MakeMyTrip posts wider loss in Q3, may revisit OYO strategy

MakeMyTrip, India’s largest online travel player, posted a wider quarterly loss for the three months ended December 31, 2017, as it continued to amp up on discounts and promotions, but reported strong topline growth on the back of strong demand for its core services.
 
Additionally, in a conference call with analysts, the company's top executives said they may revisit its strategy relating to SoftBank-backed OYO, which has emerged as a real contender to the country’s online travel players, as well as brick-and-mortar majors, with its mix of affordable budget hotels.
 
“We may revisit our position on OYO, as it is shifting increasingly to the hospitality side. Therefore, they do not seem to be a direct competitor anymore, but can be seen as a source of supply,” Mohit Kabra, chief financial officer, MakeMyTrip, said.
 
The comments come more than two years after MakeMyTrip removed OYO from its platform, citing strategic overlaps. Additionally, in 2017, Ruptub Solutions, which owns and operates budget hotel chain Treebo and competes with MakeMyTrip, had delisted all its properties from the MakeMyTrip and Ibibo platforms, citing higher commissions being charged by India’s largest online travel operator.
 
At the time, the move was largely seen as a bid by MakeMyTrip, which has a market capitalisation of $2.94 billion, to weed out competitors and establish its dominance in the hotels segment.
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