Q2 2022 MakeMyTrip Ltd Earnings Call
Reported infections during the second wave.
As of last week over a billion doses of the vaccine had already been out in the start accordingly across the country, which is a significant global landmark nearly $300 million of our own citizens are now fully vaccinated and we expect that number to rise has many will receive the second dose.
In the coming months.
It's encouraging to see that promoting social distancing and use of mass is gradually helping to restore normal fee, which is quickly spilled over to traveler demand.
As of last week, the director General of Civil Aviation or did you see a had lifted the cap for domestic flights restored domestic seat capacity back, 200% and done away with many other restrictions whilst.
While scheduled international flights remain suspended for now India has implemented travel bubble arrangements with 28 countries, including the U S. Canada. The UK, many EU countries, the U a E Qatar and the Maldives.
With declining Covid cases across India, starting November eight the U S will allow fully vaccinated Indian travelers to winter.
Similarly, the U K had already relaxed quarantine requirements since October 11th.
India has also reopened its borders fully vaccinated inbound tourists on chartered flights in mid October. Furthermore, all fully vaccinated inbound travelers can now forego mandatary homecourt NB, if they upload a negative COVID-19, Aki PCR report conducted within 72 hours of travel.
Helping to further use the hassle of travel during the pandemic.
As for our domestic accommodations business more than 90% of our top selling hotel properties are open and actively taking bookings the availability of hotel supply.
It's helping to solve the strong recovery across leisure cities as we recently registered our highest single day of check in since the pandemic started in.
In fact across many leisure cities, we have now surpassed pre pandemic room nights booked on our platform as for our domestic bus business. We've also witnessed steady recovery in supply with more than three quarters of the private bus operator capacity at about 85% of government operated bus capacity restored entry.
October.
As you can see we believe that domestic travel is rapidly coming back going to high vaccinations and low daily infections.
As we sit here today the team and I are increasingly excited for the prospects of rising travel activity starting with this current festive season and in the quarters to come, especially once multiple are fully vaccinated and cross border travel becomes safe and nearly as effortless as it was before the pandemic.
I've shared before travel is innate and all of us humans.
Our mission is to help facilitate the best possible end to end experience for our customers from traveled research and booking all the way through to on trip support to help fulfill this need in the digital age.
We hope we've seen the worst of this pandemic and we will get back close to pre pandemic domestic demand recovery in the coming quarters.
But even more enthused by the fundamental shift in buying behavior that has taken place during the last six quarters. A recent comment from Red seal consulting is predicting that E. Commerce users in India will reach 500 to 600 million by 2030 up from the roughly 150 to 200 million.
Today, this prediction, which is likely to play out will place India only second to China in terms of the overall size of online shoppers equating to unexpected Tam or total addressable market of $350 billion, we fundamentally believe that the long term upside for our business remains huge.
And we've continued to adapt and drive innovation to keep pace with ever changing online travelers' needs.
Believe that it isn't this relentless focus on customer experience with our brands that will help cement that make my trip groups market leadership position in the long run.
Now I'd like to ask Rajiv to share some more color on our fiscal second quarter.
Thank you deep.
Hello, and happy festive season to everyone.
Sincerely hope.
You are all staying safe and healthy during this ongoing pandemic.
As deep mentioned, we already in June by the strong pent up demand seen for traveling following their divesting things I can read the good news is the momentum we havent seen immediately following your conviction in early may.
Can you threw out in the reported quarter.
Even better news is that the country has so far managed to prevent any Florida bunker toward wave-off infection.
Thanks to the quick and large scale vaccination program that I've seen over 1 billion doses of approved COVID-19 vaccine administered so far throughout much of Q2, you've also seen the gradual instead, either don't know domestic travel suppliers to help meet the strong pent up demand.
As mentioned earlier the demand recovery, we were confident of getting back.
Turning profitable with our optimized cost structure and declared or did they registered operating brokerage in the quarter.
As you can see in Q2, we continued to write this strong recovery momentum that began following the early may infection speak for the lean travel quarter, when compared to the same quarter a year ago.
Managed to achieve nearly $2 six times the volumes.
In segments in our air ticketing business.
Nearly four eight times the volumes in room nights and on hotels and packages business and nearly two nine times increase in volumes of tickets, but they're not a bus ticketing business when compared to the previous quarter. We managed to achieve nearly two five times the volumes in air ticketing nearly two eight times the volumes.
Linda I could use a nearly 2.1 times increase in volumes.
Within bus.
This was achieved as the country did not fully shut down during the second player in the business recovery momentum seen in June continued.
Sequentially all throughout Q2.
Now allow me to provide some current quarter to date trends by line of business.
Starting with domestic hotel and packages, which is seeing an 80% of the company in October so far today, nearly 90% of domestic hotel room capacity was opened at our top selling hotels, which includes virtually all chain hotels across the country.
While the early phases of recovery was driven by the higher end branded hotels and to drivable.
Alicia destinations, we are happy to see that the domestic recovery is now broadening.
Oh to include budget hotels business definition and flavor leisure.
And Flyball leisure destinations. In addition, we are.
Seeing domestic room nights booked at all major change on our platform growing year on year and also seeing business in many leisure destinations have either fully recovered or exceeded pre pandemic levels of volumes.
As for our alternative accommodations business in October we've seen recovery of nearly 85% when compared to the same month, three pandemic with bookings or realized significantly higher than pre pandemic.
Allowing the because I can read them our team prepared for further expected pent up demand for domestic travel.
We launched the luxury collection by Curating and offering customers over 250 ultra premium returns.
And then enhanced the listings content to drive better conversions.
We also launched looks packages with these premium what else to offer special amenities and features to enriching customer stay experience as Florida brand going be bolt, we improved the location and points of interest to help customers find hotels easier within their booking funnel, we introduced travel insurance to aid in cross selling similar.
For our alternative accommodations experience, we improved the discover ability of properties, but the new landing page and our dedicated homestead funded and introduced a new entry point within that I mean are those funded.
Now, let me share some of the highlights from our air ticketing business, where the market's recovery or passenger flow and now stands at 63% versus deep endemic peak in January of 2020 as expected the domestic air market has steadily improved as demand for travelers sharply return in line with the containment of new infections, even more than that.
Is that on a book basis October month to date, we are seeing a 90% recovery sofa, indicating the strong travel demand for this year's peak travel season, where we are.
Seeing top sectors booked like daily go off on Weibo and hydro Bud go all exceeding deep into make levels already naturally as the clear market leader our performance outpaced market as we have logged the 72% recovery. So far in October on a daily basis, while international outbound flights are still.
Fairly restrictive we have also seen traction in destination there to open two vaccine Mexican entered Indian travelers, we expect as more countries open their borders outbound travel will once again be up Australia road, but our air ticketing business in the meantime during Q2, we continued to enhance our shopping experience by introducing.
A quick book.
Ongoing because mobile website.
The more we continue to broaden our offerings with the armed forces student senior citizens and especially fast.
We also launched the 100% refund policy to travelers who have tested positive for COVID-19, and also enabled our Florida recognition cards.
Into our apps.
Making translate a bit more effortless.
Also recently announced our.
Our partnership with Paul one of the top travel booking apps in the U S.
Later tells and car rentals to help travelers.
Save money with personalized recommendations and flexible booking capabilities through this partnership.
Aimed to further enhance the flight booking experience by boosting our recently launched price locked feature all post price fish technology will follow make my trips by small creature and enable customers to lock in flight by flight fast.
Up to seven days, while they are in the process of forming up their travel plans.
Now I would like to share an update on our Red book business.
Very recently in late October we have seen a recovery of about 70% of pre pandemic levels with some regions like eastern and northern parts of the country.
130% or 90% recovery, respectively today, nearly 75% of all oil private bus operators and 84% of government and regional Transport Corporation operators supply back online during the quarter, we work closely with multiple operators leveraging our real time data.
To help them at the right inventory on key routes to better optimize resources doing the ongoing recovery within the bus ticketing business you also witnessed firsthand the rapid.
Digitization caused by pandemic, which has helped us gain new customers.
Sleep, we heard previously announced framework the programmer for top rated bus operators to showcase their onboarding services I'm glad to announce that today, we have more than 800 buses co branded does braemar buses on the road across India.
Truly we have also seen a great amount of interest and bookings for this experience from a user base now.
Now I would like to move on to share an update on our other ground transportation business, which includes real ticketing and cap rates during the second quarter. Our standalone. Other ground transportation business also recovered to 85% of pre pandemic levels and has also helped to contribute to nearly 25% of overall new users to our platform.
Within our intercity and airport transfer gas business, we have revoke the funnel functionality to offer greater degrees of cabs and windows.
Introduced premium cab offerings with standardized amenities and train drivers as for a real ticketing business. We also launched triple Guaranty bookings.
Which offers a three extra value.
Back to customers in case their desire to be able to get remains unconfirmed, allowing them to book last minute and more costly alternative like <unk>.
Flight scabs or buses to undertake their journey.
The early successes, we have seen for this product doesn't make much of it we are now rolling it out to everybody uses as well. Additionally.
Additionally, the free cancellations feature available with real ticketing offering greater flexibility to customers to cancel real tickets in the last minute.
If they wish to without paying higher penalty charges.
Lastly, we are seeing good traction on corporate and SME travel revival.
In fact in October we have seen their live full recovery versus deep endemic helping to drive. This strong recovery is the conversion of new accounts pipeline during Q2 as the team acquired nine new large enterprise accounts.
201, new mid size accounts, and 385, new SME, helping us to surpass pre pandemic level of active customers using our services and reached an all time high inactive accounts in September we continue to see industries like E learning real estate biotech and <unk> services.
Making a full recovery in corporate travel relative to pre pandemic days.
Clients see the need to deploy their sales team put in person client meetings.
As you can see we are excited to see the very fast and strong recovery for travel demand as shown in our results for Q2 and continuing into the festive season of Q3, so far going forward, we plan to continue to position our products and experiences.
Captured this inevitable pent up demand for travel and other leisure or business and leverage our optimized operating cost to retain and expand our market leadership in years to come.
With that I would like to hand, the call over to Mohit, who shed more color on nonfinancial results in Q2.
Hello, everyone.
I hope you're all safe.
We report the first full recovery quarter Collyn, yes, highly infectious second Covid wave.
Earlier this year.
It's a good for us to see because travel activity.
<unk> has been stronger than the pace of recovery experience.
What was the first week of October.
During the second half we did last year.
Ever since the onset of Covid.
Our focus has been on tight cost control.
The ongoing journey to <unk>.
Oh gosh.
So that bodes well.
Last six quarters, we have been able to significantly bring down fixed costs and also build efficiencies and variable expense.
Marketing and sales promotions.
The highlight of this quarter.
Approximately just a bunch of people some business activity compared to same quarter a pre pandemic.
Another 19 M D.
If we could deliver registered operating profit of about $6 6 million.
Adjusting for the noncash depreciation and amortization expenses.
Operating cash profit.
$10 5 million positive.
<unk> gross bookings.
$744 million the newly would assume level achieved in Q4 of FY 'twenty, one just before the second deal.
It doesn't India.
Gross bookings have increased by over 243% year on year in constant currency comps.
He is vital.
Question on a quarter on quarter of business.
Thanks to the strong business recovery towards the second base.
Equally versus the same quarter of prepayment <unk>.
Our 49% what is encouraging is that the.
Accordingly in September 'twenty, one was stronger at 62%.
Moving on to our business segments.
And just to remind him stood at about $36 million, representing an increase of three two times the level achieved during the same quarter, a year ago and more than doubling from the previous quarter in constant currency drops.
Our sustained strong market share.
<unk> business continues to help us.
This line of business has proven to be a lot more resilient right when compared to other cloud services.
It seems like the only fingers towards the pandemic waves.
Our market share in domestic markets continues to be close to 30% of our tickets booked.
The settlement of a digital company and domestic air segment compared to the same quarter pre pandemic.
1920.
At about 68% coupon with domestic air business when you get to full recovery by the end of the next quarter or by December 21.
The adjusted margin corner, who doesn't packages and this increased to $35 $5 million in Q2.
Six four times the registered modest same quarter, a year ago and nearly triple the existing margin achieved in the previous quarter in constant currency terms.
It's difficult when you compared to same quarter of deep endemic fiscal year 1920.
Signs of about 16% and we are hopeful to see full recovery by the end of this fiscal year.
That's what our bus ticketing business.
The quarter's adjusted margin stood at over $9 million, representing a three two times improvement.
You don't have all of it.
And double registered my view assume from the previous quarter.
Lastly, the adjusted margin.
$4 $2 million, representing in young unit go man offering covering off of one four times and increased by almost any type of thing.
The biggest quarter in constant currency terms.
During the reported quarter.
We continue to invest behind getting share in the rapidly recovering some of the market you also business operating units.
Optimized cost structure, helping us to return to positive operating cash flow for the quarter.
Fixed costs are there.
Personnel expenses came in at $30 2 million on us.
The slight increase of over $2 million compared to the previous quarter, but still significantly lower than the same quarter deep endemic fiscal year 'twenty expense number of $46 $7 million.
During the quarter, our marketing and promotional expenses stood at about five 4% of gross bookings compared to same quarter preparing that makes the screen here might be in 'twenty.
When it stood at about 9% of gross bookings.
With the rapid scaling of explanations and medical infrastructure who's the learnings from the secondly, we believe we could see a full domestic travelers liquidity well before.
At the end of this fiscal year, we hope to see gradual relaxation and international Chairman, who is the festive season in India.
Friction remain under control.
But we continue to focus on maintaining strict cost discipline, while making the right long term investments towards domestically.
We believe our cost management efforts, along with improving market share some best in class customer experience with three strong brands has laid the foundation for the next cycle of profitable growth for the group.
Rent growth continues to be the leading bus brand with potential putting into our Ponzo ground transport services. Both make my trip I'm glad people continue to be the top two meeting will be of that based on gross bookings on a just a commodity auto beer margins as you recall in the Indian travel market with.
With profitable operations might be 150% off coupon with limits. We believe Metro group is very well poised to ride the ongoing recovery in gas travel industry in the quarters to come with its meeting we'll be able to act and both brands has been as the balance sheet strength.
About half a billion dollars of cash cash equivalents with that I'd like to turn the call over to the operator for Q&A.
Hi, Corrado.
The Sky Am I audible.
Yes.
Hi, Congrats on a great set of numbers.
Couple of questions. The first question is would like to better understand how has make my trips competitive positioning changed within the budget and the alternate accommodation market penetration rates maybe.
It may be much lower I understand that the large chains and the mid segment is sweet spot for me quite it has has always been the case.
But within the budget and the alternate accommodation.
How has the competitive positioning change.
Compared to the pre pandemic.
Yes, Hi, Glen maybe I can take that.
God of Srs alternative accommodation is concerned.
The story has been actually very very positive.
Bullet on account of <unk> and other new consumer trends sort of emerging in a big way, where the preference was also to go in false included Oh, you know accommodations, they're small from a safety standpoint, and so on and <unk> and <unk>.
On the other hand also on the supply side. So we have been ramping supply on alternative accommodations are all true or and you know in a much more accelerated fashion.
You know from the pre pandemic levels, given the fact that a lot more properties that are now sort of coming into the supply ecosystem.
So it's been a great story, so far on border accounts, even with respect to competitive positioning in the market.
From a broad standpoint in that segment we're.
We're already doing.
Similar to from a recovery standpoint, almost close to the same numbers on a run rate basis that are as.
If we compare that to the pre pandemic level.
So we are quite happy.
As you had also called out in the past.
And that we were investing behind in this segment in any case for the last couple of years in terms of.
You know just a product experience enhancement. The B also launched a dedicated unless you pointed out.
As well as the supply ramp up so all in all our you know.
The story is very positive and we're quite optimistic in our in our you know even in the future. In this segment is going to grow and we will be we are going to definitely have.
So a very strong position in the market with respect to this segment.
Srs budget is concerned as compared to the last the last quarter.
You know where the recovery was a.
Mostly led by you know the chain hotels, the premium category of apparel, given the super premium category or else.
This this quarter that we're reporting out and as a as we see and even in <unk>.
You know our current money.
The budget segment also seems to be now recovering nicely.
You know with all the demand segments, which are sort of the.
Which focus on more budget segment had a degree of hotel and accommodation.
Or be it a student's slowly and gradually also the small and medium enterprises.
You know who almost like.
From a consumer behavior standpoint behave like the retail customers that is also beginning to come back as we were sort of alluding to earlier.
So definitely a much better position to what it was in the previous quarter.
And you know in the coming days and weeks and quarters and it is only going to sort of go back to normal.
Great.
Second question for Mohit specifically.
And Mohit alluded in his comments are for next cycle of profitable growth.
So with the optimized cost structure and further improvement in recovery rates in business do we expect to stay profitable in the near term and secondly, how should one think about deep capital allocation given such strong balance sheet, we have and we are already turn profitable so.
Any capital allocation strategy, the new areas of investment.
Our use of cash that would be helpful. Thank you.
I got it right.
Prior to the pandemic like you've been saying.
We're pretty much where they are not good enough.
Got it.
So plus or minus $10 million.
Non smokers.
Nobody quarter dependent upon.
Worsening state of recovery and you've already seen two ways all the time domain.
If you look at the last week, Australia, which was significantly impacted record.
Despite the first stopping it almost like a washout.
Able to kind of bounce back pretty.
Pretty strongly in the second half and eventually kind of conducted crash Nicky when you put us on a on an operating basis. This year against the system. You are the first quarter was significantly impacted by the by the second quarter.
But again in our cash operating losses of just sheer growth being.
So we were able to kind of have your bridge.
Very tight range and as we have seen some kind of recovery not shipping to.
They are just Mercer it goes to about 50% January concrete evidence and we're moderating.
It doesn't come through and this is Michelle.
I think we'll kind of our expectations.
Kind of explanation the risk now gone through Aspira.
Andy Recognitions Brazilians with Disney Shanghai Bell Circle of infection rates remaining contained despite say for instance.
The festival season in some parts of the country to return pretty etc.
But you will not see a significant rise in infections.
The background of the Horizontals hopefully the next quarter, which is also a.
Otherwise you have a better travel season quarter, considering it coincides with the reservations, etc. We could see recovery kind of hamstrung during year onwards.
Therefore, we believe we should kind of pretty much now remain on a on a on a profitable track unless there is a significant.
Disruption from the pandemic site.
So that's kind of ahead of the first part of your question coming to capital allocation.
Again.
<unk> been calling on no real big plans in terms of.
Larger consolidation opportunity.
But I will consider to kind of remain.
On the lookout for smaller niche investments.
To call out for you guys.
Ross Your question you've called out currently.
Currently our calibre competition side up to now.
Our businesses are kind of actively looking at scaling up that part of the business you're actively looking at.
<unk>.
Scaling up being bad.
Ground transport business, we're looking at getting into existing markets like GCC, where you've already done a soft launch last year and it's getting better.
Looking at the.
Business has been taking to combat some of the international locations, we have broadly the kind of in our areas of.
The growth in our core.
Currently in our areas of investment, but not significant enough glass is up now which are much less.
Thank you so much.
Yeah.
Yeah.
The next question comes from Richard Shane of Citigroup.
Bridget go ahead with your question please.
Hi, Hi, Kenny.
Name.
Yes, yes, yes.
And perhaps one of each of those numbers.
Just a couple of questions on the 800 domestic slight change they get when they train.
Are your market share and there is about 30% on a book basis.
We assume a visit youre right the market Syracuse contracting given all murano.
On a flowing basis because this is an umbrella co investment today.
It won't be much harder transfer component.
So it does look like you gained market share in the fight with us because year number before this quarter used to be around 27, and 28% at 11 sites. So.
Any decent jump in market share and that is that understanding correct.
Yeah.
Q2 <unk>.
Yeah, No I was just going to add Richard if you compare it with the pre pandemic level actually is again up about three three percentage points. He used to be about 26 out of Oppenheimer.
And.
Thanks for that solution and the second question is definitely on the Crane side.
Now it.
Is is that green booking business shifting significantly at least from <unk> in Europe Union in defense at Natick booking on a as a TCE moving from that to Otas and has they are kind of accelerated during the pandemic in your view.
And second question related to that if you can talk a little bit above.
Product development.
<unk> side I know you talked about it in brief but will be more relevant.
Yeah. So we're just on the on the train if you really overall analyze even during the pandemic and even be a pandemic and then there are reasons for that and I can talk about that in a bit but just to talk to you about the trends on the share shift that might be happening. The question that you asked I would say.
To some extent I won't say to a great extent.
The reason for that is is just to hold by overall ICT C continues to be you know startup bama in that sense right. I mean, they are the only supplier.
Second and more importantly, even under product experience, it's not necessarily a level playing field.
Effectively you have to just go through the.
CPC login step. So you you cannot no matter what you end up doing you would definitely be able to move some sort of.
You would be able to grow on rail segment, which is what we have been also able to grow but not necessarily I would say that the you know the.
The share shift has moved at a rapid pace from ICT.
Given the the level playing field on the product experience aside kind of in a question EBIT loss numbers that I saw they continue to be at sort of 85% of Danone online share and rest of all the players in the market put together would be about 15% of the online market.
And largely a rail has moved online because there's hardly any offline.
Through the traditional travel agents that sort of happens so that's as far as the share ship is concerned.
I'm sorry, what was your second question Yeah, just on the product side in the inland business. I know you spoke about something very briefly about trip getting deep.
So just.
Just a little greater color on and with that I don't think our industry Atkins Ricky.
Yeah sure happy to so basically what we're trying to do here to see violate a.
Told you about the transaction share sure that we continue to keep getting a lot of traffic on rate.
So the people will come in in the and the reason for that also is that you know we have on our platform. The railway information system. So a lot of the customers are aware there could be overlap or even the new users. They would come in for not only transaction, but also checking the P&I status and various other things just on the.
Railway is information system standpoint, so we get a lot of traffic say idea was to convert that traffic into transaction and then how do we do that and one of the there given that we are a comprehensive oh travel platform with all the products available. The other alternative transport options retired it might be a good idea for it.
It lifted candidate for example.
And there is a huge number of it lister because that happened Australia as you know.
And that if there is or if there is a cancellation or if even if the customer wanted to last minute sort of for the cancellation happens because he is not BARDA confirmed again.
We're saying that we should be able to give you an alternative.
More of transport.
All right with that the.
The value would be on an average basis, maybe three ex where you will be able to pick up an alternative transport now alternative transport could be a fly it or it could be up.
You know Cabot that you can do the idea here is from a consumer standpoint, and saying listen you know you will be able to complete your journey and not be disappointed with that now I look at the at the back end the way. It works is that you know this is basically a data science modeling behind the team that we have seen based on the data and.
Don cancellation trends et cetera.
How would oh from a drama you know just from a model standpoint would look.
And we've seen good sort of Oh, let's say early early results on that and that's the reason why we are trying to make this formula.
Thanks Lisa.
Just one question and one final question on the train side. So I think you mentioned.
You are getting 25% of your new customers from this filing yes.
Of the new users, who asked the total new users I mean it'd be about 25% are coming through there is yes.
Yes.
Just one final question from my side on a deal that you've done.
For the cancellation protection and I think a fair lock in right.
Talk a little bit about.
What the initial uptake for that has been I know, it's still early days, but.
Yeah sure. So yeah, no it's actually very encouraging to see the if you will recall that this is we already had this feature we had built our own product.
Based on our obviously data our own data and the modeling on top of it.
And we saw quite encouraging results on that early days now.
But in between pandemic disruptions that are happening. So therefore, it was a bit of an up and down but what we have seen decent early traction on that from a consumer point of view in fact deep reaching out to consumers. We also tested the product out there and there and we got very encouraging and positive response from the consumer does well.
And therefore, we partnered would be an interesting idea.
To sort of further strengthened our product offering with the hopper given the fact that they have also done a great job in terms of in their own market in the U S. A in terms of scaling that up.
And with that toward report will come together.
And and sort of further strengthened this whole offering leveraging and comparing notes between the two in our own learnings from our own product behind the scene the way the modeling works and similarly.
Sort of learning from that.
Learnings from their respective market as well and trying to come together and make the product even more stronger.
Alright. Thank you that's it thank you.
Those are my questions. Thank.
Okay.
Yeah.
Next question comes from Ashwin Mehta of <unk>.
Got it.
Please go ahead with your question.
Hi, patents and congratulations on the set of numbers a radish one question in terms of consumer behavior, especially on air ticketing and hotel. So in terms of even planning for a short time frame bookings versus planning over a longer timeframe have you seen a change in terms of.
And given that.
The common infections have fallen how would you kind of compare with the core testing here.
Yep.
No. Thanks, Ashwin and a good question.
Yes, you're absolutely right you know.
Till now till the last quarter it was very <unk>.
<unk> continued to be very last minute and in fact, it became even.
Even more sort of last minute you just from a consumer behavior standpoint.
There was hardly any interim planning happening because even during the weekdays or weekends. The trend was that are you know given the fact that you had the flexibility to operate from.
A remote location as well that you you were just suddenly decided and then.
Sort of check in and are in a place where you can also operate and maybe have some relax name as well.
Now or in the quarter that we're reporting out and more so even in the current quarter that is beginning to change and that is really a good sign in fact that this INR four sort of some in some sense normal behavior coming back where the advanced switches window has now improved.
So there is a bit of a planning beginning to sort of happen definitely for the leisure segment, where now customers have started to plan in advance and one of the reasons for that also is that you know as.
As the market is recovering the fares that started to firm up as well. So you know when the moment that sort of news goes out and then it also triggers the advanced purchase behavior and we had already we've already seen.
That happening like we were seeing a you know like winter season bookings happening around the new year booking happening around the Christmas bookings happening now.
Which is pretty long the long the longer AP AR and also very close to what it used to be a pre pandemic. So so clearly there is improvement I won't say that we've reached to a level off for completely all segments were together at the same sort of trip planning or the advanced which is behavior.
As the pandemic, but but clearly improved trauma from the last quarters.
Okay Fair enough. The second question was in Desert, Elsa, where you talked about that even budget hotels are starting to come upstream in terms of in terms of bookings. So in that light do you think the net revenue margins in the plant starts to move up for us even starting to we've been in the 20 <unk>.
3% range is that so.
So how should we look about look at that in a scenario of any budget starts to come.
I shouldn't on the margin in fact, even if you go back in history, our longer term outlook has been in the range of 18 and thereabouts in any case I mean, you know you might get because of one reason or the other or and sometimes it's a it's a sort of supply side upside also sometimes you end up getting in.
You know in a quarter or which.
Which could which could look higher than the number which was the case I guess in the last quarter last quarter, though the garage take rates are actually pretty good both for their segments as well as the hotel packages and then that hotel and packages were not necessarily driven out of the budget segment.
So those kind of aberrations might play out, but I think from a long term sustained basis, Oh, you know our margins we should just.
Keep around the same sort of range that we've reported out.
Around the 18% Mark kind of number of plus minus.
It is going to be the general outlook on that acreage.
And just last question in terms of alternative accommodation I might have missed that number.
Number of Vienna V in terms of number of properties and how do we compare in its competition across stabilized guesthouses and south apartments.
Yeah sure. So we've been ramping up that inventory as I mentioned, so you know in terms of number of properties, we would be close to approximately about 30000 properties now.
And and catching up and it's hard to sort of you know just compare and see the actual number of our property count so on the competition.
And because of the fact that sometimes are these these are the way. These properties get listed not necessarily sometimes one unique sort of skew. If you will just be using the the you know sort of other commerce commerce.
Industry It Tom.
Equivalent equal into that because of the fact that sometimes these properties get sold as as rooms, only and sometimes there.
All room Villa.
But but it is from our sort of overall comparison standpoint, I think we're right up there in terms of just the number of our properties that are out there.
And we continue to keep ramping up so from all the.
The other lens to sort of see the way we look at it is the sufficient inventory available for pretty much pretty much every city and destination that we are focusing on which is the way we always looked at it even from a hotel inventory ramp up standpoint, but there should be enough selection and choice for the customer for any destination where there.
There is alternative accommodation available so from that point of view, we are like more than covered now, but we will continue to keep it sort of further expanding as we see opportunities out there.
Okay.
And all the best.
Thank you.
Last question comes from Manish <unk> from Goldman Sachs Manish. Please go ahead.
Yeah, Thanks, Jan Hi, good evening.
Three questions from me Firstly just for hips.
You can get some color on our comp getting into a after the acquisition.
Acquisition of flip guide I mean in the last few months haven't seen any change in on ground combat against E. Since that has happened and you know if you want let's pick one competitor out there be lithia clear tape out a booking or anything was whether in your view.
If the contractor that you elected most very young but most closely watching out for.
The companys entity like worsen over the next few months or quarters left probably my first question.
Oh yeah.
Interesting question Manish.
So first part of your question. So have you seen activity going up or unclear trip.
We saw some activity going up and that was I guess combined clubbed with the the overall sort of the sale events that the that they do typical big billionaire and stuff like that and that's <unk>.
Limited to domestic light activity.
And frankly, even before clear trip also flip cards used to do it. So it's not that they have done it for the first time, because you know at that point in time somebody else was poverty.
You know their flight use case.
And so from if you compare it with that I don't think there was anything dissimilar that they ended up doing it. This time around now as far as your second part of the question is concerned which is the competition that we would be very oh.
So frankly, you know the if you look at our competition around in some part of the competition is always a lead as we all know.
I think it's just a highly fragmented at this point in time, So you know it.
And it might differ from a segment the segment standpoint, as well given the fact that we are a comprehensive travel platform you know forever, the airline and a packages segment or let's say for the hotel segment first.
It'll be a completely different into the more like the global sort of otas, whether it is booking dot com and mostly maybe booking dot com and in the alternative accommodation and could be airbnb.
One could sort of also learn from.
And you know right.
You know as as against the only sort of watching them of course do compete in the marketplace, but you know.
These are big.
Big sort of successful players in the global Arena.
You also learn from from their competition and get inspired.
And similarly on the other the transport segment, you'll see it out for the bus segment for example.
You know there we don't really have I mean, there is competition, but there is competition, maybe horizontal use cases, and one or two cases, maybe either the distant are really distant second third position.
But pretty long tail competition, if you will and the United whereas domestic flights market is concerned and you know we we've already spoken about our market share in that market.
You know and there are like now that maybe you need to go there is is my derivatives.
Maybe third one.
It will be very Oh, you're sort of divided and fragmented and of course the rest of the.
In the market.
So I guess, that's the way, we sort of look at it and and they're you know one thing that I think we have always followed that we will watch the competition Oh carefully, but we're not necessarily startup deciding our strategies because of the competition strategies as a market leader, we always will.
We'll try to have our own.
Our strategy and you know hopefully you know in all the times would be thinking ahead from from anyone else in the marketplace. So that's the way we sort of think about this.
And get somebody sluggish in a handful.
My question is just on the shift to online you talked about in the AD business man and other market technicals and know where all this is probably some opex and also due to the shifting online, but it didn't have money hotels in the bus business in particular Atlanta on 19 taken his deep Angeliki is sub 20% is there anything to suggest interim data points or anything.
Our own sense during.
During the pandemic give me like a pretty rapid shift to online and LIFO Kelvin massive technically can you argue potentially see.
As demand recollect anything or any color you can provide.
Not sure.
You know and you know this number will come out as we get back to complete normal.
And we would know exactly how much penetration have gone up but you know if there is our own wallet share increase any indication.
Definitely online penetration has gone up there's no question about it I mean, it's it's it's going to mirror the way it has picked up and any other categories as well no product or services. It is going to be a lag effect because you know on their travel is a recovering because there are restrictions in place so as it recovers definitely online penetration.
Hum would've accelerated now.
Specifically to quantify by one percentage point I think we'll have to get back to an overall normal situation for us to be able to sort of call that out number you know first of all figure that out number from the marketplace and then called out a number but we're definitely would have increased.
It was if I may.
Bring in the old data point, your AR, which was the Google BCD Ah report a pre pandemic, maybe a year before the pandemic, where there was a prediction of this penetration going to 30% of bi.
'twenty 'twenty three or four if I'm not wrong I think the you know be leave me have been an error.
Either.
Come close to about 25% or thereabouts at all.
We're getting there so but we will we will I guess you know with the more certainty we will be able to to see end and calculate in Norway. When the whole market is sort of back end, which is I. My sense is you know fingers crossed on the third way of another couple of quarters.
Got it no. That's helpful. Just wanted to add one point to what Roger said I think Manish, we can use two different surrogate feel while it's very hard to get an exact number like.
I guess, just said, but I think one of the surrogate switches what using is.
The doubling of the size of the market already so I think now there's consensus around the fact that 110 million buyers is probably in excess of 220 to 130 million already some people suggest to $50 million and growing so that fighting up pretty good surrogate it's across the board it might be more pronounced in some sectors and less.
But as we also go you know pretty much across the spectrum with some pretty low value products right from rail and bus tickets going all the way up.
Two international I think we will get the benefit of that and the second one I think it's very clear that one of the biggest hurdles that people face pre pandemic was trust and belief and online payments.
That has been completely.
<unk> crossed you really cross the threshold out there where people have used online payments for the first time, whether it was too you know order something auto order a meal.
And I think that again, we'll give a lot of benefits. So I think there was never an issue on the shoppers and the researchers it was on the buying side. So really the last step of the funnel, which are I think early indications, we've actually seen an appreciable number of new buyers come in on certain segments. So post the second wave when we saw opening up.
On the bus segment, particularly Red bus saw a pretty large number of first time buyers come in we're seeing the same through our nightclub platform solves so its pretty interesting and guide I think a conservative saw would be anywhere north of 50, 60% and hopefully even a 100% more buyers than really ready to buy.
I guess I'm, a deep, but I can I guess last question from me if I may add.
Evening revenues has started becoming a focus area for the company over the last couple of years, but on an absolute basis, obviously quite small right now globally E. H e-commerce companies advertisement revenue that if a person <unk> not even being 1% to 2%. When you think about Nick make it by the platform is there an eaton Vance <unk> over a three to five year period.
Okay. DNV currently undetermined revenues I mean is that something like how do you think about the runway for that evening.
Thank goodness.
Kevin as you know so I think that that is the reason why we heard sort of started this initiative as well.
And we've again <unk> got very very encouraging early trends on back now direct smelly longterm now whether it is three to five years or more we don't know because we are sort of you know we still have to make certain investments in this platform.
Which is in the pipeline and they will come up in the next quarter or so.
You know for us to be able to see and the real potential OPEC, but if we do.
You know when we when we got into it again, Oklahoma benchmark standpoint, that's the way we would think that this could be the ultimate potential now from our point of view I think we will have to just wait for another quarter or two for us to be able to then see see right. Now you just you know within the within the travel ecosystem, you're trying to see we also have to see how does it work or not.
Travel ecosystem et cetera.
And once we are able to do that so far whatever we have launched in more than what they would we have seen we are very encouraged with that.
And Directionally I think it is going to go down that direction, only but I think with greater certainty to pinpoint whether it's going to be an expert in data of a percentage of G. M. B I think I'll hold onto that for a couple of quarters record one could call out that number now.
Now, let's lay ahead, but thank you so much my question in Alabama.
Thank you Manish.
Ladies and gentlemen that concludes our webinar for today. Thank you for joining if you have any follow up questions. Please feel free to reach out to any of US and you may now disconnect.
Thank you. Thank you everybody.