EaseMyTrip (EMT), a prominent online travel aggregator, has announced its acquisition of a 49% stake in Planet Education Australia, marking a significant step into the international study tourism sector. This acquisition, valued at Rs 39.20 crore, represents EaseMyTrip's commitment to diversifying its business beyond travel bookings. The deal will be completed through an equity share swap, where EMT will issue fully paid-up equity shares to the existing shareholders of Planet Education Australia.
Founded in 1999, Planet Education Australia has been a leader in providing services such as student counselling, university placements, and visa assistance for students pursuing higher education abroad. The company collaborates with over 350 universities across various countries including Australia, the United States, the United Kingdom, Canada, Singapore, Ireland, and New Zealand. With more than two decades of experience, Planet Education has built a strong reputation as a reliable guide for students aiming to study overseas.
Nishant Pitti, the CEO and co-founder of EaseMyTrip, highlighted that this strategic acquisition will allow the company to offer a seamless experience by integrating education and travel services. The move reflects EMT’s goal of expanding its portfolio and creating synergies between the growing study tourism market and its existing travel services. The addition of Planet Education’s extensive expertise in the education sector enhances EaseMyTrip’s ability to provide end-to-end solutions for international students, from travel arrangements to academic placements.
In addition to entering study tourism, EaseMyTrip's board approved the acquisition of a 50% stake in Jeewani Hospitality Private Limited for Rs 100 crore via a share swap. This acquisition is part of the company’s broader strategy to expand into the hospitality sector, particularly with the development of a luxury five-star hotel in Ayodhya. EMT’s entry into hospitality is aligned with its long-term vision of diversifying its portfolio and generating new revenue streams.
Earlier this year, EaseMyTrip also announced plans to invest Rs 100 crore alongside Jeewani Group to establish a luxury property in Ayodhya, a key cultural and religious destination in India. This move reflects EaseMyTrip’s growing interest in tapping into the hospitality industry as a means to increase its offerings beyond travel booking services.
EaseMyTrip’s diversification strategy extends to medical tourism as well. In September 2024, the company announced plans to acquire a 30% stake in Rollins International for Rs 60 crore and a 49% stake in Pflege Home Healthcare Center LLC for Rs 30 crore. This expansion into medical tourism underscores EMT’s efforts to tap into high-growth tourism niches, aiming to cater to the growing demand for healthcare services abroad.
Despite its strategic forays into new sectors, EaseMyTrip faced financial challenges in the second quarter (Q2 FY25). The company's consolidated profit after tax (PAT) fell by 42.8% year-on-year to Rs 26.8 crore. At the same time, revenue from operations rose slightly by 2.1% to Rs 144.6 crore. However, revenue from its core business of online flight bookings saw a decline of 22.5%, dropping to Rs 9.25 crore from Rs 11.94 crore in the same period the previous year.
This drop in its primary revenue stream highlights the challenges EMT faces in the highly competitive online travel booking industry. However, the company's efforts to diversify into study, medical, and hospitality tourism are expected to mitigate these challenges and provide a more stable financial outlook in the future.
Conclusion: Strategic Positioning for Growth
EaseMyTrip's ongoing diversification into study tourism, hospitality, and medical tourism highlights the company's strategic positioning to broaden its revenue base. As it expands into these high-growth sectors, EMT is set to reduce its reliance on its traditional travel services and explore new avenues for growth. While its recent financial performance indicates challenges, its broadening portfolio is expected to help EaseMyTrip navigate through the evolving dynamics of the global tourism industry.