Experiential travel a new avenue of strong growth: MMT Group CEO Magow

Magow said that growth in the travel and tourism industry is aided by a mindset shift, with people looking for new and unique experiences

Nasdaq-listed travel aggregator firm MakeMyTrip (MMT) has found experiential travel — including live events and pilgrimage tourism — has emerged as a new avenue for growth in the country.

 

The aggregator recorded a 12 per cent rise in net profit to $27.1 million in its third quarter (Q3) ending December 31, compared to $24 million in the year-ago period. The company reported a 26.2 per cent year-on-year rise in revenue, reaching $267.4 million from $214.2 million in Q3 of the previous financial year.

 

“The strong set of numbers in Q3 was a combination of the overall growth of the industry, which is helped by macro factors and contributions from all new areas of investment,” said Rajesh Magow, co-founder and group chief executive officer of MMT.

 

Talking about the ongoing urban consumption stress, Magow said that growth in the travel and tourism industry is aided by a shift in mindset, with people seeking new, unique experiences.

 

“I’m hoping the urban slowdown is probably an aberration, as the overall growth story for India is likely to continue. If it’s a cycle, then maybe a short one. Consumer habits have shifted in favour of spending more on experiences, which is helping the travel and tourism industry,” he said.

 

Experiential tourism, a relatively new phenomenon, is growing.

 

“Events like the Maha Kumbh and the Ayodhya consecration ceremony are opening new horizons for all customer segments. With more supply and better connectivity, the seasonality factor is fading, and people are seeing these as permanent destinations. Concerts, like the recent ones by Coldplay, have also increased, stimulating domestic travel activity,” he said.

 

The company’s outbound international travel segment has also grown at a fast pace.

 

“Our international flights business grew by about 32 per cent, while international hotel revenue grew by more than 60 per cent. There is still a lot of room for growth in this segment, as many bookings still happen offline,” he said.

 

The company plans to introduce new services like activities, excursions, and even cruises — a niche segment not yet fully explored by Indians — to further grow this outbound segment.

 

“We also want to expand intercity cab services, which we have recently invested in. With the growth in domestic infrastructure, it is becoming a frequent mode of commute. The market is still very fragmented, and I believe we can consolidate everything to provide a better user experience,” Magow said.

 

“We also want to scale up ancillary services like Visa and foreign exchange, which will cater to the additional needs of travellers and subsequently give travel a larger share of the wallet,” he added.

 

Talking about the upcoming Union Budget, Magow said a growth-oriented Budget, with sustained capital allocation for infrastructure development, will aid the sector tremendously.