by Easy Trip Planners (ETP), a leading online travel agency in India, has reported a 22% decline in its profits for the quarter ended March 31, 2023 (Q1FY24). The company’s profits stood at Rs 26 crore in Q1FY24, down from Rs 33 crore in Q1FY23.
ETP’s revenue for Q1FY24 grew by 17% to Rs 124 crore, from Rs 107 crore in Q1FY23. The company’s growth was driven by a strong increase in bookings for domestic travel. ETP’s domestic bookings grew by 30% in Q1FY24, while its international bookings grew by 10%.
However, ETP’s expenses also grew in Q1FY24, by 20% to Rs 98 crore. The company’s expenses were higher due to an increase in marketing and promotion expenses, as well as an increase in employee costs.
ETP’s management said that the company is confident of returning to profitability in the coming quarters. The company said that it is focused on reducing its expenses and improving its margins. ETP is also looking to expand its reach into new markets, such as tier-2 and tier-3 cities.
Here are some of the reasons for the decline in ETP’s profits in Q1FY24:
- Increase in expenses: ETP’s expenses grew by 20% in Q1FY24, due to an increase in marketing and promotion expenses, as well as an increase in employee costs.
- Increase in competition: The online travel agency (OTA) market in India is becoming increasingly competitive, with new players entering the market every year. This is putting pressure on ETP’s margins.
- Slowdown in international travel: The slowdown in international travel due to the COVID-19 pandemic has also impacted ETP’s profits. The company’s international bookings grew by only 10% in Q1FY24, compared to a growth of 30% in the previous quarter.
Outlook:
ETP is confident of returning to profitability in the coming quarters. The company is focused on reducing its expenses and improving its margins. ETP is also looking to expand its reach into new markets, such as tier-2 and tier-3 cities.
The online travel agency (OTA) market in India is expected to grow at a CAGR of 20% in the next five years. This growth will be driven by the increasing penetration of the internet and smartphones in India, as well as the growing demand for travel among Indians. ETP is well-positioned to capitalize on this growth, given its strong brand name and its focus on providing value-for-money travel solutions.
