Cleartrip, the online travel agency owned by Walmart-backed Flipkart Group, aims to achieve operational break-even by the end of the current financial year. Chief business and growth officer Manjari Singhal stated this goal in an interview, emphasizing a shift away from the company's previous reliance on discounts for growth.
We want to be operationally neutral by the end of this year,
Singhal said.
Key Details
The company reported spending ₹608 crore on discounts and cashback against net revenue of ₹169 crore in FY25. Cleartrip also incurred ₹102 crore in advertising and promotions, along with ₹129 crore in commissions and brokerage, resulting in a net loss of ₹651 crore for the year. Singhal noted that while platforms need to earn margins, it should not come at the expense of customers.
Background
In response to increasing competition, Cleartrip has diversified its offerings beyond air ticketing, which constituted 90-95% of its business as recently as early last year. Non-air categories now account for approximately 22% of bookings, a significant increase from single digits a year earlier. The overall online travel agency market in India is projected to nearly double from ₹2.08 trillion to ₹3.84 trillion by FY28, according to Motilal Oswal Financial Services, despite ongoing margin pressures across the sector.
Cleartrip's strategy to reduce discount spending and focus on profitability could influence investor sentiment in the online travel sector. Competitors like MakeMyTrip may respond to Cleartrip's shift, impacting market dynamics. Investors will watch for updates on Cleartrip's performance and any strategic changes from its competitors as the industry evolves.