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Online hotel aggregators are standardising the budget hotel experience, and for cheap. Will they succeed?


If there is one concept that Indians readily buy, it is the ‘value for money’ concept. And while by this standard, budget hotels in India should have really taken off, most of them continue to languish thanks to dismal occupancy rates. According to industry estimates, there are over 1 million rooms in the budget hotels category across the country that struggle to find occupants. Customers looking for accommodation are willing to fork out a little more and stay at larger hotel chains because budget hotels are not unified by any standard norms, rules or service guarantee. While online travel agencies such as MakeMyTrip and Yatra put a bunch of these hotels online for bookings, the issue of standardisation, service and quality of rooms still remained.