Oyo Rooms has expressed interest in buying smaller rival Zo rooms. The article further stated that 1) Zo is currently struggling to raise cash; 2) Zo is under pressure to cut costs, may shut its operations in Goa; 3) Despite being relatively well-funded, budget hotels have failed to show meaningful revenues so far, as occupancy rates inevitably tend to remain low, partly as these brands are new.
With increased competition in the budget hotel space in the last few months, the larger OTAs like MMYT, IBIBO delisted Oyo/Zo from their platforms.
MakeMyTrip is not taking inventory of hotels. Instead it is working closely with hotels to provide standardized services like breakfast, free WiFi, AC&TV and certifies these hotels and preserves their brand (unlike in Oyo/Zo), giving more comfort to the hotel owners. Our recent checks suggested that smaller budget hotels were struggling to sell their inventory post an aggressive stance from MMYT.
