Flipkart-owned Cleartrip is moving away from heavy discounts to focus on profitability by the end of FY26. The online travel agency is shifting its strategy toward hotels, trains, and buses to reduce losses after reporting a ₹651 crore net loss in FY25.
Cleartrip, the travel booking arm of the Flipkart Group, is undergoing a major business model shift as it aims to reach operational break-even by the end of the current financial year. The company is actively moving away from the deep discounting model that previously defined its operations, focusing instead on long-term sustainability.
Moving Beyond Air Ticketing
Historically, Cleartrip relied heavily on air travel bookings, which historically accounted for up to 95% of its business. The company is now diversifying into categories such as hotels, trains, and buses to reduce this dependence. Non-air categories now make up roughly 22% of total bookings, a marked improvement from the single-digit share the company held a year ago.
This shift is part of a broader push to improve margins. The company's previous financial results highlight the pressure caused by aggressive promotional spending. In FY25, Cleartrip reported a net loss of ₹651 crore. During that period, the cost of discounts and cashback reached ₹608 crore, which was significantly higher than its net revenue of ₹169 crore. By reducing these promotional costs and focusing on higher-value transactions, the company aims to improve its financial health.
Expanding Service Verticals
To support this growth, Cleartrip is building out its infrastructure in new areas. The company has increased its direct hotel inventory to 7 lakh listings, positioning itself as a major player in domestic hotel supply. Additionally, it recently integrated IRCTC train booking services, with plans to make these options directly available on the main Flipkart app to reach a larger customer base. The company has also expanded its bus booking segment to cover over 6 lakh routes.
Leveraging The Flipkart Ecosystem
Cleartrip is increasingly utilizing the Flipkart ecosystem to drive customer retention and ancillary revenue. By offering services like travel insurance, premium economy upgrades, and co-branded credit card rewards, the company is attempting to increase the average value per customer. Future initiatives include integrating AI-driven trip planning tools and map-based browsing to improve the user experience.
The success of this strategy will depend on the company's ability to maintain user traffic without the pull of deep discounts, as well as its success in scaling non-air bookings. Investors and industry observers will be tracking the company’s progress toward its operational break-even target in the upcoming quarterly updates, as well as how it manages to compete against other established players in the growing Indian online travel market, which is expected to expand significantly over the next few years.