I Agree with you on the seventh pay commission impact and low base (7% ) opportunity. A recent tourism sector report puts overall tourism industry growth at 10-12% for the last 10years and will continue at that pace. Due to oversupply not all hotel companies are able to show that type of growth.
Bykes aggregation business allows it to play throught all tourist destinations in India, certainly a big cushion + growth driver . Something other hotel stocks do not have.
But there is a significant threat from online players to the room aggregation business. Currently the threat is not big^ , but with improved connectivity and better user online experiences in a few years it will be a significant threat. Hope Byke has a good online strategy to combat that and consolidate its offline bookings share.
( Not big^ – Makemytrip is the leading online booking service provider in India with 40% share. But MMT forms only 5% share of the overall India hotel bookings market. So the entire online booking market is 10-12% only for now. 12% after tons of cash burning of Vc , PE money. Add to it cut throat online competition)
| Subscribe To Our Free Newsletter |
