Palpable shift in Indian traveller behaviour as number of bookings from Tier 2, 3 cities up 10% in one year: Cleartrip

Cleartrip is seeing significant shifts in traveller behaviour in India, as tier 2 and tier 3 cities emerge as new engines of growth for the online travel industry.

“The number of bookings from tier 2 and tier 3 customers has shifted by around 9 to 10% over the last year,” said Akhil Malik, head of Hotels at Cleartrip. He called this development “heartening,” particularly given that online penetration in hotel bookings in India is still only around 26–27%. “This is just the beginning of a long growth journey,” he added.

Cleartrip attributes this change to a growing aspiration among smaller-city customers to explore popular leisure destinations like Manali and Goa.

“Travel is an inherent need,” Malik said, “and it tends to bounce back quickly after disruptions, as we saw post-COVID.” He explained that while international travel still largely comes from metro customers, there is a growing cohort from tier 2 and 3 who are now exploring overseas destinations independently, without relying on packaged tours.

Manjari Singhal, chief growth and business officer, echoed this view, saying that the platform is helping demystify travel planning for less tech-savvy customers. Cleartrip has leveraged its integration with Flipkart to simplify bookings for customers in smaller towns, where trust in online platforms is still building. “Flipkart helps us unlock tier 2 and 3 demand, providing ease of booking and accessibility in these markets,” she said.

On the international travel front, Singhal noted an encouraging trend: bilateral unlocks between countries are driving new travel patterns. Destinations like Japan, Vietnam, and Almaty are gaining traction, fuelled by direct flight connectivity. “We are seeing a faster decision-making process among travellers,” she said. “People don’t have to wait for travel agents—they can plan trips themselves, thanks to better connectivity and more confidence.”

On the international front, the industry is seeing an encouraging trend of bilateral unlocks that are enabling both Indian and foreign airlines to open up more international routes. This will help the industry tap growing demand for international travel, said Gaurav Patwari, vice president – Air Category. He added that while domestic travel will continue to grow steadily, regional connectivity will become a key focus. “India needs more regional airlines to better connect smaller cities across the country,” he said.

Patwari also pointed to significant infrastructure developments underway. New airports are being added in Delhi and Mumbai, with around 50–60 more planned across various regions. This infrastructure ramp-up, he said, is critical to sustaining growth in the travel sector. On the supply side, post-COVID challenges like aircraft delivery delays—stemming from planetary engine issues and Boeing-related bottlenecks—remain a risk. But Patwari expressed optimism that the worst is behind, noting that aircraft traffic movements (ATMs) are at all-time lows, oil prices are favorable, and supply chain disruptions are steadily resolving.

Cleartrip believes these behavioural changes reflect a long-term shift, with the growing regional connectivity and online adoption fueling both domestic and international travel demand. The company expects this momentum to continue, supported by further airport infrastructure expansions, increasing air capacity, and evolving customer confidence.

According to Capitaline data, in FY24, Cleartrip spent ₹988 crore and earned ₹97 crore in revenue. The company claims to be the second largest in terms of market share within the OTA (online travel agency) space.