Flipkart-owned Cleartrip aims to reach operational breakeven by early 2027 through a shift toward higher-margin hotel and transport bookings. The platform, which reported a net loss of ₹651 crore in FY25, is leveraging AI to reduce its long-standing reliance on low-margin air ticketing.
Cleartrip, the online travel platform owned by Walmart-backed Flipkart, is undertaking a significant restructuring of its business model to move away from deep discounting and achieve profitability. The company is actively shifting its focus from air ticketing—a segment traditionally defined by thin profit margins and high competition—toward higher-margin categories including hotels, homestays, and ground transport.
Scaling Non-Air Revenue
The strategic shift is designed to reduce the company's dependence on the volatile air travel market. As of mid-2026, non-air bookings account for approximately 20-22% of Cleartrip's revenue. Management has set an ambitious target to grow this share to 45% by late 2027. To support this growth, the company has ramped up its direct contracting with hotels, now maintaining an inventory of around 600,000 domestic properties. By owning the inventory pipeline rather than relying solely on aggregators, Cleartrip aims to gain better control over pricing and availability.
Financial Path and AI Integration
Cleartrip remains a loss-making entity, reflecting the intense cash-burn environment inherent in the Indian online travel agency (OTA) sector. In the financial year ended 2025, the company reported a net loss of ₹651 crore on revenue of ₹234.7 crore. While these losses are substantial, the company is focusing on narrowing the gap by enhancing unit economics. A central pillar of this effort is the integration of artificial intelligence. The platform is deploying AI tools to improve travel discovery, simplify itinerary planning, and optimize backend operations, which management believes will lower acquisition costs and improve customer retention.
Competitive Landscape and Risks
The Indian online travel sector is highly competitive, dominated by established incumbents like MakeMyTrip, which holds a significant lead in market share, and public sector players like IRCTC, which controls the bulk of the train ticketing market. Cleartrip’s expansion into these segments puts it in direct competition with these entrenched rivals.
For the company, the primary risk involves executing this pivot without needing continuous capital support from Flipkart. While being a subsidiary provides financial backing, the company is under pressure to prove that its business model can eventually sustain itself without relying on parent-led funding or aggressive discounting. Additionally, operational complexities in managing new verticals like ground transport and holidays, combined with macro factors such as travel demand sensitivity, remain key areas that will influence the company's progress toward its 2027 breakeven goal.