Oyo acquires Direct Booker for Rs. 40 Crores
It’s been a quiet few months for Oyo Rooms, but now they’re back in the headlines with a bang. The company has come to announce that it has acquired Direct Booker for US$5.5 million or Rs. 40 crores. Direct Booker is a Europe-based company is a vacation rental booking platform. You can find individual apartments and apartments, hostels, hotel rooms and suites, and even villas on their website.
The 11-year-old company with over a million total bookings is solely based in Eastern Europe, as it offers over 5,000 accommodations in Bosnia and Herzegovina, Croatia, Montenegro, Slovenia and Albania.
The company plans to expand throughout the European continent, especially Croatia, as it has identified this country as a great potential for growth. Oyo Rooms currently has nearly 2,000 accommodations on its Belvilla platform and well over 7,100 on its Traum Ferienwohnungen platform. Oyo is handling the operations of these two platforms for their European market and now, with the acquisition of Direct Booker, they can also have a strong position in the Eastern European market.
The company sees Europe as the place to conquer now and has already found success in countries like Germany, the Netherlands, Denmark and Austria.
Oyo recently made European headlines when it opened its accommodation in Poland to Ukrainian refugees free of charge. The company covered all the administrative expenses and booking fees to provide them with a place to stay which has been doing the rounds on social media and people have been praising the company’s decision to do so.
Oyo’s global managing director said homes continue to be the company’s main selling point and tangent. Thanks to its state-of-the-art algorithms, pricing strategies and competitive operating systems, the company has been able to remain profitable and grow steadily. They have added almost 1,50,000 homes over the past year in all the countries where they operate.
He went to say that with their technology and their partner’s expertise in the region and local markets, they can create synergy and have a very successful partnership and he thinks they can take control of the Croatian market and consolidate their place at the top.
Over the past two years, Oyo Room’s business has collapsed due to the coronavirus and people around the world have been forced to stay home. However, as people enter the real world now, Oyo has come out all fired up and seeks to take over the travel and hospitality business.