Flipkart-owned Cleartrip is shifting its strategy to grow non-air services like forex and hotel bookings to 40% of total revenue by 2027. This move aims to insulate the company from volatility in air travel, which is currently facing challenges from higher costs and lower demand. The company reported 40% year-on-year growth in the first half of 2026 despite the tough sector environment.
Cleartrip is transitioning its business model to become a comprehensive travel services provider by 2027. Currently, the company’s non-air business—which includes hotel bookings, buses, train travel, and holiday packages—makes up 27% of its total revenue. The company now plans to increase this segment to 40% through a wider range of offerings, including currency exchange (forex), visa processing, and alternative accommodation options.
This strategic pivot comes at a time when the Indian travel sector is grappling with significant pressure. While Cleartrip posted 40% year-on-year growth in the first half of 2026, it acknowledges that the aviation industry is facing headwinds. Factors such as geopolitical tensions, rising aviation fuel costs, and limited seat capacity have pushed airfares higher, causing domestic passenger traffic to decline by approximately 5% to 6% in recent periods. International travel demand has also been sluggish as high ticket prices force travelers to reconsider their plans.
From a business perspective, the shift toward non-air services is a common strategy among online travel agencies (OTAs) to improve profit margins. Flight bookings are generally high-volume but low-margin, whereas hotel bookings, packages, and value-added services like visa assistance typically offer better profitability. By diversifying its portfolio, the company aims to reduce its reliance on air ticket sales, which are currently vulnerable to macro-economic changes and cost-sensitive consumer behavior.
Cleartrip is also adjusting its product mix to align with changing travel patterns. Data from the company shows a 30% to 40% increase in demand for road-based travel, such as weekend getaways and self-drive vacations. This trend suggests that while consumers are cutting back on expensive air travel, the appetite for budget-friendly and regional travel remains strong. By creating custom holiday packages and offering more regional travel options, the company is attempting to capture this shift in demand.
Competitors in the Indian OTA space, such as MakeMyTrip, EaseMyTrip, and Yatra, have also been focusing on similar strategies to move beyond basic flight bookings and enhance their market share in the holiday and hotel segments. For investors and market observers, the key monitorable will be whether Cleartrip can successfully integrate these new ancillary services and maintain its growth momentum while the broader travel sector deals with fluctuating demand and cost pressures.