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How to Save Money on Hotel Bookings? Research Team | Posted On Monday, July 22,2019, 04:08 PM

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How to Save Money on Hotel Bookings?



Be it a weekend getaway or a much-awaited vacation, the obvious choice for stay is a hotel. However, hotels can be expensive depending on your destination and comprise of 50% of your travel budget.

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How to Save Money on Hotel Bookings?

If you are thinking of saving a bit extra on your hotel-bookings, then you can follow the tips and tricks shown below, and save extra bucks on your hotel deals:

  • Check-in on a Sunday: According to reports, Sunday is the most unfavored check-in day for tourists, whereas Tuesdays are the most expensive days for hotel bookings. A Sunday check-in can save an average 20% on your hotel booking costs, provided it is not a gazetted holiday like Independence Day or Christmas.
  • Make Bookings in Advance: If you have already planned your next vacation, then don’t wait to make bookings just 10 days before your journey. Plan your vacation and make bookings, at least one or two months in advance. Doing this gives ample time to compare the services and the rooms offered by various aggregators. You can also contact the hotel of your choice directly, to avail better discounts. The hotel prices fluctuate with time.

So, you get to enjoy fairly low prices if you are booking your room a month in advance as the booking prices peak, a few days prior to the journey date. Therefore, if you already have travel plans in place, then go on and book your room. Who knows you might just get a special discounted price as well.

  • Book your hotel directly, and not through a third-party aggregator. With a host of hotel booking websites, booking a hotel is really easy. However, most of these websites offer hotel booking at a discounted rate, by stripping the customer of various services, which are essential while staying at a hotel. Generally, these deals come with no room service/ no complimentary breakfast/ no Wi-Fi or air-conditioning. Sometimes, it’s better to contact the hotel of your choice and get rooms at discounted rates along with other essential services. Most hotels allow a 20% discount or snag perks like free room upgrade and so on, with direct bookings.

Know How Some of the Best Web Aggregators Make Money on Hotel Bookings:

How OYO Rooms Make Money?

The OYO room’s business model functions in a similar way to the usual online aggregators. The only difference is OYO has built a reputation over time and enjoys the essence of a franchise business model. Given below is the way they conduct their business with:

  • The OYO rooms operate the hotel rooms under their franchise. Previously, a part of the hotel’s inventory was leased.
  • As the hotel owners serve as a franchise of OYO, they must operate and maintain the standards specified by OYO.
  • The company also offers plans where the hotel is directly run by OYO instead of the owner.
  • Bookings are made through the OYO website or mobile apps.

OYO used to lease a part of the hotel and offered rooms to customers. However, that led to losses as the partners used to book their own rooms when they saw discounted prices on the OYO website.  So, the business model was upgraded from aggregator to franchise, helping OYO maintain brand equity and this led to a 100% increase in revenues. Now they directly charge 22% revenue from partners, which vary according to the extent of services offered by OYO.

How MakeMy Trip Makes Money on Hotel Bookings?

MakeMy Trip has been able to capture the market by implementing various changes in their business model like app development and numerous user-interface changes which help smoothen the operations of the business. MakeMy Trip has an inventory of 80,000 hotels and tie-ups with budget and premiere hotels, both in India and abroad.

According to reports, 50% of the revenue generation, comes from the hotel business. The revenue is generated based on profit sharing with the partner hotels. The constantly diversifying business model helps retain customers, by offering affordable holiday packages, flights, bus tickets and so on.

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