1 hr ago
Cleartrip Expands Into Holidays to Drive Travel Growth
Cleartrip is a travel website that mainly became known for booking flights.
Now it also wants to sell holiday packages.
These packages can include hotels, activities and transportation.
The company hopes existing customers will buy more than just individual tickets.
Cleartrip says holidays can earn more money because packages cost more and can be customized.
It plans to use its relationships with airlines and hotels to offer deals.
Customers will be able to change parts of some itineraries.
Cleartrip is entering a market filled with local travel agents and regional tour operators, where it will compete with companies such as ixigo and MakeMyTrip.
Cleartrip is expanding from air travel into holiday packages, alongside flights, hotels, trains and buses.
The company wants to increase customer productivity and lifetime value by selling more products to existing users.
Cleartrip says holiday packages offer higher ticket values and potentially better economics than standalone travel bookings.
Its holiday strategy will use airline and hotel relationships to create curated, customizable itineraries with negotiated deals.
Cleartrip estimates the holiday and package market is worth about $20 billion and 90% fragmented.
- Who
- Cleartrip, an online travel platform, is expanding its holiday business and competing with other travel companies including ixigo and MakeMyTrip.
- What
- Cleartrip is adding holiday packages to its existing flight, hotel, train and bus booking services.
- Where
- India's online travel and holiday-booking market.
- When
- Why
- The company wants to increase customer productivity and lifetime value, while benefiting from the higher ticket values and potentially stronger margins of holiday packages.
Key facts
- Company
- Cleartrip
- New offering
- Curated and customizable holiday packages
- Existing services
- Flights, hotels, trains and buses
- Estimated market size
- Approximately $20 billion for holidays and packages
- Market structure
- Cleartrip estimates the market is 90% fragmented
- Competitive context
- ixigo and MakeMyTrip are identified as competing online travel platforms
- Strategic goal
- Increase customer productivity and lifetime value
Quotes
Patwari
Cleartrip executive discussing customer productivity and holiday products
“The best thing is in this business, once you acquire a customer, how do you increase the productivity of the customer on your platform? That can happen only when you have products like holiday.”
businesstoday.in
“So, the whole equation between the CAC (customer acquisition cost) and the margins from the customer, that changes dramatically once you've scaled up holiday.”
businesstoday.in
Sources
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