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Ixigo Targets Leadership in India's Budget-to-Mid Hotel OTA Market
Sentiment: NeutralHigh Priority
What Happened?
Ixigo, operated by Le Travenues Technology, aims to become the largest hotel OTA in India's budget-to-mid-market segment within four to five years. The company reported a profit of Rs 63.42 crore in its latest earnings call.
Key points
- Ixigo aims for over 100% growth in the next four quarters.
- The total addressable market for hotels in India is significant, with 60% of room nights priced below Rs 2,000.
- Ixigo is directly tied to over 12,000 hotels across 1,100 towns.
- India's hotel market is valued at Rs 1.57 trillion in FY26, projected to reach Rs 1.94 trillion by FY28.
- Hotel bookings through OTAs are expected to grow by 19% annually.
- Ixigo reported a gross transaction value of Rs 5,304 crore, up 22% YoY.
Key insights
- The focus on budget hotels may attract more travelers from Tier 2 and 3 cities.
- Increased OTA penetration could improve reliability in hotel bookings.
- Ixigo's profitability allows for continued investment in growth despite market challenges.
Why it matters
Ixigo's growth strategy could reshape the budget hotel market in India, enhancing travel options for consumers.
Tags
Entities
Ixigo· CompanyLe Travenues Technology· CompanyProsus· CompanyVIDEC· OrganizationIndia· Country
Source
Business Standard
