As AI-driven travel booking agents move from assisting users to completing transactions, India's online travel aggregator ixigo is adapting by creating its own AI travel agent layer and collaborating with external platforms to safeguard user engagement and loyalty.
- ixigo builds proprietary AI travel agent and partners with external agents.
- India's complex travel landscape favors platforms offering post-booking services.
- AI shifts risk user engagement loss; ixigo invests heavily in technology.
What happened
ixigo revealed in its Q2 FY27 earnings that it is developing its own AI-powered travel agent platform called ixigo NEXT, featuring a voice-first interface and supported by its AI assistant TARA. TARA already manages the majority of customer inquiries and calls end-to-end. Alongside this, ixigo is partnering with third-party AI agents to handle booking transactions, positioning itself to capitalize on the growing role of AI in travel bookings.
The company recognizes the shift from traditional booking methods to AI agents that can not only answer queries but complete transactions on behalf of users. This strategic move aligns with recent fintech innovations, such as Amazon Pay’s Smart Wallet, which enables AI-assisted payments for travel bookings with user consent.
Why it matters
ixigo’s management acknowledges that AI agents represent both a challenge and an opportunity. When users engage external AI agents, travel platforms risk losing crucial engagement, context, and direct distribution. However, ixigo believes India offers a uniquely challenging environment for generalist AI agents due to its fragmented bus operators, regulated train services, and large proportion of Tier 2 and 3 city travelers who require reliable post-booking support.
Since buses and trains constitute over 70% of ixigo’s margin and online travel accounts for only around 42.5% of India’s travel gross booking value, the company emphasizes that trust and service beyond ticket issuance—such as refund processing, waitlist management, and disruption handling—are where it can maintain its competitive advantage.
What to watch next
ixigo’s future performance will hinge on balancing investment in advanced AI capabilities and preserving customer trust through continuous service quality. The company boosted its technology expenses by 46% year-over-year in Q2 FY27, though this has temporarily pressured its adjusted EBITDA, which dropped 17%, signaling that AI-driven benefits may take time to materialize.
The evolving landscape will test ixigo’s organizational adaptability as the strongest defense against AI disruption. Key indicators to monitor include how effectively ixigo integrates AI sales through third-party agents versus its own platform, the economics of AI-driven bookings, and whether larger brands consolidate bookings by becoming preferred partners for AI agents.