ixigo Hotels: Can It Become a Fourth Growth Engine?
1 Cr in Q2 FY27 as the travel company builds a fourth growth engine beyond trains, flights and buses.
The hotel bet becomes a reported business
Travel tech company ixigo is building hotels into its fourth growth engine alongside trains, flights, and buses. In Q2 FY27, hotel revenue grew more than sixfold to ₹8.1 Cr, accounting for 2.5% of the company’s ₹321 Cr operating revenue in the September quarter.
ixigo began reporting hotels as a separate operating segment during the quarter. Its gross transaction value reached ₹111.3 Cr, or 2.6X the year-ago figure, making hotels the company’s fastest-growing business line by this measure.
ixigo is using its existing travel base
ixigo group CEO Alok Bajpai said hotels had reached a scale that justified separate disclosure. The company is targeting budget and mid-market accommodation, particularly independent hotels, for travellers who already use its platforms for journeys but may book accommodation through offline channels or other services.
More than 86% of Q2 hotel bookings came from existing users. ixigo has more than 70,000 hotels on its platforms, including over 12,000 directly contracted properties across around 1,100 towns.
In the CEO’s words
“Hotels took a great leap forward, getting to a critical mark that makes it large enough to start disclosing (separately),” Bajpai said during the earnings call.
“The opportunity is particularly compelling in the budget, mid-market, and independent hotels, where online penetration is low, and travellers need greater reliability and peace of mind,” he said.
Hotel growth requires investment
The hotel segment’s contribution loss widened to ₹1.2 Cr from ₹71 Lakh in Q2 FY26, although its contribution margin improved to -15% from -55% as revenue growth outpaced the increase in direct costs.
Management attributed around ₹10 Cr of the approximately ₹20 Cr increase in group costs, excluding ESOP expenses, to building and scaling hotels. ixigo’s train, flight, and bus businesses generated around ₹126 Cr in contribution profit during the quarter, helping fund the expansion.
