How MakeMyTrip plans to increase its use of Gen AI

Take the skift

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

They ask for Doma Bhutia

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

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

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

One of the most significant impacts of MakeMyTrip’s AI efforts has been customer service. By implementing Gen AI-based bots, particularly in its bus booking channel, the RedBus app, the company has seen productivity gains and a 45% decrease in customer service agent engagement.

While the early results of deploying AI are promising, MakeMyTrip acknowledges that it will take time for the full effects to materialize. Magow stressed that while efficiency gains have been made, particularly in customer service, the broader impact on profitability is still several quarters away.

AI for travel planning

MakeMyTrip’s AI strategy extends beyond basic customer queries. The company is exploring the wider potential of AI to help with travel planning, offering more personalized recommendations.

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

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

The connected travel experience

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

It allows users to seamlessly book other products and services required for travel, helping MakeMyTrip generate cross-selling and up-selling opportunities.

“To help consumers call in their reservations on a single platform, we’ve launched a vastly improved connected travel experience, built entirely in-house on the strength of our data science capability,” Magow said.

The Finances

For the quarter ended September 30, 2024, MakeMyTrip reported revenue of $211 million, up 25% compared to the same period last year. Adjusted operating profit reached $37.5 million, reflecting year-over-year growth of approximately 33%.

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