Cleartrip: On a Wing and Little Else

How a once-promising travel platform is struggling to stay afloat

- Samiksha Goel

Ladies and gentlemen, are you ready for the summer vacation," M.S. Dhoni asks, donning a pilot's uniform in a Cleartrip ad that aired around a year ago. The Indian cricket legend, known to command top dollar for brand endorsements, lays out the pitch around steep discounts—10% off on international flights and up to ₹2,000 off on international hotel bookings—for new users.

The high-gloss ad, released in mid-2024, was Cleartrip's big push to grab mindshare in a crowded travel booking market. Over the last couple of years, the company has been trying to make a comeback with such promotions.

But while it took a good swing, a look at the company's FY24 financials, released a few months back, reveals many misses: Cleartrip has been burning through cash without a clear return on investment. The company spent ₹988 crore to earn just ₹97 crore, with ₹3,500 crore spent just on discounts, as per the consolidated financials of the company, sourced from Tofler.

The two-decade-old online travel agency's (OTA) operating revenue remains stuck below ₹100 crore, even as its losses have ballooned past ₹800 crore. Where others in the travel industry, such as MakeMyTrip, Ixigo and EaseMyTrip, are turning profits, Cleartrip is sinking deeper into the red.

Last Thursday, the company appointed Manjari Singhal as its new chief growth and business officer, less than a year after her predecessor was appointed. On her shoulders falls the onerous task of turning the company around.

Cleartrip, which was acquired by Flipkart in 2021, is far from where the e-commerce giant expected it to be—despite its aggressive discounts and star-studded campaigns. Industry insiders point to years of misplaced priorities and strategic missteps that have left Cleartrip gasping for revenue.