MakeMyTrip is leveraging AI technology to enhance user experience and drive traffic, though it anticipates that substantial results will take some time to materialize.
– Recently, MakeMyTrip launched Myra, an AI chatbot aimed at simplifying international flight bookings. Myra has since adapted to facilitate hotel and homestay reservations, providing real-time assistance based on extensive proprietary data, including customer feedback.
– The online travel platform plans to employ Gen AI for pricing and availability inquiries, alongside tailored hotel recommendations, as explained by Group CEO Rajesh Magow during an earnings call.
– Myra has proven effective in handling tasks related to flight details, date adjustments, and ancillary services. Magow noted, “The chatbot delivers accurate and personalized responses to even the most detailed inquiries.”
– One of the major benefits from MakeMyTrip’s AI initiatives has been observed in customer service. By utilizing Gen AI-based bots, especially on the RedBus app, the company has achieved productivity improvements and a significant 45% reduction in reliance on customer service agents.
– While initial outcomes are encouraging, MakeMyTrip recognizes that the complete impact of its AI initiatives will take time to fully unfold. Magow pointed out that while efficiency has improved in customer service, broader profitability gains may still be several quarters away.
### AI for Trip Planning
– MakeMyTrip’s AI approach goes beyond just addressing basic customer inquiries. The company is investigating AI’s potential to enhance trip planning by offering more personalized travel suggestions.
– “As we enhance the interface’s capabilities, we expect to see better customer experiences and, ultimately, increased conversion rates,” Magow added.
– The continuous refinement and feedback loop essential to AI’s development will be key to making these tools more user-friendly.
### The Connected Trip Experience
– Acknowledging the importance of convenience, MakeMyTrip introduced an enhanced connected trips experience.
– This improvement enables users to easily book various products and services needed for their trips, allowing MakeMyTrip to increase cross-selling and upselling efforts.
– “To support consumers looking to manage their bookings through a single platform, we’ve developed a considerably improved connected trips experience, leveraging our data science expertise,” Magow stated.
### The Financials
– For the quarter ending September 30, MakeMyTrip reported revenues of $211 million, reflecting a 25% increase from the same period last year. The adjusted operating profit rose to $37.5 million, showing a year-over-year growth of roughly 33%.
– Despite the July-September period traditionally being low for leisure travel, Magow attributed revenue growth to robust travel demand in India, both domestically and internationally, even amidst short-term disruptions from unusual heavy rainfall.
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