Can Hotels Become ixigo’s Fourth Growth Engine?

Travel tech firm ixigo has set its sights on hotels as its fourth growth engine, after seeing diminishing returns in rail, flight, and bus bookings. The company started reporting hotels as a distinct segment in Q2 FY27, with their revenue surging sixfold to ₹8.1 Cr by the September quarter - representing 2.5% of ixigo's total operating revenue of ₹321 Cr.

Gross transaction value (GTV) rose to ₹111.3 Cr, nearly double the previous year's figure. CEO Alok Bajpai noted hotels reached a critical mass to warrant separate reporting. While the segment's contribution loss widened to ₹1.2 Cr from ₹71 Lakh, margin improved from -55% to -15% as revenue outpaced rising costs. The bulk of this growth comes from reinvesting profits from existing train, flight, and bus services. ixigo targets budget and mid-market travelers, particularly independent hotels where online bookings remain low.

With over 70,000 hotels on its platform, the company leverages existing users - 94% of transactions involve journeys to/from Tier II/Tier III cities. The AI-first HELLO platform, and recent acquisition of Brevistay, fuel further direct hotel partnerships. Despite challenges in flight and bus businesses, these core services still drive profitability and can aid hotel growth.