Cleartrip bets on holidays for growth; targets high-single-digit share

Cleartrip expects its newly launched holiday packages business to contribute a mid-single-digit to high-single-digit share of its overall business in the next 12 months, as the Flipkart-owned travel platform expands beyond flights and hotels to tap India’s growing discretionary travel market.

The company has entered the fragmented holiday packages segment with a model that combines flights, hotels, activities and transfers into customisable itineraries. The move is part of Cleartrip’s broader strategy to build a full-stack travel platform covering flights, hotels, trains, buses and holidays, Gaurav Patwari, Chief Business Officer, Air, Cleartrip, told The Hindu.

“We want to have mid-single-digit to high-single-digit growth in terms of holidays as a share of our overall business over the next one year,” Mr. Patwari said, adding that the segment presents a significant opportunity due to limited competition.

Cleartrip expects demand to be driven by rising disposable incomes and a shift in consumer spending towards experiences. He said travel remains an under-penetrated market in India, with increasing participation from consumers moving into higher income segments.

A typical domestic holiday package costs ₹50,000-₹1 lakh, while international packages range from ₹1 lakh to ₹3 lakh, with premium itineraries costing significantly more, he said.

“Within discretionary spending, consumer behaviour is shifting towards experiences, and holidays occupy the centre stage,” Mr. Patwari said.

The company is leveraging its existing presence in flights and hotels to gain an edge in the holiday segment. Cleartrip has direct contracts with around 40,000 domestic hotels, largely in the three- to five-star category, while international inventory is sourced through multiple partners.

Unlike traditional fixed packages, Cleartrip’s holiday offering focuses on customisation. Customers can modify hotels, activities and flights within curated itineraries, supported by destination experts.

The company plans to use artificial intelligence across travel discovery, itinerary creation, content, curation and backend operations. Ground services will be managed through local destination management companies and tour operators.

Cleartrip is also developing shorter “smart bundle” itineraries combining flights, hotels, sightseeing, activities and transfers to cater to consumers seeking flexible and affordable travel options.

The company is witnessing strong growth among younger travellers. Gen Z travel shopping on Cleartrip and Flipkart Travel has grown around 65-66% year-on-year, reflecting a broader shift towards experience-led and premium travel spending.