Travel tech company ixigo reported its hotel segment revenue grew more than sixfold to ₹8.1 crore in Q2 FY27, marking it as the company’s fastest-growing business line. The hotel segment accounted for 2.5% of ixigo’s ₹321 crore operating revenue in the quarter, with gross transaction value reaching ₹111.3 crore, 2.6 times the year-ago figure, according to inc42.com.
Ixigo began reporting hotels as a separate operating segment in Q2 FY27, breaking it out from the ‘Others’ category. Group CEO Alok Bajpai noted during the earnings call that the hotel business reached a critical size to warrant separate disclosure. The segment’s contribution loss widened to ₹1.2 crore from ₹71 lakh in Q2 FY26, but the contribution margin improved to -15% from -55%, as revenue growth outpaced direct cost increases. Much of the hotel-related spending on technology, product, and employees is included in group costs.
The hotel segment’s rapid growth comes as ixigo faces challenges expanding market share in its other verticals like trains, flights, and buses. High airfares and capacity constraints have limited flight bookings, while rail bookings growth has slowed. Ixigo’s train, flight, and bus businesses generated around ₹126 crore in contribution profit during the quarter, which helped fund the hotel expansion. The company is positioning hotels as its fourth growth engine alongside these established segments.
Management attributed about ₹10 crore of the approximately ₹20 crore increase in group costs, excluding ESOP expenses, to building and scaling the hotel business. This investment reflects ixigo’s strategic focus on hotels as a key growth driver amid evolving market dynamics in travel bookings.