MakeMyTrip Bets on OpenAI for AI-Powered Travel Discovery

This performance underscores a shift in how online travel agencies are leveraging artificial intelligence to move beyond mere search functionalities. By integrating OpenAI's advanced models, MakeMyTrip intends to create a more intuitive and personalized journey planning experience, directly translating user dialogue into actionable booking options. The initiative aims to capture high-intent travel queries more effectively, differentiating itself in a competitive digital travel market. The success of its existing AI assistant, Myra, provides a strong foundation for this expanded collaboration.

The AI-Driven Conversion Engine

MakeMyTrip's collaboration with OpenAI is designed to revolutionize user engagement by leveraging advanced AI to interpret and act upon natural language travel queries. The company aims to use OpenAI's APIs to power new features within its application, focusing on converting conversational intent into structured, transaction-ready outcomes for flights, hotels, and related services. This approach marks a significant departure from traditional passive search, enabling active participation in AI-led discovery. Rajesh Magow, co-founder and group CEO, stated the objective: "When AI is anchored in MakeMyTrip’s proprietary travel data and deeply integrated into the marketplace, it moves beyond inspiration to deliver personalized, bookable outcomes at scale." Oliver Jay, managing director, International, OpenAI, commented on the platform's potential to transform consumer experience, noting, "Advanced AI is not just about enterprises and how they use it internally, but how they can also transform their consumers’ experience and engagement with the platform." As of February 18, 2026, MakeMyTrip (MMYT) stock was trading at $28.50 with a volume of 1.2 million shares, reflecting active market interest.

Competitive Landscape and AI Arms Race

The online travel agency sector is increasingly characterized by an AI arms race, with major players investing heavily in generative AI to enhance customer experience and operational efficiency. Competitors like Booking Holdings (BKNG) exhibit a market cap of roughly $105 billion and a P/E of 30x, while Expedia Group (EXPE) holds a market cap of $22 billion and a P/E of 35x. Both competitors have been actively exploring AI applications, with Booking Holdings reportedly investigating generative AI for customer service and itinerary planning, and Expedia Group leveraging AI for dynamic pricing and customer support. MakeMyTrip's strategic alliance with OpenAI positions it to leverage cutting-edge AI capabilities without the immediate need for extensive in-house development, potentially offering a competitive edge in swiftly capturing a larger share of traveler demand. MakeMyTrip's market capitalization stands at approximately $3.2 billion, with a trailing twelve-month P/E ratio of 45x, suggesting investor optimism regarding its growth and innovation strategy. The broader travel technology sector is experiencing a surge in AI adoption, with analysts projecting substantial market growth and recognizing AI integration as a key differentiator.

The Myra Momentum and User Reach

MakeMyTrip's existing Generative AI trip planning assistant, Myra, serves as a crucial pilot for this expanded AI strategy. Reports confirm that Myra facilitates over 50,000 daily conversations across multiple languages. A significant observation is that over 45% of these queries originate from Tier-2 and smaller cities, with voice-led interactions being substantially higher in non-metro areas. This data indicates Myra's success in democratizing travel planning and reaching a broader demographic, including those in less urbanized regions. The integration of OpenAI's advanced models is expected to amplify Myra's capabilities, leading to more nuanced, personalized, and effective responses, thereby solidifying MakeMyTrip's presence in diverse geographical markets.

Structural Weaknesses and The Bear Case

While the partnership with OpenAI presents significant opportunities, potential risks and structural weaknesses warrant consideration. The reliance on a third-party AI provider could lead to increased operational costs and potential vendor lock-in, particularly if OpenAI's API pricing or service availability undergoes changes. Furthermore, the effectiveness of converting conversational intent into bookable outcomes is contingent on MakeMyTrip's ability to seamlessly integrate AI-generated recommendations with its booking systems and proprietary travel data. Competitors with more mature, in-house AI development may possess a deeper integration advantage. Data privacy remains a concern, as handling user conversations and travel preferences through external APIs requires robust security protocols. While no widely reported specific allegations against MakeMyTrip's leadership directly impact this AI initiative, the broader travel tech sector faces scrutiny regarding data handling. A key risk is the potential for AI to generate inaccurate or suboptimal travel suggestions, which could damage customer trust and increase complaint volumes, a challenge that rivals like Booking.com and Expedia may mitigate with their more established AI models.

Future Outlook

Analysts anticipate that the successful implementation of advanced AI features by companies like MakeMyTrip could redefine customer engagement in the online travel industry. Recent analyst reports from early 2026 maintain a generally positive outlook on MakeMyTrip, with several reiterating 'Buy' ratings and price targets, citing its robust digital strategy and expansion in emerging markets. The partnership with OpenAI is expected to drive higher conversion rates and potentially increase average booking values by offering more tailored travel packages. MakeMyTrip's continued investment in AI, coupled with its strong presence in the Indian market, positions it for sustained growth, although ongoing competition and technological evolution will necessitate continuous innovation.