MakeMyTrip Limited (NASDAQ:MMYT) Q1 2021 Earnings Conference Call - Final Transcript

Aug 21, 2020 • 07:30 am ET


MakeMyTrip Limited (NASDAQ:MMYT) Q1 2021 Earnings Conference Call - Final Transcript


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Deep Kalra

us and it should hopefully only continue to recover more gradually hereafter. Domestic air, all other modes of ground transport that is bus, rail and cabs had resumed operations in late May with some restrictions, which are slowly being eased out ever since the first opening. Domestic airlines today are allowed to fly up to capacity of 45% for domestic flights. Similarly, intrastate and interstate bus and car travel has been opened up in many states. Indian Railways has been running a couple of hundred special trains and are likely to open up more soon. Domestic hotels on the other hand were also allowed to begin taking non-essential bookings in early June, but many states had initially imposed opening restrictions to control the rate of infection.

Since then, most states have lifted their restrictions to allow hotels to fully reopen or with limited capacity and with the adherence to local health and safety guidelines. In fact, the state of Delhi just gave the go ahead to reopen hotels two days ago on Wednesday. We are also encouraged to see international air travel restrictions being lifted by the government in mid-July with the creation of country specific travel bubbles. Today, commercial flights between India and the U.S., Germany, France, Canada, UK, Qatar, the UAE and Maldives are allowed with certain category of visas and subject to certain conditions imposed by the respective governments. There are also negotiations for 13 more air travel bubbles currently underway with Australia, New Zealand, Japan, Italy, Nigeria, Bahrain, Israel, Kenya, Philippines, Russia, Singapore, South Korea and Thailand, which will only aid in the further recovery of cross-border travel over time.

Post-lockdown, I am encouraged by the level of customer activity and the interest for travel seen on our platform so far. We've seen demand from certain travel segments like small businesses from younger couples seeking getaways and discretionary leisure travels to nearby places after a prolonged lockdown. Not surprisingly, we have also seen non-metro markets recovering faster where COVID-19 is less widespread than top metro locations. As a result, our marketing team has begun implementing highly targeted marketing plan to begin reaching out to customers. As shared on our last earnings call we've greatly leveraged social media to address customer concerns as well as to keep customers highly engaged and inspired for future travel. To help customers feel safe when traveling post-lockdown, we had announced our Safety and Hygiene certification initiatives called MySafety and GoSafe respectively on our last earnings call.

We are currently showing Self-Certification program from the hotel-backed hotel photos, videos and user-generated content, which is showing good traction on the platforms. Around 5,400 hotels are live with self-certification and customers are showing clear preference for hotels with higher level of safety. We're also highlighting the hygiene programs and practices for the Premium Chains. We're further strengthening this program for our hotel partners with a third-party check to verify the prescribed list of hygiene and safety protocols in partnership with Deloitte. Our independent hotels