Indian online travel company MakeMyTrip is bullish about the growth of Indian travel & tourism sector. The company reported a robust quarter-on-quarter growth of 63.3 per cent in Gross Bookings ($1.6 billion) on constant currency basis, signaling strong recovery in travel sentiment and demand post the 3rd wave of Covid-19 infections in India.
The company reported its highest quarterly Adjusted Operating Profit of over $16.5 million in Q1 of 2023 compared to about $12 million in the last reported quarter.
Rajesh Magow, co-founder and Group CEO, MakeMyTrip, said, “It is heartening that after 2 years of being under the impact of Covid-19 pandemic, this new fiscal year has started on a strong note with public behaviour and sentiment back to pre-pandemic normal given the comfort of strong vaccination coverage in India and the latest variants of covid-19 reporting milder infection with minimal hospitalization and fatality rate.”
Magow pointed out that due to the pandemic the travel industry saw a significant temporary decline and, hence, the pent-up demand is likely to drive accelerated growth with return of normalcy.
“With work patterns gradually getting back to pre-pandemic normal while we have seen increased demand for office commute during the quarter, we also expect corporate travel demand momentum to further pick up in the coming quarters aiding overall demand recovery for the travel industry. Overall, our current estimate is that travel both domestic and international should recover fully to pre pandemic levels by end of this year," he added.
As per the company, MakeMyTrip at the moment commands 30 per cent market share.
In its hotels, alternative accommodation and packages segment, the company saw a strong recovery on the back of leisure travel.
“In many of the leisure destinations we are now seeing growth over pre-pandemic levels which has helped taking the overall volumes recovery in this segment to around 87% of pre-pandemic volumes,” Magow said.
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