EaseMyTrip does not want to create more hotels; More acquisitions planned across industries: Co-Founder Prashant Pitti

Online travel service provider Easy Trip Planners, popularly known as EaseMyTrip Ltd, has stated that the company has no intention of creating more hotels. Earlier, the travel platform acquired 50% stake in Jeewani Hospitality to develop a 150-room luxury Radisson Blu hotel in Ayodhya, expanding the company’s portfolio with high-quality hospitality offerings for 1.5 lakh daily visitors. However, Prashant Pitti, co-founder of EaseMYTrip, mentioned that the company does not want to engage in any asset-intensive business. “It was a one-time investment. We have a great deal on a 5-star hotel located approximately 400 meters from Ram Mandir in Ayodhya. This property will be strategic because many people will want to come and stay here, and that is why we wanted to offer an exclusive offer, but we do not want to further enter the hotel industry,” said the co-founder.

For the fourth quarter of FY24, the platform reported a loss of INR 15.75 crore as against a profit of INR 31.15 crore recorded in the fourth quarter of FY23. For the full financial year ended March, the company reported profit after tax (PAT). of INR 103.46 crore, as against INR 134.10 crore in the previous financial year, the company said in its regulatory filing.

The company attributed the loss for the last quarter to write-offs of amounts to be recovered from the now defunct Go Airlines (India) Limited, which operated the Go First carrier. On Saturday, EaseMyTrip founder and CEO Nishant Pitti said the company has decided to withdraw its takeover bid for the airline. “After careful consideration, I have decided to withdraw from GoAir as an individual. This decision allows me to better focus on other strategic priorities and initiatives that are aligned with our long-term vision and growth goals. Our commitment to delivering exceptional value and service remains unwavering as we continue to overcome new opportunities and challenges,” Nishant Pitti, Founder and CEO, EaseMyTrip.

Business expansion

While flights are the travel platform’s main source of revenue, the hotel business is also growing. During the quarter, the company’s non-aviation segment witnessed growth with total hotel room bookings at 1.4 lakh, up 39 per cent, and other bookings at 2.7 lakh, up 53 per cent. In FY24, hotel room bookings were 5.2 lakh, up 49 per cent, and other bookings were 10.4 lakh, up 67 per cent.

“Our non-aviation segment’s total business has grown by almost 50 percent this year, and our bus, rail business has grown by almost 66 percent this year. The company is on track to improve its non-aeronautical business and we are on track to take proactive steps to strengthen our hotel (reservations) business,” said the co-founder.

Sharing the company’s expansion plans for 2024, Pitti said he is considering more acquisitions: “Last year, the company did about five to six acquisitions, and we have a lot of acquisitions planned for this year as well. I may not be able to talk about it at the moment ; the company grows both organically and inorganically. We are looking at companies that are high-performing, disruptive, asset-light and technology-driven companies,” said the co-founder.

On trends in the travel industry, the co-founder emphasized that people are spending more on their travel plans; the number of 4- and 5-star bookings on the platform has almost doubled compared to pre-pandemic numbers. “We see increases in spending primarily in Tier II and III areas; their share in income is growing significantly,” he said.

History

Established in 2008, EaseMyTrip was founded by brothers Nishant Pitti, Rikant Pitti and Prashant Pitti; The company’s origins had their roots in an earlier venture, Duke Travel. Initially operating in a modest space, EaseMyTrip transitioned to a customer-centric model in 2011, adopting a “no convenience fee” policy.

The company offers a comprehensive package of travel services, including flights, hotels, buses, trains, taxis, cruises and holiday packages. Backed by a solid infrastructure and strategic acquisitions including Spree Hospitality, Eco Hotels and Resorts, Dook Travels, CheQin, Guideline Travels, TripShope, YOLO Bus, Nutana Aviation and ETrav, the company has expanded its presence into Indian cities and international markets.