Cleartrip Is Likely To Achieve 50% Customer Acquisition Through Local
Cleartrip is all set to get a massive 50% customer acquisition through its new segment “local”. This new segment of Cleartrip is mainly targeting the young people who want to explore new places to visit within the city limits.
The online travel portal has a great belief that this new segment will pay upto 20% of the firm’s total revenues by the year-end 2017. In the last couple of months, Cleartrip has experienced a good growth with the majority of new customers joining the Cleartrip and engaging in this new segment.
According to a survey, in India, each traveller makes only two trips on a yearly basis. Hence, considering the fact that there are not many travellers in India, Cleartrip has to initiate many advertising and promotional activities to retain the existing users.
Cleartrip was primarily focusing on the target group of customers who are at the age of 35 years. However, the new customers who are using the Local are in the age bracket of 25 years. Clearly, there is a shift of target group with young customers showing interest towards this new feature.
Cleartrip has been experiencing a stiff competition from major online travel agencies such as Makemytrip and Oyo Rooms. Nevertheless, the new segment of Cleartrip will bring in new customers who will significantly contribute towards increasing the company’s profits.
According to an online report by the Business Standard, the company faced a streak of losses by the end of the year 2016 with the losses reaching up to Rs.64.6 Crore. The positive part of the year-end was the revenues reached up to a good number of Rs.254 Crore.
The industry experts forecast a 40 to 45% growth in Cleartrip by the end of 2017 also considering the losses and the expansion of the new segment “Local”. The company will also hope to get a stable EBITDA (Earnings before interest, depreciation, taxes and amortisation).
However, the COO of the company stated in a conversation “that the losses in the previous financial year ending were mainly due to the expansion of international operations and not because of the discounting of prices. He also said, if Local contributes up to 20% of the total revenues in the coming three years, it would be a positive sign for the company. With 20% contribution from Cleartrip’s local segment, the customer acquisition will reach up to 50%”.