What do we think about the typical off-season, given what travel demand is looking like at the moment? How is advance booking for summer vacations done?
This is the so-called lean season for holiday travel, as school exams are on and we are in the period between the winter and summer holidays. but non-holiday travel season, such as visiting friends and relatives [VFR], lasting up to 12 months for business or essential travel, such as medical or emergency needs. So, on that front we’re seeing that the meetings, the incentives, the conferences, the expos [MICE] Travel is in full swing. Along with this, chances are also being made for marriage related travel. As far as the advanced shopping window for Indian travelers planning a summer vacation is concerned, this window is not long and varies between seven days to a maximum of three weeks, while Europeans plan their first vacation Let’s plan our vacations. That’s why I don’t want to fall into the trend of advance booking. But there are positives as the inflation rate in India is relatively low, and there is rationalization of airfares and there is a strong consumer sentiment which is evident from our own surveys.
What are some travel trends that were sparked by COVID-19, and still remain?
One trend we’ve seen associated with partially remote work is commuting. Earlier it was associated with weekends or long weekends. But it is expanding and is now visible during the week due to the flexibility of working remotely. The second is the behavioral change that we have seen post-Covid where people are looking to have new experiences through entertainment or travel. But travel is a sweet spot for gaining both experience and comfort. As a result, we are seeing that the propensity to earn and spend, and not necessarily the propensity to save, is gaining ground in developed economies. What contributes to this trend is better access such as through borrowed money or otherwise.
I also want to ask you about travel from India to Indonesia. There are no direct flights as of now, although destinations such as Bali are popular among Indian travelers. And Indigo has said it will start flights to Jakarta in FY2024. What is the meaning of this announcement?
I think an announcement like direct flight to Jakarta can double the demand for travel from India to Indonesia. It is a very interesting destination. While this is comparable to Malaysia and Thailand, travel time to places like Bali is as high as 12 hours as there are no direct flights, while for destinations like Thailand, it is three hours or more from Bengaluru. So if the travel time is reduced then the demand will automatically increase. Secondly, travelers look for attractions and activities like parties or nightlife and Bali offers almost everything. Apart from this, there is also the Hindutva connection which attracts the travelers too. Fourth, there is the easy availability of vegetarian food which is an important consideration for Indian travellers, but remains a problem for places like Turkey or European countries. And lastly, it is also a global destination for holidaymakers as it sees a lot of tourists from Australia, which is another attraction. MakeMyTrip has grown from just a booking portal for air travel and hotels to rail and bus bookings, homestays, insurance, forex, EMIs for travel, etc.
What is the vision for the company?
Our vision is to remain focused on travel, within which there are many use cases such as retail customers, corporate customers, business to customer business through travel agents. In terms of reach, we will be present across India as far as domestic travel and Indians traveling abroad are concerned. We also have international operations such as the redBus brand which is present in Malaysia, Singapore, Peru and Colombia and we are keen to take this to other large international markets. We have also expanded into the Gulf with flight and hotel bookings in the UAE and have taken it to Saudi Arabia, which is looking to develop its tourism industry on the lines of Dubai or Abu Dhabi. Since there is a language barrier, we have created a platform in Arabic as well. Our legacy international market is also travel between the US and India, which caters to the US but it is a limited market. Broadly speaking, our market is Indians traveling in and out of India.