Q2 2023 MakeMyTrip Ltd Earnings Call
We have been at the forefront of this digital revolution, as well and through this year through the yard.
We have invested in facilitated online penetration across different travel segments. We continue to digitize various travel use cases without robust multi product platform with an aim to deliver the best user experience and value.
Coming to business segments now starting with their business, we continue to maintain our leadership position in market share on the back of innovative products and industry first meters. We recently launched quick book feature for our frequent flight bookers. This feature leverages the user's previous booking history and provides there.
Their most preferred flight options, thereby helping them complete the flight transaction Lightning quick.
We continue to build on our new stack of products and features based on data science models.
And as zero Cancelation product is seeing very good traction among amongst travelers. We have recently extended the zero cancelation product for international players as well where international travelers can now have in our full cancellation penalty waiver by purchasing this add on product at the time of booking INTL.
International travelers, who are unsure of their travel plans now also have the option of locking plate prices.
Yeah.
Through our in house price law feature by being a nominal amount.
During the quarter. We also went live with each Dfc smart smart by platform, where each DSV premium credit cardholders can can we cannot only book to get <unk>.
And only book to get maximum reward points, but also utilize their reward points on their travel bookings.
Coming to our demolition business, which includes hotels packages and Homestay segment, we continue to see strong growth on year on year basis, we have seen strong recovery in premium and.
Premium segments, while budget segment recovery has been slower.
Our share of premium and mid mid premium in the overall hotel volumes has increased significantly as compared to pre pandemic levels that helped overall recovery to be almost 100% in hotels and packages gross booking as compared to pre pandemic levels on constant currency basis.
Pandemic has also changed travel habits to a certain extent.
In addition to annual holidays more and more people are now taking multiple short holidays on long weekends and traveling to nearby getaways, giving a boost to domestic tourism, but.
For instance in August we touched at all time high of single digit gains on the independence day long weekend.
Continue to innovate and launch industry first capabilities to serve our customers with best quality experience.
Launched a new flexible payment option for users, which allows customers to book hotels without any upfront payment.
I'll put it to all customers across a broad base of properties customers, who plan. Their trips early have found this is a perfect feature, thereby increasing our share of future bookings.
Regionally in our endeavor to capital group booking customer segment. We also launched a dedicated funding for group bookings firewall more rooms, and besides the price benefit.
Product also innovate around payment policies.
<unk> selection et cetera to make it easier for the customers to do group group booking online during the quarter, we relaunched our <unk> program, which offers to operated affordable properties to customers.
It comes with a money back guarantee a crossover 2000 plus properties spanning deal which covers our main promise of hassle free checking with clean rooms televisions ACN pre buy play we continue to add more properties as we build on customer experience and devoted segment.
We also launched a new use case of our leased space with about 3000 properties and 190 cities to cater to the short stay use case customer.
Customers will now have flexibility to choose stay auctions as per their needs for three six or nine odds with a price advantage as mentioned earlier home sales have been gaining popularity among consumers in India.
And we are investing behind creating more awareness of this category. We recently hosted India's favorite Homestay Awards.
Cohorts kind annual celebration to recognize and reward our growing community of homestay hosts in the Indian market. We received about 2400 plus nomination.
And 15 properties were selected as witnessed by our neutral Judy across various categories.
Our domestic packages product has done phenomenally, well with 166% growth in domestic volumes compared to pre pandemic.
Encouraged by the growth rate, we have ramped up our holiday export steam from 700, and the start of the year to about thousands of men holiday exports. Now. This team operates on a variable cost structure. We also grew our franchise channel from 110 partners to about 140 active partners now.
Turning to our bus ticketing business, we maintained our recovery momentum in the seasonally weak quarter. Our overall bus business gross bookings in quarter, two recovered to 111% of quarter two fiscal 'twenty levels in constant currency terms.
Florida related.
Initiatives continue to focus on driving driving new customer acquisition and better user experience.
Launched at him the booking funnel and robust as the first step towards full localization.
So more than 80% of primary bus operators were on boarded for the instinct refund program, which resulted an issue closure turnaround time improvement from over three days earlier to less than six hours now.
Our other ground transport services, such as inter city gas rail tickets et cetera.
News to scale, well and have already surpassed pre pandemic volumes. This business contributes significant significant new users each quarter to both empty and GI platform major part of this new traffic comes from the non English speaking tier two tier three cities.
Thereby expanding the reach of our <unk> offering into new geographies and user segments. In March 2022, we launched the Standalone lightweight read real Android Android App for our rail ticketing and info services.
As of September the App growth $1 7 million installs and 300000 monthly active users with an AB rating of four to five.
For airport transfer use case, we had entered into an exclusive partnership with Blue smart offering customers, a 100% electric had some free guaranteed and on time pickup and drop experience at the airport what was the launch we have.
We are witnessing a big pickup in transactions.
Our tax rate has increased by over 20% with an NPS of 62.
My partner.
Our other b to B to C demand channels added 2940 travel agents during the quarter, thereby increasing their penetration into underpenetrated areas of the country and taking the total count of about 32000 by the end of the quarter.
Domestic corporate travel is now coming back to near normal and both her my vision in Q2 <unk> platforms catering to this demand segment continued to grow very well.
Carpet business is now more than two times of the pre pandemic levels in terms of gross booking and continues to stare at me.
We have been adding new customers on both <unk> and <unk> platform and the active corporate count has now the store over 39000 small and medium corporate on my beds and 209 large corporates on Q2 D, which is almost double as compared to pre pandemic customer base on product side, we have recently.
Added capability to enable easy integration with the expense management and clients' ERP platform.
Also for the strengthen supplier, both flight and hotel to bring more value to our corporate customers.
GCC business continues to scale organically gross booking value. This quarter has grown over nine times, albeit at a lower base as compared to same quarter last year. During the quarter. We launched our first digital only brand campaign will be unmatched delight team.
Team. This campaign resulted in a sharper uplift for both flight centre dose before.
Before I wind up I would like to reiterate their travel continues to rebound on the back of winning Covid infections and positive consumer sentiment. We have inflation led macro pressure right now, but medium to long term outlook of the industry look very robust I think my trip. We are pleased to deliver consistent strong performance.
Both in terms of revenue and profitability and.
And we continue to believe that as a leading travel company. We continue to garner a major share of future growth in demand on the back of a robust multi product platform and customer first approach.
With this let me now hand over the call to Mohit for financial highlights of the quarter.
Thanks, Hello, everyone.
And I hope, you're all staying safe and healthy.
To start with I'd like to call out that violent operating businesses largely linked LNG on.
Financial reporting is in U S dollars.
Significant weakening of the R&R versus the US dollar by about three 4% during the quarter as a translation and restatement impact.
This notionally effect growth numbers.
Our cash balance as we step into us dollars and as a result is that at constant Forex impact is higher.
The quarter, hence our focus on growth in constant currency to reflect the stronger growth in the operating balance sheet.
As highlighted in the last couple of years during the pandemic.
Our focus on tight cost control and operational profitability in view of the business uncertainties from disruption and private services as they are.
Returning to business normalcy, our focus during this fiscal year.
On business activity and growth with operating leverage in the business.
We internalized profitability.
During the first half of the fiscal year seem gross bookings growth to 27% year on year in constant currency terms and the assistant property does come in at about $31 6 million versus a loss of $2 million in the first half during last fiscal year.
We are glad to report that for the first half.
Just the operating profit came in at about one percentage point of gross bookings in line with our targets and estimates.
The adult brand highlights for the quarter is that despite Q2 being a seasonally weak quarter in the <unk>.
<unk> headwinds, we continue to see the volume driven demand and that has helped us achieve broad bookings of one $5 billion, which is about 1% just about 1% lower compared to the seasonally strong previous quarter in constant currency terms.
Our air ticketing adjusted margin stood at about $75 million and extreme 109, 2% year on year growth and 30 standpoint, 8% quarter on quarter growth in constant currency terms, while the traffic was impacted in July and August and picked up during September due to easing of assays.
Bookings due to the festival season in October .
Because they end up all marketing and promotional activities to capture some of this traffic.
Airlines have also helped push the demand to this new consumer promotions on our platform.
On page, you'll also see that the <unk>.
Margins during the quarter have been slightly higher end of our time by 4%.
Adjusted margins for Athens, and packages business stood at about 2% by $4 million during the quarter of witnessing a growth of 74, 7% year on year in constant currency terms and the margins at 17, 2% were in line with our expectations.
And our bus ticketing business.
During the quarter the adjusted <unk> stood at $16 9 million registering a strong year on year growth of nine 8% in constant currency terms no margins at 9% again in line with our expectations.
And just in margin from the other businesses during the quarter. It stood at about seven and a half million dollars.
The keys and 89, 1% year on year growth in constant currency terms.
Our operating costs were largely in line and we continue to be prudent in diabetes and expense, especially with respect to customer acquisition cost as a result of our marketing is just noise in expenses came in at about five 4% of gross book value is almost the same level as Q2 of last fiscal year.
These are very Boston proper.
Profit, our adjusted EBIT of about $15 1 million.
The quarter, adding the noncash expenses.
Cash operating properties I'd anticipate EBITDA stood at about $18 7 million.
As competitors in first line renal.
In the same quarter last year.
The quarter, we acquired an additional equity interest in controlling stake in simpler technologist private limited company engaged in managing who do that site with <unk>.
Indian capacities in India. This was largely then why our plan or even the strength in the company, which will not only help them scale up in India, but also it is their offerings and new lucrative market like United States very speech can bode well for the long term prospects.
It's important.
We continue to leverage our strong brands and cash position to drive investments in areas of future growth.
Before I end, let me share a quick update on the recent CCA Aldo.
We had communicated receipts of the public part of the 19th optimal.
We have received Evangeline Gerardo on Glen and I ended up toward the order is available before the national companies, all Appalachia vanilla of India.
Two days of receipt Theyre currently within the auto and we believe we have a strong metrics in the case.
Working with our external legal content in determining our future course of action.
With that I'll turn the call discipline for Q&A.
Thank you Mohit <unk> show any participant who has any questions can please.
Click on the reason option and they will on mute them. So that they can ask a question.
Okay.
We'll just wait for a moment for the Q2 Assembly.
Hugh.
First question is from the line up for Bryan Leblanc.
Brian you mean on mute yourself and ask your question.
Hi, good evening, and happy Diwali to the management team congrats.
Congrats on a third street cutoff I R S profitability.
On this front could you let us know your views behind how you intend to manage economic operating expenses in the long term and how this might translate to higher levels of profitability and a second one if I may how.
How do you manage customer engagement costs on the air ticketing side and how should we think about this in a long term. Thank you very much.
Hi, Brian maybe I can take that.
Like I called out the continuing to be very prudent on the customer acquisition cost overall and therefore, we do believe this contingency.
In our marketing and promotional expenses.
<unk> much lower than what they used to be.
This is a pre pandemic times.
If you would recollect no pre pandemic, the marketing and sales promotion expenses used to be about nine to 10 percentage points of gross booking.
Although we achieved much higher pneumonia about close to about 14% way back in 2017 of these will largely come in light of the significant investments that we are doing in terms of kind of building.
Online penetration in the hotel business or the accomplish in business and also driving significant amount of customer acquisition on the mobile platforms, particularly mobile apps, which were launched between 2015 to 17.
This was largely in keeping with that assessment and customization on mobile platforms as well as in the hotel category. We've continued to see.
Good growth in both of these areas as a result of things you'll see the efficiencies coming through.
Now the customer acquisition cost is close to about.
Five four percentage points of RASK booking.
We do expect a little bit of an increase coming in in the customer acquisition cost.
And this could be scaled up to about 6% or so but this would largely be in line with.
Todd.
Revenue mix kind of ethanol once again and moving in favor of hotels pre pandemic I would like to kind of restore listen that the mix of hotels in the in the revenue mix used to be close to about 50% plus you are currently a little short of that because the recovery and the accomplishments macmahon is this.
Slightly lagging the TWC segment, but as that kind of catches up we do believe the overall blended margin velocity and dwell a little bit and there might be a slight increase in the overall.
You know customer exit cost as well.
Coming to a slightly longer term you know operating margins, we should continue to see operating leverage coming in from scaling up because as we know the ESG any significant increases in the in the customer acquisition cost in the near term to each other so that should really help us.
Improved operating profitability year upon year and this is what youre kind of seeing.
In the current first half also compared to what we had seen share maybe in the first half or second half of last fiscal year.
Thank you very much that was excellent.
Thank you Brian .
Next question is from the line of Lester Lester Hugh you have been on mute you may annuity ourself and ask your question. Please.
Alright, I had noticed that stake.
It's also about the customer acquisition cost.
In the last earnings call you expected.
The cost to increase in this quarter, but actually it was about the same or each of these by lower is that due to <unk> factors like brand name you spend less on brand name or other.
Variable factors. Thank you.
Alastair Yeah, you know I think we've been able to kind of keep.
Keep this.
At much lower levels than we had expected.
Yes to some extent it has also been because you know.
One of the brand campaigns that where clients cannot neglect pushed arne because we weren't really seeing as significant.
Yes.
The strength and the recovery on the on the accommodation side as we had expected.
This kind of campaign is kind of now planned in the next quarter, and therefore cannot possibly see a slight kind of increase coming through in these expenses in the in the next quarter, but you should also be kind of arena.
Getting pretty much offset by the improvement in the in the in the volumes.
In the in the seasonally better quarter of Q3.
Okay.
Okay. Thank you.
Yeah.
Thank you Lester.
Anyone any participant who wants to ask a question can please click on that as an option.
At this point of time, we have no questions. So we'll wait for a couple of minutes.
Okay.
Our next question is from the line of that'll be sharply there'll be you can on mute yourself and ask a question. Thank you.
Uh huh.
It was.
Competitive intensity do you mind spending a few minutes come back what's your sense today and maybe.
Okay.
Okay.
Sure Tobey.
Let me just give you a sort of short.
Overview of the competitive dynamics in the market.
And you know for us given that we earn on segment Plaid. So the way we sort of see the competition as there is specific to a particular product can be offering so let's say about our domestic flights on an overall air market post.
So the overall competitive dynamics remain the same there is no real change from what we what we've been seeing for last couple of quarters or more it continues to be the same there is down there is some bit of sort of the consumer promotions push from.
In the market and part of that Oh by the way is also from the airlines because so cannot be enable really is.
For every one to sort of build the volumes.
And given that.
If the recovery is still sort of sharp on in volume terms short of full 100% recovery.
In the domestic air market, So no real change from what we had been seen in.
In the past it continues to be the same and coming to address market down in our competition. There is the global players whether it is booking dot com on Expedia on Airbnb.
For home stays market.
And again, they're also we haven't really seen now.
Any significant change in terms of any.
Sort of aggressive competitive activity picking up on <unk>.
Going ahead, and making some investments in the marketplace from the competition. So again cure. The competition is largely focused on get on the back of the product strengths are the supply trend.
In general.
And not necessarily driven by.
Aggressive sort of promotions, if you will and come into bus segment around.
Given that we were the market leader by far there as well.
There has been some competition for bus focused or ground transport focus otas at the local level whether it is.
Zero ppm.
And to some extent on the on the horizontal side.
Again from there also.
If I may say, so we have actually seen the intensity coming down a bit.
Relatively relative to book too.
I would say a couple of quarters ago.
And overall.
And as a result of that we would have actually gained share.
On our segment in this quarter that we're reporting out.
Latanya sound like that was really helpful and if I could just get one shot one one.
It's something that I didn't actually internally discussing maybe out of occupancy gains.
Is there a plan for a costly thing at all.
Hi, Sandeep, you mentioned cross listing.
And only thing in India, and many of them are.
And of course with our earlier also that in.
Two or three key considerations.
This is Vince will consider lifting in India.
As far as you know.
The need for claims is concerned we don't really have any part in all our.
Foundry right now because it kind of well capitalized they're working on over $400 million and be on the balance sheet cash cash equivalents. So that's not really a driver under that I will be overall shareholder value creation and unlocking.
And also kind of going to leveraging the significant downturn.
Brand strength that we have in R&D in the operating market.
The one thing that they're kind of confusing.
A couple of presentations, which will be which is bringing this really drives the parkway will be one.
Seeing the impact of the pandemic over the last couple of years I think we're gonna very keen that we should see that business getting back to kind of an outgrowth of our pre pandemic levels.
That remains a key agenda.
Okay.
And the other is kind of an orange letting them be.
The candidate.
Operating model continues to be.
Profitable entities operating leverage coming through this has got demonstrated over the last two quarters.
We continue to remain on the spot.
That could possibly kind of you know open the open demand.
The prospects of what our policy in India as well.
Yeah.
Great great. Thank you so much that's all for my good luck on the future.
Thank you.
Thank you there'll be the the next question is from the line of agitation the shape or the day, you can annuity ourself and ask your question now.
Yeah, Hi, just.
Just a couple of quick questions from my side, Firstly can you give us a sense of the market share in each of the segments just broadly what could be the shared and how it has moved up maybe in the last couple of quarters. If at all it has smoked.
And secondly on the adjusted margin percentage, we see some fluctuation on the air ticketing side over the last couple of quarters. So it came down in Q1 back up again in Q2 is that purely a function of air fares going up and down or is there any kind of structural change in the way.
We make that just imagine that in terms of commission or maybe Atlanta promotional activity et cetera.
Those are the two questions yeah.
So like Dennis Carlo.
The fluctuation in the <unk>.
The adjusted margin percentage for the air ticketing business.
As Leen, 19, obviously kind of a more sudden kind of pushes SBC coming in from the incumbent Airlines. So that's that's one of the key reasons.
Article attrition over there we've seen it in a fluctuating very significantly through the pandemic. So it's kind of they are linked to the the overall kind of load factor in the olanzapine and the amount of promotional activities that they would want to kind of go into wanted dotcom, so largely coming from that.
Just kind of in our.
Business back to your first question, maybe I can take that more if it was about the market share. Okay. Maybe I can just quickly take that or the peso.
Generally only lie.
<unk> business, where we have the third party or 10 big data market share is actually domestic air because we do get the data from reduce here are pretty much on daily basis on which the director general of Civil aviation in the country I and then.
We clearly have gained share rebrand NAMIC, we used to be at about 27% be today at about 30% of the total market and this is Blake offline online all put together and we also believe in all other segments, whether it is hotels are.
Hotels and packages together.
Or for that matter by segment to me would have incrementally gain there as well given that we have been growing.
When you pick up subtle good data now we've been growing faster than the.
Then the market recovery I'm pretty much on every segment. So I guess directionally just from a trend perspective, we believe that we have been we've been gaining share.
Okay, and just a quick follow up on the adjusted margin again until going forward on a sustainable basis, where do you think that number will lay between say, 6% to 7% odd how should we look at that number.
I think it would likely remain around the six percentage point, but.
It all kind of in a like I said it is linked to one of them what are the kind of prevailing airfares during that particular quarter and behind us and our load factors and overall promotional activity in this particular space. We've seen this blend up to now.
5% plus some other quarters during the pandemic, so I think that little bit of volatility will remain until the overall.
Domestic civil aviation market stabilizers enterprising siblings.
Okay. Thanks, a lot.
Thank God. It there. The next question is from the line up rather than behind it rather you may Please ask your question.
Yeah. So my question was around the market share, but I think you've already taken that up so no question. Thank you.
Thanks Robert.
We'll take the next question from the line of Rishon Kutani, Rishon <unk> therapeutic I ask the question.
Okay.
Hi.
Thank you for the opportunity just wanted to.
And on the postal cost.
The increase it is aimed at.
On a dollar term I guess, if I have to convert it into repeatable scalable equity.
Gross simplistic expenses year over year, but can you just explain how much of this had calculation and how much it is helping increase.
Hypersound and take that business again, I think no more overall.
This kind of an expectation amongst us.
The.
Inflation and the impact to come through.
The slides are coming in from that but not necessarily in terms of significant had call. It creates a larger part of it is coming out stronger.
On the inflationary increases.
During the year.
And notwithstanding any significant had contemplated.
Okay.
It can predict the supervision increased because Victoria.
I need to see because it could also possibly have a combination of enough discipline on roads and <unk> and those on the call centers.
These overall as part of ESG a pod.
Maybe I can kind of understand more details.
Separately.
Alright, okay.
I am not sure if you already answered it's Greg joined <unk> on this look okay.
He said the difficulties with slower.
Is it just for us or is it kind of description of what's happening to the auto industry.
Yes.
Yeah, Sean maybe I can take that yeah. No proceeds what we are trying to say as part of our commentary.
It's actually the overall industry trend for the budget segment overtime.
And just the budget use case say again on the price point per room night go from 500 rupees to 1500 room night carload per segment.
And then two if you go deeper it will be more on business EPS versus leisure cities.
While the.
The recovery has been fairly robust as we shared both for premium and premium segment.
In terms of just surpassing the preprint NAMIC levels on.
On gross booking basis very close to.
100% sort of recovery, even on volume spaces on the specifically on the budget segment and this is across industry phenomenon not on us.
Specifically.
As we see it from.
All the industry sources.
And that's the only segment and I guess, it's just a function of.
All of the sort of use case is just coming back in on a absolute full blown manner.
And the reality also is that just the consumer price I mean, there's a bit of an inflation. There also in terms of.
The average selling price going up relatively speaking to the to the.
Pre pre pandemic regime.
They used to be a lot of the aggressive sort of acquisition of <unk>.
Customers in this particular segment was happening across the industry and again and maybe in some part of the embargo because it back.
But our belief is that it's just a matter of time is just taking a little longer to come back.
Yes.
<unk> planned to increase yield in your script.
Let's segue and C. Do you think that can help kind of related to demand.
Whats the thinking there.
Deep local expertise no shortage not not necessarily marketing spend in fact, we have been actually pushing and making investments and in terms of just stall.
Having the right kind of supply with the right kind of experience on our platform.
As a as you might have noticed in the commentary we covered as well that we relaunched our gross day proposition, which is so especially quickly in the budget segment.
And we're obviously trying to work with our partners at all to ensure and give them all in diligence.
And that we get on our platform in terms of what kind of conversion rate will will happen on what kind of price points et cetera, and get them to sort of the do the price adjustments under on their fares.
Our differently board.
Different periods now weekdays versus weekends at Longview beacons versus.
No.
The regular days.
And seasonality wherever there is seasonal.
Seasonality.
As you know.
Secondly, lower season pricing or product Microgrid foundational base.
They're around it.
Where there could be a different sort of.
Sort of power pricing intelligence that goes back to them their trip or if there is any kind of a pilgrimage.
Festivals that seems to be happening on some of these some of the pilgrimage destinations. So you know all kinds of a variety of startup in diligence. It gets passed onto the partners and then they end up sort of making the price adjustments on auditing promotions on our platform. So we're all kind of interventions are happening now both on the product side supply.
Syed.
Product side, coupled with supply side on the front end are on our platform and also.
To our partners even on on the pricing side.
Okay, and just one last.
These service cost for the hotel segment has increased a lot the skills and explain what is it.
Yeah, I think that.
Sharper growth kind of coming in and the packages to begin discussing reported on a gross basis. So therefore, you see the cost of service kind of ever increasing on a year on year basis.
Yeah, if I may just add Shanghai had called this out the domestic packages for us grew 166% year on year.
And then like mortgage pointed out only the packages business gets reported on a gross basis and the cost of servicing at nothing but because the sales go to the packages and so that would have grown in line with the growth in revenue.
So if you're looking at the adjusted margins of the segment.
What part will be contributed packages and what part is the Standalone lips.
So if I do share the kind of operating metrics on an standalone hotels as well, but it is an Amazon on the best ROI.
Broadly the mix between say.
Hotels and packages at a margin level.
Predominantly hotel, so it's kind of ethanol in the high 90 coming in from the.
On the hotel side might.
<unk> is across the international breakdown.
Breakdown.
The mix of hotels, our packages much at.
Okay.
Okay.
Sure.
Thank you Prashant our the next question is from the line up until Sheila Sheila Centaur assure you may annuity ourself and ask your question now.
My question is regarding the flex where up to that last 60.
So how has been the traction in this segment.
And what kind of actually when you want margins Youre expecting from this segment.
Yeah.
<unk> if I may just take that good question.
And I would say at the outset early days.
We just launched in fact this last quarter. We just finished the integration with the Forex.
The completed weird, that's focusing on product sale on <unk>.
Platform.
And we were supposed to be integrating with them. So we just finished the integration in this quarter in.
In fact, just more recently spilling over to current running quarter as well.
And we've started to see some traction more traffic sort of going from our platform too.
Also offering for our products product, so really early days, but both byproducts.
You know again that also we've just sort of a consolidated only part of the quarter. So I think in the coming quarters, we should be able to give you a better sense of how much.
So is the contribution coming for protocol from the Central your product.
Called Forex.
And how it sort of growing and what kind of margin et cetera, but right now for the reported quarter it's insignificant.
Okay that was helpful. Our.
Our next question is about <unk>.
Hotels business again, so as the CEO of <unk>.
Obviously your cost is.
Increase in the revenue.
Will it impact margin protocol.
And also.
As the lower segment of the hotels actually revised budget segment isolated lives so better share increase relating back margins for the company.
There could be slight overall improvement in the.
And the margins and obviously by this segment kind of in the mix improving.
<unk> called out we do kind of expect overall margins to remain within the 17% to 19% kind of range overall.
So I would kind of leave that as a.
As a larger kind of a range.
Just to kind of keep in mind.
Even as the mix changes.
Thank you.
Thanks for taking our question. Thank you.
Australia.
Thank you Sam to assure the next question is from the line of they get Gen widget demand Media's Halpin answer question now.
Thanks.
Hi, Yeah, sorry, I joined a little bit late apologies. If this question was already answered, but two questions from my side. One can you comment on the supply recovery currently has it changed from the pandemic.
The overall across the segment and my second question is are the book My Forex that you mentioned that you've consolidated only in part of this quarter in terms of revenues can you talk about what was the impact of it in terms of cost.
Troy caution at the cost.
In this quarter and how should we look at that cost increase Q O Q.
Next quarter when it is fully in the numbers.
Tom Zipper Who's the first month of July so the supplier recovery from the pandemic.
At the moment, yes.
Yes, Hi, Richard.
Question. So let me just let me just give you an overview on the smart supply recovery for US and then the more it can take on the second question.
Express domestic flights is concerned the overall supply recovery is about 85% in terms of number of lives that are if you compare them apples to apples with pre pandemic.
And.
As far as hotels is concerned the <unk>.
Supply recovery is pretty much there like there maybe a churn of the hotels that might have happened, which might be 5% to 10% is our best estimate but otherwise.
Sort of 100% of the suppliers is back in business.
And similarly for bus.
I don't think there is any constraint on the supply recovery per se.
It's just that on volumes down so some use cases would still be like I was mentioning for the hotel case on budget.
Segment, our abuse cases still to come back.
And in case robust there may be small.
Sort of a use case that is.
First time office goes or.
People operate working in the big IP industry.
It companies are back in for travel that happens to us.
Specially in Brazil, South region.
That has to come back 100% more and more companies are sort of mandating deeper to come back to office or not but on supply side, the recoveries almost 100% there as well.
Josh if I could just a quick follow up to that question.
On the hotel side rate one of the things we've seen some other parts of the economy as you know the premium segment in general not just for the hotels, but in other segments as it has done well so far from the pandemic in the budget. The demand titles also in kind of a little kind of on the weak side. So if you I don't know if you can strip out the sub.
<unk> related impact on the budget segment from the demand related impact, but do you see the same or if I put it in another words do you see the guar vivo app kind of relatively lagging behind me.
So what else.
Given their glad people, yes was leading the budget segment of the sweet spot for a global platform for budget and make segment. So while mixed segment by the way is doing there until that event and so on.
And which is comparable with make mantra as well, but specific to budget segment, yes.
Sort of lagging behind but it's sort of lagging behind bortnick mantra and going to be more so like I was just sharing earlier.
You might may not be on the call at that point in time that it is more like an industry phenomenon.
And I.
I would say less on the supply side relatively speaking more on the demand side because of the fact that the prices are also firmed up in the budget segment across the the.
Our hotel partners of the hoteliers.
Relative to what it used to be because they used to be aggressive promotions.
The pandemic.
Focusing more on aggressive <unk>.
Acquisition of the customers in this particular segment of it so it's definitely drives more demand and sometimes some part of the demand can be slow progression and as the retail firmed up with that demand might be taking more time to come up with because as people get used to the new levels of the pricing so to my mind.
It's more the demand side than the than the supply side.
Got it thanks Super helpful. Thanks.
With that you can take my second question, which is on costs in terms of employee cost or that cause it to drive the full impact of what it would be like of bookmark fluidics. It can be I think really this kind of enormous started consolidating.
Forex and the same will happen, which importantly, but between the two put together there won't be any significant kind of an impact on the on the people cost side.
All of these are going to be even wiseman increases nothing.
I think meaningful.
As part of the increase activity levels to really envisioning that yet although that happen. Okay. We're going to look at it on a competitive basis versus the previous Cisco.
Got it great. Thanks, Mike.
Those are my question.
Thank you so much thank you.
Thank you Richard the next question is lane from frontline.
The line of Manny Canadian moniker, you might need a newly ourselves and ask your question.
Thank you for the opportunity and my apologies I joined the call and probably you might have answered the question earlier, but if you could help us understand what drove the sequential improvement in the.
In the peak rates on the airlines business. This quarter are there any one off here and how should we be thinking about.
Hum.
<unk> labs, because going forward. Thank you.
Yes.
As detailed earlier.
Possibly call. It I'll briefly hit it is largely in line and have really increased.
In our promotional spending which is kind of coming in from the airlines because the overall load factors have been and those trends during the quarter. So slightly colleen on Parnell fluctuation on travel spend numbers that kind of offended by the airlines.
Thanks, Andy if you could.
Comment on the relative market share lagoon players over here that could be helpful.
Mark you said is largely remain around the 30% levels in line with the previous quarters with no significant changes over there.
And any changes in competitive intensity from from some of the other players in the space.
It not only through the quarter.
Thank you.
Yeah.
Thank you Monica.
Anyone has any other question last question in the interest of time.
We'll take that otherwise we can in the Congo.
I guess that was the last question.
And a rug issues closing comments, where you went from you and indicate a nickel.
Alright. Thank you. Thank you Paul and thank you everyone for spending time, thanks for all the curious question as well.
And we'll keep you all up there as we go along thank you. Thanks a lot.
Thank you everyone for joining you may now disconnect the call. Thank you.
Yeah.