MakeMyTrip (MMT), online travel agency (OTA), now commands a substantial 53.8 per cent share of the Indian online travel market, according to a recent report by travel consultancy firm Videc. This places MMT in a position of significant dominance, solidifying its status as a catalyst for growth within the Indian travel industry.
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The report highlights Cleartrip as the second-largest player in the OTA segment, with an approximate 8.5 per cent market share, closely followed by EaseMyTrip (EMT) at 8.1 percent. These three players together hold a considerable portion of the market, indicating a consolidation trend towards an oligopoly within the OTA industry.
The Indian online travel market, estimated at ₹1,519 billion in the fiscal year 2023, is projected to reach ₹2,491 billion by fiscal year 2026. This represents a remarkable 17.9 per cent compound annual growth rate (CAGR) during the forecast period. Virendra Jain, CEO of Videc, believes that India is on the verge of replicating China’s growth story in the OTA segment, underscoring the immense potential for further expansion.
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Examining specific segments within the travel industry, MakeMyTrip emerges as the dominant player in both the airline and hotel sectors. In the airline segment, MMT holds a substantial 56.9 per cent market share, with Cleartrip and EMT trailing at 13.7 per cent and 13.4 per cent, respectively. Yatra.com captures 9.4 per cent of the market, while ixigo accounts for 3.2 per cent.
Within the hotel segment, MakeMyTrip’s dominance continues, although Yatra.com surpasses Cleartrip and EMT with a 3.6 per cent market share. Other OTAs collectively hold the majority share of 37.9 per cent in the hotel segment, indicating a diverse and competitive landscape.
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In the rail travel segment, IRCTC remains the dominant player, while Ixigo captures a significant 47.7 per cent share, nearly equal to IRCTC’s position. This reflects Ixigo’s stronghold in the rail travel segment and its ability to compete effectively against other OTAs in this domain.