Should Cleartrip rank hotel search results by commission margin or by relevance to the traveller?

Introduction

Hotels are central to Cleartrip's plan to depend less on flights, and hotel search ranking is one of the most powerful levers in that business. Hotels pay different commission rates, and some pay extra for better placement. Ranking higher-margin hotels first raises revenue per booking. Ranking by relevance (the best match for the traveller's needs) may raise conversion and trust.

The question: should Cleartrip rank hotel results by commission margin or by relevance to the traveller? I'll treat this as a structured trade-off and end with a measurable recommendation.

Step 1

Clarifying Questions (3 minutes)

• Which platforms and markets are in scope?

• Why it matters: Domestic and international hotels have different supply and commission structures.
• Hypothetical answer: Domestic hotels on app and web.
• Impact: We can use Indian destination data and domestic partner terms.

• Is this the default sort ("Recommended" or "Popular"), or all sorts?

• Why it matters: Users who choose "Price: low to high" expect strict sorting; the default sort is where ranking choices matter.
• Hypothetical answer: The default sort only.
• Impact: Explicit user sorts stay unchanged.

• How much do commissions vary?

• Why it matters: If margins are similar, the trade-off is small.
• Hypothetical answer: Commission ranges from about 10% to 20% of room value, and some partners pay extra for visibility.
• Impact: The margin difference is large enough to matter.

• Are sponsored placements labelled today?

• Why it matters: Paid ranking without disclosure creates trust and regulatory risk.
• Hypothetical answer: Sponsored listings are labelled; commission-based ranking inside "Recommended" is not.
• Impact: Transparency becomes part of the solution.

• What is the main goal this year?

• Why it matters: Cleartrip is targeting breakeven, but also wants to grow hotel share.
• Hypothetical answer: Grow hotel revenue while increasing repeat hotel bookings.
• Impact: We need both margin and conversion in the North Star.