After Takeoff, ixigo Now Turns to Hotel Bookings
Hyderabad: Online travel search marketplace ixigo, which claims to record monthly transactions worth $10 million, plans to divert some of its resources to focus on the untapped hotel bookings segment over the next12 months, chief executive Aloke Bajpai has said.
Flight bookings and advertisements still make up a major chunk of the revenue of this meta-search engine, which aggregates information on flights, trains, cabs and hotels, among others. Hotel bookings have so far contributed only a paltry share. “We want to launch a much more evolved version of our current hotel product,” Bajpai told ET. “From a revenue standpoint, we would expect it to contribute 3-4 times of what it does today.” The company, which competes with the likes of Trivago and TripAdvisor, aims to close the current fiscal year with a revenue of .₹ 50-60 crore, more than double its revenue of .₹ 23 crore for FY17, he added.
Bajpai said the online hotel booking segment is still an untapped market with over 80% of hotels being booked in India through offline channels. Moreover, profitability in this segment is higher due to larger margins. The ixigo team is rejigging the hotel segment product to suit customer perspective –– to throw up the right hotel match to the customer rather than just providing price comparisons. Backed by Sequoia Capital India and Fosun Kinzon Capital, among others, ixigo has been focused on enhancing mobile experience, which has resulted in 35% of the total bookings coming in from mobile applications, said Bajpai.
The company, which raised its latest round of funds earlier during the year, has been using it to improve technology and is looking to roll out new products in the coming months.
Co aims to close the current fiscal year with a revenue of 50-60 crore