Hotels Could Become One of Ixigo’s Two Biggest Businesses

Ixigo expects hotels to become one of its largest businesses within four to five years, co-founder and group co-CEO Aloke Bajpai said on the company’s earnings call Monday. He said the category could be “if not the largest, maybe the second largest” in its mix by gross transaction value (GTV).

Hotels are still small, accounting for 2.1% of GTV. The company’s stated ambition is “to become the largest player serving this part of the hotel market,” and Bajpai said growth is not optional. “There is no choice, we have to grow,” he said.

Ixigo’s logic for hotels starts with who its customers are. Around 94% of its transactions involve travel to or from Tier-2 and Tier-3 cities, and nine in 10 trips it sells are by train or bus. “Many travelers looking for an affordable room are already booking their journey with us,” Bajpai said. That gives it a ready audience and keeps acquisition costs lo