Ixigo plans to enter hotel booking segment later this year
According to a report in The Hindu Business Line, Gurugram-based online travel agency (OTA) Ixigo plans to venture into the hotel bookings segment later this year. Currently, the company operates by redirecting all customers to booking.com for hotel accommodations.
Aloke Bajpai, CEO & co-founder of Ixigo, expressed his excitement about this strategic move, stating, “Entering the hotel segment is a natural progression for us as an OTA. While we have been partnering with booking.com for hotel accommodations, we believe it’s time to develop this segment on our own from a business economics perspective.”
Presently, Ixigo holds a modest 1 per cent share in the hotel segment, while MakeMyTrip dominates with 55.6 per cent, followed by yatra.com and Cleartrip with 3.6 per cent and 1.9 per cent respectively, according to a report by travel consultancy firm, Videc.
Bajpai further emphasised that the decision to venture into the hotel segment was driven by Ixigo’s ambition to establish a strong presence in the online travel industry and reduce reliance on external partners. “Despite the competition and the long journey ahead, our user base gives us an advantage, and we won’t need to overspend on acquiring customers like many initial hotel OTAs,” Bajpai explained with confidence.
Ixigo has built a massive user base over the years, handling over 60 million monthly active users and more than 6 million daily active users.
The company is actively exploring potential revenue streams, including packages and tours. Recently, they joined forces with travel-tech start-up Pick Your Trail to bolster their packages section. After establishing its presence in the hotel bookings segment, the company plans to venture into packages and experiences, while simultaneously accelerating its visa segment.