MakeMyTrip’s marketing and sales promotion costs increase by 31.2% in third quarter
MakeMyTrip, a popular travel platform, has recently experienced a significant increase in its Q3 revenue, marking its highest quarterly revenue to date. According to a filing with the US Securities and Exchange Commission (SEC), MakeMyTrip saw a 24.8 percent surge in revenue, reaching an impressive $267.4 million for the quarter. This substantial growth represents a notable increase from the previous year’s Q3 revenue of $214.2 million.
During the quarter, MakeMyTrip made strategic investments in advertisement, promotion, and service costs, leading to a 31.2 percent increase in marketing and sales promotion expenses compared to the same period in the previous fiscal year. The marketing and sales promotion costs rose to $47.3 million in Q3, up from $36.1 million, while customer inducement costs also increased to $80.5 million in December 2024 from $66 million in Q3 2023. Additionally, the service costs surged to $77.4 million from $62.4 million, as per the filings.
Despite the rise in expenses, MakeMyTrip’s Q3 profit saw a significant uptick, reaching $27.1 million compared to $24.2 million in the corresponding period of the previous fiscal year. The company’s international business segment experienced robust growth, with international air ticketing revenue increasing by over 32 percent year over year (YoY) and international hotels revenue growing by more than 63 percent YoY.
Rajesh Magow, the Group CEO of MakeMyTrip, expressed satisfaction with the company’s performance, citing a strong growth rate of 26.8 percent in gross booking value (GBV) in constant currency during the reported quarter. This growth rate represented an acceleration from the 22.9 percent growth rate observed in the first half of the year.
The surge in spiritual tourism has also contributed significantly to MakeMyTrip’s revenue. The platform reported that inbound bookings exceeded 1,000 rooms per day milestone in Q3. The hotels and packages business of MakeMyTrip saw a notable 17.2 percent revenue increase, reaching $147.1 million in Q3, up from $125.5 million in the same period last fiscal year.
The bus ticketing segment of MakeMyTrip experienced a 31.7 percent revenue growth, with revenue reaching $31.8 million in Q3 compared to $24.2 million in the corresponding quarter of the previous fiscal year. Profitability in the bus ticketing segment also increased by 30.2 percent during the same quarter.
Overall, MakeMyTrip’s performance in Q3 reflects the company’s successful strategies in boosting revenue and profitability across its various business segments. The continuous growth in revenue from international travel and the rise in spiritual tourism have been instrumental in driving MakeMyTrip’s record-breaking quarterly results. Additionally, the company’s sustained focus on strategic investments in marketing and sales promotion has contributed to its strong financial performance in the recent quarter.
