Yatra Online, Inc. (NASDAQ:YTRA) Q1 2021 Earnings Conference Call - Final Transcript
Sep 09, 2020 • 08:30 am ET
we have the balance sheet to see us back to profitability. We now look forward to resuming the same growth and profitability trajectory we were on before all this unfolded.
We are excited about our multipronged approach to increase shareholder value. As you would recall, we are one of the leading OTAs in India and the largest corporate travel management business in the country as well.
First, with regards to the return of travel in India after the lockdown; on the consumer side, we have started to see some early signs of recovery in travel in India, since late May, when air travel was allowed to start back up. Domestic flyers have now returned to about 25% of pre-COVID levels and that number continues to grow, and we expect this to reach 40% plus by the end of the calendar year.
On the international air front, airlines are beginning to operate under the bubble agreement between countries. So far, we've seen approximately 10% capacity come back online. And this number continues to increase literally on a weekly basis as new and new bubble agreements are entered into.
Domestic hotels were earlier taking bookings on a very limited basis. But since September 1st, a number of states have allowed hotels to start operations without any quarantine restrictions. We expect to see gradual recovery here as well in the next quarter as people begin to undertake short haul and driving holidays.
On the corporate travel front, we are the leading corporate travel service provider in India. Our easily scalable SaaS technology platform enables us to serve customers of any size and industry. Currently, the online penetration in the corporate travel market in India, we believe, is just about 10%. A large percent of the market, almost 60%, is served by smaller offline players.
As a result of the pandemic, we believe -- and they're already beginning to actually see signs of this -- that there will be an expedited shift towards online players, especially as big contracts come up for renewal at the end of their life and go through a rebidding process. We remain confident in our platform's capabilities to serve any scale and type of customer.
Our other strategic growth driver is the expansion of our corporate digital platform as we continue to add nontravel-related digital offerings to this captive corporate customer base of ours. As the largest corporate travel service provider in the country, we have strong relationships with all of our corporate customers, which constitute very large and well-known enterprises in India.
We continue to make inroads into these organizations with our nontravel offerings of expense management, EdTech and others. Our EdTech offering is in partnership with upGrad and has been well received by corporates even though it's early days yet.
In a tough economic climate, we are seeing corporates realize the importance of developing and rescaling the workforce to overcome pressing challenges. Our platform allows our clients to offer these opportunities to their employees, especially as they