Can a former OYO Rooms executive build a rival hotel aggregator that lasts?

Much before she was caught by the entrepreneurial bug, Ankita Sheth had already plunged into the world of startups. As the head of acquisitions at OYO Rooms, the SoftBank-backed hotel aggregator, she had helped its founder, Ritesh Agarwal, build up the company’s business, connecting customers with available hotel rooms across India.

“I would be slightly worried about Vista Rooms,” said Sanchit Vir Gogia, Chief Analyst & CEO of Greyhound Research. “Minimum guarantee is not a viable model, and Vista is right in (avoiding that). But, ensuring the quality of service is always a big concern. These companies are more focused on solving the problem of rooms, which has already been solved. The question is over quality assurance, and that is a people-intensive model.”

For Greyhound’s Gogia, Vista Rooms will need to think bigger.

“What the company must focus on, rather than just being an aggregator, is to offer the full experience of a travel,” he said. “Being a full-fledged hospitality player, starting with tie-ups with airlines and cabs, is a more viable option. Because more and more people are now looking to a unique service, than a standardised service.”

[Quartz]

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Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Futurist, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Group. He also serves as Chief Analyst & CEO of Greyhound Research, a Global, Award-Winning, Independent Technology & Innovation Research, Advisory & Consulting firm. To read more about him, click here.


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