Hotels business has hit a critical mass for ixigo, co confident of triple digit
Benchmarks Nifty23,146.15148.81FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.8 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.64 % Invest NowEnter search…
ixigo has reported substantial growth in its hotel business, surpassing 5,000 room nights booked daily. The company is aiming to become a leading player in the mid-market hotel segment over the next few years. ixigo's revenue from hotel bookings has seen impressive year-on-year growth, primarily from its own user base. International flight bookings also showed significant growth, as domestic fares remained high.
Listen to this article in summarized format
Loading...×New Delhi: The hotels business has hit a 'critical mass' for ixigo, even as the company grows in the airline business despite flight macros in the country remaining a ‘bit challenging’, said group CEO Aloke Bajpai in an interview with ET.“We decided to break out the hotels vertical and disclose it as a separate line of business because we hit a critical mass, crossing 5,000 room nights per day, growing 3.9x year on year,” said Bajpai.
“Very few OTAs in the country have ever crossed that number. I can't think of more than two or three names. In that sense, we think it is time to start breaking this out as a new line of business,” he added.
In an interview to ET in August, Bajpai had said ixigo is 'destined' to be the largest player in the mid market hotel segment over the next four to five years as hotels become the fastest growing segment for the company in terms of gross transaction value (GTV).
ixigo reported a net profit of Rs 63.42 crore for quarter two of this fiscal. Revenue from operations went up 13% year on year to Rs 320.96 crore.
Live Events
Bajpai said the impact on the company’s top line and GBV from the hotels business is starting to look 'material.'
“GBV from hotels crossed Rs 100 crores, a 159% year-on-year growth. Revenue grew more than 500% (over 6x growth year-on-year), given that we just started building this business two and a half years ago. The take rate is the highest across our business at 12% plus, and that take rate is growing year-on-year,” he added.
He said 86% of this growth comes from the company’s own captive user base—people who book transportation like trains, buses, and flights. “It is not heavily dependent on what happens outside our funnel, but largely within our funnel of 86 million monthly active users,” he added.
He said the flight macros in the country remain a bit challenging because fares are high and airlines like Air India and IndiGo decided to keep capacity on the lower side for the quarter in terms of planes deployed. “Therefore, the overall market saw a 5% to 6% degrowth in the quarter, but we managed to continue growing,” he said.
“Despite that headwind, and despite what is happening in the Middle East, our international flights business actually outperformed and continued to grow at a phenomenal pace. Gross Booking Value (GBV) for international flights grew 59% year-on-year. Bookings for places like Vietnam (Hanoi) doubled year-on-year, while Bali, Colombo, and Bangkok all grew more than 70% year-on-year,” he added.
He said because domestic fares were on the higher side, some people chose similar-priced international trips, and some Middle East traffic got diverted to Southeast Asia or nearby destinations. “That was quite visible,” Bajpai added.
ixigo had strengthened its presence in the hotels business this year through the acquisition of a 54.66% majority stake in flexible stay hotel platform Brevistay, expanding its presence in the flexible and short-stay accommodation segment. The company’s hotel inventory during quarter two stood at over 70,000 properties in India, including over 12,000 directly contracted properties across 1,100 towns.
Bajpai said a large part of this growth is organic.
“A significant contribution is from our own hotel business, which we've been building for 11 quarters. Brevistay is helping us in two ways. They have a business development team that now works closely with our core team to accelerate direct supply onboarding. We onboarded 2,000 properties through them last quarter alone,” he said. “Secondly, we can tap into incremental pools of demand together. The choice of disclosing the segment separately was linked to the fact that it has hit meaningful scale and a place where we are confident triple-digit growth will continue,” he added.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onixigohotels businessAloke BajpaiGross Booking Valuemid market hotel segmentrevenue growthBrevistayairline businessinternational flights growthmiddle east
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...moreless(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onixigohotels businessAloke BajpaiGross Booking Valuemid market hotel segmentrevenue growthBrevistayairline businessinternational flights growthmiddle east
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...morelessContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
