Travel bookings for Maldives opened due to a technical glitch: EaseMyTrip co-founder

Nishant Pitti, CEO and Co-Founder, EaseMyTrip commented that there was a recent technical glitch in their system allowing bookings to the Maldives despite the travel boycott. "This issue has been resolved, and affected customers will receive full refunds and a free domestic package ticket. We regret causing inconvenience," he added.

Over the weekend, many social media users posted online screenshots of bookings opening up for Maldives on EaseMyTrip. Some of the users questioned whether the travel firm had backtracked on its Maldives boycott. Company's chief executive officer (CEO) Nishant Pitti had clarified on social media that the travel firm has not removed the boycott and that it will make an announcement in the future if it happens

EaseMyTrip, in January this year, had halted its operations in Maldives after three ministers from the Maldives cabinet made derogatory comments against Prime Minister Narendra Modi following his visit to Lakshadweep. EaseMyTrip  had said that it suspended flight bookings to the Maldives in support of the government, impacting 2.4 lakh annual bookings made through their platform. "Bookings surged by around 40 percent last year as compared to the year before," co-founder Prashant Pitti had noted.

Go Air write-off

The company, in the March quarter of FY24, reported a loss of Rs 15 crore as against a profit of Rs 31 crore during the same period a year ago due to the write off of amounts recoverable from "Go Airlines (India) Limited" as the Holding Company assessed that "the chances of recovery are remote in the pending dispute resolution proceedings of the airline at National Company Law Tribunal, Delhi Bench". The provision is to the tune of Rs 54 crore net of taxes.

"Without write off, the company would have made Rs 40 crore of profit after tax (PAT) for the quarter (Q4 FY24). The company (with the write off) is in minus (loss) of Rs 15 crore but that's just one time exceptional item. Without the write off, our entire year's profit after tax is Rs 157 crore. With write off it Rs 103 crore. We were focused on growing our bottom line knowing that there is a possibility that we might have to take write off one day. In the second half, we changed our stance that instead of chasing GMV (gross merchandise volume) we will chase profitability," said Pitti.

Acquisition in FY25

In FY25, the company is looking at similar number of acquisitions as it did in the last financial year. "Last year (FY24), we did about 6-7 acquisitions. This year, something similar can be expected but of larger ticket size. We are looking for companies similar to EaseMyTrip with complimentary skill sets. In non-air, we are growing organically and to further accentuate that growth we are looking at inorganic growth as well," Prashant Pitti said.

The company, in April this year, invested about $4 million in ETrav Tech for a 4.94 percent stake.

In January this year, EaseMyTrip's board of directors had approved the raising of funds of up to Rs 1,000 crore as it eyes acquisition, especially in the non-air segment.

"Room night sold grew by around 50 percent, train, bus, etc grew by 66 percent in FY24. Blended growth for non-air business is somewhere around 60 percent and this growth will lead to a good GBR (gross booking revenue) mix in the future," the co-founder said.

While the non-air segment grew in the last fiscal year, the air segment has the lion's share with 92.5 percent contribution in the gross booking revenue versus 5.6 percent coming from hotel business and 1.9 percent from trains, buses, etc.

Hotel in Ayodhya only 

Prashant Pitti also highlighted on the company's partnership with Jeewani Group through which it is launching a hotel in Ayodhya.

EaseMyTrip acquired 50 percent stake in the Jeewani Group, and established a partnership with Radisson Hotel Group to develop a 150-room Radisson Blu Hotel in Ayodhya. The upcoming Radisson Blu Hotel in Ayodhya is expected to open in 2027.

"Opening a hotel under the partnership with Jeewani is a one time consideration where we recognised a key location in the country. Operators will be Jeewani and Radisson, we are financial partners. There will be some level of exclusivity in that hotel which only could be availed through EaseMyTrip and this is why we invested in this property," said Pitti.