There was plenty of buzz behind MakeMyTrip (MMYT) when India’s largest travel website operator went public two years ago.
The stock soared 89% on its first day of trading, making it the hottest debut since 2007 at the time.
It didn’t seem to matter that MakeMyTrip was too small to command what wound up being a $1 billion market cap at its peak. It didn’t seem to matter that India’s economic challenges make it less savory a market for travel than investors find in other countries.
MakeMyTrip was hot. And now it’s not.
No Hooray for Bollywood
Shares of MakeMyTrip shed 17% of their value on Tuesday after posting another quarter of disappointing financial results. The stock has shed nearly two-thirds of its value over the past year.
Net revenue, after backing out service costs, slipped 6% to $20.2 million. MakeMyTrip experienced a healthy surge in hotel bookings, but air ticketing revenue — accounting for the lion’s share of revenue at 72% of the mix — tumbled 13%.
Sure, a major factor behind the uninspiring performance is that the Indian rupee is getting slammed. On a constant currency basis — which essentially means that we look at MakeMyTrip’s financials
When Scott Ford was laid off from his job in New York City back in 2008, he headed to JFK International Airport without thinking of anything other than getting on a plane to visit friends in sunny San Diego.
And when the Delta Airlines gate agent announced he needed a volunteer to be bumped from the flight because the plane was overbooked, Ford idly lifted his hand and accepted a voucher for a future flight.
“Suddenly, it clicked,” says Ford, a native of Dayton, Ohio, who now makes his home in Portland, Ore. “Since I was unemployed I had the free time and flexible schedule to travel as much as I wanted if I could find a way to afford it.”
As Ford accumulated travel vouchers and frequent flier miles by getting bumped from as many flights as possible, he developed a plan to spend every week of 2011 on vacation.
400 cities in 365 days
Ford started that year in San Diego, went on to San Francisco, and eventually flew 489,000 miles and — thanks in part to the ability to earn bonus miles on some flights —
At its best, holiday flying is a harrowing experience, with higher than usual odds of delayed departures, brutal weather, getting bumped, overcrowded terminals, lost luggage and stressed-out agents. On Tuesday, American Airlines’ customers got another thing to worry about as its parent company, AMR Corporation (AMR), announced it had filed for Chapter 11 bankruptcy protection. As one of America’s largest airlines prepares to massively restructure itself, will its customers be left at the gate?
In the short term, the answer is no. According to its website, American — and its subsidiary, American Eagle — “expect to continue” their flight schedules, honor all their tickets, and maintain all of their customer service programs. In particular, American said that it plans to “fully maintain” its frequent flier, American Airlines miles and “Admiral’s Club” offerings.
The airline’s phrasing leaves a lot to be desired — after all, “expect to continue” is far from an iron clad promise — but in all likelihood, American will go on with business as usual. As part of its filing, the company reported cash reserves of $4.1 billion, which it will likely use to