MakeMyTrip (MMT) is one of India’s most trusted online travel platforms. It changed the way Indians book flights, hotels, buses, trains, and holiday packages. Before MMT, travel bookings were mostly done through offline agents, with little transparency and unpredictable pricing. MMT brought everything online—comparison, booking, deals, cancellations, and customer support.
Today, MMT handles millions of bookings every year and has multiple travel brands under its umbrella, including Goibibo and RedBus. But the company offers heavy discounts, cashback, and coupons—so how does it actually make money? Let’s break down its business model.
The Core Idea Behind MakeMyTrip
MakeMyTrip is a travel aggregator. It connects:
- Travellers
- Airlines
- Hotels
- Bus operators
- Taxi services
- Holiday package providers
MMT doesn’t own airlines or hotels. Instead, it acts as a booking platform where these businesses list their inventory. Customers get convenience and price comparison, while travel partners get online visibility and bookings.
MMT earns money from both sides—travellers and travel service providers.
How Does MakeMyTrip Make Money?
MakeMyTrip earns through commissions, service fees, convenience fees, ads, subscriptions, and dynamic pricing. Here’s a detailed breakdown.
A. Commissions from Hotels (Major Revenue Source)
This is MakeMyTrip’s biggest money-maker.
Hotels list rooms on MMT and pay a commission for every booking. The commission usually ranges between:
- 15% to 25% for budget and mid-range hotels
- 18% to 30% for premium hotels
MMT earns money every time a customer books a room. The hotel gets the rest of the amount after deducting MMT’s commission.
Hotels willingly pay because MMT:
- Brings massive traffic
- Provides national visibility
- Fills unsold inventory
- Helps maintain steady bookings year-round
B. Airline Bookings (Service Fees + Commission)
Airlines give much smaller commissions than hotels, but the volume of ticket bookings is huge.
MMT earns through:
- Service fees per ticket
- Commissions from certain airlines
- Cancellation charges
- Rescheduling fees
- Holiday flight packages
Even if the commission is low, the high volume of flight bookings gives steady revenue.
C. Convenience Fees Charged to Customers
Whenever you book:
- Flights
- Buses
- Trains
- Cabs
- Hotels
MMT charges a convenience fee. It may be small, but across millions of monthly bookings, this becomes a major revenue stream.
D. Bus & Train Bookings (RedBus + IRCTC Partnership)
Bus Tickets
MMT owns RedBus, India’s biggest bus booking platform. RedBus earns through:
- Commission from bus operators
- Convenience fees
- Advertising
Train Tickets
For train bookings, MMT works as a partner of IRCTC and earns:
- Payment gateway charges
- Convenience fees
E. Holiday Packages (High-Margin Business)
MakeMyTrip sells holiday packages that include:
- Flights
- Hotels
- Transfers
- Sightseeing
- Meal plans
Packages bring very high margins because MMT negotiates bulk rates with airlines and hotels. The price difference becomes a major profit source.
F. Advertisements & Sponsored Listings
Hotels and travel brands pay MMT for:
- Top placement
- Home page banners
- Sponsored results
- Brand campaigns
This ad revenue is extremely profitable because it has almost zero delivery cost. The more traffic MMT gets, the higher brands pay.
G. Travel Insurance Commissions
When customers buy insurance along with tickets, MMT earns through:
- Referral commissions
- Policy sales share
Travel insurance has high margins and low operational effort.
H. Corporate Travel Solutions
Many companies use MMT for employee travel booking. MMT earns through:
- Subscription fees
- Service charges
- Commission from hotels and airlines
This adds a stable B2B revenue stream.
I. Loyalty Programs & MMT Black Membership
MMT offers loyalty programs such as:
- MMT Black
- MyRewards
These improve repeat bookings. Paid memberships also bring:
- Subscription revenue
- Higher customer retention
- More spending per user
J. Foreign Exchange & Ancillary Services
MMT also makes money through:
- International SIM card partnerships
- Forex services
- Airport transfer services
- Cab bookings
All these add small but steady revenue.
Why MakeMyTrip’s Business Model Works
Several factors make MMT successful:
a. Huge Inventory
Thousands of flights, hotels, buses, and packages available in one app.
b. Strong Brand Trust
People trust MMT for secure payments and reliable bookings.
c. Tech-Driven Experience
Fast search, good filters, and easy refunds attract customers.
d. Multi-Platform Strategy
MMT + Goibibo + RedBus = strong market share.
e. Repeat Travelers
Business travelers and frequent flyers generate steady income.
Challenges MakeMyTrip Faces
Even with strong growth, MMT faces:
- Heavy competition from Booking.com, Expedia, Yatra, Ixigo
- High marketing costs
- Dependence on travel demand cycles
- Thin margins in airline bookings
- Refund and customer support challenges
Still, MMT remains India’s top online travel portal because of its scale and diversified revenue streams.
Conclusion
MakeMyTrip makes money through hotel commissions, flight ticket service fees, convenience fees, bus and train bookings, holiday packages, advertising, insurance commissions, corporate bookings, and ancillary services. Its aggregator model, wide inventory, and strong brand trust have helped it become the backbone of India’s online travel market.
