Yatra’s marketing spends go up 6.5%

Yatra Online Limited has disclosed its financial results for Q3 FY25, showing a strategic shift in its marketing investments. While the company’s standalone marketing expenses saw a marginal dip, its consolidated marketing expenditure rose, underscoring its efforts to enhance brand visibility and customer engagement.

Despite an overall reduction in its nine-month marketing spend, Yatra Online increased its Q3 marketing expenditure by 6.54%, to ?11.40 crore from ?10.7 crore in Q3 FY24, indicating a more focused approach toward targeted promotional activities. The company’s standalone marketing costs stood at ?10.52 crore in Q3 FY25, compared to ?10.88 crore in the same quarter last fiscal. Over a nine-month period, Yatra Online’s marketing expenses declined to ?31.16 crore, down from ?35.31 crore in the same period in 2023.

This recalibration in marketing spend appears to be yielding results. Yatra Online posted a remarkable 845% jump in its consolidated profit after tax (PAT), reaching ?10.01 crore in Q3 FY25, compared to just ?1.05 crore in Q3 FY24. The platform also closed 50 new corporate accounts during the quarter, adding a billing potential of ?280.4 crore, further cementing its position in the corporate travel space.

The company reported a 113% year-on-year (YoY) increase in revenue from operations, reaching ?235.2 crore in Q3 FY25, up from ?110.3 crore in the corresponding quarter last fiscal. This impressive growth was fueled by a 66% YoY surge in its hotel and packages business, along with strong contributions from the Meetings, Incentives, Conferences, and Exhibitions (MICE) segment.

As travel aggregators face stiff competition, Yatra Online's decision to optimize its advertising and promotional expenses while strengthening corporate relationships is a strategic move. 

The gross booking value saw a 3.5% YoY rise, standing at ?17,951 million in Q3 FY25 compared to ?18,605 million in the same quarter last year. However, gross air bookings saw a decline, dropping to ?13,828 million from ?16,096 million, potentially indicating a shift in consumer preferences toward hotel and package bookings.

Commenting on the results, Dhruv Shringi, CEO of Yatra Online, highlighted the company’s focus on operational efficiency and cost rationalization, stating, “Our corporate travel business continues to be a key growth driver. Our ongoing emphasis on operational efficiency has yielded tangible results, including improved cost rationalization, supply-side synergies, and enhanced margin sustainability. Furthermore, our success in onboarding 50 new corporate clients—a quarterly record—has strengthened our leadership in the corporate travel domain.”