Now Reading: Air ticketing revenue lags rising fares for Indian OTAs
-
01
Air ticketing revenue lags rising fares for Indian OTAs
India's top online travel agencies (OTAs) are seeing air-ticketing revenue growth fall behind rising ticket prices, as passenger volumes stay flat and airlines push direct bookings. For the April-June quarter, MakeMyTrip's air-ticketing revenue fell 7.5% year-on-year to $55.6 million, even as gross bookings rose 7.6%. EaseMyTrip's air-ticketing revenue fell 4% to Rs 54.7 crore, while Yatra Online reported air passenger growth halving to 4.8% even as ticket value jumped 17.6%.
Livemint reports that the non-air businesses of some OTAs, such as hotels and packages, grew faster than air ticketing for a second straight quarter. The Hindu reports that the domestic tourism market is cushioning the sector as the West Asia crisis, currency fluctuations, and high ATF prices push up international airfares and reshape traveller preferences. Industry officials at a Mumbai travel fair said travellers are choosing rail, road, and closer destinations, with destinations in the Far East seeing increased interest.
OTAs' managements see the trend as temporary, expecting recovery in coming quarters. India's domestic air traffic rose less than 2% in the first six months of 2026 to 86.40 million passengers, according to DGCA data. The Hindu reports industry projections estimate India's domestic tourism market could reach Rs 35 trillion by 2029.
Indian Opinion Analysis
Livemint's coverage focuses on OTA financials, showing falling or stagnant air revenue despite higher fares, with data from MakeMyTrip, Yatra, and EaseMyTrip. The Hindu's story, from a travel fair, emphasises domestic tourism as a cushion, quoting industry officials about shifting preferences. Livemint highlights corporate travel demand affected by elevated airfares, while The Hindu stresses government support opportunities and growth in offbeat destinations. Neither outlet frames the data as a crisis, both treat the shift as a temporary or manageable trend. The careful read: OTA air revenue is squeezed, but total travel spend is rising, with domestic and non-air segments absorbing demand. Watch for Q3 OTA results to see if the shift persists or reverses.
Coverage: 2 sources, 2 neutral
Sources (2): livemint.com (neutral report), thehindu.com (neutral report)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
