Table of Contents
- Introduction: What is ixigo?
- TL;DR
- What Problem does ixigo solve?
- What is ixigo’s moat?
- OTA Market Overview
- Macroeconomic Overview 🔍
- Travel Industry 🌏
- Passengers Carried Across Different Modes of Transport
- Money Spent Across Different Modes of Transport
- Government Initiatives to boost tourism and travel
- Budget Allocation for Road and Rail Infrastructure
- OTA Revenue split from different segments
- Airlines
- Railways
- Hospitality
- Buses
- OTA Business Models
- ixigo’s competition
- MakeMyTrip
- EaseMyTrip
- Yatra
- ClearTrip
- Here’s the comparison of competitors on the basis of industry specific metrics 👇🏻
- International OTAs
- Meta-searches and Horizontal E-Commerce Players
- Market Share of ixigo and its competitors across modes of transport
- Airlines
- Railways
- Bus
- Hospitality
- ixigo revenue model
- Flights
- Trains
- Buses
- ixigo’s contribution Margin Analysis:
- Breakdown of ixigo’s Growth Model
- Some key insights 👇🏻
- ixigo’s Ideal Customer Profile (ICP)
- Our Marketing Pitch
- Marketing Pitch for our ICPs?
- User Goals of the two ICPs
- Understanding the target market:
- ixigo user’s natural frequency
- ixigo’s Current Customer Base
- Customer Acquisition
- Onboarding
- Engagement and Retention
- Retention
- Monetisation
- What are the Cost Levers for ixigo?
- Market Opportunity
- Challenges
- Glossary
![ixigo Business Model & Growth Strategy](https://cdn.feather.blog?src=https%3A%2F%2Fwww.notion.so%2Fimage%2Fhttps%3A%252F%252Fprod-files-secure.s3.us-west-2.amazonaws.com%252Fc5b09c36-a829-4cab-8c13-793616bf9d8a%252F511d1afa-1ee4-45e2-833f-2fa52755cd31%252FBlog_thumbnail.png%3Ftable%3Dblock%26id%3Ddbe3a72c-7aea-437f-8c0b-ba4ee423536d%26cache%3Dv2&optimizer=image&quality=80&width=280)
Introduction: What is ixigo?
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F736bceee-b090-4b68-8346-1a99fde99b48%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F20556b60-d558-473f-85a1-c5bb826390be%2Fixigo_1.png&optimizer=image&quality=80&width=280)
TL;DR
![Video preview](https://i.ytimg.com/vi/nLcjygjOwPE/hqdefault.jpg)
What Problem does ixigo solve?
What is ixigo’s moat?
- Focus on Next Billion Users (NBUs): ixigo has smartly targeted the next billion users, focusing on smaller towns and cities where 94.39% of their transactions originate or conclude. They've tailored their app which is available in 8 languages with localized content and features, making travel planning easier for Tier II/III city dwellers.
![localized content on ixigo-Trains app](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F06b3698b-3689-4706-bd5f-1843360b0f92%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F0b5d6f1a-8a13-4f5a-ada2-d0825a5afb69%2Fixigo_app.png&optimizer=image&quality=80&width=280)
- Railway Prioritization: While others were focused on flights and hotels, ixigo took the rail route seriously. ixigo-Trains app provides useful user-generated intercity railway information from Indian Railways, which has earned them significant popularity through word-of-mouth from 2014 to 2018. Over 2.4 crore passengers use trains to travel in India. They're even a principal service provider for booking e-tickets, with their IRCTC agreement renewed and extended till 2028.
- Innovative AI-driven Features:
- ixigo assists travelers in making “smarter travel decisions” by leveraging artificial intelligence, machine learning, and data science-led innovations on their OTA platforms. TARA (AI bot) handles 83% of customer queries - which reduces employees’ strength and cost.
- ConfirmTkt, one of ixigo’s train booking app, is built around predicting confirmation chances for waitlisted tickets which is is powered by learning of seat allotment patterns on trains and machine learning algorithms built on historical data.
![UI for the confirmtkt app](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F8a6773e9-22e1-4ba1-9985-165361409e44%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Ff2ede107-2c8d-45a8-aa85-24de153a410a%2Fconfirmmm.png&optimizer=image&quality=80&width=280)
- Generous Refund Policies: They don't just stop at bookings. ixigo offers robust value-added services (VAS):
- It secures the bus travel passenger through its Abhi Assured program and offers 100% refund for bus cancellation, delay, bad quality of service or rebooking from the customer end.
- In the air segment, ixigo offers two VAS, namely Assured (Fully refundable) and Assured Flex (Fully Flexible / Refundable), these are priced starting at ₹ 399 and ₹ 499, respectively, Assured Flex is unique in the domestic air travel market, offering free change of date, change of sector and Free Cancellation, unlike any other OTA.
OTA Market Overview
Macroeconomic Overview 🔍
- Household income growth
- Expense Patterns
- Internet adoption
- Mobile penetration
- Government initiatives and policies
- Online payments
![Video preview](https://i.ytimg.com/vi/epRvNWfk0ik/hqdefault.jpg)
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F6ffa1680-d57b-4409-a8ad-f2c435fe55c8%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F3ced6ab3-5984-4f07-82ed-523b45254b34%2Fper_capita.png&optimizer=image&quality=80&width=280)
- Availability of low-cost travel
- increasing income per household
- flexibility options, and
- increasing competitiveness in offers provided by OTA.
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2Fc9cd0577-5ada-4f1b-b30f-c9527d3ab72d%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F9f130ef5-ca94-4fed-b632-9069ff952719%2Ftotal_internet_users.png&optimizer=image&quality=80&width=280)
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F14fc9812-77d8-4ee6-88c7-4843baf165b0%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Ffb588ec5-2a60-4ad9-ac58-95535c54bdc4%2Ftotal_internet_users_(1).png&optimizer=image&quality=80&width=280)
- India is a mobile internet market, with smartphones being the primary device for internet access.
- Smartphone penetration is expected to reach over 90% of total mobile subscribers by 2028.
- Key drivers for this are lowest data usage prices globally, the average cost per GB is one of the lowest at $0.16 per GB, increased access to online content, entertainment, and e-commerce.
Year | Smartphone User (Millions) |
2023 | 931 |
2025 | 1100 |
2028 | 1550 |
![Video preview](https://i.ytimg.com/vi/G2yu6udLmFg/hqdefault.jpg)
- UPI accounts for 73% of total digital payments in terms of volume in 2023.
- UPI's share of total digital payment value increased from 5% in 2022 to 7% in 2023.
- ixigo earned ₹467 crores as revenue from payments effected through credit cards, debit cards, internet banking, wallets, UPI and other online payment options which is ~93% of the total revenue from operations!
Travel Industry 🌏
![Indian Travel Market Size](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F85db9e29-8046-4332-a148-6990130f93f1%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F9877ce87-1740-405a-baac-a91c205e1256%2FOverall_travel_market.png&optimizer=image&quality=80&width=280)
- The Rise of Digital Nomads A significant trend in global travel is the increase in digital nomads—individuals who work remotely while exploring the world.
- Trips Planned Around Sporting Events Fans are now planning trips around athletic events, not just to support their home teams, but also for their favorite sports, beloved teams, or international multi-sport competitions.
- Solo Travel Solo travel is becoming increasingly popular, with people finding it easier to schedule trips and customize them to their preferences. This trend is ideal for those looking to recharge after a hectic week.
- Spontaneous Travel Plans In an era where much of life is structured and scheduled, travelers are seeking flexibility and spontaneity. This has led to a rise in last-minute bookings, one-way tickets, and other options that allow for a sense of adventure and discovery.
- Convenience of Booking with OTAs
- Rise of Experiential Travel
- Focus on Affordability
- Growth in Responsible Tourism
- Popularity of Wellness and Staycations
- Emergence of Workcations
Passengers Carried Across Different Modes of Transport
- In India, out of 14 crore daily commuters, road and rail transport handle more than 75% and 24% of the travel needs, respectively, collectively meeting 99% of the country's passenger demand.
- Land transport is divided into 60% intra-city and 40% inter-city traffic.
![Modes of transportation for Indian passengers](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F46a27a93-001d-4ea3-8c74-832f2e30c492%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F67d4fe1e-a416-4f8c-a8e8-86da2d3550c2%2FModes_of_T.png&optimizer=image&quality=80&width=280)
- The bus segment, including both long-haul intercity and intra-city buses, serves 2.5 crore daily passengers, a number comparable to rail traffic.
- In contrast, daily air travel, despite reaching a record high of nearly ~4.6 lakh passengers in November 2023, accounts for less than 1% of the daily transport needs of Indian citizens.
Money Spent Across Different Modes of Transport
![Overall spend on travel in India](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F9e6efcde-3584-40b0-85ba-41b33854adae%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fc3fc9b0f-c7dc-4a5d-ada0-c0528a43afa3%2Foveral_spend.png&optimizer=image&quality=80&width=280)
Government Initiatives to boost tourism and travel
Tourism Initiatives
Initiative | Description | Budget Allocation |
UDAN scheme | 1. Aims to improve the connectivity to rural and underserved regions of the country with simultaneous development of airport infrastructure and air connectivity. 2. It has facilitated the air travel of more than 13 million air travellers and is expected to grow to 500 million by 2027. Around 499 new air routes have been operationalized since the commence of this initiative. 3. As of July 2023, there were 74 airports under UDAN scheme, including 2 water aerodromes and 9 heliports. 4. The Government has approved scheme for the revival and development of 100 unserved and underserved Airports, Helipad and Water Aerodromes by 2024. | Continuously funded; significant contributions to aviation sector growth. |
Swadesh Darshan | It is an integrated approach to provide lasting visiting experiences by creating tourist circuits on specific themes to attract both domestic and foreign leisure travellers. | ₹1750 crores for the fiscal yar 2024-25 |
Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASAD Scheme) | Its primary objective is to enhance awareness of religious tourism by identifying and developing tourist destinations across India in an organized and sustainable manner. | ₹240 crore for the fiscal year 2024-25 |
Airports announced under UDAN Scheme
![New airports announced under the UDAN scheme](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F73aa9ed8-ef72-446c-a915-64c31d248585%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Ffe9c97e4-9764-468c-ad66-0abc4b733e2f%2Fae9ae0eb-af7e-4ffc-867e-e38859065733.png&optimizer=image&quality=80&width=280)
Budget Allocation for Road and Rail Infrastructure
- Union Budget Allocation
- Construction Achievements
- Station Development
- Train Procurement
- Union Budget Allocation
- Highway Construction Goals
- Procurement of e-buses
OTA Revenue split from different segments
Airlines
![Indian Air travel market size](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F4ca6e3cd-ad18-4691-a664-124cefcdd18f%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fe6674ab1-9309-4fe3-a8d1-edc0f4592bab%2FAir_travel_market.png&optimizer=image&quality=80&width=280)
![Video preview](https://i.ytimg.com/vi/1fd1DlB-YnQ/hqdefault.jpg)
Railways
![Indian rail travel market size](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F5a66a21c-c7b3-471d-8ea8-93f628469d06%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fb86b1e1f-72ee-4a9e-b0a4-6dc2a6979ec0%2FRail_travel_market.png&optimizer=image&quality=80&width=280)
Hospitality
- The hospitality sector has been slower to digitize due to the fragmented nature of the market, especially in Tier II and Tier III cities where many hotels still operate offline.
- Many smaller hotels lack the infrastructure or expertise to manage online bookings, and OTAs need to invest in integrating these properties into their platforms.
Buses
![Indian bus travel market size](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2Fc702b798-3f0d-4afc-a92d-032859282eaf%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fb13e435a-0d6c-477a-b2cd-3454aeb133ab%2FBus_travel_market.png&optimizer=image&quality=80&width=280)
OTA Business Models
- B2C Segment
![Consumer Travel market insights](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F88e5a5af-3869-4ecc-a500-d894eeb63fe1%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F956d38b0-e3a8-4ca0-b55a-0f5a1dc10e1a%2FB2C.png&optimizer=image&quality=80&width=280)
- B2B segment
![Corporate travel market insights](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F40640496-4c57-4546-86df-3573f2f7e752%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F93811ebb-d7ca-4c51-9b7b-fefa3be03e62%2FB2C_(1).png&optimizer=image&quality=80&width=280)
- With a significant market opportunity in a $32 billion corporate travel sector encompassing over 400,000 SMEs, B2B OTAs leverage personalized service and strategic partnerships to enhance client relationships and drive growth.
- This segment is poised to double in size over the next five years, driven by India's economic growth, the implementation of GST (Goods and Services Tax), and increasing activities in the Meetings, Incentives, Conferences, and Exhibitions (MICE) sectors.
- B2B OTAs enjoy higher profit margins compared to the price-sensitive B2C segment and face less direct competition from airlines in catering to the specific needs of corporate India.
- B2B2C Segment
In Tier-II & III cities where internet penetration and consumer trust are challenges, the B2B2C model is prevalent. This model involves traditional travel agencies using OTA portals or B2B consolidators to reach customers, particularly SMEs who may not typically approach larger OTAs directly.
- B2B platforms like Travclan operate on the B2B2C model, focusing on serving smaller enterprises with booking solutions. However, opportunities for cross-selling additional services are limited in this model compared to direct B2C interactions.
- While B2C remains dominant in revenue generation, there's a growing shift towards B2B2C in the Indian OTA industry. By 2028, it's anticipated that the share of B2B transactions within the OTA sector will continue to rise as more OTAs target agents and smaller businesses, recognizing the potential in this segment despite its current smaller revenue contribution.
ixigo’s competition
![Players in the OTA industry](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F143ff072-d840-4f1a-9947-96ea09861b12%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F33f638a5-e811-487b-a6e3-b36689f941d8%2FCompetitors.png&optimizer=image&quality=80&width=280)
![Comparison between the top 5 Indian OTAs](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F26e2d6e8-c2fa-4dcc-914b-2f0cdf259d19%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fe9c88b31-df5b-4f57-9046-67bf731f99a5%2FComp_Graph.png&optimizer=image&quality=80&width=280)
MakeMyTrip
- MakeMyTrip is the current market leader in the OTA industry, with an annual revenue from operations of ₹6500 crore in 2024.
- They currently have a market share in India of more than 60% of the total revenue.
- A horizontal acquisition of Goibibo helped in increasing their Indian market share from 35% to 60% in 2017 and significantly increased the gap between them and their peers.
EaseMyTrip
- EaseMyTrip was started India in 2008 by serving the B2B2C market segment. They operated initially as a distribution channel and provided travel agents with a marketplace to book domestic travel airline tickets to cater to the offline travel market in India.
- In 2024, Easemytrip’s consolidated annual revenue from operations is ~₹600 crore.
- In 2024, Easemytrip was the third largest OTA by Operating Revenue.
- Currently, they have a presence in all 3 customer segments—business to consumer (B2C), business to business (B2B), and B2B2C.
Yatra
- Yatra.com was the largest B2B OTA in India in 2024, accounting to over 849 large corporates and 56,000 SME clients with the acquisition of Air Travel Bureau—a corporate air travel portal in 2017.
- In 2024, Yatra’s annual revenue from operations was ₹ 107.3 crore.
- It is the fourth largest OTA by Operating Revenue in India but a market leader in B2B OTA segment with 6% market share.
- With its platform as a service (PaaS) for large and medium enterprises and its self-booking platform for SMEs, Yatra.com is addressing the entire corporate travel market in India, which remains relatively underpenetrated, and it is betting big on corporate travel.
ClearTrip
- Founded in 2006, Cleartrip was one of the most popular OTAs in India.
- In April 2021, Cleartrip was acquired by Flipkart, post which Cleartrip’s Middle East business was sold to Wego and since January 2022 Flipkart started powering its flights business through Cleartrip.
- Their revenue from operations stood at 96.7 crores in 2023.
- The acquisition of Cleartrip allowed Flipkart to gain access to the OTA market, predominantly in the air and the hotel segment.
Here’s the comparison of competitors on the basis of industry specific metrics 👇🏻
Particulars | MakeMyTrip | ixigo group | Easemytrip | Yatra |
Operating Revenue (FY23) | 47.7 billion | 5 billion | 4.5 billion | 3.8 billion |
81.5 million | 83 million | 4.3 million | 2.8 million | |
8.7 million | 12.3 million | 0.4 million | 0.2 million | |
Cumulative App Downloads | 249.2 million | 288.4 million | 10 million | 19 million |
App Ratings (Weighted average) | 4.7 | 4.7 | 4.4 | 4.3 |
International OTAs
- International OTAs might employ Mergers and Acquisitions (M&A) strategies to acquire Indian platforms and rebrand them to strengthen their market presence.
- Indian OTAs must differentiate themselves in terms of price and product offerings to compete effectively.
Meta-searches and Horizontal E-Commerce Players
- Primarily focused on air ticketing to offer a comprehensive suite of internet-related services and products to their customers.
- These players exert pressure on the market shares of traditional OTAs by integrating travel services into their broader e-commerce platforms.
Market Share of ixigo and its competitors across modes of transport
Airlines
- MakeMyTrip is the market leader and holds approximately 30% of the total airline market in India, making it the dominant player in this segment.
- ixigo on the other hand, captured 5.2% market share, reflecting its growing presence and competitiveness in the market.
- Growth Trends: ixigo's rising market share indicates strong performance and increased customer acquisition in a competitive market. This growth reflects effective strategies and possibly a focus on enhancing user experience and expanding offerings.
- Competitive Landscape: The presence of multiple significant players, including Yatra, Cleartrip, and Paytm, underscores a competitive environment where differentiation in service, price, and product offerings is crucial for gaining and maintaining market share.
Railways
![Share of railway tickets booked offline vs online](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2Fc40986ab-237e-43ff-8368-a6316f396c1b%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F67aff9ec-06ce-4b04-b2c8-14a6d9f81749%2FRailways.png&optimizer=image&quality=80&width=280)
- Market Leadership: ixigo Group leads the OTA rail market with a substantial share, having nearly double the market presence compared to the second-largest player.
- Future Focus: The next phase for rail OTAs will concentrate on improving passenger services, aiming to enhance the overall travel experience beyond just ticket booking.
Bus
![Market share split of SRTC and Private bus operators](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F365aa962-ce7d-4a64-8baa-8137fc081baa%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Ff97ad263-e71c-48ac-850e-23a3e4f947af%2FBuses.png&optimizer=image&quality=80&width=280)
- RedBus, which was acquired by GoIbibo and now under MakeMyTrip’s umbrella is the world’s largest online provider of bus tickets with a market share of 75% in India in 2023.
- AbhiBus (ixigo's bus business) has a market share of 12.5% in 2024 and is the 2nd largest player. The platform aggregates over 2,000 private bus operators and all leading SRTCs, covering more than 100,000 routes across the country as of December 31, 2023.
- Growth and Penetration: The online penetration of intercity bus bookings is steadily increasing, with a significant jump expected by 2028. This presents a growing opportunity for OTAs in the bus segment.
- ixigo’s Strategic Partnerships: Partnering with 11 SRTCs has positioned ixigo to leverage the growing online bus booking market effectively, contributing to its rising market share.
- Service Focus: Both RedBus and AbhiBus emphasize comprehensive passenger support throughout the journey, ensuring a high-quality experience that drives customer retention and market growth.
Hospitality
- MakeMyTrip is the Largest OTA for hotel bookings in India and boasts of a strong brand recognition and trust among Indian consumers with multiple points of customer acquisition.
- International Players like Agoda, Expedia, and Booking.com primarily cater to urban international travelers familiar with these brands from their experiences abroad. They have a Significant market presence in the online hotel market, albeit behind MakeMyTrip.
- ixigo has recently entered the hotel OTA category. It currently has a market share of Less than 1% of the OTA market for hotel bookings.
- Market Concentration: The online hotel booking market in India is concentrated, with MakeMyTrip, Agoda, Expedia, and Booking.com dominating the majority share.
- ixigo's Growth Potential: While currently holding a small market share, ixigo’s recent entry into the hotel OTA segment indicates potential for growth, especially if it leverages its existing customer base from other travel segments and enhances its value proposition for hotel bookings.
- Future Trends: The increasing share of OTAs in online hotel bookings suggests a growing reliance on these platforms by consumers, driven by convenience, competitive pricing, and integrated travel services. OTAs will likely continue to enhance their cross-selling strategies and expand their offerings to capture a larger market share in the hospitality sector.
ixigo revenue model
![ixigo’s revenue model](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F8c07c62f-695a-4d75-93de-e0d67accddf3%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F71dc6053-e3e1-49ce-9042-0d895f5847e5%2FRevenue.png&optimizer=image&quality=80&width=280)
Flights
- ixigo-flights mobile app was launched in 2011 and allows users to search and book all travel products and services, including flights, trains, buses and hotels.
- Some of the features of this application include the ability to track flights in real time, automatic online registration of users and the ability to provide price predictions and instant prices.
- The platform enables multimodal searches, allowing users to plan their journey between trains, flights, buses and hotels.
![ixigo-flights app](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2Fce123bdc-2505-4c1e-8193-e36ee3432c26%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fd72adfc2-7a64-4aa8-8b5f-981a0ba8d7c6%2Fixigo_flights.png&optimizer=image&quality=80&width=280)
- Gross Transaction Value: ₹2,015.488 crores
- Gross Ticketing Revenue: ₹222.010 crores
- Gross Take Rate: ₹11.05%
- Contribution Margin: ₹56.81 crores
Trains
- ixigo trains app was launched on android in 2013 with the primary focus on improving the experience of the Indian train travellers.
- ixigo trains app is designed to provide various daily utility use cases by helping travellers find train routes, check train running status, coach positions, platform numbers and location, real-time seat availability, train and train station ratings and reviews, station alarms, refund calculator, and PNR predictions for waitlisted bookings.
- It allows travellers to book train tickets in real-time and also offer local news, and other content and entertainment offerings through our ixigo trains app which it monetizes through display advertisements.
![ixigo-trains app](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F9a3b9958-7f60-4f7f-a162-97576a7144e9%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F3a05ad03-7a57-4b11-a942-1cc40b334b6c%2Fixigo_trains.png&optimizer=image&quality=80&width=280)
- ConfirmTkt, ixigo’s other train-focused mobile app, is a train ticket waitlist prediction and booking platform acquired by ixigo in 2021. It aims at ensuring that users get a ‘confirmed ticket’.
- ConfirmTkt’s unique value proposition is built around predicting confirmation chances for waitlisted tickets and check train running status, coach positions, platform numbers and location, real-time seat availability, along with providing alternative travel and train recommendations.
- This is powered by learning of seat allotment patterns on trains and machine learning algorithms built on historical data.
- The platform also distinguishes itself by allowing users to book train tickets directly as opposed to re-directing users to the IRCTC website, and by offering intelligent alternate travel recommendations when direct trains on the route do not have availability.
![confirmtkt app](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F8f48f2b3-5fd7-43d2-b827-3f7d4de223e4%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fc2240fac-cee6-463a-8813-e55e8fe679cd%2FConfirmtkt.png&optimizer=image&quality=80&width=280)
- Gross Transaction Value: ₹4471.527 crores
- Gross Ticketing Value: ₹284.666 crores
- Gross Take Rate: 6.37%
- Contribution Margin: ₹96.117 crores
Buses
- AbhiBus OTA platform is available through the website and also through a mobile app that is available for android and iOS operating systems. AbhiBus allows users to check amenities provided, compare booking fares, check bus timings in the searched route and other facilities.
- As of December 31, 2023, AbhiBus has an inventory of over 2,000 private bus operators and all leading state road transport corporations, covering more than 100,000 routes across the country.
- It is the official ticketing partner for several state road transport corporation bus tickets and IRCTC tickets.
![abhibus app](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2Fdcb42517-b33d-4dce-8014-aeff2bab77ed%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F0d57899d-ff60-4620-b7de-1ee9a7e92764%2Fixigo_bus.png&optimizer=image&quality=80&width=280)
- Gross Transaction Value: ₹965.415 crores
- Gross Ticketing Value: ₹99.654 crores
- Gross Take Rate: ₹10.32%
- Contribution Margin: ₹61.765 crores
ixigo’s contribution Margin Analysis:
Modes of Transport | Gross Ticketing Value
| Contribution Margin | Contribution Margin Ratio |
Trains | ₹284.666 crores | ₹96.117 crores | 33.76% |
Flights | ₹222.010 crores | ₹56.81 crores | 25.58% |
Buses | ₹99.654 crores | ₹61.765 crores | 61.83% |
Calculations:
![calculation of contribution margin](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2Fa8d968b2-d9de-4085-9e99-47a7902c7acd%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F94a309db-ac73-41c1-8e8a-bb13ae9fde76%2FUntitled.png&optimizer=image&quality=80&width=280)
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F133bb003-2f13-487d-991a-b49067b6b180%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F5bedf43f-14c9-4a63-8821-7beb2079d30a%2FContribution_margin.png&optimizer=image&quality=80&width=280)
- Efficiency: Buses are the most efficient in converting revenue to profit.
- Volume Impact: Despite lower per-rupee profitability, Trains lead in total profit contribution due to higher volume or value. In terms of absolute contribution to profits, the Trains segment is the largest contributor with ₹96.117 crores.
Breakdown of ixigo’s Growth Model
Some key insights 👇🏻
Aloke Bajpai and Rajnish Kumar emphasized the importance of product-led growth over the illusion of growth created by heavy spending. They pointed out that it is easy to feel successful when spending money, but much harder to determine if a product truly fits the market’s needs during such a growth curve.
By focusing on building a solid product that addressed user needs, ixigo relied on organic growth, primarily driven by word of mouth. This strategy was particularly evident in the development and success of ixigo’s train app feature.
The co-founders realized that building traction and acquiring sticky users were crucial in the early stages. They believed that if the product was compelling enough to attract and retain users, monetization opportunities would naturally follow.
For ixigo, achieving a solid product-market fit was a priority. The company’s growth strategy involved ensuring that the product genuinely resonated with users and solved their problems effectively. This focus on long-term value creation and user satisfaction helped ixigo build a loyal user base and sustain its growth over the years.
ixigo’s Ideal Customer Profile (ICP)
ㅤ | ICP 1: Akshit Jain | ICP 2: Aparna Nerurkar |
Demographic | Train + Flight + Bus | Flight Domestic + International |
Persona | Akshit Jain is a new professional that values time while traveling and money while booking, he’s flexible in choosing between trains & flights during intercity travel, basis efficiency. | Aparna Nerurkar is an entrepreneur who travels regularly domestically and internationally by flight for work &leisure equally. |
Age | 23-35 | 35+ |
City | Tier 1/2 | Metro Tier 1/2 |
Income | 10-15 LPA | 35LPA+ |
Employment | APM at a FinTech Startup | Entrepreneur |
Marital Status | Mixed: Single/Married | Mixed: Single/Married |
Children? (Y/N) | Mixed | Mixed |
Who do you travel with? | Solo, friends & nuclear family | Solo, friends & nuclear family |
Preferred Mode of Inter-city Transport | Train/Flight/Bus/Personal Car | Airplanes, Cars |
Work: Hybrid, from home, office | Hybrid | Hybrid |
Traveling Ticket Decision Maker | Self/Collective (incase of marriage) | Self |
Frequency of intercity travel for work (to-fro) | 2-3 times/ year | 3-6 times/year |
Frequency of intercity travel for personal reasons (to-fro) | 6-10 times/year | 4-6 times/year |
Android or iOS | Andriod | Mix |
Preferred Payment Method | UPI, Credit Card | Credit Card, Netbanking, UPI |
Preferred Mode of Booking (App, Website, Offline)? Why? | App - Tracking is easy,
| App and Web equally |
Do you use Hotel booking apps/websites? | Both | Mix |
What do you look for when choosing your stay while travelling? | Cost and Comfort | Comfort and convenience |
Preferred Domestic Airline | Indigo, SpiceJet, GoAir | Indigo, Vistara, Spicejet |
Preferred Means of Stay (Hotel, AirBnB, Family/Friends) | Hotels - when traveling with family
AirBnB - when traveling with friends/alone | Club Mahindra, Hotel, Resort (3-4 star) |
Pain-points While Booking *** | -Felt Cheated due to different prices shown before and during payment
-Low Reimbursements after cancellation
-Failed Payment | Cancelation clarity |
Pain-points During Travel | - Poor quality of food/travel services in the destination place/
- Expectations mismatch which booking traveling packages.
- Train gets delayed at the last moment.
- No real time updates for train’s arrival.
- Cancellation process is hectic offline | - Domestic packages
- Places to visit
- Payment options |
Do you travel light? | Yes, try to stay within the limit | Mix |
ㅤ | ㅤ | No - Alone
Yes - If we kids |
Do you pre-book meals for a flight? | No | Support for kids; Old age parents |
Do you need any special assistance? | Yes, when traveling with elderly family members | ㅤ |
International Travel | ㅤ | India |
Country of Citizenship | India | Yes |
Do you possess a passport? | Yes | 3+ |
How many Countries do you have a Visa for, currently? | NA | Mix |
Which Category do you travel in? (Economy, Business, etc) | Economy | 1-7 days |
How much in advance do you book international travel? | NA | ㅤ |
ㅤ | ㅤ | ㅤ |
Time & Money | ㅤ | ㅤ |
Time vs. Money: What’s more important? | Money | Time |
Where do you spend your time? | OTT, Social Media, | ㅤ |
Where do you spend your money? | Subscriptions- Spotify, Internet, Food, Gym, Shopping | Amazon/Flipkart/Meesho, Food, Travel, Insurance (Life, health) |
Most Used Networking Apps | Linkedin, Slack, Instagram, Whatsapp, Twitter, Reddit | WhatsApp, Instagram, Sharechat, Facebook |
Most Used Travel Apps | MMT, Ixigo, Cleartrip, PayTM, EMT, Goibibo | MMT, Ixigo, Paytm |
Most Used Payment Apps | GPay, Paytm, Phonepe, Slice, Simpl | Paytm, Gpay, PhonePe |
Most Used Entertainment Apps | Spotify, YT,Netflix, Amazon music, Amazon prime video, Hotstar | YouTube, Hotstar, News channels |
JTBD | ㅤ | ㅤ |
Functional | Plan and book travel effectively and efficiently online | To travel from point A to point B.
To plan a stay during my trip. |
Personal | Work+leisure | New experiences + work + relaxation |
Financial | Finding the best deal when making a booking online | Cheap & convenient deals for flights
Try to find the cheap fare for entire family or couple for leisure travel |
Social | Brag about trips to colleagues, and friends, spend some time with friends and family, get appreciation on social media from friends, followers, etc.
Create FOMO for other people who aren’t traveling. | Share pictures on Facebook, WhatsApp status, IG to brag about the travel experience and places to stay - Gratification.
Work - Status among clients + partners |
Natural Frequency | ㅤ | ㅤ |
Bus | 4-5 times/year | 0-1 times/year |
Train | 4-5 times/year | 1-2 times/year |
Domestic Flight | 3-4 times/year | 3-4 times/year |
International Flight | 0-1 times/year | 2-3 times/year |
Stay (Hotel, AirBnB, Family/Friends etc) | 5-6 times/year | 5-7 times/year |
Outstation Cab | 1-2 times/year | 1-2 times/year |
ㅤ | ICP1
(Akshit: New professional <> Train + Flights) | ICP2
(Aparna: Small business owner <> Domestic Flight) |
Entertainment
(Apps used | Cinemas etc) | - Instagram/FB
- Spotify
- Netflix/Amazon Prime/Hotstar
- News portals
- Amazon/Flipkart
- Zomato/Swiggy | - Instagram
- YouTube
- Spotify
- MMT, EaseMyTrip
- Swiggy/Zomato |
Travel
(How many times travel for short trips) | 6-10 times/ year | 5-10 times/year |
Commute
(How much time they spend) | 1-2 hours daily | 1-2 hours daily |
Location
(Time spent - Home & office) | A mix of time spent at home and office | Mostly spending time in office for work |
Exercise
(Fitness apps, gym) | - Personal trainer for fitness
- Using strava, runkeeper for tracking exercise
- Cult fit | Regular workout regimen |
Hobbies
(Reading, running etc) | - Avid reader (online or offline)
- Consuming content on OTT platforms
- Loves travelling and new experiences
- Talking to friends & fam | - Reading Books
- Exploring cities across the world with family
- Gym and running
- Likes browsing content on social media platforms |
ㅤ | ICP1
(Akshit: New professional <> Train + Flights) | ICP2
(Aparna: Small business owner <> Domestic Flight) |
Entertainment
| - Multiple OTTs
| Netflix, Prime, Spotify, YouTube |
Travel
| - Visiting hometown
- Weekend trips along or with friends | - 2-3 week long trip with family in a year
- 2-3 times per year to visit parents in another city
- 4-5 times per year on work |
Commute
| - Cabs
- Metros
- Bus
- Personal Vehicles | - Personal Vehicle - Car
- Cab |
Reading | - Books
- Learning something new ( courses, etc) | Reads books and articles |
Food | - Hire cook
- Going out with friends and colleagues
- Groceries | - Has a cook
- Goes out with family or friends 1-2 times per week
- Loves exploring food while travelling |
Hobbies | - Sports/Gym subscriptions
- trekking/traveling | - Loves listening to Music
- Jogging and Yoga |
Shopping | - Amazon/Flipkart
- Myntra
| - Amazon/Big Basket
- Nykaa
- Local Market for Grocery
- Malls for Cloths |
Others | - Investment | - Looks for ease of payment
- Really appreciates good customer support
|
Our Marketing Pitch
Marketing Pitch for our ICPs?
User Goals of the two ICPs
ICP 1 - Akshit | ICP 2 - Aparna | |
Functional | Have a quick and seamless experience of booking for both flights and trains. Use one app for all travel needs. | Make informed decisions for travel bookings. Get a quick overview of best possible options before researching further and booking. |
Personal | Smart travel decisions - time/cost/effort evaluation. Flexible on what he prioritizes based on time available. | Time conscious - Comfort and convenience are paramount yet ensuring that she receives the best quality at best price. |
Financial | Likes financial planning, saving early on to invest. However, he also believes in the YOLO philosophy so likes to indulge himself while traveling with good flights and hotels. | Financially astute and in a stable position, Aparna now chooses the best. She understands that a good travel experience even at an incremental experience is important for the rest of her trip to be perfect. |
Social | Highly active. Social goal is to show friends that he makes the right decisions. Likes to share his travel experiences and acts as a micro-influencer for his friends and network. | Selectively social. Doesn’t want to prove anything. However, genuinely loves sharing interesting experiences. Also, prone to ranting on social media in case of negative experience. |
Understanding the target market:
Vertical | Source of Revenue | TAM (FY22-23) | SAM (FY22-23) | SOM (FY22-23) |
Air Ticketing | Convenience Fee on Transaction | ~ ₹8000 Cr | ~ ₹4000 Cr | ~ ₹400 Cr |
Bus Ticketing | Commission (% of GMV) | ~ ₹2500 Cr | ~ ₹650 Cr | ~ ₹162.5 Cr |
Rail Ticketing | Convenience Fee on Transaction | ~ ₹10,000 Cr | ~ ₹675 Cr | ~ ₹330 Cr |
Hotel Bookings | Commission (% of GMV) | Not the focus, as we don't have our own product | Not the focus, as we don’t have our own product | Not the focus, as we don't have our own product |
- Highest TAM for train vertical ~ 10,000 Cr, but only 7% is addressable market due to low online penetration % - IRCTC controls the highest % - both online + offline (Public sector)
- ixigo currently has 42% market share and aims to obtain 50% share.
- Flight has the highest SAM (~ 50% of TAM) due to high online behavior - both OTAs and private airlines.
- ixigo currently has 2.5% market share and aims to obtain 10% share.
- Bus vertical has the lowest TAM and SAM (~ 25% of TAM); highly scattered market due to multiple existing players (both online + offline)
- ixigo aims to obtain 15% share through acquisition and marketing.
ixigo user’s natural frequency
ㅤ | Flight ✈️ | Train 🚂 | Bus 🚌 | Hotels 🏨 |
Casual 😴 | 0-2 times/year | 2-4 times/year | 2-4 times/year | 0-2 times/year |
Core 😃 | 3-4 times/year | 5-8 times/year | 5-10 times/year | 3-4 times/year |
Power 🥳 | >5 times/year | >8 times/year | >10 times/year | >5 times/year |
ㅤ | Flight ✈️ | Train 🚂 | Bus 🚌 | Hotels 🏨 | International Flights 🛫 |
ICP 1 : Akshit | 3-4 times/year | 4-5 times/year | 4-5 times/year | 5-6 times/year | 0-1 times/year |
ICP 2 : Aparna | 3-4 times/year | 1-2 times/year | 0-1 times/year | 4-5 times/year | 2-3 times/year |
ixigo’s Current Customer Base
- ixigo has ~5 million DAUs cumulatively across ixigo trains, ixigo flights, Confirmtkt, and AbhiBus apps and websites.
- ixigo’s major pull comes from their ancillary offerings like train tracking and PNR status. However, monetizing them remains a challenge for ixigo.
- they hold about 42% of the OTA market share in trains and close to 3% in flights
- ixigo maintains a retention rate of about 75% on their train app and about 50% on their flight app.
- The monthly Transacting Users (MTU) to Monthly Active Users (MAU) ratio remains close to 4.29% combined.
Customer Acquisition
Channel name | Cost | Flexibility | Effort | Lead time | Scale |
Referral | Medium | Low | Medium | Medium | Medium |
Organic | Low | Low | Medium | High | Medium |
Paid Ads | High | High | Medium | Low | High |
Product Integrations | Medium | Low | High | High | Medium |
Content Loops | High | Medium | Medium | Medium | High |
1. Content loops
- 🔁 Creating 4 content loops that are a mix of always active & seasonal.
- 🔦 Spotlighting User Stories: Intrinsically creating social-proofing through usage & sharing of user stories.
- Channels → Where do audiences spend their time ⇒ best place to capture their attention and harness their intent.
- Messaging → What are the key points to convey that make ixigo can stand out?
- ROI → Which channel could bring users with positive ROI over 12-months - and also be scalable.
- Timing → Travel is need-based and can be seasonal in nature - reaching out at the optimum time is the key.
2. Paid Ads
- Overall, a healthy LTV: CAC ratio ~ 2.0 over a period of 12 months. Can proceed with the paid channel for these 2 ICPs.
- Google SEM, Display, and Facebook/IG are the most promising channels in terms of high LTV: CAC ratio - to be given the highest priority + marketing budget
- Paid Acquisition channel
Channel | Cost | Flexibility | Effort | Speed | Scale |
Google SEM | high | high | low | high | high |
FB/IG | medium | high | medium | high | high |
Youtube | medium | high | medium | high | high |
Display Ads | low | high | low | medium | medium |
App Campaigns | medium | medium | low | high | high |
Sharechat | low | high | medium | medium | medium |
App Pre-install | high | medium | medium | medium | medium |
- Google SEM (60% budget) - ICP 1/2/3 combined - PULL CHANNEL
- Facebook/IG (30% budget) - ICP 1/2/3 combined - PUSH CHANNEL 1
- YouTube/Display/GDN (5% budget) - ICP 1/2/3 combined - PUSH CHANNEL 2
Google SEM: | ICP 1 & 2 ✈️ 🏨 | Facebook/IG | ICP 1 & 2 ✈️ 🏨 |
Key Objective | Booking flight/hotel | Key Objective | - Brand recall/TOMA
- Conversion |
Keyword Searches | - cheap flight tickets- flight from Delhi to Mum- Ixigo flights- Happeasygo | Interests | - Business
- Leisure travel
- Fashion/clothing
- Lookalike of existing flight audience |
Placements | - Google Search ads- YouTube search | Placements | - Facebook
- Instagram (Explore, Story, Reels)
- Audience network |
Competition | OTA/Partners (MMT, EMT, Cleartrip, Indigo) | Competition | OTA/Partners (MMT, EMT, Cleartrip, Indigo) |
3. Organic Traffic
- Currently, 95% of the traffic coming to IXIGO is from organic channels, while the proposed acquisition strategy is to double down on the efforts we have for Paid and content channels.
- The idea here for Organic traffic is not to lose out on the existing momentum and come up with a framework that can help optimize and keep up the existing pace.
- The data trends from Similar-web suggest that a minute optimization, in SEO strategy can help keep the current trend and still act as an important acquisition channel.
- Currently, IXIGO ranks well on Train and related keywords need improvement around keywords related to other services like Flight, Bus, etc.
- Effort Group: Low
- Brand-Related
- Effort Group: Medium
- Product
- Use-Case
- Effort Group: High
- Competitors
- Use-Case
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2Fe05a345a-0f5b-43d8-8143-293e4dbad050%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F3dfbac64-77a7-45f1-817b-9760379b7c0b%2FDesktop_-_2.png&optimizer=image&quality=80&width=280)
4. Referrals
- Currently referral contributes 0.5% of Traffic to IXIGo website (Source Similar Web) But these are backlink referrals and not users referral.
- Most users were not aware of IXIGo referral Program. However many of these users were aware of IXIGo Money. Hence we have moved referral Program to IXIGo Money Tab.
- IXIGo has huge DAU and MAU (5m and 55m) respectively but a very small transacting user base. We would like to leverage this captive audience base to acquire users through Referral.
5. Product integrations
- Firms that serve use cases adjacent to IXIGO’s use cases. While IXIGO helps book train, flight and Buses, its related use cases could be companies that serve -
- Tour Planning (Holidify, Thrillophilia)
- Travel Content/Reviews/Itinerary Discovery (Tripoto Etc)
- Travel Agents Discovery (Justdial)
- Firms that are rapidly expanding horizontally (Or aspire to) and may want to include ticket booking on their portfolio but do not want to build the system from scratch
- Snapdeal
- Meesho
- Companies that have extremely high DAUs and can market offers on my platform to them
- Gpay (Show offers in the scratch card shown after transaction)
- Bank Credit Cards (Exclusive tie ups to offer IXIGO only discounts on Credit cards)
Onboarding
User insights
- More than 90% of active users of ixigo train, use it only for ancillary service. They look for trains on ixigo and book on IRCTC because it is slightly cheaper. If a higher perceived value of transacting on Ixigo is communicated during On Boarding, it will help boost transaction
- Most users use ixigo for its smooth user experience compared to IRCTC that get bulk of ticket booking but is buggy and often requires multiple login attempt
- Almost one third of train bookings gets dropped off at IRCTC log in page on all OTAs (Source - the KEN). However, there is noting much we can do about this as IRCTC controls complete train tickets inventory
- ixigo Assured was pointed out as a major pull features for users of ixigo, hence communicating about “ixigo Assured” during on Boarding may help boost transactions
- 75% of users who have booked flight through ixigo, did this because the found some discount. Most users have never comeback
- User’s hate it when OTAs show one process during booking process and raise the price, Just before payment
- ixigo, already has solution to some of the pain points, highlighted by users during interview.
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F7d374dba-877e-40c5-8e14-5feab2efd9fc%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fe2711e2f-c8cd-491a-a95f-46f5fca4d8f3%2Fbranded.png&optimizer=image&quality=80&width=280)
- App Download
Leveraging social proof and familiarity
App Ratings
Rankings
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F8b9ae37d-d59d-4348-aeea-35336bf50009%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fdb94addd-7a03-45e8-a23a-2e6efb18adaa%2FDesktop_-_3.png&optimizer=image&quality=80&width=280)
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F16b4d8f8-8fec-4432-a320-ffa42fb23857%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F9c1626cb-9dd5-4462-878b-26a14dda6da8%2Fbranded_(1).png&optimizer=image&quality=80&width=280)
- Sign Up
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2Fdb516a91-a224-4fbf-91fd-02cb507e3462%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F598cec96-e75a-46d5-b64f-4266baec6ead%2Fbranded_(2).png&optimizer=image&quality=80&width=280)
- Preferences and Permission
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F9e1cd2a4-9863-4878-8aaa-f40b80f0591c%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fdf51e148-b1c9-48e1-a03a-bc99ce0afb21%2Fbranded_(3).png&optimizer=image&quality=80&width=280)
- Educating the User about the App landscape
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F47766db4-5aa0-49b1-a0c4-5e6e2b2e6105%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Ffd722419-ab68-449c-a9ea-ec5acfb950d6%2Fi_need_help.png&optimizer=image&quality=80&width=280)
- Experiencing the Core Value Proposition
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2Fd78cd0fc-9965-4873-acbb-433ec422f0ae%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F2e158d3c-1460-401e-8b95-6fbc78059d9d%2Fi_need_help_(1).png&optimizer=image&quality=80&width=280)
- Make the user curious - Display a banner talking about ixigo assured.
- Create a sense of urgency - Complete your 1st booking in next 1 hours and (get your convivence fee waived off) or (Get 50 rupees ixigo Cash)
- Set Booking Reminder - Nudge the users to set reminders to book Tickets for plans that are not fixed yet or for trains whose tickets have not opened up yet
- Train Results and Selection
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F38ba7314-72c9-483f-a0df-e2d6aa2ca842%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F05ff20cc-3473-44e7-8162-21897c76f6ae%2Fi_need_help_(2).png&optimizer=image&quality=80&width=280)
- Traveler details
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F0b098994-d43e-4de6-9dd1-b7a604041984%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fc8bfeadd-9144-469a-a841-12fd57973092%2Fi_need_help_(3).png&optimizer=image&quality=80&width=280)
- Payment
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2Fe9ba0485-cae4-4180-b720-a02d0eb16aec%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fc444997f-343d-457c-8fd8-abc0c67c2b5d%2Fi_need_help_(4).png&optimizer=image&quality=80&width=280)
- Closure
![notion image](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F96f21dd2-33d9-4335-99a0-c478df9f108d%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2Fb2c29c28-3777-4a40-8eb0-f0445135f9dd%2Fi_need_help_(5).png&optimizer=image&quality=80&width=280)
Now, how can they improve this onboarding journey? Here are are the changes suggested by the team.
- App Download
- Introducing what is unique at ixigo
- Moving language selection right at the beginning
- Building credibility through social proofs and introducing features unique to ixigo (Travel Mode, ixigo Assured)
- Continue with what is Unique at ixigo
- Continuing ixigo unique feature
- Sign up moved past ixigo feature introduction screens
- Sign up and OTP verification
- No Change
- Educating the user about home screen landscape
- No Change
- Experiencing the Core Value Prop
- Creating a sense of urgency to nudge the user to search for trains (In order to put on path to activation) and book tickets
- Combining this with “ixigo assured” introduction in case they are undecided travellers.
- Train Results and Selection
- No Change
- Traveller's Details
- No Change
- Payment
- Closure
- No Change
Engagement and Retention
- ICP 1 Users are price sensitive and check multiple OTA platforms before making an air ticket purchase.
- The natural frequency of users booking air tickets is more than the repeat transactions they make on ixigo.
- 89% of our users drop at the payments page on ixigo for multiple reasons: unexpected additional fees added.
- Planning: When a user is trying to travel to a destination, he/she opens ixigo and searches for the best deals and availability of all the major airlines. The user also gets updates via email whenever the fare drops on his prior searches through Fare Alerts.
- Booking: On finding the right flight (fare, time) for him, the user selects the number of passengers and completes the booking through a payment gateway.
- Tracking: Once his booking is completed, the user is able to track the status of his flight.
- Finishing: The user completes his trip without cancellation.
Product | Flight Booking |
JTBD | Plan and book air travel effectively and efficiently online |
ICP who will find value | ICP1, ICP2 |
Casual | 1-5 tickets/year |
Core | 5-10 tickets/year |
Power | 10-15 times/year |
Name | Type | JTBD | ICPs who will find value | Frequency |
Ola Cabs - Integration | Cab Service | Users can book cabs from the airport to their final destination | ICP1, ICP2 | Casual: 2-3 times/year
Core: 5-6 times /year
Power: 8-10 times/year |
Bookings.com - Integration | Hotel Booking | Users can book stays in their travel destinations | ICP1, ICP2 | Casual: 1-2 times/year
Core: 2-3 times /year
Power: 4-5 times/year |
Flight Status | Tracking | 1. Scheduled: When the user wants to travel in case of emergency, he can look for the flights which are departing in the next 2.5 hours from his location so that he may book the flight and reach their desired location.
2. Search: When I am having a booked flight, I want to track the status of my flight such that I can plan to reach the airport on time.
3. Tracked: When I am traveling via flight, I should be able to track the details of my flight, without entering the details again and again. | ICP1, ICP2 | Casual: 1-4 times/year
Core: 4-8 times /year
Power: 8+ times/year |
IRCTC Train Booking | Train Booking | Users can book train tickets using the IRCTC portal integration | ICP1 | Casual: 1-2 times/year
Core: 2-3 times /year
Power: 4-5 times/year |
Fare Alerts | Price Alerts | Fare Alerts notify you instantly via email when the price of air routes you searched for, to keep you well-informed and ahead of the pricing curve | ICP1 | Casual: 2-6 times/year
Core: 6-11 times /year
Power: 11+ times/year |
Bus Booking | Bus Booking | Users can book bus tickets on the platform | ICP1 | Casual: 1-2 times/year
Core: 2-3 times /year
Power: 4-5 times/year |
Smart web check-in | Convenience | Schedule your web check-in in advance with one click after booking your flight tickets. | ICP1, ICP2 | Casual: 1-4 times/year
Core: 4-9 times /year
Power: 9+ times/year |
ixigo money | Platform Currency | Loyalty program to help users get lowered prices on their bookings | ICP1, ICP2 | Casual: 1-5 times/year
Core: 6-10 times /year
Power: 10+ times/year |
Ixigo money max | Platform Currency | In case of train bookings getting canceled, the money goes to ixigo money max within 2 mins of transaction failure | ICP1 | Casual: 1-2 times/year
Core: 2-3 times /year
Power: 4-5 times/year |
e-visa service | Visa Service | Make a visa application online and receive your visa within 48 hrs, removing the hassle of connecting with the foreign embassy. | ICP2 | Casual: 0-1 times/year
Core: 1-2 times /year
Power: 2+ times/year |
News and Travel Stories | Lifestyle | Users can explore travel trends and new destinations to go to, visa processes, and itineraries in one place. | ICP1, ICP2 | Casual: 0-1 times/year
Core: 1-3 times /year
Power: 3+ times/year |
Lowest Fares | Lifestyle | Fare Alerts notify you instantly via email when the price of air routes you searched for, to keep you well-informed and ahead of the pricing curve | ICP1 | Casual: 0-1 times/year
Core: 1-3 times /year
Power: 3+ times/year |
Engagement Framework | Description |
Frequency | Increasing number of tickets booked in a time period by a user. |
Depth | Increasing the money spent by our users on the platform on a specific booking. |
Breadth | Increasing the products/sub-products a user is using |
- ICP Based
Akshit loves to explore places and he is also tech-savvy. He uses different apps for booking and managing travel throughout the year. We can encourage Akshit to come back to ixigo for all his purchases by providing a mixed price advantage and other benefits.
Aparna is a time-sensitive user and she is okay with spending a little extra on her trips for convenience. She wants comfort and peace of mind when traveling.
- Frequency Based
ㅤ | Casual User | Core User | Power User |
What Products do they use? | Flight bookings, Smart Web check-in, ixigo Money | Flight bookings, Smart Web check-in, Fare Alerts, ixigo assured, IRCTC Train booking, Bus bookings, Flight Status, ixigo Money | Flight bookings, Smart Web check-in, ixigo assured, Lowest Fare, Fare Alerts, Bus bookings, IRCTC Train bookings, Hotel, Ola Cabs, ixigo Money |
Key Actions | Booked a flight over 3 months ago, ixigo money cashback expired from the last purchase, | Booked a flight in the last 60 days, availed cashback from ixigo money, browsed through News Travel Stories for over 10-20 mins/week, | Booked a flight in the last 60 days, has booked over 6 tickets on ixigo in a year |
Frequency | <5 tickets/year | 5-10 tickets/year | >10 tickets/year |
- Advanced segmentation:
Lapsed | Lapsing | Heroes in waiting | Hero Customers |
These users have switched to a different app to make their fight ticket booking. | Ixigo is used sometimes for booking after checking options. Not the most favored booking app for these users. | Ixigo is one of their main booking apps and they almost always book via Ixigo. End up booking with Ixigo when prices or discounts are best available with ixigo. Never opt for any value-added services that ixigo provides or maintain Ixigo balance. | Ixigo is their main travel app - They’re heavily subscribed to the ecosystem and maintain an Ixigo Money balance. They use add-on services such as Ixigo Assured and Smart web check-in on every trip (high monetary value) |
Campaign | Target Segment | Reach | Impact | Confidence | Effort (Based on Expense) | (R*I*C)/E |
1. 50% off on convenience fee on 1 booking in the next 3 months | Casual → Core | 60 | 4 | 80% | 3 | 64 |
2. Offer ixigo Assured at 50% off on the next order | Casual → Core | 70 | 3 | 90% | 3 | 63 |
3. Pitch popular locations in the off-season months to users who like to travel | Casual → Core | 70 | 3 | 90% | 4 | 47 |
4. 10% discount on booking an airport cab, this offer is given on completing the flight booking | Core → Power | 30 | 2 | 90% | 4 | 14 |
5. Retargeting users who completed booking successfully by offering a 10% discount on hotels booked through ixigo to their travel destination | Core → Power | 30 | 3 | 90% | 5 | 16 |
Campaign | Objective | Messaging | Target Segment | Engagement lever | Medium |
1. 50% off on convenience fee on up to 1 booking in the next 3 months (Spend) | As validated by the Product team at ixigo, the retention rate % for users increases when they use the add-on ixigo assured on their flight bookings. | Grab this offer before it expires. Get 50% off on convenience fee on your next flight ticket from ixigo. | Heroes In-waiting, Lapsing Heroes | Frequency | Push Notifications, In-App Notification, Whatsapp |
2. Offer ixigo Assured at 50% off on the next order (Spend) | To encourage users to come back to ixigo from time to time to increase the frequency of booking. | Grab this offer before it expires. Get 50% off on ixigo Assured on your next flight ticket from ixigo. | Lapsed Heroes, Lapsing | Frequency | Push Notifications, Whatsapp |
Retention
![ixigo’s retention curve](https://cdn.feather.blog?src=https%3A%2F%2Fusenotioncms.com%2Fproxy-prod%2Fblock%2F07480d07-a8d7-42ea-9ea7-e55a3b366d39%2Fc5b09c36-a829-4cab-8c13-793616bf9d8a%2F545ff0b8-5fe1-4268-b5cc-7ad8c584319a%2FRetention_Curve.png&optimizer=image&quality=80&width=280)
- Users who subscribe to Fare Alerts on ixigo come back to the app to book a ticket that they had previously searched for and make a purchase.
- Many users come back to ixigo to redeem their ixigo money to make a repeat purchase since it’s 100% redeemable on flight tickets
- Most users come to ixigo through Google Searches when they find a lucrative price point on a ticket they’re eyeing (Desktop)
- Most of these users have switched from other OTA platforms to ixigo due to incremental price benefits from ixigo money.
- Retention for such users is higher than the ones that come via the acquisition channel.
ixigo Assured
- This feature helps user to cancel their flights in some unforeseen situations at before 24 hours of departure of flight, they can have full refund of their booking amount in minutes
- No questions asked
- No documentation required
ixigo Money
- It is a virtual platform currency where 1 ixigo money = Rs 1.
- Can be used 100% of ixigo money on a single booking
- Valid for 60 days, which enables user to prevent loss of aversion, thereby transacting more on the platform.
- User gets more of this platform currency on every transaction→ incentivizing good behavior.
ixigo Money Max
- Complete booking amount is reimbursed if your booking gets cancelled or didn’t go through, 100% of amount is reimbursed as ixigo money max balance.
- Unlimited validity
- Can be transferred into bank account.
Fare Alerts
- Users get hugely discounted fares, early-bird offers, last-minute promotions, deals and discounts via alerts on mail
- The app automatically shares alerts for the common places, preferred travelled routes etc.
- Will store a history of recently searched flights and send automated alerts for best deals.
Churn | Type of Churn |
Bad customer service | Voluntary |
Payment failure | Voluntary |
Delayed updates on Flight status | Voluntary |
Mismatch in the Expected & Actual price of tickets | Voluntary |
Delays in reimbursement after cancellation | Voluntary |
Found a better overall price for the same ticket at a competitor's platform | Voluntary |
Mismatch in flight ticket availability | Voluntary |
Paid for an add-on but didn’t receive it (Meal) | Voluntary |
Moved to a remote location with no airports | In-Voluntary |
Unable to travel by air due to medical reasons | In-Voluntary |
Negative action | How to prevent/address it |
Increasing support tickets | Look at the common issues in the support tickets and address them |
Social media, app store, play store reviews and ratings | Go through the reviews, assure them that it won’t happen again and resolve the issue |
Frequency of opening app is decreasing | look at the past behavior of user and look for pattern, target the user via app notifications to fulfill the purpose |
Lower Interactions per session | Industry leading user experience, create brand recall |
User drops after checking price everytime | Show offers/coupons, discounted price, etc |
Low NPS and CSAT score | Understand the problems users are facing and resolve them |
User Segmentation | At-risk Users | ㅤ | Churned |
ㅤ | Lapsing Heroes, Casual, Lapsed Heroes | Lapsing Heroes, Casual Users, ICP 1 | Lapsed Heroes, Lost Cause |
Negative Actions Detected | Dropped off on the ixigo flights’ apps Payments Page | Didn’t book a flight in the last 3 months. | Not booked in more than 6 months. |
Pitch/Content | Finish the booking now and get 300/- off on ixigo Assured. Free Cancellation. No questions asked. | We have missed you! Come back and check out these exciting offers. | Now book a flight ticket and get ixigo Assured at just 200/- |
Offer | 300/- off on ixigo assured. | Explore Goa next month…Book your flight ticket starting at 1,500/-. | Get free cancelation up to 24 hours with ixigo assured. |
Value Derived | Comfort to book tickets in case of ambiguity. | Recommendations based on seasonality and location. | Assurance of guaranteed returns |
Timing | Every time a user drops at the payments page | During the holiday seasons, weekends. | Post 6 months mark of inactivity |
Channel | App Notification, WhatsApp Push | Email, Push Notification, WhatsApp | Email, Whatsapp, SMS |
Frequency of offer | During the drop, after 1 day of dropping | After office hours, twice a week | Weekly twice |
Success metrics | The number of successful transactions in a given time period. | Booked at least one trip by looking at the news and travel section within the next 1 month | Booked at least one flight in the next two months |
Monetisation
- Our member’s research with current users of ixigo as well as the competitors reflects a ‘Willingness to Pay’ if the customer is given the right experience and value.
- They are willing to pay comparative charges to other companies and even premium if the information and convenience are superlative.
- What core problem does ixigo solve?
- Convenient, reliable, and user-friendly platform for booking tickets online.
- What are users buying into?
- Users are buying convenience, reliability, a wide range of options, and a seamless booking experience.
- What are the other ways to fulfill the same use case?
- Competing platforms (like Yatra, MakeMyTrip), offline travel agents, directly at bus terminals, railways station.
Substitute way | Flexibility to use | Convenience | Core users | Recommendations |
Other OTAs | Easy | Low | ICP 1&2 | Excellent |
Offline Booking | Medium | Medium | ICP 2 | Good |
Local Travel Agents | Medium | Low | ICP 1&2 | Average |
User | Why? |
Core and Power Users | They make up a significant portion of revenue and are more engaged with the platform. |
Casual Users | Convert them into regular users through targeted offers and incentives. |
User | What to Charge for? | When to Charge? | How much to Charge? |
Non-Activated user on App for features | Features, Time on App - Monetise by sharing advertisements | NA - Advertisement revenue with each of the features/ app | ㅤ |
Casual | Features, Convenience - Core Value Proposition (Booking) + Monetise through targeted advertisements | The transaction stage is when the customer sees the value | Transaction Fee as per the train/ flight category for the core JTBD |
Core | Features, Convenience -Core Value Prop + Value Added Services + Features like ixigo assured. Selectively Monetise through targeted advertisements | Transaction stage for initial booking + Monetise for features like booking of meals for train journey either at the time of booking or later while traveling | Transaction Fee as per the train/ flight/ hotel category for the core JTBD + fee for ixigo assured feature |
Power | Features, Convenience -Core Value Prop + Features like ixigo assured + Upselling/ Cross Selling + Extremely selected ads not to annoy this category of users | Transaction stage for initial booking + ixigo assured + Monetise for features like booking of meals for train journey either at the time of booking or later while traveling | Transaction Fee as per the train/ flight/ hotel category for the core JTBD + fee for ixigo assured feature |
- Money: Users perceive value in terms of competitive pricing, discounts, and special offers.
- Time: Saving time by avoiding long queues and hassle-free booking.
- Efficiency: Streamlined booking process, easy cancellations, and refunds.
- Dopamine: Satisfaction from getting the best deals, smooth travel experience, and reliable service.
- Base Ticket Price: Competitive with market rates, potentially slightly higher for premium routes and services.
- Premium Features: Additional charges for VIP services, better seats, faster bookings, etc.
- Bundled Packages: Offer bundled packages with discounts for round trips, group bookings, and frequent travelers.
- Dynamic Pricing: Implement dynamic pricing based on demand, time of booking, and seat availability.
- Personalized Offers: Provide personalized offers based on user behavior and preferences.
- ixigo Prime membership - increasing the AOV as well as repeat transactions
- List of Hotels, Restaurants, and Spas which can be recommended and an offer given on them which in turn helps in monetizing through commissions.
- Also, plug in the opportunity to book further models of travel from the destination that he is traveling to.
- Finally, we also use it for taking customers’ feedback on what kind of other services he needs as part of their travel requirements.
What are the Cost Levers for ixigo?
- Technology and Related Costs:
- Employee Benefits Expenses:
- 2023 Expense: ₹126.261 crores
- Expense on Cloud Infrastructure and Technology:
- 2023 Expense: ₹10.588 crores
- Customer Refund and Cancellation Costs:
- 2023 Expense: ₹97.627 crores
- Consumer Acquisition Costs:
- 2023 Expense: ₹13.157 crores
- Advertising and Sales Promotion Expenses:
- 2023 Expense: ₹93.154 crores
Market Opportunity
Challenges
Glossary
Term | Description |
API | Application programming interface |
Annual Active Users | Annual Active Users refers to the number of unique devices (including, amongst others,
laptops and mobile phones) which have recorded at least one visit to a page/ screen on our platforms in a given period, cumulated across ixigo, ConfirmTkt and AbhiBus websites and apps |
Annual Transacting Users | Annual Transacting Users refers to the number of unique transacting users identified by user’s mobile number and/or email address, that have made at least one booking through an OTA platform for a given period |
Contribution Margin | Contribution Margin is defined as net ticketing revenue plus other operating revenue less direct expenses |
Customer Acquisition Cost | Customer acquisition cost is calculated based on the amount spent on advertising and sales promotion divided by the number of New Transacting Users in the relevant period
|
Gross Ticketing Revenue | Gross ticketing revenue refers to the total revenue earned (gross of all discounts) for the OTA services and products booked through us in the relevant period |
Gross Take Rate | Gross take rate refers to Gross Ticketing Revenue divided by Gross Transaction Value during the relevant period |
Gross Transaction
Value/GTV | Gross transaction value refers to the total amount paid (including taxes, fees and service
charges, gross of all discounts) by users for the OTA services and products booked through us in the relevant period |
Monthly Active
Users/MAUs | Monthly active users is the number of unique devices (including, amongst others, laptops and mobile phones) which have recorded at least one visit in a month to a page/screen on an OTA platform |
Monthly Transacting
Users/MTUs | Monthly transacting users is the number of unique transacting users identified by users’ mobile number and/or e-mail address, as applicable, that have made at least one booking through us, in a given period, divided by the number if months in that period, cumulated across website and apps |
Passenger Segments | Passenger segments refers to the total number of point-to-point passenger tickets booked between two cities, airports, train stations or bus stations, as applicable, whether or not such a ticket is part of a larger or longer itinerary. For example, a booking made with two passengers for a return flight consists of four passenger segments. |
Registered Users | Registered users refers to users who have provided their unique mobile number or email
address, as applicable, on OTA platforms |
Repeat Transaction Rate | Repeat transaction rate is calculated as percentage of transactions by repeat transacting users, identified by their unique mobile number and/or e-mail address, where a repeat transacting user is any user who has already transacted through our platforms at least once in the preceding 36 months |
Written by