Do you know Indian Hotel Industry contributes about 7.5% to Indian GDP. According to statistics, the Indian hospitality sector is likely to reach $20 Billion by 2024.
It was made possible by India’s new-age hotels aggregator that provided multiple and budget-friendly options. Finding hotels, on the spot affordable bookings, the extended holiday, and everything has become so easier.
OYO, Fabhotels, MakeMyTrip, GoIbibo, Treebo are some of the popular hotel aggregators who brought a huge revolution in the Indian hotel market. But over time, these fast-growing hotels chains have started showing a decline in their growth. In this article, we’ll reveal the various reasons for Sudan Scale Down!
OYO: Founded in 2013
- Hotel partners are dissatisfied due to financial issues, unpaid commissions.
- Lack of transparency between hotel aggregators & hotel owners.
- These brands are getting sued for illegal activities at hotel locations.
- Many hotels have shunned their partnership with OYO.
- The unique platform OYO hotel chain is facing net losses consistently for many years.
FabHotels: Founded in 2014
- Fab hotel ranks above 400 in online hotel booking platforms.
- They guarantee the lowest prices but aren’t focussing on quality
- Fab hotel laid off many employees from operations, tech sales, supply acquisition.
- A consumer rating of 1.5 stars for no standardized service
- Customers are highly dissatisfied with unhygienic rooms, linen, and so on.
Treebo Hotels: Founded in 2015
- Trust issues; Customers are not willing to pay in advance through online transactions.
- Trying to regain ground and develop on-ground operations.
- Suffering significant losses consistently from past many years.
- No transparency between customers and hotels operators, so there are better chances of fraud data on their websites.
MakeMyTrip: Founded in 2000
- The difference in tariffs on other hotel booking sites resists the customer.
- In recent years, only 15-16% of bookings were done through MakeMyTrip.
- Their Business model has proven weak and investors are asking for returns.
- Hotel operators inability to maintain the quality and standardized services
In a nutshell, these hotels booking platforms are trying hard to fill the void and regain the market. Taking advantage of all these loopholes, BYO(BookYourOwn) founder Amandeep Singh says,
“ Pandemic is an unfortunate situation. But at the same time, many new business opportunities emerged that helped people to start up their own businesses. After a thorough SWOT analysis of all such big players in the Hotels Industry, I decided to create my own brand BookYourOwn. Our business model is not only customer-centric, it also focuses on employees and hotel operators.”