MakeMyTrip Limited (NASDAQ:MMYT) Q3 2023 Earnings Call Transcript

Page 7 of 10

Vijit Jain: And what would be international now as a percentage of your GBP? I know, last quarter, you guys had mentioned something earlier double digits? How is that moved in last quarter?

Rajesh Magow: Same, similar. I mean, it’s not substantial change from what we shared earlier.

Vijit Jain: And my last question is just you know, saying on this international theme, now, in the last two to three years, you’ve launched these programs, like my affiliate in myPartner, et cetera, you working with a lot of offline agents as well. I guess, my question is, how are you thinking about ramping up your international business in the next one to two years? What would be the focus areas there? And if you can shed more light on, how you’re going to use even Ctrip partnership, et cetera to kind of ramp that business up? If you can talk a little bit more about that.

Rajesh Magow: Yes, sure. Vijit, no, I think it’s a great question, given that the recovery is lagging behind, but you know, are we really prepared for when the business comes back and future growth on top of it? And the answer is Vijit, it’s absolutely all set from our side, so, when you look at the levers that you could use potentially to grow international business, given the fact that it is an under penetrated online under penetrated sort of segment, even pre-pandemic, our growth rate was much higher both for international flights and hotels. We are almost sort of restless and waiting for that to sort of open up and from supply side multiple sources of supply on our platform, on the customer side whatever new features and innovation that we could sort of unlock in the international flights for example or for that matter for international hotel bookings.

They’re already. We all have been actually rolled out tested on the domestic side and we are expanding that to the international side. In terms of customer acquisitions, like you rightly pointed out, we made investment in some of the other channels also besides our own core B2C platforms, and they will definitely be sort of helping us grow or get the incremental demand on the international segment, because international segment — international travel market, like I mentioned, it is under penetrated, which effectively means that there is more market offline available as well. So, we do have a channel which is myPartner, which is through the travel agents, we can reach out to that B2B2C sort of demand, coming our way as well. So, whether it is distribution channels or it is on the supply side, including, leveraging the international supply of trip.com and multiple sources of supply, and the product experience on our platform.

So, on all fronts we have absolutely invested, and like I said, we are all set waiting for market to open up.

Vijit Jain: Thanks Rajesh. I guess just my final question to Mohit. The brand campaigns spends that you mentioned in this quarter for both Goibibo and MakeMyTrip. How should we think about that on a going forward basis? I know you have mentioned in the past that some of these expenses are fungible between here and the customer incentive spending, et cetera. But just trying to get a handle on, how to think about it on a quarter to quarter basis? And secondly, the fixed cost overall, which you mentioned is still below pre-pandemic levels. We’re almost there. I think last, we have is an approximate $14 million $15 million a quarter — sorry a month type of a figure in terms of your fixed cost base, is that now closer to $17 million, $18 million?

Page 7 of 10