How MakeMyTrip plans to increase the use of Gen AI

Skift Take

MakeMyTrip is betting on AI to drive traffic and improve the customer journey. But it will take at least a few more quarters to see results.

Peden Doma Butia

Last quarter, MakeMyTrip introduced Myra, an AI-powered chatbot designed to streamline international flight bookings. Since then, Myra has evolved and currently manages hotel and homestay reservations, providing real-time assistance based on a wealth of proprietary data, including customer reviews.

The online travel company will now use Gen AI to handle pricing and availability queries, as well as provide personalized hotel recommendations, group CEO Rajesh Magow said during Wednesday’s earnings call.

Myra’s success in managing tasks such as flight details, date changes and ancillary services has been remarkable, according to Magow. “The chatbot provides accurate, personalized answers to even the most detailed questions,” he said.

One of the most significant impacts of MakeMyTrip’s AI efforts has been on customer service. By deploying Gen AI-based bots, especially in its bus booking channel – the RedBus app, the company achieved productivity gains and a 45% reduction in customer service agent engagement.

While early results from AI deployment are promising, MakeMyTrip recognizes that it will take some time for the full effects to materialize. Magow emphasized that while efficiency gains have been made, especially in customer service, the broader impact on profitability is still a few quarters away.

AI for travel planning

MakeMyTrip’s AI strategy goes beyond basic customer queries. The company is exploring the broader potential of AI to assist with travel planning by offering more personalized recommendations.

“As we improve interface capabilities, we believe this will lead to better customer experiences and, ultimately, higher conversions,” Magow added.

The iterative nature of AI, which thrives on continuous feedback and refinement, will be crucial to making these tools more intuitive.

The connected travel experience

While understanding that convenience is key, MakeMyTrip has launched a “vastly improved connected travel experience”.

It allows users to easily book other products and services needed for the trip, helping MakeMyTrip generate cross-selling and upselling opportunities.

“To help consumers who can book on a single platform, we have launched a significantly improved connected travel experience, built entirely in-house based on our data science capabilities,” said Magow.

The finances

For the quarter ending September 30, 2024, MakeMyTrip reported revenue of $211 million, marking a 25% increase compared to the same period last year. Adjusted operating profit reached US$37.5 million, reflecting annual growth of approximately 33%.

Although the July to September period is typically a low season for leisure travel, Magow attributed the increase in revenue to strong demand for travel in India, both domestically and internationally, despite short-term disruptions caused by unusually heavy rains that slightly affected demand dynamics.