Travel distribution platform TBO Tek's revenue jumps 29% to Rs 422 crore in Q3FY25

TBO Tek Ltd., a global travel distribution platform listed on the BSE and NSE, reported a robust performance in the quarter ended December 31, 2024 (Q3FY25), with revenue from operations rising 29% year-over-year to Rs 422 crore. 

The company attributed its growth primarily to a surge in demand for hotels and travel packages, which contributed to nearly 80% of total revenue.

Rise in gross transaction value

Gross transaction value (GTV) for the period reached Rs 7,166 crore, up from Rs 5,678 crore a year ago. Adjusted EBITDA stood at Rs 75 crore, marking a 26% increase, while margins held at 18%.

TBO Tek’s net profit for the quarter was Rs 50 crore, slightly down from Rs 51 crore last year, mainly due to a Rs 12.5 crore foreign exchange loss tied to currency fluctuations.

Strong focus on hotels and ancillaries

Hotels and ancillaries remained a key segment for TBO Tek during the quarter, both in India and abroad. The company said it is steadily rolling out its next-generation booking engine, known as H-Next, which has already shown strong conversion rates among selected users.

TBO Tek also reported that its revenue from hotels and packages grew 44% year-over-year to reach Rs 337 crore in the quarter, highlighting the effectiveness of its efforts to boost market presence in that segment.

According to Co-founder and Joint Managing Director Ankush Nijhawan, TBO Tek plans to continue expanding its share of business from hotels and ancillaries through initiatives like the Platinum Desk, designed to serve top-tier accounts.

He added that the Indian government’s plan to develop 120 new airports under the UDAN scheme, coupled with an increase in the tax collected at source (TCS) threshold to Rs 10 lakh for foreign travel, could further boost outbound travel in the coming months.

Advances in technology and AI

TBO Tek has been prioritizing technology upgrades, including artificial intelligence tools that handle tasks such as hotel inventory searches, outbound calling, and supplier notifications. The company said its AI-enabled voice bot has proven to be five times faster at half the cost compared to manual processes.

Gaurav Bhatnagar, Co-founder and Joint Managing Director said these developments have helped improve the user experience and boosted the company’s Net Promoter Score (NPS), especially in international markets such as Europe, which delivered strong results in the quarter.

The firm has also introduced AI-driven automatic handling for supplier notifications, with 45% of notifications now processed automatically at an accuracy rate of more than 99%.

These initiatives are part of TBO Tek’s plan to fast-track investments and broaden its global footprint.

Ranked among the top four B2B distribution platforms in the travel sector, TBO Tek connects around 185,000 buyers across more than 150 countries with over one million suppliers.

Its platform streamlines transactions for both travel agencies and large enterprise buyers, offering multi-currency and multilingual support.