Online travel agency MakeMyTrip has said it is looking at hotels to contribute around 75 per cent of its overall business by 2020 going forward. The company is also upbeat on the smooth integration it has undertaken with Ibibo group post merger. "Hotel is currently 57 per cent of our business. By 2020, 75 per cent of our total business will come from hotels. We are very bullish about the future," MakeMyTrip Founder, Chairman and Group CEO Deep Kalra told PTI. The company at present has over 45,000 hotels in India on its platform, he added. Earlier air business was our mainstay, very consciously the company has made the shift to hotels because hotel business is fundamentally higher margin.
It is very fragmented too, he added."Air business has now come down to around 35 per cent and up to 10 per cent is holiday packages and cars. Now, the company also has bus too," Kalra said. But, the air is important for the company because the customer acquisition happens through air and though margins would get tighter and tighter in future, at the current volume air is profitable, he added. Founded in 2000 by Deep Kalra, MakeMyTrip provides its customers access to all major domestic full-service and low- cost airlines operating in India and all major airlines operating to and from India. It also provides access to over 45,000 hotels, 13,500 alternative accommodation properties in India and more than 5,00,000 hotels and properties outside.