Why Oyo and Ctrip Need Each Other: Bigger Reach in Asia
Oyo has more rooms in China than in India, but India is still its biggest revenue generator. A deal with Ctrip may help correct that imbalance.
Oyo has inked a strategic partnership with China's Ctrip, Oyo founder Ritesh Agarwal announced at Skift Forum Asia in Singapore on Monday. The deal is meant to help elevate the budget hotel chain's business in China, where Oyo has more rooms than it does in India but sees a lower yield in the mainland than in its homeland.
In an interview after his session at Skift Forum Asia, Agarwal said he expects Ctrip, China's largest online travel player, to generate demand for Oyo in China and globally.
"Oyo is becoming very popular with young people there (in China)," said Agarwal. "How do we create a unique experience at a price point of 100 to 150 yuan ($15) per night, which is what they appreciate? So it makes sense for Oyo Jiudian (Oyo's name in China) and Ctrip to form a deeper relationship."
Agarwal pointed out that Ctrip is focused on secondary and smaller cities in China, which complements Oyo's supply.
