MakeMyTrip partners with OpenAI as shares trade near 52-week lows
India's dominant online travel agency integrates AI to enhance discovery amid 50% stock decline from peaks
MakeMyTrip has announced a collaboration with OpenAI to enhance its AI-first strategy and improve travel discovery on its platform, a move that could help the Indian online travel leader reverse a steep stock decline.
The Gurugram-based company, which commands a 54% share of India's online travel agency market, is integrating OpenAI's APIs into its application to create more personalized travel experiences. The partnership features the Myra interface, which currently facilitates more than 50,000 conversations daily across multiple languages, with particular focus on Tier-2 and smaller cities where over 45% of user queries originate.
The announcement comes as MakeMyTrip shares trade near their 52-week low of $53.09, having fallen 50% from their November peak of $113.85. The stock closed at $56.74 on Tuesday, giving the company a market capitalization of $5.35 billion. The decline has pushed the stock into oversold territory with a relative strength index of 32, according to market data.
Analysts remain broadly optimistic about the company's prospects, with a Strong Buy consensus rating and an average price target of $102.90, implying roughly 81% upside from current levels. Ten analysts recommend buying the stock, with none holding a hold or sell rating, according to data compiled from brokerage reports.
"The collaboration aims to strengthen MakeMyTrip's ability to respond to evolving travel intent by providing structured, transaction-ready options across various travel services," according to the company announcement. The AI capabilities are designed to help users seamlessly transition from travel inspiration to booking.
The OpenAI partnership could provide a competitive advantage as artificial intelligence becomes a core differentiator in the global online travel market. Major competitors including Booking.com and Expedia are also aggressively investing in AI-driven solutions, with Expedia developing conversational tools and natural-language features for platforms like Hotels.com.
MakeMyTrip's most recent quarterly results, reported in January for the fiscal third quarter, showed solid operational momentum. Revenue increased 10.6% year-over-year to $295.7 million, or 15.4% in constant currency, while adjusted net profit rose 14.5% to $51.4 million. The company's adjusted earnings per share of $0.52 exceeded analyst estimates by more than 40%.
However, reported net profit fell 73% to $7.3 million due to increased income tax expenses and finance costs associated with convertible notes, a development that raised some concerns among analysts about profitability quality.
The hotels and packages business demonstrated particular strength, with hotel room nights growing 20.3% year-over-year and revenue increasing 9.7% to $161.4 million. Bus ticketing revenue also performed well, rising 16.5% driven by a 33.3% increase in ticket volume.
The Indian online travel market presents significant growth opportunities, projected to expand from $25.38 billion in 2026 to $38.58 billion by 2031, representing an 8.74% compound annual growth rate. MakeMyTrip's dominant position in this expanding market, combined with its AI initiatives, positions it to capture much of this growth.
Citigroup maintained a Buy rating following the earnings report but lowered its price target from $108 to $96, citing the revenue miss. Other analysts highlighted the disparity between strong revenue and adjusted profit growth versus the sharp decline in reported profit, noting that non-operational factors were largely responsible.
The company's next financial update is scheduled for May 13, when investors will look for evidence that the OpenAI integration is driving improved user engagement and conversion rates, particularly in the tier-2 and tier-3 cities that represent a major growth opportunity for digital travel services in India.