Skift Take
MakeMyTrip is betting on AI to drive traffic and improve the customer journey. But it will take at least a few more quarters to see results.
Last quarter, MakeMyTrip introduced Myra, an AI-powered chatbot designed to streamline international flight bookings. Myra has since evolved, and currently handles hotel and homestay bookings, providing real-time assistance based on a wealth of proprietary data, including customer reviews.
The online travel company will now be using Gen AI to handle pricing and availability queries, as well as provide personalized hotel recommendations, Group CEO Rajesh Magow said during Wednesdayâs earnings call.
Myraâs success in managing tasks like flight details, date changes, and ancillary services has been notable, according to Magow. âThe chatbot delivers accurate and personalized responses to even the most detailed inquiries,â he said.
One of the most significant impacts of MakeMyTrip’s AI efforts has been in customer service. By deploying Gen AI-based bots, particularly on its bus booking channel â the RedBus app, the company has seen productivity gains and a 45% decrease in customer service agent involvement.
While the early results of AI deployment are promising, MakeMyTrip acknowledges that it will take time for the full effects to materialize. Magow emphasized that although efficiency gains have been realized, especially in customer service, the broader impact on profitability is still a few quarters away.
AI for Trip Planning
MakeMyTripâs AI strategy extends beyond basic customer queries. The company is exploring the broader potential of AI to assist with trip planning, offering more personalized recommendations.
“As we improve the capabilities of the interface, we believe it will lead to better customer experiences and, ultimately, higher conversions,” Magow added.
The iterative nature of AI, which thrives on continuous feedback and refinement, will be crucial in making these tools more intuitive.
The Connected Trip Experience
While understanding that convenience is king, MakeMyTrip has launched a âconsiderably improved connected trips experience.â
It allows users to seamlessly to book other products and services needed for the trip, helping MakeMyTrip drive cross-sell and upsell opportunities.
âTo help consumers who may call their bookings on a single platform, we have launched a considerably improved connected trips experience, completely built in-house on the strength of our data science capability,â Magow said.
The Financials
For the quarter ending September 30, 2024, MakeMyTrip reported $211 million in revenue, marking a 25% increase compared to the same period last year. Adjusted operating profit reached $37.5 million, reflecting a year-on-year growth of about 33%.
While the July-September period is typically a low season for leisure travel, Magow attributed the revenue boost to strong travel demand in India, both domestically and internationally, despite short-term disruptions caused by unusually heavy rainfall that slightly affected demand momentum.
