Why India’s MakeMyTrip Made Peace With Rapidly Growing Oyo
Photo Credit: A view of The Oberoi Amarvilas in Agra, one of the many romantic vacation spots that are bookable via online travel agency MakeMyTrip. CEO Deep Kalra said he's optimistic that the number of Indians booking hotels online may double within the next several years. Oberoi Hotels
Skift Take
The decision by MakeMyTrip, India's largest online travel agency, to start selling Oyo budget lodging is significant. The move recognizes that the heavily funded Oyo is no longer a rival marketplace and is instead primarily a supplier. Asset-light hotel chains need to wake up to Oyo's rise.
MakeMyTrip, India's largest online travel company, has added back properties from lodging booking company Oyo to the websites and mobile apps of its flagship MakeMyTrip brand as well as its recently acquired GoIbibo brand.
The move represented an about-face for the company. In October 2015, MakeMyTrip had blocked its main competitor in the budget category, Oyo, from displaying listings on its platform.
It had boycotted Oyo to nurture its own attempt at branded budget booking properties, GoStays, and because it didn't like how Oyo was using deep discounting to woo travelers to book directly instead of via agencies.
This spring, executives came to believe that Oyo had changed its stripes, according to their comments during an earnings call Wednesday. But money may be an additional reason: Some analysts speculate that MakeMyTrip sees a chance to invest in Oyo, a company that has been growing fast thanks to backing by the world's largest venture fund, Softbank's Vision Fund.
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