Ixigo has designated hotels as its fourth growth engine, following trains, flights, and buses, after the segment's revenue expanded more than sixfold to ₹8.1 crore in the second quarter of fiscal year 2027. According to Inc42, this revenue represented 2.5% of the company's total operating revenue of ₹321 crore for the September quarter. The gross transaction value for hotels reached ₹111.3 crore, a figure 2.6 times higher than the year-ago period, making it the fastest-growing business line for the travel technology platform.
The company began disclosing hotels as a separate operating segment in this quarter, previously categorized under 'Others'. Group CEO Alok Bajpai stated that the segment reached a critical scale sufficient for separate disclosure. While the contribution margin improved to -15% from -55% in the same quarter of the previous year, the absolute contribution loss widened to ₹1.2 crore from ₹71 lakh. Inc42 notes that much of the hotel-related technology and personnel spending remains within group costs, with management attributing approximately ₹10 crore of the increase in group costs to hotel scaling.
The strategy focuses on budget and mid-market independent hotels, where online penetration is low. Management cited industry estimates placing India's hotel market at ₹1.57 lakh crore in FY26, projected to grow to ₹1.94 lakh crore by FY28. More than 86% of hotel bookings in the quarter came from existing users, leveraging the platform's customer base where 94% of transactions involve Tier II and III cities. Ixigo now lists over 70,000 hotels, including more than 12,000 directly contracted properties across approximately 1,100 towns.
The quarter's figures also include Brevistay, a startup offering short-duration stays, in which Ixigo acquired a 54.66% stake for ₹65.69 crore. This acquisition aims to expand direct property relationships. Meanwhile, the established verticals continue to fund this expansion. Train passenger journeys rose 7% year-on-year, with contribution profit growing 29% to ₹47.2 crore. Bus GTV increased 32% to ₹752.65 crore. Flight GTV grew 37%, but revenue declined 8% to ₹82.7 crore due to pressure on monetisation amid high airfares and capacity constraints.