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The Ixigo travel platform is well positioned to capitalize on the “next billion users” segment
Posted on January 5, 2022
ixigo (Le Travenues Technology Limited), India’s Leading OTA for the Next Billion User (NBU) Segment, Aims to Accelerate the Growth of the NBU Travel Market by Expanding its User Base in Non-Tier 1 Cities and solving Tier 2/3 traveler issues by focusing on localized content and app functionality. With the overall improvement of the travel and internet infrastructure in India and an increase in the connectivity of villages and towns with Tier 1, Tier 2 and Tier 3 cities, the company expects deeper penetration into small towns will lead to rapid adoption of its applications. for train, flight, bus and hotel reservations. 92.6% of ixigo’s transactions in FY21 were made to or from a level 2 / level 3 city in India. The company plans to capitalize on such opportunities and capitalize on the growth driven by the NBU travel segment, which currently accounts for over 62% of the overall travel market.
Launched in 2007 by Aloke Bajpai & Rajnish Kumar, ixigo is a technology company that helps travelers make smarter travel decisions by leveraging artificial intelligence, machine learning and data science-driven innovations. . They are currently the fastest growing OTA platform in the country with the highest cumulative app downloads to date (25.5 cr in March 2021), more monthly downloads than any other OTA application ( 6.74 million downloads per month) and highest usage and engagement (Source: F&S Report). ixigo was the second OTA in India in terms of operating revenue and total proforma GTV in fiscal year 2021. The travel platform has managed to increase its market share, even during the pandemic, thanks to a Fast response time to customer inquiries, full refund options, and an up-to-date help center for COVID travel guidelines. The company reached a monthly gross transaction value of Rs. 393.8 crore in March 2021, twice the pre-COVID level in March 2020. The company also became profitable in FY21 despite the impact blockages on industry.
ixigo offers separate applications for customers who book trains, buses and flights and their multi-application strategy has enabled them to be relevant to both the most advanced Level I travelers and aspiring Level II travelers / III / IV. At the end of fiscal 2021, the ixigo and ConfirmTkt trains were collectively the main B2C distribution platforms for IRCTC with 42% market share in terms of rail reservations among OTAs and B2C distributors in the IRCTC. ixigo was also the third largest Indian OTA flight with a 12% market share of the total OTA airline market in terms of volume in fiscal year 2021. Earlier in the year, the travel company also acquired the Confirmtkt train discovery and reservation platform and the online bus ticket office. Abhibus platform to deepen its presence in the online ticketing segment for trains and buses. Abhibus is the second OTA in the bus segment, with 10% market share
In an effort to further differentiate itself in the OTA market, ixigo has chosen to prioritize railways by providing useful inter-city rail information to their customers. Between 2013 and 2018, the travel platform launched a bunch of innovative AI-based user-friendly features, such as PNR prediction, live train running status, voice travel assistant (TARA), Siri shortcuts and an AR. feature, which allows train passengers to locate their coach positions at more than 7,000 stations across the country, which has helped it grow rapidly. In the first quarter of 2021, the ixigo trains mobile app was the 10th most downloaded travel and navigation app in the world according to App Annie.
With the “next billion users” likely to use voice commands over text, and the majority of internet searches in non-Tier I cities being performed on voice and gesture commands, ixigo intends to introduce more voice functionality on its OTA platforms, especially for its utility use cases as well as their artificial intelligence-based personal travel assistant, TARA. The travel platform plans to continue investing in technology to improve the customer experience, attract new users organically, and capitalize on future growth opportunities expected in the online travel market online. India.
Ixigo’s acquisitions and partnerships, along with its technology platforms, form a travel ecosystem that seeks to meet the needs of travelers through the travel planning, booking and management stages of a trip, to ” improve its ability to offer a better diversity of supply, to help achieve economies of scale, as well as to create significant cost synergies across the group. The company plans to continue to evaluate strategic partnerships, investments and acquisitions in the future.
Of the 750 crore in funds the company plans to raise through an IPO, the company intends to use a portion of the gross proceeds to run promotions targeting early train, bus and other bookings. flights from the “next billion users” through marketing promotions and discounts.