MakeMyTrip, a Nasdaq-listed online travel booking portal has recently launched Value+, its in-house brand for budget rooms, after some day after removing Oyo Rooms and Zo Rooms from its site.
The newly launched Value+ will provide rooms from Rs.900 to Rs.2000 per night, competing with OYO Rooms and Zo Rooms who offer budget rooms. The hotels under Value+ will provide basic services like air conditioning, satellite TV, free breakfast and WiFi. Hotel rooms give MakeMyTrip a margin of 15% to 25% unlike the flight tickets that give only 5%. The company has already roped in 1000 hotels under the Value+ brand and plans to double the number in the coming month.
With the introduction of Value+, MakeMyTrip hopes to generate more revenue from hotel business from 45% to 70% in the next three years. Rajest Magow, CEO of MakeMyTrip said, “The single largest barrier for booking budget hotel online is the quality and assurance. With Value+, MMT intends to change the game by giving MakeMyTrip brand assurance to the budget segment consumers, and hence catalyse offline to online shift for hotel bookings.”
Until mid this year, the India’s top online hotel booking agency has no plans to venture something like this. Few months ago, Mohit Gupta, COO of MakeMyTrip had said, “We have no plans to get into property-management or co-branded hotels business at this point. We see more value in working closer with hoteliers and small property owners to build the long-tail, and catalyse the offline-to-online shift for hotel booking in India.”
Deep Kalra, cofounder and Group CEO stated that the idea for Value+ popped up after customers on its website complained about the quality of services provided by hotels listed under the aggregator startups. He said, “For us, the guiding light is our customer. If the customer feedback is negative, there is little we could do (than delist).”
MakeMyTrip has always given importance to customers feedbacks and their plights. It has set up feedback mechanism for consumers to report any unsatisfactory experiences. “The feedback is acted upon instantly to ensure that the quality of experience of our customers remains the best that they can get in this category. We are putting our skin in the game by promising ‘double the money back,’ if the experience for consumer is less than satisfactory or if they find the hotel at a lower price.”