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AI Fuels MakeMyTrip's Record $10.4 Billion in Bookings
MakeMyTrip has achieved its highest-ever gross bookings, reaching $10.4 billion for fiscal year 2026. This represents a strong 10.4% increase in constant currency terms, demonstrating the company's resilience in a challenging travel market. The online travel firm saw significant growth across its main services, including flights, hotels, and buses.
Strong Fourth Quarter Performance
The company finished fiscal year 2026 with a solid fourth quarter, posting $2.5 billion in gross bookings, up 4.8%. Revenue for the quarter grew 6.7% year-on-year to $250 million in constant currency. For the full fiscal year, revenue increased by 10.7% to $1 billion. MakeMyTrip reported an adjusted operating profit of $189 million for the year, with $46.5 million in the fourth quarter.
Margin Gains Across Services
MakeMyTrip saw notable improvements in adjusted margins across its business lines. Air ticketing margins rose by 13.4%, hotels and packages by 15.7%, and bus ticketing by 29.3%. The 'others' segment also experienced a 37.1% surge in adjusted margins, all in constant currency. Operating results from core activities for FY26 grew 30% year-on-year to $156 million.
'Myra' AI Assistant Drives Engagement
Rajesh Magow, Group CEO of MakeMyTrip, attributed the company's success to strategic initiatives, including the adoption of artificial intelligence. The AI assistant, 'Myra', has played a crucial role in engaging new users from smaller cities and resolving over half of post-booking inquiries for flights and hotels. In the fourth quarter of FY26, 'Myra' handled more than 54,000 daily conversations, showing strong user satisfaction, particularly from tier-two cities. This AI integration is a key factor in improving customer support and deepening user connections.
Market Position and Competition
MakeMyTrip is performing well within the online travel sector, which has shown mixed recovery trends. While competitors like Booking Holdings and Expedia have also reported growth, MakeMyTrip's focus on the Indian market and its AI investments offer a distinct advantage. The company's ability to increase margins indicates effective cost management and pricing strategies. The overall market sentiment for online travel platforms is cautiously optimistic, with a focus on profitability and innovation.
Outlook and Potential Risks
Despite strong results, MakeMyTrip faces potential risks from global economic uncertainty, fluctuating fuel prices affecting air travel, and growing competition. Regulatory changes in the travel industry could also present challenges. However, the company's strategy of integrating AI and expanding into smaller cities positions it for continued growth. Analysts generally maintain a positive outlook, recognizing MakeMyTrip's strong market standing and execution.