MakeMyTrip plans to add 15,000 homestays in next 18 months

“From 2020, we have increased the number of homestays or inventory to 90%. We are effectively adding over 1,000 such properties to our platform every month. “We plan to have 15,000 more stays in the next 18 months,” said Rajesh Mago, Co-Founder and Group CEO, MakeMyTrip Ltd.

Mago said that while there is a constant demand for premium and luxury hotels that offer high safety standards, the severity of the second wave has made COVID safety protocols a top priority for travelers. MMT is seeing a surge in demand for this alternative accommodation category.

“…homestays were being preferred because they are often secluded, devoid of large crowds and relatively safe. These factors were the biggest factors driving the growth of this category. Until recently, homestays became the major non-profit for consumers. -Hotel is becoming one of the choices. This phenomenon was already popular globally but it is spreading fast in India as well.”

The online travel firm said there are broad sub-segments in the variable living category such as villas, service apartments and hostels (casual and for pilgrims). Overall, hotel and accommodation recovery has been around 60-65% compared to pre-pandemic (Feb 2020) levels. Within this segment, alternative stays or homestays have already recovered more than 100%.

“It simply means that we are doing pre-pandemic volumes in this segment and the year is not over yet. Villas and service apartments are the fastest growing. This segment is currently being operated by nuclear families (husband, wife and children) who opt for work/stay, bachelors who are opting for villas for budget and two or three families together Coming and booking such stays so that they can make a safe life-bubble,” Mago said.

Without disclosing the details of the investment, MakeMyTrip said it is currently investing in technology and product as well as business development. A new dedicated icon for ‘Villas and Apartments’ has been created on the homepage of MMT’s website where consumers can check the properties. There is even a homestay option listed in the hotel category on the website. The company said it will launch marketing promotion and branding in this segment apart from launching a dedicated app for hosts.

Mago said that while the company is seeing a month-on-month recovery, the overall recovery is not close to pre-pandemic levels as key segments such as international travel and flight capacity are still restricted.

“From a holistic perspective, the recovery is lagging, but from the domestic trade point of view I think we are touching 60-65% of pre-pandemic levels,” he said.

The Nasdaq-listed company’s plan to strengthen its presence in the homestay segment comes at a time when companies like Airbnb as well as startups like Vista Rooms and Safronstay are aggressively looking to tap the segment and grow business.

While the homestay market has been dominated by several home startups, large hotel chains such as the Taj Group are also venturing into the segment with the launch of two sub-brands, Ama Trails & Stays.