According to a report by ratings agency ICRA, it is estimated that 8.4 million Indians are likely to book hotels online by 2016 up from 3.5 million in 2014. It also said the online hotel industry was expected to grow to $1.8 billion by 2016 from the current $0.8 billion. The $800-million online hotel booking space in India is getting filled up by a host of aggregators, catching the attention of not just the netizens who are on the move but also venture funds as more people board to the travel bandwagon seeking comforts within a budget.
In the process, these aggregators are also demanding certain standards from the hotels in their drop-down — complimentary breakfast, free wi-fi, spotless linen, air-conditioning, television with cable, hygenic rooms and bathrooms, safety and security. A host of players have also cropped up seeing the potential growth — OYO Rooms, Vista Rooms, Zo Rooms, Treebo, Zip Rooms, RedDoorz and WudStay, to name a just few among a host of others that are mushrooming by the day.
According to a report by the global investment banking firm Jefferies, online budget hotel aggregators like SoftBank-funded OYO Rooms have also emerged as “a major disruptive force in the online hotel booking space in India.”