Mohit Kabra: As far as the medium-term margins or the margins for this year are concerned, Sachin, like we had called out during the last call as well, we would like to kind of consolidate around the 1.5% of gross bookings level or at about mid-teens from an adjusted margin point of view. So this is where we would like to consolidate for the year. And on an annual basis, we’ll continue to look at a small expansion in the coming years as well.
Vipul Garg: Next question in the line of Vijit Jain of Citi.
Vijit Jain: Congratulations, guys, on the great set of numbers. My question is just staying on the last point you made, Mohit, where are we in terms of budget hotel recovery in this quarter? I recall last quarter, you had mentioned 80%, 85% recovery. Where are we have — has that moved up since? That’s question number one. And I would like to understand if you have a — if the reason why you believe these marketing costs can stay at these lower levels is because you can see the budget hotel segment completely recovering, and this is a new normal there as well.
Mohit Kabra: So on the recovery side, we continue to be around the 85%, 90% levels, Vijit, on the budget segment. And like we’ve been explaining, this is a segment which has seen a significant amount of pricing reset and, therefore, is kind of the recovery is slightly lower than all the other price points. And — which is kind of — which is fine from an overall mix point of view, and we do believe that it’s just a matter of time before even this segment kind of gets back to pre-pandemic levels and above. So just an extended period for that to play out, considering the amount of price sensitivity, that kind of the segment witnesses. On the margin expansion side, like we’ve said this year, we have already kind of significantly optimized our overall operating cost, including the customer acquisition costs and have seen a decent amount of uptick compared to the last year.
And therefore, like I said, we would like to consolidate around these levels. The reason we believe if at all, the margin — the customer acquisition costs are likely to go up, this will be in line with our — any changes that would happen on the mix side. So say, for instance, pre-COVID, we have seen hotels and packages kind of contributing for almost like up to 50% of the mix. Right now, we are seeing hotels and packages contributing to about 40% of the mix. And therefore, if the mix kind of moves more and more in favor of hotels and packages over a period of time, where it is likely to, in that case, we could see a improvement coming through in the blended take rates and also a little bit of increase coming in, in the overall customer acquisition costs.
But other than that, we do believe we are kind of in a regime of at least for the shorter term or medium term in a regime of kind of stable margins as well as stable customer acquisition costs.
Rajesh Magow: Sorry, Mohit, if I may just add one more important point, Vijit, a few tips on the budget segment very quickly. Just to put things in perspective, I think it’s an important one. So like Mohit explained that it is effectively the budget segment and solely in gradual recovery because the price point had changed and then the market is taking a little bit more time to sort of adjust to that. But within that, the recovery for any price point more than equivalent to INR 1,000 a room night or more than INR 1,000 a room night, the recovery is already there at the pre-pandemic level. In fact, the year-on-year growth numbers are also robust at about 115%, like about 15% growth rate, achievement is about 115% as compared to pre-pandemic.
So the only segment that might be a little bit behind is less than INR 1,000, which is effectively $14 a room night. Now that was because of the historical reason. It has nothing to do with now demand not coming back. It is only because it was exceptionally lower price historically during pre-pandemic because of higher sort of aggressive push to sort of get that segment going very aggressively on the price points. So from that perspective, I think just on the overall recovery standpoint, from our point of view, all segments have recovered very, very well now.
Vijit Jain: Correct. Next question is just on the air ticketing side now. I know there’s a little bit of mismatch in when you recognize these volumes and what we see in the DGCA data. But it looks like — I mean, Q-o-Q DGCA data shows 2%, 3% decline, right, and your numbers are up. So is that international recovery here? Or is this just that mismatch that you were talking about? And a related question, if you can tell me what your market share in domestics is — domestic air aviation is this quarter?
Mohit Kabra: Generally, I mean, it can be a bit of both. In fact, you typically do see bookings kind of holding strong, ahead of getting into the peak seasonality quarter because people tend to kind of [indiscernible] good pricing, which is available on advanced booking windows. So therefore, you could see a little bit of seasonality tweak happening on the book versus flown kind of reporting. And secondly, our international has been improving. In fact, actually, the mix of international has been kind of improving quarter-by-quarter. In fact, now we are pretty much back to pre-COVID kind of mix coming in from the international side, like we have been mentioning the recovery on international had been slower, but now pretty much kind of back to full recovery and the domestic versus international mix is pretty much restored now.
Vijit Jain: Got it. And Mohit, just your market share in the domestic side?
Mohit Kabra: Continues to be 30% plus.
