Le Travenues Technology, operating under the brand name Ixigo, aims to become the largest online travel agent (OTA) aggregator in the budget and mid-range hotel segment within the next four to five years.
During the second-quarter investor call on Monday, Group Chairman and CEO Aloke Bajpai stated that while the company is targeting over 100 percent growth in the next four quarters, its long-term goal is to secure a leading position in this growing segment. He told analysts: '...if I were to give you a long-term forecast, for four to five years, we want to be the largest hotel OTA in the budget and mid-range hotel category by number of nights stayed.'
Bajpai added that the overall addressable hotel market in India is well-established and represents the largest profitability pool for OTAs globally. Opportunities in India appear more attractive because travelers in this segment require high reliability of offerings, and online penetration remains low.
He cited a VIDEC report stating that about 60 percent of hotel nights in India are sold for less than 2000 rupees per night, and independent hotels account for 73 percent of all rooms. Out of the 70,000 hotels in India they sell, they currently partner directly with over 12,000 hotels in approximately 1,100 cities, exceeding the previous quarter's figure of 10,000 hotels. Bajpai noted that their hotel strategy aligns closely with their customer base: 94 percent of their transactions are related to trips to second and third-tier cities, and more than nine out of ten trips they sell are taken by train or bus.
He also referenced VIDEC data estimating the Indian hotel market at approximately 1.57 trillion rupees in fiscal year 26 and forecasting its growth to 1.94 trillion rupees by fiscal year 28. Accommodation accounted for 30 percent of total travel expenditure. Bajpai emphasized that OTA hotel bookings are projected to grow by about 19 percent annually, increasing from 40,200 crore to 57,000 crore during this period. He also noted that hotels are already the second-largest OTA category, being about three times larger than the OTA railway ticket market.
Furthermore, he mentioned that the company's core profitability allows it to continue funding this opportunity. Ixigo, in which Dutch technology investor Prosus holds over a 15 percent stake, reported a record profit after tax (PAT) of 63.42 crore rupees, aided by a partial sale of a stake in Freshbus.
The Gross Transaction Value (GTV) grew by 22 percent year-over-year (YoY) to 5,304 crore rupees, and operating revenue was 321 crore rupees, a 13 percent increase year-over-year. Addressing short-term macroeconomic difficulties, Bajpai pointed out that the aviation sector continues to face pressure due to limited capacity and a 30 percent year-over-year rise in airfare tariffs on several routes.
Bajpai stated: 'Air travel has faced a more complex external environment due to high fares and limited capacity, which impacted booking growth, and the overall market declined by almost 6 percent in volume this quarter. Despite this, the team achieved 7 percent segment growth, which is an achievement in itself.' He also commented on the outlook for the upcoming festive quarter, noting: 'Demand during the festive period is slightly lower than expected for this time of year. We are not talking about any major negative spike, but one might expect a higher surge if fares were more consumer-friendly.'
Management also disclosed that the ConfirmTkt application has become the highest-rated travel application globally, achieving a 4.9 rating on the Google Play Store and over 100 million downloads.
