MakeMyTrip (MMT), established in 2000, has evolved into India’s leading online travel company, offering a comprehensive range of services including flight bookings, hotel reservations, holiday packages, bus and train tickets, and car rentals. The company’s business model is designed to generate revenue through multiple streams, leveraging its extensive network and technological platform to cater to the diverse needs of travelers.
Primary Revenue Streams
1. Flight Bookings
A significant portion of MMT’s revenue comes from flight bookings. The company purchases tickets in bulk from various airlines at discounted rates and sells them to customers with an added commission. This strategy allows MMT to offer competitive prices while earning a profit margin on each ticket sold. Commissions from airlines typically range between 3% and 5% of the ticket value.
2. Hotel Reservations
MMT has partnered with a vast network of hotels, both domestically and internationally, to offer accommodation options to its users. The company earns commissions from hotels for each booking made through its platform. These commissions can vary but generally fall between 10% to 15% of the booking value. Additionally, MMT offers bundled packages combining flights and hotels, providing convenience to customers and higher margins for the company.
3. Holiday Packages
Beyond individual bookings, MMT curates holiday packages that include flights, accommodations, and sometimes additional services like guided tours and meals. These packages are often tailored to specific destinations or themes and are sold at a bundled price. The company earns revenue through the markup on these packages, which is above the aggregated cost of the individual components.
4. Bus and Train Ticketing
Expanding its services, MMT facilitates bus and train bookings by partnering with government and private bus operators and the Indian Railways. For each ticket sold, the company charges a small commission or convenience fee, adding to its revenue streams.
5. Car Rentals and Airport Transfers
MMT has collaborations with car rental services and local operators to offer airport transfers, local travel, and outstation trips. The company earns a commission on each booking made through its platform, providing users with comprehensive travel solutions.
6. Travel Insurance
To offer a complete travel experience, MMT provides travel insurance options to its customers. The platform partners with insurance companies to offer policies that cover trip cancellations, lost baggage, medical emergencies, and more. MMT earns a commission from the insurance providers for each policy sold through its platform.
7. Advertising and Promotions
With a substantial user base, MMT’s platform is an attractive space for advertisers. The company earns revenue by displaying advertisements and promoting various travel-related services and products on its website and app. This includes sponsored listings, banner ads, and exclusive deals from travel partners.
8. Subscription Services
MMT offers loyalty and subscription programs such as MMTBLACK and MMTDOUBLEBLACK, providing benefits like free cancellations and exclusive deals. These programs generate recurring revenue through subscription fees and encourage customer retention.
Financial Performance
In the third quarter of fiscal 2025, MMT reported a 26.2% increase in revenue, reaching $267.4 million compared to $214.2 million in the same period the previous year. This growth was primarily driven by an increase in revenue from the company’s air ticketing business, as well as rises across all product segments, including hotels and packages, and bus ticketing. The hotels and packages segment, MMT’s largest in terms of revenue, saw a 17.2% increase to $147.1 million during the quarter, supported by a 21.9% rise in gross bookings. Additionally, the company’s profits rose to $27.1 million, up from $24.2 million in Q3 FY24.
Strategic Initiatives
MMT continues to innovate and expand its offerings to maintain its market leadership:
- Technological Advancements: The company invests in technology to enhance user experience, such as personalized recommendations, real-time booking confirmations, and a user-friendly interface across its platforms.
- Market Expansion: MMT is expanding its footprint in India by increasing its franchisees by 50% in 2023, aiming to reach a broader customer base.
- Strategic Partnerships: Collaborations with airlines, hotels, and other service providers enable MMT to offer competitive prices and exclusive deals to its customers.
Conclusion
MakeMyTrip has established a robust and diversified business model that capitalizes on the growing demand for online travel services in India and beyond. Through multiple revenue streams, strategic partnerships, and continuous innovation, MMT has positioned itself as a leader in the travel industry, delivering value to both customers and stakeholders.
Shashi Kant is the Founder and Editor of BusinessScroller.com, a leading platform for business insights, finance trends, and industry analysis. With a passion for journalism and expertise in business reporting, he curates well-researched content on market strategies, startups, and corporate success stories. His vision is to provide valuable information that empowers entrepreneurs and professionals. Under his leadership, BusinessScroller.com has grown into a trusted source for in-depth articles, customer care guides, and financial expertise.
