MakeMyTrip Q2 impacted by 'subdued' outbound travel

What It Says

India-based online travel agency (OTA) MakeMyTrip (MMT) reported its financial results for the second quarter of fiscal year 2027, ending September 30, 2026. The company achieved an 11% year-over-year increase in gross bookings, reaching $2.7 billion.

Performance across individual business segments was mixed:

Bus ticketing: Revenue grew by 17% to $39 million.
Air ticketing: Revenue dropped 7% to $57 million, though its adjusted margin increased by 6% to $109 million.
Hotels and packages: Revenue declined slightly by 1% to $107 million, but the segment's adjusted margin rose 10% to $117 million.
Other businesses: Revenue increased by 22% to $32 million.

Group CEO Rajesh Magow noted that the company delivered strong growth despite a challenging market environment.

Why It Matters

As one of the dominant OTAs in South Asia, MakeMyTrip's performance serves as a key indicator of travel demand trends in the Indian subcontinent. The divergence between declining top-line revenues in accommodations and air travel versus rising adjusted margins suggests that while volume or pricing pressure exists, the company is successfully optimizing its take rates and operational efficiencies. For short-term rental (STR) operators and technology vendors looking to expand into or partner within the Indian travel market, these metrics highlight a resilient domestic travel appetite (evidenced by bus ticketing growth) alongside shifting dynamics in lodging and outbound travel.

Useful Signals

Resilient Margins: Despite a 1% dip in hotel and package revenues, a 10% increase in adjusted margin indicates strong commission structures and improved platform monetization.
Alternative Transit Growth: The 17% surge in bus ticketing revenue points to robust regional and domestic travel demand, presenting an opportunity for STR operators in secondary and tertiary Indian markets.
Diversification Success: A 22% increase in "other" business revenues shows that ancillary travel services and alternative accommodations are gaining traction.

STR Tech Report Take

For STR technology vendors and property managers targeting the Indian market, MakeMyTrip's Q2 results underscore the importance of local distribution. While international outbound travel faced headwinds, domestic travel infrastructure—like bus networks and regional lodging—remains highly active. STR operators should focus on optimizing their listings on regional platforms and ensuring their tech stacks can seamlessly integrate with dominant local players like MMT to capture domestic demand.

Original Source

PhocusWire: MakeMyTrip Q2 impacted by 'subdued' outbound travel