What India Reveals About the Future of Online Travel: A Skift Deep Dive
Photo Caption: Indira Gandhi International Airport arrivals halls, New Delhi
Skift Take
Surprising factors have delayed the coronation of MakeMyTrip Group as India's queen of domestic online travel. Paytm came out of nowhere to grab share, Oyo upended budget hotel distribution, Ixigo tried to make price comparison chic, and Booking.com outmaneuvered Expedia for premium hotel bookings. From this scrappy mix, online travel will find new lessons.
In October 2016, MakeMyTrip and Ibibo, India's two largest online travel agency groups, agreed to merge. Investors expected the deal would stem the rampant promotional offers that have bled away profits in the sector. But that didn't happen.
The deal united the brands MakeMyTrip, Goibibo, and RedBus. Together, they could have translated their market heft into profitability.
Unfortunately for them, new entrants emerged. Paytm, a digital wallet provider, began selling flights and rail. Oyo, a hospitality company, received a $1 billion funding round in 2018 that let it continue to drive 95 percent of its bookings through its direct online channels through various promotions.
Meanwhile, a few older players revved up their games. Booking.com doubled its lodging inventory and doubled down on its domestic marketing. The price-comparison search brand Ixigo turbo-charged its customer and inventory acquisition efforts. Yatra and Cleartrip continued to fight, while other smaller players
