Paytm Enters Oyo Territory; launches on-demand hotel booking business with NightStay
Paytm has acquired a hotel booking app called NightStay that allows travelers to book hotels instantly while ensuring high quality service. With the Rs 142 crore acquisition of NightStay, Paytm is looking to re-enter the hotel aggregation industry and expand its travel operations by providing last-minute deals to tourists. However, the on-demand hotel booking space is already dominated by OYO Rooms and it will be interesting to see how this new venture unfolds.
Meanwhile, Alibaba, backed by Payments Company, has already partnered with more than 5,000 hotels across budget, luxury and business segments. Based in Noida, NightStay was launched by Nasr Khan in December 2014 with a basic alpha app. Beta version of NightStay was announced in March 2015. Some of the features of NightStay members only app are as follows.
- The app only offers handpicked luxury hotels, boutique hotels and budget hotels
- NightStay guarantees low prices on hotels in India
- It offers an easy booking process and last minute hotel reservations and deals
- NightStay shows the cheapest hotel deals available
- Its hotel partners include Sarovar, Zuri, Treebo, Indian Hotels Co’s Ginger, Sterling and Vresorts
Paytm is trying to expand its travel operations and NightStay would be a perfect fit for the business. According to the Economic Times, the app aggregates unsold inventory at luxury and business hotels and offers last-minute preferential rates to guests. NightStay offers its services in 12 cities including Delhi, Hyderabad, Mumbai, Goa, Agra, Jaipur, Chennai and Bangalore and is available from noon to midnight.
The NightStay app is available for Android and iOS users.
Paytm first entered the travel business in 2014 and sells several hundred thousand tickets a year for bus and flight reservations. Paytm also offers foreign exchange services to international travelers. Earlier in 2017, there were reports that Paytm was looking to acquire startup Via.com
According to a report by Deutsche Bank AG, the online hotel booking segment is expected to reach $2.3 billion by 2020.
Meanwhile, for the FY18 financial year, Paytm’s parent company, One 97 Communications, reported revenue of Rs 3,235 crore, a nearly four-fold jump from the previous year, even as its loss jumped 69% to Rs 1,490 crore. The total expenditure for the year was Rs 4,718 crore.
Edited by: Udit Verma
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