Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Integration of NDC enhances corporate travel options and streamlines booking experiences, supporting cost efficiency.
• Yatra Online Inc (NASDAQ:YTRA) has stabilized B2C air volumes despite competition, focusing on improving operating performance.
• Strong brand recall of YPA.com helps offset industry headwinds.
• Personal travel sales to corporate customers' employees increased by 20% year-over-year, proving to be a cost-effective acquisition channel.
• Revamped user experience on website and mobile apps shows encouraging initial response in conversion optimization.

Negative Points

• B2C business faces direct competition from domestic air suppliers with differentiated pricing.
• Air gross bookings fell by 10% year-over-year due to challenges in the B2C segment.
• Personal expenses increased by 20% year-over-year due to investments in talent and annual appraisals.
• Other operating expenses increased by 15% due to one-off expenses related to recent acquisitions.
• The B2C segment is under pressure from price competition initiated by a major airline, which is expected to persist.

Q & A Highlights

• Warning! GuruFocus has detected 5 Warning Signs with YTRA.

Q: Can you provide some color on the integration process with Global India and when cross-selling might begin? A: The integration process involves two steps: supply integration, which is already underway, and cost optimization, expected to start in January. The full benefits should be visible by the fourth quarter. (Respondent: Unidentified_1)

Q: Where are you seeing the most opportunities in the MICE (Meetings, Incentives, Conferences, and Exhibitions) sector, and what is the growth outlook for the next 24 months? A: There is significant opportunity within our existing customer base, and with Global's expertise, we expect MICE to grow at a double-digit rate, potentially 20-25% annually over the next 2-3 years. Our goal is to double the current run rate within three years. (Respondent: Unidentified_1)

Q: What's driving the price competition in the B2C business, and how long do you expect it to last? A: The price competition was initiated by a major airline and has been ongoing for 11 months. We expect it to continue, and our strategy is to add value through cross-selling and use flights as a customer acquisition tool rather than a profit driver. (Respondent: Unidentified_1)

Q: What is the status of fungibility between the US and Indian stocks, and how is the third quarter evolving? A: We are working with regulators to simplify the process, but it is time-consuming due to multiple jurisdictions. The third quarter is not strong for corporate travel due to holidays, with January to March being the peak period. (Respondent: Unidentified_1)

Q: How are you managing the challenges in the B2C segment, and what are your strategies for growth? A: Despite challenges, we are focusing on stabilizing volumes and improving operating performance. We are also enhancing our user experience and leveraging our strong brand recall to offset industry headwinds. (Respondent: Unidentified_1)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.