MakeMyTrip and OYO rekindle partnership; Latter to list all properties across MMT platforms
, ET Bureau|
Feb 26, 2018, 07.19 PM IST
NEW DELHI: MakeMyTrip, India’s largest online travel operator, will, once again, list SoftBank-backed OYO’s chain of hotels across its two primary platforms, more than two years after it removed the online budget hotel aggregator from the same, citing strategic overlaps.
The announcement also comes almost three weeks after a senior MakeMyTrip executive said, during the Nasdaq-listed company’s third-quarter earnings call with analysts earlier this month, that it was likely to “revisit” its strategy its position regarding OYO.
“We may revisit our position on OYO, as it is shifting increasingly to the hospitality side. Therefore, they do not seem to be a direct competitor anymore, but can be seen as a source of supply,” Mohit Kabra, chief financial officer, MakeMyTrip, had said.
At the time, the move was largely seen as a bid by MakeMyTrip, which has a market capitalisation of $2.75 billion, to weed out competitors and establish its dominance in the lucrative hotels segment.
Shares of MakeMyTrip were trading almost flat, at $30.05, in mid-morning trade on Nasdaq on Monday.
According to the latest statement, issued by both companies, OYO’s portfolio of hotels, across India, Malaysia and Nepal, will be listed and available for booking on MakeMyTrip across its platforms MakeMyTrip and Goibibo.
“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, where there is a greater need to build assurance around stay experience,” Rajesh Magow, chief executive, MakeMyTrip India, said.
According to the official press release, the partnership will allow customers to select from a range of options - from economy and mid market hotels, next-door hotels to fully-managed homes across multiple tourist destinations, including Goa, Pondicherry, Coorg, Udaipur, Nainital and Shimla.
“Being a full stack hospitality tech company, we have built capabilities to run quality-ensured accommodations across different formats and placing them in the hands of travellers who are constantly on the lookout for unique experiences. We are excited to extend our offerings of beautiful living spaces to them through MakeMyTrip and GoIbibo,” Ritesh Agarwal, chief executive of OYO said.
Additionally, in 2017, Ruptub Solutions, which owns and operates budget hotel chain Treebo and competes with MakeMyTrip, had also delisted all its properties from the MakeMyTrip and Ibibo platforms, citing higher commissions being charged by India’s largest online travel operator.
The announcement also comes almost three weeks after a senior MakeMyTrip executive said, during the Nasdaq-listed company’s third-quarter earnings call with analysts earlier this month, that it was likely to “revisit” its strategy its position regarding OYO.
“We may revisit our position on OYO, as it is shifting increasingly to the hospitality side. Therefore, they do not seem to be a direct competitor anymore, but can be seen as a source of supply,” Mohit Kabra, chief financial officer, MakeMyTrip, had said.
At the time, the move was largely seen as a bid by MakeMyTrip, which has a market capitalisation of $2.75 billion, to weed out competitors and establish its dominance in the lucrative hotels segment.
Shares of MakeMyTrip were trading almost flat, at $30.05, in mid-morning trade on Nasdaq on Monday.
According to the latest statement, issued by both companies, OYO’s portfolio of hotels, across India, Malaysia and Nepal, will be listed and available for booking on MakeMyTrip across its platforms MakeMyTrip and Goibibo.
“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, where there is a greater need to build assurance around stay experience,” Rajesh Magow, chief executive, MakeMyTrip India, said.
According to the official press release, the partnership will allow customers to select from a range of options - from economy and mid market hotels, next-door hotels to fully-managed homes across multiple tourist destinations, including Goa, Pondicherry, Coorg, Udaipur, Nainital and Shimla.
“Being a full stack hospitality tech company, we have built capabilities to run quality-ensured accommodations across different formats and placing them in the hands of travellers who are constantly on the lookout for unique experiences. We are excited to extend our offerings of beautiful living spaces to them through MakeMyTrip and GoIbibo,” Ritesh Agarwal, chief executive of OYO said.
Additionally, in 2017, Ruptub Solutions, which owns and operates budget hotel chain Treebo and competes with MakeMyTrip, had also delisted all its properties from the MakeMyTrip and Ibibo platforms, citing higher commissions being charged by India’s largest online travel operator.
