Yatra, an online travel agency in India, is facing challenges in its consumer business, prompting the company to focus on scaling its corporate travel segment to drive profitability. During the July-September quarter, Yatra reported a 68% year-on-year increase in gross bookings in its hotels and packages segment, driven by strong corporate hotel performance and MICE (Meetings, Incentives, Conferences, and Exhibitions). CEO Dhruv Shringi highlighted the company’s momentum in the corporate travel business, which accounts for a significant portion of its air ticketing and hotel segments.
However, Yatra’s consumer business is facing direct competition from domestic suppliers offering exclusive discounted fares on their websites and apps. Budget airline IndiGo, in particular, has been piloting these discounted rates since January 2024. To combat this competition, Yatra is focusing on adding value to customers through cross-selling opportunities such as hotels, car rentals, insurance, and more. Shringi emphasized the need to view flights as a means of customer acquisition rather than solely for driving profitability.
To strengthen its corporate travel offerings, Yatra acquired corporate travel services provider Globe Travels during the most recent quarter. This acquisition added 360 corporate customers to Yatra’s client base, complementing its existing roster of 850 large corporate clients. The company believes that this enhanced customer base will strengthen its position with suppliers and enable it to negotiate more favorable terms. The acquisition also positions Yatra well in the MICE segment, where Globe Travels had a strong presence.
Yatra also sees potential in scaling its expense management solution, RECAP, both in India and internationally. The company has received positive responses during the pilot phase of RECAP, indicating strong potential for cross-selling within its current customer base and as a stand-alone offering. Additionally, Yatra has partnered with Dubai-based DW Travel, a large travel management company, to further enhance its corporate travel offerings and expand its reach internationally. These initiatives are aimed at solidifying Yatra’s leadership position in the corporate travel market in India.
Despite challenges in its consumer business, Yatra remains optimistic about the growth potential in its corporate travel segment. The company’s focus on adding value to customers through cross-selling opportunities and expanding its customer base through strategic acquisitions and partnerships demonstrates its commitment to driving profitability in this segment. With a strong presence in the corporate travel market in India and plans for international expansion, Yatra is positioning itself for long-term success in the online travel industry.
