MakeMyTrip has launched an accommodation platform called Rightstay which provides alternative stay options like villas, residential apartments, homestays and guest houses, similar to Airbnb. Rightstay has its own Android app and website.
The platform allows hosts to register and list their properties. Users and home owners can chat with each other before committing to booking the place, and rate each other once the transaction in complete. As of now, the company claims to have over 10,000 properties listed across 200 cities.
Users can search Rightstay for the places based on the location and need to provide check-in and check-out dates to view the results. Users can also select the number of guests, the number of rooms they want to book, sort based on property types like cottages, bungalows or apartments, and other criteria like WiFi facilities, stay with host, lake view etc. As for the booking options, the company lets users pay after the stay on certain properties.
Interestingly, in November last year, MakeMyTrip had also launched the budget hotels aggregator Value+ hotels, a brand of budget hotel rooms, on its website. This was apparently to address customer complains about the quality of services provided by budget hotel aggregators. The company had also delisted budget aggregators like Oyo Rooms and Zo Rooms, citing aggregators were competing with its business model and that it did not make long term strategic sense for MMT to list its competitors.
MakeMyTrips revenues: In July this year, MakeMyTrip said that revenues from the hotels and packages segment accounted for 56% of its total revenues. Overall, the company reported a loss of $14.3 million for the quarter ended June 2016 (Q1 FY17), up from $6.9 million for the same quarter last year. Note that MakeMyTrip is in the midst of a buyback process, having been authorized to buy up to $150 million at a price of up to $21.50 until November 30, 2021. In January, it raised $180 million in convertible bonds from China’s Ctrip.
Competition: Platforms like Airbnb, RentMyStay and HomeAway etc. directly compete with with Rightstay, while other platforms like Yatra offer homestays for which the company takes responsibility for the customers experience via self-branding. There are multiple self-branded hotel rooms services like Oyo Rooms, StayZilla and Zo Rooms etc. in the market as well, which offer cheap stays, but in hotels.