Travel Industry Roundup : iXiGo launches Bus Search, ClearTrip lays off 15% employees

iXiGo has launched bus booking enabling search, comparison and booking of bus tickets from multiple bus operators and bus booking sites in India.

iXiGo’s, in partnership with Ticketvala, redBus and TicketGoose aggregates private bus operators spread over 500 towns and across 2300 routes.

The indian travel/OTA industry is under a serious threat as commission per ticket, after falling from 10% to 5% is now heading towards 0% (starting October).

Most of the OTAs have resorted to bus bookings and are waiting for railways to open up the train booking APIs to expand into the travel footprints.

Also, Cleartrip is reported to have sacked 42 employees (15%) and Stuart Crighton, one of the cofounders has taken over the CEO role from Sandeep Murthy.

More on Indian OTA Industry

  • 2,860 International Air Transport Association (IATA) affiliated agents in India and roughly around 40,000 sub IATA agents purchase tickets from IATA affiliated agents
  • 90% of booking is done via the agents.
  • Around 35,000 agents and sub-agents will be forced to shut shop, because of commission erosion.

Declining Travel Industry

  • Domestic air travel has registered a steep fall of about 40% during the last one year
  • Passenger demand growth fell to 3.8%,
  • Passenger load factors too dropped to 77.6% [ET]

Expect more consolidation in this space.

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