MakeMyTrip has introduced its new OneCircle rewards program, offering customers at least 10% back in points on hotel bookings. The move aims to increase customer retention by targeting India's high participation in travel loyalty schemes, with a heavy focus on Tier-II and Tier-III cities.
MakeMyTrip, India’s largest online travel agency, has officially launched its global rewards program, OneCircle. The program covers over 13,300 properties across more than 1,000 cities in India and abroad. This initiative is a strategic effort to increase repeat bookings by offering a minimum of 10% of accommodation spending back in the form of reward points, which customers can use for future stays within the platform’s network.
Targeting India's Growing Travel Demand
The launch comes at a time when loyalty program participation among Indian travelers is at a significant high. Data from the 2026 Marriott Bonvoy Loyalty Trends Report indicates that roughly 93% of Indian travelers are part of at least one loyalty program. By rolling out OneCircle, MakeMyTrip is positioning itself to capture a larger share of this active travel market. The program’s design, which provides points for stays at a wide range of properties—including luxury hotels, budget accommodations, and homestays—is intended to encourage users to book through MakeMyTrip rather than competitors or directly with hotels.
Focus on Tier-II and Tier-III Markets
A notable aspect of this rollout is its geographic focus. According to the company, approximately 75% of the participating properties are located in Tier-II and Tier-III cities. This move suggests an attempt to capture growth in non-metro regions, where domestic tourism has been increasing. Cities such as Gurugram, Bengaluru, and Jaipur currently have the highest number of participating properties, while Maharashtra, Rajasthan, and Kerala lead in terms of state-level footprint.
Strategic Considerations for Investors
For investors, the success of this program will depend on how effectively it improves customer retention and increases the lifetime value of users. While loyalty programs can drive transaction volumes, they also come with associated costs, such as the expense of the reward points and potential impact on profit margins if not managed alongside pricing strategies.
Additionally, the competitive landscape in India’s online travel sector remains intense, with players like Booking.com, Agoda, and Ixigo, as well as direct-booking initiatives by hotel chains, competing for the same customers. Investors may want to monitor how this program affects the company’s take rates—the commission it earns per booking—and whether the increased loyalty leads to a sustainable rise in net revenue. Future quarterly reports will be important for tracking whether the cost of these rewards is offset by higher transaction frequency or increased customer loyalty over the long term.