Connecting India's Next Travelers

MakeMyTrip's Myra 2.0 update is more than just a new feature; it's a strategic shift to reshape travel bookings for many underserved Indians. By focusing on easy, conversational interfaces, especially in local languages and via voice, MakeMyTrip is reaching the 'Bharat' market, a group often missed by typical digital travel sites.

AI Assistant Powers Growth in Tier-2 Cities

Myra 2.0 places MakeMyTrip to strongly target digital travel growth outside major cities. The AI handles the full booking process—from searching to payment—in one chat. This is key for engagement, as voice queries (often in Hinglish) are more detailed than typed ones. The platform manages about 3 million chats quarterly, with over 45% coming from Tier-2 and smaller cities. MakeMyTrip reports a 10% higher conversion rate from Myra users compared to standard booking methods. This AI focus, with local language support (eight languages for voice) and features like passport autofill from images, aims to make travel planning more accessible for many new online users in India.

Rivals Vie for Market Share in Growing OTA Sector

The Indian online travel market is highly competitive, with MakeMyTrip holding over 50% market share. Rivals like ixigo are also investing in AI tools, such as its 'Tara' assistant, to improve user experience. This AI focus reflects changing traveler needs, with AI trip planning expected to be adopted by an estimated 68% of Indian travelers by 2026. The Indian online travel market is forecast to grow significantly, reaching $38.58 billion by 2031. MakeMyTrip's ongoing AI efforts, including a February 2026 collaboration with OpenAI that boosted its stock 7.75%, and an October 2025 deal with Google Cloud, show its dedication to AI. These moves help established players like MakeMyTrip stay ahead of new technologies and direct booking options.

AI Integration Faces Investor Scrutiny, Airline Threats

Despite MakeMyTrip's AI push, challenges remain. Investors are watching how AI affects user discovery, potential commission drops, and the high costs of personalized services. Bank of America noted MakeMyTrip's stock has seen a 35% valuation drop this year, although it still trades higher than global rivals. Rival ixigo's high P/E ratio (90.83-127.70) adds to questions about overall sector valuations. Airlines are also developing direct booking platforms, threatening to cut out OTAs and reduce commissions. An Air India executive noted a year-over-year decline in MakeMyTrip's share of airline bookings, partly due to these direct channels. MakeMyTrip also faces pressure from global competitors like Booking.com and Agoda, which may have reduced hotel commissions.

Analysts Remain Positive, Focus on Valuation

Analysts generally view MakeMyTrip favorably. As of May 12, 2026, three analysts rated it a "Strong Buy" with an average 12-month price target of $101, indicating over 130% potential upside. Other recent reports are more moderate, with five firms rating it a "Moderate Buy" and a $101 price target as of May 5, 2026. Citigroup recently lowered its target to $80. MakeMyTrip's P/E ratio, around 90-100, suggests a high valuation that investors will watch closely, especially with ongoing competition and AI changes in travel. The company plans to announce its fiscal 2026 fourth quarter and full-year results on May 19, 2026.