Easy Trip Planners Subscription Data: Details highlighted for Investors

Easy Trip Planners IPO subscribed 2.33 times. The public issue subscribed 12.58 times in the retail category, and 0.15 times in the NII category by Mar 8, 2021 5pm.
 
Nirali Shah, Head of Equity Research, Samco Securities said that Easy Trip Planners is the only online travel company which is consistently profitable since inception. Airline tickets from 94% of its total revenues and it clocked the highest CAGR growth of 47% in Gross Booking Revenues from FY18 to FY20 as compared to Makemytrip (MMT) and Yatra’s 20% and -4% respectively.
 

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Easy Trip Planners mantra for success is its unique business strategy wherein it provides its customers with an option of no-convenience fee which means that customers are not required to pay any service fee in instances where there is no alternate discount or promotion coupon availed. This strategy has paid off handsomely even during the pandemic, making them the 2nd player in terms of booking volumes in 9MFY21. Be it their over 50,000 travel agents network (3200 for MMT and 26,000 for Yatra), or their all channel B2B, B2C and B2B2C business model, this Company has shown robust growth.
 
Considering the stringent lockdowns last year, EasyTrip Planners was the least impacted among its peers and it has already recovered 70% in terms of booking volumes as of Q3FY21 compared to MMT’s 46% and Yatra’s 44%. However, it faces certain risks such as the commercial lawsuit by MakeMy Trip for its brand name, re-lockdowns if Covid-19 intensifies and premium valuation of 61.5x P/E. Being debt free with a strong ROE and ROCE of over 35% does make Easy Trip Planners a good listing gains candidate but investors must be careful given the frothy nature of markets and the industry risks the travel industry entails given the current situation.
 
Easy Trip Planners, established in 2008 provides investors with a unique opportunity to invest in the fast-growing online travel agency industry. Being bootstrapped, the management of the company has tended to be extremely cost conscious and this has enabled them to be profitable since inception. Their primary driver of business is that they do not charge a convenience fee and this is what sets them apart from their peers like Make My Trip, Yatra and ClearTrip.

This Strategy of the company has paid off handsomely during COVID and has ensured that they gain market share and become the second largest company in the market. Further the company has come up with industry first technological solutions in customer service like a chat box on the website which can give details about the cheapest priced tickets and its price movements.