MakeMyTrip to discontinue alternate accommodation brand Rightstay

MakeMyTrip that forayed into the alternate accommodation space through a new entity called Rightstay in October is now shutting down this brand, even as the alternate accommodation properties will continue to remain live under the homestay tab on the website, according to a senior executive.

"Alternative accommodation which is the homestay is a focus area. It started as RightStay but now we do not plan to pursue RightStay as an independent brand. We already have multiple establishments, we will bring RightStay in the main funnel. RightStay brand we will discontinue, the properties will remain," Rajesh Magow, chief executive of MakeMyTrip told Moneycontrol in an interaction.

"Post-merger scenario things changed because we already have those brands. We already have three distinct establishments," he added.

MakeMyTrip acquired rival GoIbibo a couple of weeks after announcing the launch of Rightstay.

Read full interview: MakeMyTrip to focus on profits only after 2 years

It currently runs three distinct brands on the consumer side -- MakeMyTrip, GoIbibo and RedBus. On the supply side, the company runs brand names such as MyValue Plus, MakeMyTrip Assured and GoStays.

"The initial thought was to build Rightstay as a consumer side brand. But it takes a lot of investment to build a new brand. And there's already traffic that we are getting on three different brands," Magow said adding that the company can offer the same product to consumers even without having it as a separate brand.

There wouldn't be any change from the supply or the fulfilment side following his development.

The company is focusing heavily on the alternative accommodation segment but says that it will take some time for it to fully grow.  According to Magow, it will depend on the change in the consumer behaviour and investment will be required for creating awareness.

MakeMyTrip currently claims to have 45,000 hotels and 13,500 home stays.