MakeMyTrip Leans on Hotels, Buses and Cabs as Air Travel Cools

India's largest online travel agency reported gross bookings of $2.7 billion for the quarter ended September, its fiscal second quarter, up 21% year over year on a constant-currency basis. Adjusted operating profit for the period came in at $46.2 million.

Non-air businesses accounted for 63.2% of the gross bookings mix, compared with 61.5% a year earlier, as the company pushed further into hotels, buses and cabs.

Air travel remained the weak point. Domestic departures in India fell 7% during the quarter, while international departures declined 4%. Fares moved the other way, rising roughly 25% to 30%.

MakeMyTrip said it retained more than 30% of India's domestic air-ticketing market despite the softer volumes.

The shift reflects where the Indian online travel market is heading, with competition moving away from flights and hotels toward travel supply that has not yet been fully digitized. MakeMyTrip Group CEO Rajesh Magow has pointed to hotels, buses and cabs as the areas holding the larger long-term opportunity.