Online travel aggregator Makemytrip's losses for the quarter ended December 31, 2015, has widened to $19.5 million as compared to a loss of $3.7 million in the year ago period.

However, the revenues increased 8.3 per cent at $82 million during the third quarter compared to $75.7 million last year.

The Nasdaq-listed online air ticketing and hotel booking platform said that while the revenues from the standalone hotels and packages segment increased by 16 per cent at $63 million, the air ticketing segment saw a fall of 15 per cent during the quarter.

The number of transactions was up by 34.6 per cent year-on-year and can be attributed to the increased online promotions and discounts the company carried out during the quarter which also included the week-long Great Indian Getaway. The heavy discounts also in a way resulted in the decline in net revenue margin in the quarter under review.

While the company saw a slight decline in the domestic travel segment, the international travel business posted a robust growth of 30 per cent with Indian travellers flying to holiday destinations in the Europe and South East Asian countries.

To focus on budget properties

Deep Kalra, founder and CEO of Makemytrip, said during an investor call on Thursday that going foward he expects degrowth in the domestic travel segment and that the company will be focusing more on standalone hotels in the budget segment to improve demand as well as margins.

"We are witnessing an increase in volume from the budget properties. Opportunity for incremental margins is expected from the budget segment. We will be having more week long activities like Great Indian Getaway in the coming months."

The company's decision to focus on budget hotel segment comes even as the segment witnesses emergence of a number of branded online aggregators such as Oyo Rooms, Zo Rooms and Stayzilla among others who are eating into Makemytrip's market share.

Going forward, increase in advertisement and business promotion expenses will be mobile-based, Kalra said, adding that the company expects more tourism activities to take place between India and China in the coming months. Earlier this month, the Delhi-based company raised about $180 million from China's leading OTA Ctrip through convertible bonds.

The funds, Kalra said, would be used in expanding into the international market, stepping up mobile marketing and towards mergers and acquisitions.

Meanwhile, the shares of MakeMyTrip Limited (NASDAQ:MMYT) ended down 1.78 per cent at $18.17 on Thursday.

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