OYO partners with MakeMyTrip

Nasdaq listed MakeMyTrip Ltd. has partnered with hospitality firm OYO thereby enabling the listing and booking of the start-up’s hotels across India, Malaysia and Nepal on MakeMyTrip and Goibibo paltforms.

The partnership brings together OYO, which has a large base of economy, mid-segment and vacation rentals assets, and India’s largest online travel customer-base served by MakeMyTrip, Goibibo and RedBus.

“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,” said Ritesh Agarwal, founder and chief executive, in a statement.

The partnership comes almost two years after online travelling agencies such as MakeMyTrip, Goibibo and Yatra had jointly blocked OYO Rooms and Zo Rooms from listing and marketing hotels on their website, in a bid to protect market share and margins. For online travel agencies, hotel booking is the principle driving force of their business but they are increasingly facing competition from budget hospitality brands such as OYO.

Budget accommodation space and midsize rentals in India have become one of the major draws among the middle class and the segment is projected to grow even further. The market was disrupted with the coming in of start-ups like OYO rooms in 2013, founded by then 19-years-old Ritesh Agarwal. Goibibo and MakeMyTrip have also launched their budget offering with Gostays and Value+ respectively after the delisting.

“There has been a massive surge in budget hotels category igniting the growth in the hospitality sector and we are excited to join hands with OYO and build synergies in the fragmented hotels segment to serve this very promising market. As the leader in online travel space, we believe this partnership will help serve our customers by giving an even wider spread of quality hotels to choose from and drive growth in online booking of hotels,” said Ritwik Khare, chief business officer, hotel and accommodations, MakeMyTrip Ltd.

Last week, OYO's competitor Treebo said that it would expand its hospitality services with the launch of its premium services for a budget customer called Treebo Select.