Yatra Online · tone and specificity signals across the available quarters.
Language signals
We view this drop of INR 60 million in MICE gross margin as a short-term transitory factor rather than a structural change in the business, and we expect the impact to normalize going forward as travel patterns have started to stabilize already.
We've continued to invest and build through this period of turbulence. Rather than allowing short-term disruption to define our priorities, we have used this period to invest in capabilities and capacity that we believe can materially expand Yatra's future growth opportunities.
MICE operates at like a 40% plus kind of operating margin versus other businesses which are operating closer to 15 to 20%.
The disruption in the aviation market led to large scale cancellation of business travel which had an impact on revenue as well as increase the working capital deployed in the business. This disruption not only adversely impacted our operating performance but also led to incremental working capital deployment where advances had already been paid to vendors for MICE groups.
We've seen growth both across B2C and on the corporate side. On the B2C side, some of the tech interventions that we've been doing over the course of the last two quarters have begun to bear results. We are today in a very healthy situation where both B2C and B2B are driving growth for us in a very healthy and profitable manner.
The jury is still out on the B2C front, but I would look at corporate and B2C very differently when it comes to AI tools and their impact. On the corporate platform, this is more of a managed service which goes from end to end policy compliance to integrating within ERP and HRMS systems. These tools offer a great opportunity for us to differentiate our services versus our offline peers.