MakeMyTrip and GoIbibo have emerged as market leaders in the online travel category, capturing 31% and 27.4% market share, respectively, as on July 2017, as per a research report by Kalagato.
MakeMyTrip and GoIbibo have emerged as market leaders in the online travel category, capturing 31% and 27.4% market share, respectively, as on July 2017, as per a research report by Kalagato. Homegrown ticket booking platform IRCTC followed in the third spot with 22.9% market share on the back of app installations. Cleartrip and Yatra were fourth and fifth, respectively, with 9.6% and 7.3% market share. MakeMyTrip acquired GoIbibo in an all-stock deal, which was cleared in January. Traditionally, MakeMyTrip has been a strong player in the flight booking space and GoIbibo has been leading the hotel-booking space. With both joining forces, the merged entity gets a sizeable chunk of the market at 58%.
The acquisition, valued at about $2 billion, marked one of the largest deals in the travel market. The combined entity is large enough to dominate the $30-billion travel market in India. Earlier this month, founder and CEO of GoIbibo Ashish Kashyap resigned as the president of MakeMyTrip, marking the first top-level exit at the combined entity. IRCTC, online services portal of Indian Railways, garnered 22.9% market share ahead of players like Cleartrip and Yatra. Given the scale and the user base of IRCTC, it has an edge over other travel portals and its reach in Tier II and Tier III towns gives it larger traction from such areas.
Internet-focused travel aggregators Cleartrip and Yatra were far behind in the race with single-digit market share. In September, Yatra raised Rs 100 crore in venture debt from Innoven Capital to aid its further growth. To expand reach in corporate travel bookings, Yatra acquired Air Travel Bureau in July. Alibaba-backed Paytm is also looking at entering the travel market by acquiring travel booking platform Via.com. The new acquisition is expected to give Paytm enough leverage to take on larger players, such as MakeMyTrip, Oyo or Cleartrip.