Experiencing a doubling of growth in the past six months, Cleartrip’s international air segment is poised to constitute 45 per cent of the overall segment. At present, the overall air segment contributes 90 per cent to the online travel agency’s revenue mix. This surge is attributed to enhanced direct airline connectivity to global destinations and relaxed visa norms. Simultaneously, Cleartrip foresees a high single-digit growth of 35 per cent in its hotel and B2B segments over the next two years, said a top official.

Speaking to businessline, Chief Business Officer of Cleartrip, Prahlad Krishnamurthi, said: “The share from our international air business has experienced substantial growth, increasing from 32 per cent to 38 per cent, with expectations to further rise to 45 per cent within the current year.”

He explained that while the percentage may seem modest, it’s important to note that the overall market pie is expanding. He explained that the domestic segment has seen a commendable increase, now constituting 60 per cent of the portfolio. “Our success is further underscored by the brilliant performance of visa-free countries, contributing 15-20 per cent of revenue from the international segment. Direct flights have also proven to be a significant driver, too.”

He said the company has focussed on three things over the past year to expand its international segment. Earlier, the Fipkart-owned Cleartrip encountered challenges in terms of our product offerings, potentially leading customers to visit the website without finding the desired selection and pricing. However, we’ve successfully addressed this issue, resulting in a noticeable improvement in the conversion of website traffic. Our recent initiatives, such as the introduction of Flex for domestic flights, providing flexibility for changes, and the launch of EMI and BNPL options at 8-10 per cent, have significantly contributed to our positive growth trajectory, he said.

market share

MakeMyTrip (MMT) dominates the Indian online travel market with a 53.8 per cent share as reported by Videc. Cleartrip holds the second-largest position at 8.5 per cent, followed closely by EaseMyTrip (EMT) at 8.1 per cent. In the airline segment, MakeMyTrip commands a significant 56.9 per cent market share, overshadowing Cleartrip and EMT at 13.7 per cent and 13.4 per cent. In hotels, MakeMyTrip dominates, but Yatra.com surpasses Cleartrip and EMT with a 3.6 per cent share. Other OTAs collectively hold the majority, signalling a diverse and competitive landscape.

On the overall revenue mix, Krishnamurthi said the majority, 90 per cent, came from air services, with 38 per cent being international flights, and hotels 8 per cent. Buses contributed 2 per cent and the B2B horizontal was at 30 per cent.

Speaking about the company’s exponential growth in the hotel segment, he said approximately a year ago hotels constituted zero to its pie. Now, it is 8 per cent, totalling 38,000 properties, while internationally, it has 2.5 lakh properties.

Speaking about the way forward for the company, he said: “Our focus lies on rapidly scaling up hotels, aiming for 30-35 per cent growth in the next two years. This doesn’t signify a slowdown in air services; rather, it underscores the immense potential in the hotel segment. Simultaneously, we are dedicated to elevating the B2B segment to 30-35 per cent, primarily through acquiring large corporate clients, marking our top growth priorities.”

new segments

On the addition of new segments, Krishnamurthi said: “While our ultimate goal is to engage in every aspect of the travel business, we adopt a strategy of perfecting one business before venturing into another. Homestays, villas, packages, rail, and cruises are on our radar, each with detailed business plans. We aim for at least 8 out of 10 in each product before diversifying. Packages have already been piloted, with a focus on rail in the current fiscal.”