At 1.27 lakh, OYO records highest daily bookings in May as wave of travel increases
Global travel technology company, OYO, saw a record number of daily bookings of 127,000 in May, reflecting an increase of almost 460% year-on-year (YoY). Sources attributed the increase to a steady increase in travel and changes in how OYO allows visitors to pay directly at the hotel.
Last May, India was hit hard by the second wave of Covid-19, leading to a sharp drop in travel. The company’s data shows an upward trend in travel since the start of 2022, with a nearly 104% increase in bookings in May 2022 compared to January 2022 and a 21% increase compared to April 2022, respectively. .
The company recently announced two record-breaking weekends in April 2022 itself. During Good Friday and Vishu week, OYO received 800,000 bookings, the highest ever in 2022, surpassing New Year’s week.
The sources further said that OYO would be likely to be listed by Diwali if the Securities and Exchanges Board of India (Sebi) approves its DRHP by September. The company recently updated its financials with Sebi, as there have been changes since it filed draft documents for an IPO last year.
According to a recent announcement, OYO has added 1,250 new corporate customers since March 2022. He said the recovery was led by small and medium-sized businesses, traditional companies and conglomerates, start-ups, travel management companies as well as film production houses, which have emerged as a key customer category for the company in recent times. Pune, Kolkata and Mumbai are key business hubs, driving the wave of business travel.
According to industry tracker STR, the 7-day average daily rate (ADR) for Indian hotels has started to exceed pre-pandemic levels since mid-April and continues to remain robust. The report further suggests that business demand showed significant improvement after Omicron in late April and early May.
Other travel players also saw a surge in business in May. Yatra reported 90% of pre-Covid level hotel bookings, while another popular travel booking platform, Booking.com also hit a first-quarter record globally. Ixigo saw a 25-30% average monthly increase in search queries for air travel, while train search queries increased 35-40% on popular routes.
According to MakeMyTrip’s recent fourth quarter earnings report, they saw their profits increase by 8% to $12 million. The Nasdaq-listed company also said domestic business travel has opened up across all segments, and the company expects that growth to accelerate in the coming times.