MakeMyTrip, India’s largest online travel agency, is resuming its attractions and activities product for travelers after pausing it during the Covid pandemic. The focus will initially be on foreign destinations, as offerings for domestic destinations are still in development. The company is making its products available in 3 to 150 countries to reach a wider audience, including the Indian diaspora and inbound travelers to India. While transactions will only be available in INR, AED, and USD initially, there are plans to allow multi-currency transactions in the future.
The consumption patterns of Indians are changing, with a shift towards more discretionary spending on premium travel experiences. MakeMyTrip recently launched the Business Class Funnel targeting travelers on long-haul flights or red-eye flights. By 2030, it is expected that the ratio of essential expenses to discretionary spending will shift to 60:40, doubling discretionary spending. With 90 million Indian households led by millennials by 2030, there is a growing preference for enhanced experiences over savings, influencing consumer behavior and driving economic evolution in the country.
As summer approaches, MakeMyTrip has seen a trend towards last-minute bookings in India, with popular weekend getaways and shorter booking windows for trips around holidays. Longer booking windows are seen when schools and colleges announce summer vacations, prompting families to plan trips in advance. The company’s recent summer campaign has generated interest and triggered longer booking windows. The impact of Tax Collected at Source (TCS) for travelers has become clearer, with banks responsible for collecting the tax to manage expenditures beyond the INR 700,000 limit.
Religious tourism is a growing segment driven by improved connectivity and enhanced overall experiences. MakeMyTrip sees potential in tapping into this market, as people visit religious destinations not just for religious purposes but also for historical and cultural experiences. Infrastructure challenges in popular religious destinations like Ayodhya are gradually being addressed with improved road, rail, and air connectivity, as well as the emergence of more hotels and homestays. Enhancing on-ground experiences such as sightseeing and queue management is crucial for improving overall tourist experiences.
MakeMyTrip recently integrated its hotel product on the Indian Railway Catering and Tourism Corporation (IRCTC) website to attract new users from smaller cities and expand its customer base. By featuring hotel offerings on the IRCTC platform, the company aims to increase visibility and attract users who may transition to booking through MakeMyTrip. The initiative is part of efforts to reach a wider audience and cater to the growing travel demand from various segments of the population in India.
