budget hotel (1)

Travel booking website Yatra has launched two new types of accommodation options for travellers, TG Rooms and TG Stays. Both stay options will be bookable via Yatra and Travelguru either on their own or as a part of a holiday package.

The TG Rooms option will include various budget hotel rooms branded by Yatra, similar to Oyo Rooms or Zo Rooms. The company claims these rooms will include hotel and guesthouse options and offer free amenities like wifi, air conditioning, breakfast and free cancellation. According to the company it will tie up with hotels for these rooms, although it will take care of quality assurance and brand it as TG Rooms.

The TG Stays on the other hand, offers verified homestays in various cities across the country. Speaking to Medianama, Yatra informed us that it already listed verified homes for stay on the platform, and will now tie-up with some of these homeowners to offer it as the branded option TG Stays. The company further said that as of now, homeowners have to be present when guests arrive, or have a caretaker. Homeowners can rent out single rooms (paying guest style) or rent out the entire house. Yatra also said that it would eventually look to provide caretakers for homeowners if they don’t have one.

As of now, Yatra claims to have launched over 500 staying options in 60 cities including both TG Rooms and Stays, with both types of rooms starting at Rs 499. Overall, the company claims to provide an inventory of 40,000 staying options in over 1100 locations, across both Yatra and TravelGuru.

Competition: With TG Rooms Yatra is looking to compete with the budget self-branded hotel rooms services like Oyo Rooms, StayZilla and Zo Rooms etc. It will also directly compete with Goibibo’s recently launched GoStays platform. The other initiative TG Stays, directly competes with companies like Airbnb. However, Yatra verifies and takes responsibility for the customers experience by self-branding the homestay, unlike Airbnb which allows anyone and everyone to list. In this sense Yatra is providing an end-product, rather than just allowing anyone to list their homes.

TravelGuru acquisition: Note that TravelGuru was acquired by Yatra in 2012, although the exact terms of the deal were undisclosed. This was the second time TravelGuru was acquired. Travelocity had acquired TravelGuru in 2009 for an undisclosed sum, and had allowed it to operate as a separate company and brand.