anti-competitive and abusive practices, it said. The regulator ordered MMYT to end the “price parity” clause, which prevented hotels from offering lower room prices outside MMYT’s platform. However, evidence suggested MMYT has openly defied this order, the report alleged.
Reports in August 2025 indicated that price parity persisted, supported by a hotel contract publicly available on a MMYT subsidiary’s website, which was removed two days after the report. Hotel executives and former MMYT employees confirmed that price parity enforcement continued daily, and that hotels allegedly received a “parity score”.
Managers from Pride Hotels and Suba Hotels, representing about 164 properties, confirmed that price parity remained part of their contracts with MMYT. A leader from the Federation of Hotel and Restaurant Associations of India (FHRAI) stated that MMYT ignored regulatory orders, maintaining this practice. Industry insiders revealed that non-compliance could result in lower rankings or reduced business on MMYT’s platform.
A former MMYT employee alleged the company sometimes matched hotel rates without permission when price parity demands were slow to be met. The report cited a competitor from ClearTrip who noted that MMYT targeted top sellers and reduced visibility for hotels refusing to comply. This enforcement was reportedly supported by upfront deposits, termed “money in the bank,” securing exclusive rates and inventory during peak seasons.
FINANCIAL CONCERNS
Financial concerns included MMYT’s failure to provision for the full $26 million (over Rs 244 crore) fine and accrued interest, risking incinerating 60% of its 2025 net income. MMYT has a $20 million (over Rs 188 crore) receivable from the now-insolvent airline Go Air that competing OTAs have completely written off. MMYT has provisioned for only half of the balance with the remainder representing customer deposits for bookings through MMYT.
MMYT’s use of “adjusted” financial metrics differs markedly from industry peers, inflating profitability by adding back customer acquisition costs. Since December 2021, these adjustments have accounted for 76% of MMYT’s quarterly adjusted profits, compared to 11% and 18% for Booking and Expedia respectively. The company also issued zero-coupon convertible notes with a high conversion price, potentially resulting in a $1.4 billion (over Rs 13,172 crore) cash outlay in 2028.
MMYT'S COMPETITION
In July 2025, MMYT’s CEO stated the company only “theoretically” faced competition, claiming no real OTA rivals exist in India. However, executives from Booking have publicly highlighted India as a key market. Former MMYT employees acknowledged that the company has been challenged by Booking and its subsidiary Agoda, which have allegedly triggered a price war reducing MMYT’s hotel commissions from around 35% to as low as 18%. MMYT’s market share with Marriott Hotels declined from 38% in 2022 to 31%, while Booking’s share increased.
CUSTOMER SAFETY
MMYT has also been criticised for failing to protect customers from “bad actor” hotels, the report revealed. An analysis of reviews for 3,679 hotels found nearly 10% reported serious issues including women’s safety concerns, extortion, and other unethical practices. According to a former employee, MMYT rarely banned such hotels. In January 2026, MMYT introduced AI-powered women-focused safety features, but 113 hotels in three metro cities with documented women’s safety complaints remained listed on the platform.
The company faced numerous legal cases, negative reviews, and social media criticism over opaque refund policies. An AI analysis of over 1,700 reviews highlighted refund problems, including long delays and outright denials.