Should Cleartrip cut flight discounts and cashbacks to reach breakeven, even if bookings fall?

Introduction

Cleartrip has bought growth with discounts. Reports on its FY26 accounts show cashbacks and discounts of roughly ₹900 crore, up nearly 48% year on year, while net loss widened to about ₹805 crore. At the same time, the company has committed to operational breakeven by the end of FY27. Flights are the core of both problems: they bring about 80% of revenue and are where Indian OTAs compete hardest on price.

The trade-off: should Cleartrip cut flight discounts and cashbacks to reach breakeven, even if bookings fall? The honest answer is "it depends on which discounts", and the job of a PM is to turn that into a measurable decision.

Step 1

Clarifying Questions (3 minutes)

• Are we deciding on all discounts, or specific types?

• Why it matters: Instant discounts, bank offers (often co-funded by banks), cashback to wallet, and coupon codes have very different costs and effects.
• Hypothetical answer: All Cleartrip-funded flight discounts, excluding bank-funded portions.
• Impact: We'll analyse each discount type separately.

• How much share loss is acceptable?

• Why it matters: Cleartrip's position as a top-two air player supports hotel cross-sell and its relationship with airlines.
• Hypothetical answer: Leadership will accept losing up to two points of air share if contribution margin turns positive.
• Impact: The decision rule needs an explicit share floor.

• What time horizon?

• Why it matters: Cutting discounts improves margin immediately; lost customers hurt revenue for years.
• Hypothetical answer: Breakeven by the end of FY27, but without damaging long-term growth.
• Impact: We must measure lifetime value, not just next-month bookings.

• Are there constraints from Flipkart?

• Why it matters: Flipkart may want travel offers during sale events.
• Hypothetical answer: Big Billion Days offers continue, but must be more targeted.
• Impact: Sale periods are handled separately.