It’s been an eventful year for India’s largest online travel agent (OTA), MakeMyTrip. For one thing, it isn’t really all that Indian anymore after Chinese travel giant Ctrip, a stakeholder in the company since 2016, acquired a controlling stake in the company through a share swap with South African conglomerate Naspers in April. While it takes Ctrip’s holding in MMT to 49%, Naspers now owns 5% of Ctrip.
The deal cements Ctrip’s status as the largest OTA in Asia—serving as a bulwark against global competitors like American companies Booking Holdings and Expedia.
The Ctrip wind beneath MakeMyTrip’s wings
Caught in a seemingly endless cycle of discounting, India’s largest OTA is some way from profitability. With Ctrip, a profitable Chinese travel giant, now in its corner, can it turn its slowing fortunes around?
India’s largest OTA, MakeMyTrip, has been at the receiving end of investor ire due to its exorbitant marketing and promotion expenses leading to losses
However, with strategic direction from China’s largest OTA Ctrip, experts say that its path to profitability will be faster
International travel, touted as the next big opportunity, will be an area where Ctrip could significantly help MMT
Beyond that, significant synergies are expected to come in product and driving engagement as MMT looks to broadbase its growth