MakeMyTrip Sees a Surge in Alternative Accommodations in India
Photo Credit: Seclude Palampur is a guesthouse in Pālampur, India, offers views of the Dhauladhar mountains. MakeMyTrip offers guesthouses and other alternative accommodations for bookings. Seclude Palampur
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Homestays and guest houses are still a small market in India, but it's mainly a problem of supply and not demand now. Investing in the country's alternative accommodations is a long-term bet, but the potential is large.
While alternative accommodation has been a hot topic elsewhere for years, India has been slow to take an interest. MakeMyTrip Group, the country's largest online travel business, only began marketing the category of alternative accommodations last year.
But the pandemic has sped up the adoption of alternative accommodations, said company executives on Tuesday during an earnings call. Many consumers have begun looking for vacation lodging that doesn't have the hustle and bustle of crowded hotels.
The growth has still been too modest to be a financial lifesaver for the Gurugram-based company during the pandemic. The group only generated $21.1 million in revenue during the quarter that ended September 30. That was 18.9 percent of the revenue it booked in the same period a year earlier, as measured in constant currency.
The company suffered a loss of $26.1 million for the quarter. Among other factors, the c
