Key Takeaways
- Brent crude dropping below $75 per barrel is easing airline cost pressures, with MakeMyTrip seeing this as a 'very big silver lining'
- MakeMyTrip hit $10.4 billion in gross bookings in FY26, with pilgrimage travel up 16% year-on-year across 78 destinations
- Philippines, South Korea, Sri Lanka, and Vietnam are seeing the strongest growth in accommodation bookings as travelers shift from westward routes
MakeMyTrip Group CEO Rajesh Magow sees the Indian travel industry turning a corner. Brent crude has dropped below $75 per barrel, the rupee is strengthening, and geopolitical tensions appear to be cooling. That combination, he told Economic Times, creates conditions for airlines to recover faster than expected.
"I did not anticipate such a dramatic drop in the prices of Brent crude to below $75 per barrel," Magow said. "Within a week of the announcement of the truce arrangement, the prices dropped. I see that as a very big silver lining."
The timing matters. Fuel typically accounts for 30 to 40 percent of airline operating costs. When crude falls this sharply, carriers get breathing room to restore routes and hold fares steady. MakeMyTrip, the Nasdaq-listed company behind India's largest online travel platform, recorded $10.4 billion in gross bookings in financial year 2026, a record.
Why westward flights should recover first
Magow pointed to two forces working together: cheaper oil and a stronger rupee. Both reduce the cost of operating long-haul routes to Europe and North America, which have been hit hard by airspace restrictions and flight cuts tied to the US-Iran conflict.
“The US looks like it wants to get out of the conflict one way or the other. There is hope now. The recovery for long-haul and westward flights should be faster.”
— Rajesh Magow, Group CEO, MakeMyTrip
He noted that commercial LPG supply in India is being restored and airline optimism is improving. That said, Magow was careful not to declare victory. "I don't want to speak too soon," he added.
Where travelers are going instead
With westward routes constrained, Indian travelers have pivoted. MakeMyTrip's data shows the Philippines, South Korea, Sri Lanka, Mauritius, Vietnam, and Nepal leading in percentage growth for hotel and homestay bookings during the April to June quarter.
"We continue to see consistent growth in international accommodation bookings on our platform," Magow said. The shift reflects travelers finding alternatives rather than canceling trips entirely. Demand, he emphasized, remains intact.
Pilgrimage travel is now year-round
One structural shift stands out. Pilgrimage travel, once seasonal, has become a steady revenue stream. Accommodation bookings across 78 pilgrimage destinations grew over 16 percent year-on-year in FY26.
Corporate and domestic travel show no signs of slowing either. Magow described these segments as "year-round opportunities" that should hold up even if air travel takes time to fully recover.
Revenue mix is shifting away from flights
A decade ago, flight bookings dominated MakeMyTrip's revenue. That has changed. Magow said the split between flights, accommodation, and ground transport is now "more even." Infrastructure improvements and rising interest in road trips to nearby destinations are driving ground transport growth.
This diversification matters if air travel recovery takes longer than expected. Hotels and buses provide a buffer.
India IPO remains a 'work in progress'
MakeMyTrip has been listed on Nasdaq since 2010. An India IPO has been discussed for years. Magow described it as a "slow-moving process" that remains under consideration, offering no timeline.
For now, the company's focus appears to be on capturing domestic demand and waiting for macro headwinds to clear before pushing harder on international flight bookings.
Logicity's Take
MakeMyTrip's diversification into ground transport and accommodation looks prescient now. Competitors like Cleartrip (owned by Flipkart) and Yatra remain more flight-dependent, which exposes them more directly to oil price swings and airspace disruptions. For tech leaders watching the travel sector, the lesson is clear: platforms that spread revenue across multiple booking types can absorb shocks better. The 16% growth in pilgrimage travel also signals an underserved market that most digital platforms have ignored.
Frequently Asked Questions
Why are falling oil prices good for Indian airlines?
Fuel accounts for 30 to 40 percent of airline operating costs. When Brent crude drops below $75 per barrel, airlines spend less on jet fuel, which lets them restore routes, hold fares, and improve margins.
Which international destinations are growing fastest for Indian travelers?
According to MakeMyTrip, the Philippines, South Korea, Sri Lanka, Mauritius, Vietnam, and Nepal saw the highest percentage growth in hotel and homestay bookings during April to June.
Is MakeMyTrip planning an India IPO?
CEO Rajesh Magow described the India IPO as a slow-moving process and a work in progress, but gave no specific timeline. The company has been listed on Nasdaq since 2010.
How big is MakeMyTrip's accommodation inventory?
The platform now offers over 100,000 accommodation options across more than 2,050 cities in India.
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Source: Tech-Economic Times / ET
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
