Skift Take
When EaseMyTrip went public, it had planned to diversify its business by focusing on growing its non-aviation business, and now it is doing just that.
Bulbul Dhawan
Indian online travel company EaseMyTrip plans to focus on growing its non-airline businesses in fiscal 2025, the company’s co-founder Prashant Pittie said in an earnings call on Friday.
In the January-March 2024 quarter, the company’s hotel division saw bookings increase by around 40%, while bookings in other non-air divisions, including holiday packages, activities and train bookings, also increased by 53%.
“We expect significant growth from our non-aeronautical businesses,” he said, adding that the company’s focus on growing its non-aeronautical businesses in recent quarters has led to improved profitability.
“This area will continue to be a focus next year,” Pitti said.
But the company also plans to continue expanding its aviation business: “Indian aviation is expected to grow at 15 percent annually for the next decade. No other country is expected to see over 100 new airports within the next decade.”
EaseMyTrip Q4: New Initiatives
The company has implemented several initiatives to drive growth in the fourth quarter of fiscal 2024.
- Affiliated credit cards: During the quarter, EaseMyTrip launched a co-branded credit card with Punjab National Bank, expanding its reach to the bank’s customers. EaseMyTrip’s competitors MakeMyTrip and Yatra also have co-branded credit cards with various banks.
- Offline expansion: The company opened four franchise stores during the quarter to expand its offline reach. Pitti said the idea behind the franchise stores is to cater to the needs of customers in smaller and mid-sized cities who prefer to buy holiday packages offline.
- New Hotel in Ayodhya: E-MyTrip has acquired a 50% stake in Jeewani Hospitality to develop a 150-room hotel in Ayodhya, which will be managed by Radisson Hotel Group. However, this is a temporary exception and the company does not plan to continue with an asset-heavy business model. “We want to acquire only asset-light business models, profitable businesses,” he said.
- Entry into the insurance industry: To diversify its portfolio, the online travel company has also entered the insurance travel segment, where EaseMyTrip envisions operating as an insurance brokerage. “We’re not looking to become an insurance company,” Pitti said, adding that the company entered the segment after realizing that there is a 75% overlap between people who book tickets online and those who buy insurance online.
