Ease Trip Planners: 3 reasons why analysts remain positive on the stock despite Maldives flight booking suspensions

share prices rose more than 6% in intraday trades on Monday. The stock remained in limelight with Easy trip planners (EaseMyTrip) CEO Nishant Pitti announcing the suspension of all flight bookings to the Maldives. He took to social media to state, "@EaseMyTrip has suspended all Maldives flight bookings." Analysts cite various reasons why they remain positive of Ease Trip Planners despite Maldive flight booking suspensions .

3 key reasons are that Ease Trip planners is catching up with travel and tourism boom in India. Margins of online booking sites remain cushioned in case of cancellations. Maldives sector is not as important as other key sectors and booking suspension has limited impact. Commenting on the reasons that have led to the rise in Easy Trip Planners share prices, Ambaresh Baliga, an independent market analyst said that, the stock as been a ignored stock.

The travel and tourism industry has been booming and online bookings for travel and tourism are on the rise. So, the stock is now catching up and rising now. How long can the stock remin ignored, said Baliga. With regards to news flow on hotel booking cancellations and ticket cancellations reported in news, the figures of hotel bookings and ticket cancellations do not tally, said Baliga.

Against 2500 flight ticket cancellations how can as many as 8000 hotel bookings be cancelled asked Baliga who said that the two figures don't match. With regards to Pitti’s announcement on Ease my trips decision to suspend flight bookings Baliga said that he has not asked people to cancel bookings but only suspended bookings temporarily.

A company can take a decision in national interest. Pitti in an interview to ANI said that "We have taken this decision to establish 'nation first and business later'..." Another analyst said that cancellation of booking to one sector or one destination as Maldives will not have much impact financially.

On flight booking cancellations also companies have enough freedom to do and can cite many reasons to do so. The GDP of Maldives is insignificant and travel to the destination is also comparatively much less than other busy sectors (as London, Singapore or others), highlighted Chokkalingam G, Founder, Equinomics Research Pvt Ltd.

Thus Maldives travel cancelations or suspended booking for one day or even few days may not have a significant impact on financials of a sector, he added. Also with regards to booking cancellations, the margins of companies are protected in the event of cancellation, and they even charge some cancellation fees from travelers too, said Baliga.

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