MakeMyTrip to re-list OYO hotels after two years
MakeMyTrip’s move to re-list OYO comes almost six months after Yatra also added back OYO’s hotel inventory on its platform
Bengaluru: More than two years after delisting OYO Rooms’ hotel inventory, online travel platform MakeMyTrip said it will once again offer OYO hotel rooms, a move that is likely to boost sales at Oyo.
A group of online travel providers including MakeMyTrip, Goibibo and Yatra jointly blocked OYO from listing its hotels on their platforms in October 2015. MakeMyTrip’s move to re-list OYO comes almost 6 months after Yatra also added back OYO’s hotel inventory on its platform.
MakeMyTrip and OYO didn’t specify why they have started working together again.
“We are committed to bring the best of travel experience to our customers, it’s why we offer them a variety of options across price segments, particularly in the fragmented economy and mid-segment hotels… With OYO’s evolution as a full-scale hospitality company, we are excited to offer their award-winning chain of hotels in the value economy and mid-market category through MakeMyTrip and Goibibo platforms,” Rajesh Magow, co-founder and chief executive officer, MakeMyTrip said in a statement.
At the time when OYO was first delisted, the company said it made less than 10% of its overall revenue from online platforms like MakeMyTrip and Goibibo.
Goibibo had launched a budget hotel aggregator brand named GoStays in September 2015, just a month before delisting OYO from its platform. GoStays emulated OYO’s model which provided cheap to mid-range hotels with added features like WiFi, free breakfast, hygienic washrooms, among others. Goibibo later merged with MakeMyTrip in October 2016 in a deal valued at $1.8 billion.
OYO, which initially started as a budget focused hotel aggregator, began moving to a franchise model in 2016. The company said last month that it would stop aggregating new hotels and move to fully-managed hotel brand, which leased properties directly from owners. Mint reported in January that OYO is making more than 90% of its revenue from its franchise business.
OYO CEO Ritesh Agarwal said during a press conference last month that it is adding close to 500 hotels or 10,000 rooms under the franchise model. The company raised $250 million in a new funding round led by Softbank Vision Fund in September to scale its hotel network and to fund its recently launched effort to create a premium hotel brand called OYO Townhouse.
It currently has around 60,000 rooms under the fully managed franchise model, and another 10,000 rooms under the earlier aggregator model, which the company plans to bring under the franchise segment in the coming months.
Speaking on the renewed tie-up with MakeMyTrip, Agarwal said in a statement that being a full stack hospitality tech company, it has built capabilities to run good quality accommodation across different formats and prices to attract customers. “We are excited to extend our offerings of beautiful living spaces to them through MakeMyTrip and GoIbib,” he added.
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