MakeMyTrip, a leader in the hotel and air segments, is eyeing growth from the corporate, bus and inter-city travel segments in the coming fiscal, said Rajesh Magow, co-founder and Group CEO, MakeMyTrip.

“Corporate travel is a very young business that we started focussing on for the last three-four years.  Currently at mid-single digits, this corporate business unit is showing a steady 30-40 per cent year-on-year growth. We see that in a quarter or two we will be growing that business, and hopefully sort of surpass that number overall as well.” Magow told businessline in an exclusive interview.

The recently listed player, dominates the corporate travel segment at present. MakeMyTrip commands a substantial 53.8 per cent share of the Indian online travel market, according to a recent report by travel consultancy firm, Videc. The OTA is a dominant player in both the airline and hotel sectors.

In the airline segment, MMT holds a substantial 56.9 per cent market share, while it leads in the hotel bookings segment. 

Changing revenue mix

“In terms of revenue mix, there has been a remarkable shift since our IPO days, when 90 per cent came from the air business,” said Magow. At present, 45 per cent of the company’s revenue is generated from hotels, packages, and accommodation, with ground transport, including bookings through RedBus (a bus ticketing aggregator that it acquired), contributing 12 per cent.

Flights make up 40 per cent, and the remaining percentage is from other income sources.

“Looking ahead, we anticipate the hotel segment’s share to potentially increase to 50 per cent, driven by the growth in flights, hotels, and other segments,” he said, adding: “We are going to focus and emphasise on both (volume and turnover) growth and profitability. The combined contributions of flights and hotels are playing a significant role in our volumes and revenue.”

New growth areas

Magow expects homestay to be another growth driver for the company. Ramp-up continues in the segment, both in terms of listings and bookings.

“Our homestays on the supply side has expanded impressively, boasting over 100,000 rooms on our platform. Daily volumes for homestays on the demand side are also on the rise. In particular, the villa segment is experiencing a notable 40-50 per cent year-on-year growth, albeit from a smaller base,” he said. 

MakeMyTrip recently invested in Savari, a cab company focussing on intercity travel. “Additionally, investments in intercity cab services are poised to contribute to the overall growth of our business,” he said.

Cruises, a segment that the company has been eyeing an entry into for quite some time, is expected to materialise this fiscal itself.

Magow said over the past 2-3 years, there is a surge in demand that can be attributed to the burgeoning income of the middle class.

At present, in India, approximately 50 million households boast an annual income exceeding $10,000, totalling around 200 million individuals. Among these, 5 million households have an annual income surpassing $35,000. This substantial segment, comprising 5 million households, along with the remaining 45 million, is expected to be a driving force behind the escalating demand in the travel sector, fuelled by the continuous rise in disposable income.

From a broader perspective, according to the Group CEO, there’s a substantial infrastructure expansion across the country, with more hotels and homestays emerging.

The road infrastructure has seen significant improvement. “The overall industry is set to grow, and with low internet penetration for international big-ticket items, we expect a higher rate of growth in this domain. Rail projects worth 40,000 crores are underway, and 22 new airports are in progress.,” he said.