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Budget and Mid Market hotels will continue to dominate India’s lodging space 

Published on: Sep 2019

  • Travellers are gradually shifting towards experiential and adventurous stays which are offered by homestays and hostels
  • Expected to witness the highest growth

Hotel Aggregators Saw a 40% YoY Growth in GBV Terms During Q1CY19

Published on: Apr 2019

In Q1CY19, leading hotel aggregators have shown 48% YoY growth in Quarterly Booked Room Nights and 40% growth in GBV. One of the big levers of this growth has been the continuous efforts in onboarding new hotel partners onto their platform.

The last year has witnessed

  1. An increased focus of players on partnering with hotels in Tier-3+ cities to increase their coverage
  2. And heightened efforts to increase their share of corporate bookings (higher ARR through offering premium hospitality services) from the existing markets.

Additionally, increased spend on marketing activities to ensure sustained customer acquisition and improving on service quality metrics for customer retention has also driven this trend.

Also, the relationship of Hotel Aggregators with OTAs strengthened with several exclusive partnerships which enabled the Hotel Aggregators to list their sellable rooms on the OTA platforms. This actually helped Hotel Aggregators edge past the OTAs in recent months in terms of the total market share of the online hotels’ space.

Hotel Tech- Initial signs of turbulence in platform-hotel relations but fundamentally well-placed relationship

Published on: Feb 2019

The online travel aggregator space has seen strong growth in the last couple of years, as visible in strong partner and room inventory growth coupled with rapid growth in total industry bookings. Yet, once the high growth and honeymoon period ended, we were bound to see a transition into the initial turbulence stage. Multiple indicators show that this is indeed the case- hotel partners complaining of high discounts, business model shift to revenue share rather than minimum guarantees and platform’s growing focus on inhouse brand creation for quality and margin control. We have seen this story before in other sectors- all these are indicators of a sector shifting into turbulence phase.

However, a more balanced analysis also shows that despite the challenges, many hotel partners find significant positives in working with the hotel chains. For many of the partners, revenue have improved significantly while not eroding margins heavily due to strong tech efficiencies.

This tells us that hotel tech players can accelerate the shift to a ‘Stable Relationship’ (Stage 3) with partners by doing the below-

  • Focus on continued cooperation and strong support to the high quality and highly satisfied hotel partners
  • Let the lower value/highly dissatisfied partners organically leave the ecosystem, thus bringing up the overall quality of the partner base
  • Ensure a balanced and steady rather than highly aggressive growth of inhouse brand to avoid direct conflicts with hotel partner

Both customers, as well as hotel partners, agree that hotel tech platforms have driven significant value addition for them and the online travel market share in general

Published on: Dec 2018

The hotel tech industry* has seen a QoQ growth of 8% in the number of rooms booked but a 2% increase in GBV owing to lower ARR by all players

Published on: Nov 2018

The hotel-tech industry* is growing stronger by increasing inventory and is trying to acquire more and more customers by offering discounts thereby decreasing their GBV but gaining on the number of rooms being booked. On the partner side, easy financing through bank partnerships is motivating hotels to partner with these new age companies which is helping these tech companies meet the increasing demand and rapid growth in the online travel market size.

The ~$ 4 Bn mid segment market’s growth is fuelled by the chain affiliated hotels, constituting 35% of the total and growing at ~17% annually

Published on: Oct 2018

With the domestic travel increasing due to the weakening currency and growth of businesses across smaller cities in India, people now are looking forward to mid segment hotels offering value for money deals. Also with lower GST tax rates, the segment is seeing a higher demand due to the lower room rent.

There has been a 50% increase in booked room nights from Q1CY17 to Q1CY18

Published on: Jul 2018

The Indian online booking space, like the online travel market share, is growing fast. The online hotel aggregators and OTAs witnessed a 50% increase in booked from nights in one year. The key reason for this is increase in marketing initiatives by the players to increase the online hotel penetration in the market. OYO led the pack experiencing the highest growth in the Booked Room Nights YoY of more than 100%, improving
Oyo Gmv.

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The online inventory has increased by almost 37% YoY in Q1’CY18 bringing the total sellable room nights to almost 197K

Published on: Jun 2018

The Indian online booking space is growing fast with OTAs and hotel aggregators increasing the online inventory by partnering with new hotels and increasing the number of rooms offered per hotel. The growth has largely been triggered by Oyo which moved from a partial inventory to full inventory model thereby increasing the number of rooms offered.

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The market share of hotel aggregators is increasing

Published on: Jun 2018

The online travel aggregator market has proven its value to the consumers(as seen by Oyo GMV growth). With the complete control on hotel operations and staff training the players have been able to provide good end-to-end experience across the hotels. Consumer are hence preferring the hotel aggregators and thus we see an increase in the share of booked room nights from 39% to 46% in one year.

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Online/Social media is the most effective source of consumer awareness for hotel aggregators and OTAs

Published on: May 2018

Online and social media play a key role in consumer source of awareness for hotel aggregators and OTAs. With 65% of the consumers discovering OTAs and hotel aggregators online, digital marketing is indeed the most effective channel. Now with majority of the hotel aggregators and OTAs focussing on TV ads we feel that more new consumers will discover these platforms from this channel.

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Hotel Aggregators have higher NPS than OTAs in Tier 1 cities

Published on: Apr 2018

The hotel aggregators have higher consumer NPS than OTAs in Tier 1 cities while it is the other way around in Metros. This may be largely due to the presence of large hotel chains and comparatively standardized offerings in the metros. The hotels on Tier 1 cities are less standardized and hence the hotel aggregators who take up the complete operations of the hotels are able to provide better consumer experience.

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The OTA industry is able to provide much higher occupancies with low ARRs to the partner hotels

Published on: Apr 2018

The Indian hotel industry currently has 17% of the inventory present online and about 21% of booking are done online. The OTA players are able to add good value to the partner hotels. Though the room rates offered via OTAs is low; the OTAs are able to provide much higher occupancies resulting in the overall value addition.


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Daily Fulfilled Room nights for OTAs in India are between 90-100k

Published on: Mar 2018

The Indian Hotel inventory is current 17% online; and 72% of the rooms available get booked online. Growing internet user base and increasing penetration of smartphones is driving the online hotel market. The OTAs have been able to solve customer problems better and more efficiently compared to offline. Though the ARRs of the online bookings are lower, the OTAs are able to provide much better occupancies resulting in the overall value addition to the ecosystem.

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Share of Hotel Aggregators up from 18% to 26% in 2017

Published on: Mar 2018

The hotel aggregators have seen a huge increase in the online travel GMV from Q1 2017 to Q4 2017. This has been largely due to the ability of the hotel aggregators to provide a better consumer and partner experience. The hotel aggregators take complete control of the operations thus ensuring that the standard of the hotel is met to provide a much better overall experience.

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Consumers prefer OTAs for leisure trips and Hotel Aggregators for business trips

Published on: Mar 2018

Consumers of hotel industry are more satisfied with OTAs on the leisure trips as the room preference is more for a holiday with some additional preferences. On the other hand, when these consumers travel for business they prefer standard and trustworthy hotels. And hence we see the consumers being more satisfied with OTAs in leisure trips and with hotel aggregators on business trips.

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Hotel Aggregators are more convincing to the partner hotels than OTAs

Published on: Mar 2018

Lack of personnel training and delayed support by OTAs have been the substantial reasons for the disapproval of the partners. Conversely, partners are happier with the tech assistance and training provided by hotel aggregators. They take complete responsibility for the ops of the hotel to provide a better overall consumer experience. Thus, proving the value the hotel aggregators are providing to the partner hotels.

Partner satisfaction Hotel Aggregator vs Online Travel Aggregators (OTAs)


The Hotel-tech players are able to have a significant impact on the partner hotels

Published on: Feb 2018

The partner hotels see a fall in average room rates by 10% after partnering with the hotel aggregators but an increase in the occupancy from 23% to 38%. The overall of impact is such that the players are able to deliver a 50% additional value in terms of the revenues. Hotel-tech is thus a market with the scope of making money.

Impact of Hotel Aggregator on hotel partners

Hotel-tech industry sees a 55% increase in GBV in OND-17

Published on: Feb 2018

The hotel-tech industry saw a 55% increase in the GBV riding on the holiday season. Players which were present in the holiday destinations witnessed much better occupancies. Also with the industry moving towards full-inventory model the players were able to get much better share of the overall booking of the partner hotels.

                                                      Gross Booking Value(INR Cr.)
Increase in Gross booking value (GBV) hotel aggregator


Compared to other global tourist hubs, Metros in India have a much lower online % of budget hotel bookings – indicating the high growth potential

Published on: Jan 2018

In spite of the rapid recent growth, the online hotels market in India continues to remain underpenetrated compared to other leading tourist capitals in Asia/Europe. This indicates the still strong potential for online hotel platforms to digitize both supply and demand so that unorganized hotels in India can fully unlock the value of their inventory.


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Hotel aggregators continue to see strong ROI from investing in digital marketing and online review platforms

Published on: Jan 2018

Social media sources continue to grow in importance as a source of awareness for hotel aggregators, with nearly 3/4th of all customer reporting becoming aware of such channels. Even more crucially, customer reviews now account for influencing ~40% of booking decisions of these hotel platforms- pointing to the success of hoteliers past investments in these areas and also indicating a clear need to continue to invest and innovate on these aspects.


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