EaseMyTrip, an Indian online travel company, is focusing on growing its non-air business in fiscal 2025, as stated by its co-founder, Prashant Pitti. In the January to March quarter of 2024, the company experienced significant growth in its hotel segment with a nearly 40% increase in bookings, as well as a 53% growth in other non-air segments such as holiday packages, activities, and train bookings. Pitti emphasized that a lot of growth is expected to come from the non-air business, which has also led to increased profitability for the company. This area will continue to remain the focus for the coming year, although the company will also continue to grow its air business to capitalize on the expected 15% annual growth in the Indian airline industry.
During the fourth quarter of the 2024 financial year, EaseMyTrip undertook several initiatives to further drive its growth. These initiatives included launching a co-brand credit card with Punjab National Bank to expand its reach to the bank’s customers, similar to competitors MakeMyTrip and Yatra who also have co-brand credit cards with different banks. Additionally, the company opened four franchise stores to cater to customers in smaller cities who prefer to buy holiday packages offline. EaseMyTrip also acquired a 50% stake in Jeewani Hospitality to develop a 150-room hotel in Ayodhya, which will be operated by the Radisson Hotel Group. This move into the hotel sector is a one-time exception as the company plans to focus on acquiring asset-light, profitable businesses in the future.
In a further diversification of its portfolio, EaseMyTrip has ventured into the insurance sector as an insurance broking business. Pitti explained that the decision to enter this segment was based on the observation that there was a 75% overlap in the people booking tickets online and purchasing insurance online. By offering insurance services, the company can cater to the needs of its customers and provide a more comprehensive travel experience. This expansion into the insurance sector aligns with EaseMyTrip’s strategy of diversifying its operations and growing its non-air business, alongside its traditional air travel services.
Looking ahead, EaseMyTrip’s continued focus on growing its non-air business is expected to drive further profitability and expansion for the company. With the Indian airline industry projected to grow at a rate of 15% annually over the next decade, there is significant potential for growth in both the air and non-air segments of the travel industry. By diversifying its business model, entering new sectors such as insurance, and expanding its offline presence through franchise stores, EaseMyTrip is positioning itself for success in a rapidly evolving and competitive market.
Overall, EaseMyTrip’s strategic initiatives in the fourth quarter of the 2024 financial year demonstrate the company’s commitment to driving growth and innovation in the travel industry. By focusing on expanding its non-air business, launching new initiatives such as co-brand credit cards and franchise stores, and venturing into the insurance sector, EaseMyTrip is poised to capitalize on emerging opportunities and meet the evolving needs of its customers. As the company continues to adapt to market trends and consumer preferences, it remains well-positioned for success in the dynamic and competitive online travel landscape.
