Easy Trip Planners rises 2% after tourism deal with Andhra Pradesh

Shares of Easy Trip Planners climbed 2 percent on March 6 after the company signed a pact with the Andhra Pradesh government for promotion of tourism in the state.

Andhra Pradesh receives the third highest number of tourists in the country, the company said.

Easy Trip Planners will undertake certain marketing initiatives for the promotion of tourism in the state while the state government will help secure necessary permissions, approvals and clearances from its various departments.

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“The MoU (Memorandum of Understanding) has a duration of three years and shall be governed by the Indian laws with any disagreements related to the MoU’s terms being settled exclusively by the courts in New Delhi,” it said in a regulatory filing.

At 9:41am, shares of the online travel platform traded 1.3 percent higher at Rs 50.57 on the BSE.

Easy Trip Planners is India’s one of the largest online travel platforms in terms of air ticket bookings, based on the Crisil Report-Assessment of the OTA Industry in India, February 2021. With profits averaging a compounded growth rate of 78 percent during FY20-22, it is one of the fastest-growing internet companies in the country.

“While our growth outlook is promising, there are a few headwinds in the near term,” the company mentioned in its latest annual report. It explained that inflationary pressures, rising travel fares due to high oil prices, and geopolitical strife may erode some demand for air travel.

Further, while corporate travel is making a steady return as health concerns and travel restrictions abate, its recovery to pre-pandemic levels is expected to be slower than leisure travel, Easy Trip Planners said.