OYO vs MakeMyTrip vs Airbnb: Complete Business Model Comparison (2026)

The online travel and hospitality industry has transformed dramatically over the past decade. Platforms like OYO, MakeMyTrip, and Airbnb have reshaped how travelers book stays and how property owners earn revenue.

While all three help users find accommodation, their business models, revenue streams, and value propositions are fundamentally different.

In this detailed guide, we’ll break down:

• How OYO works

• How MakeMyTrip earns money

• How Airbnb’s model differs

• Commission structures

• Who benefits the most

• Which model is strongest in 2026

Whether you are a traveler, hotel owner, or travel blogger, this comparison will give you complete clarity.

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🚀 Quick Overview

Platform	Core Model	Main Role
OYO	Branded hotel franchise + marketplace	Standardizes and sells budget hotels
MakeMyTrip	Online Travel Agency (OTA)	Aggregates travel bookings
Airbnb	Peer-to-peer marketplace	Connects hosts and guests

In simple terms:

• OYO = Controls hotel experience

• MakeMyTrip = Pure booking intermediary

• Airbnb = Home-sharing marketplace

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🏨 OYO Business Model Explained

What OYO Actually Does

OYO partners with small and mid-sized hotels, rebrands them under the OYO umbrella, standardizes services, and sells rooms through its platform.

Unlike typical booking sites, OYO is deeply involved in hotel operations.

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How OYO Works (Step-by-Step)

1. Hotel Onboarding

OYO signs agreements with budget hotels and guest houses.

2. Standardization

OYO upgrades properties with:

• Branded signage

• Standard linen

• Professional photos

• Basic quality checklist

• Pricing algorithms

3. Distribution

Rooms are sold via:

• OYO app

• OYO website

• Partner channels

• Corporate bookings

4. Revenue Sharing

Customer pays → OYO deducts commission → hotel receives balance.

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💰 OYO Revenue Model

Primary Revenue: Hotel Commission

• Typical commission: 15%–25%

• Premium formats: 20%–30%

Example:

• Room price: ₹2,000

• OYO commission (20%): ₹400

• Hotel gets: ₹1,600

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Secondary Revenue Streams

OYO also earns from:

• Franchise fees

• Technology fees

• OYO Wizard membership

• Managed property revenue

• Convenience fees

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✅ Benefits for Hotels

Hotels join OYO mainly for:

Higher occupancy
OYO’s demand engine fills empty rooms.

Brand trust
Independent hotels gain brand credibility.

Dynamic pricing technology
Smart algorithms optimize room rates.

Operational support
Training, SOPs, and customer service.

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⚠️ Challenges for Hotels

Some common concerns:

• High commission pressure

• Pricing control by OYO

• Dependency on platform

• Brand perception in some markets

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✈️ MakeMyTrip Business Model Explained

What MakeMyTrip Really Is

MakeMyTrip is a classic Online Travel Agency (OTA).

It does NOT operate hotels. Instead, it connects travelers with:

• Hotels

• Airlines

• Holiday packages

• Buses and trains

It is purely a marketplace.

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How MakeMyTrip Works

1. Hotel lists rooms on platform

2. Customer books via MakeMyTrip

3. Hotel provides stay

4. MakeMyTrip earns commission

Simple and asset-light.

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💰 MakeMyTrip Revenue Model

Primary Revenue Sources

Hotel commission: ~10%–20%
Airline commission: ~2%–5%

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Additional Revenue

• Convenience fees

• Sponsored listings

• Holiday packages

• Travel insurance

• Forex services

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✅ Benefits for Hotels

• Massive customer reach

• No operational interference

• Flexible pricing control

• Global visibility

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⚠️ Limitations

• High competition among hotels

• Heavy discount wars

• Lower control over customer experience

• Thin margins for OTA

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🏠 Airbnb Business Model Explained

What Airbnb Actually Is

Airbnb is a peer-to-peer home-sharing platform where individuals list their homes or rooms for short-term rental.

It created the global “sharing economy” in hospitality.

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How Airbnb Works

1. Host lists property

2. Guest books

3. Airbnb processes payment

4. Host provides stay

Airbnb mainly provides trust, payments, and discovery.

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💰 Airbnb Revenue Model

Airbnb uses a dual-fee structure.

Guest Service Fee

• Typically 10%–14%

Host Service Fee

• Typically ~3%

Combined take rate: ~12%–17%

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✅ Benefits for Hosts

• Extra income from unused property

• Global exposure

• Flexible pricing

• No long-term contracts

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⚠️ Challenges

• Quality inconsistency

• Regulatory issues in some cities

• Trust and safety concerns

• Dependence on reviews

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📊 Head-to-Head Comparison

🔥 Business Model Depth

Factor	OYO	MakeMyTrip	Airbnb
Model type	Franchise + marketplace	Pure OTA	Peer marketplace
Operational control	High	Very low	Very low
Asset ownership	Mostly no	No	No
Scalability	Medium	Very high	Very high
Standardization	Strong	None	None

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💰 Commission Comparison

Platform	Typical Take Rate
OYO	15–25%
MakeMyTrip	10–20%
Airbnb	12–17% combined

👉 OYO charges more because it adds operational value.

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🎯 Target Customer Segment

OYO is best for:

• Budget travelers

• Short stays

• Standardized rooms

• Tier-2 and Tier-3 cities

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MakeMyTrip is best for:

• Comparing hotel prices

• Booking flights + hotels together

• Package holidays

• Established hotel chains

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Airbnb is best for:

• Long stays

• Workations

• Family vacations

• Unique experiences

• Homestays and villas

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📈 Unit Economics Comparison

OYO

Strengths

• Higher revenue per property

• Strong brand control

• Better standardization

Weaknesses

• Operational complexity

• Partner conflicts

• Higher costs

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MakeMyTrip

Strengths

• Highly scalable

• Asset-light

• Low operational burden

Weaknesses

• Thin margins

• Heavy competition

• Price wars

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Airbnb

Strengths

• Extremely asset-light

• Strong network effects

• High margins

Weaknesses

• Trust dependent

• Regulatory risks

• Quality inconsistency

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🔮 Which Business Model Is Strongest in 2026?

Each model wins in a different area.

OYO wins in:
✔ Budget hotel standardization
✔ Emerging markets
✔ Tier-2/3 cities

MakeMyTrip wins in:
✔ Full travel booking ecosystem
✔ Flight + hotel bundling
✔ Price comparison

Airbnb wins in:
✔ Alternative accommodations
✔ Long stays
✔ Premium vacation homes

👉 There is no single winner — they serve different travel needs.

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🧠 Key Strategic Insight

This is the most important takeaway.

• OYO = Supply standardization play

• MakeMyTrip = Demand aggregation play

• Airbnb = Trust marketplace play

Understanding this explains why all three coexist successfully.

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❓ Frequently Asked Questions (FAQs)

Is OYO an OTA like MakeMyTrip?

No. OYO is a hybrid model that standardizes hotels and controls pricing, while MakeMyTrip is purely a booking intermediary.

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Who charges higher commission: OYO or MakeMyTrip?

Generally, OYO charges higher (15–25%) because it provides branding, pricing technology, and operational support.

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Why do hotels still join OYO despite higher commission?

Because OYO often increases occupancy significantly, which can offset the higher commission.

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Is Airbnb cheaper than hotels?

Often yes for long stays or group travel, but for short budget stays, OYO hotels can be cheaper.

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Which platform is best for travelers?

• Budget stay → OYO

• Flight + hotel booking → MakeMyTrip

• Unique vacation stay → Airbnb

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✍️ Final Thoughts

OYO, MakeMyTrip, and Airbnb have each built powerful but very different business models.

• OYO focuses on standardizing fragmented hotel supply

• MakeMyTrip focuses on aggregating travel demand

• Airbnb focuses on unlocking unused residential inventory

For travelers and property owners, the best platform depends on their specific needs.

As the travel industry evolves in 2026 and beyond, these three models will continue to coexist — each dominating its own niche.

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Pro tip for Tour Travel Diaries:
This topic has strong search potential. Consider internally linking it with your hotel guides and budget stay articles to boost SEO.

1. Plan Ahead and Research Your Destination
Before going on your trip, it’s important to gather information about your destination. This includes the local weather, language, culture, and any specific travel advisories or health precautions you might need to consider. For hill stations, check the seasonal weather, road conditions, and accessibility, as some areas may become inaccessible during monsoon or winter seasons due to landslides or heavy snowfall.

• Tip: Look for travel blogs or forums like Tripadvisor, etc where other travelers share their experiences for insider tips.

 

2. Pack Smart and Light
Packing efficiently can make your journey comfortable. For hill stations, and especially if you are going for some trekking then its better to carry a rucksack instead of the trolley bags as it will easier to carry and in the rucksack keep the clothes like winter wear on the top so that if the temperatures fluctuate dramatically especially during the evenings, then it will be easier to pull off the clothes immediately. Don’t forget to carry essentials like sunscreen, a hat, sunglasses, and a good pair of walking shoes. For trekking destinations, carry sturdy footwear, rain gear, and a hydration pack.

• • Tip: Pack only the essentials. Avoid overpacking, and make sure you have the necessary clothing items that can be mixed and matched.

 

3. Always Keep Important Documents Safe
It’s essential to carry all necessary documents like ID cards, tickets, reservation confirmations, and insurance details. Keep these in your phone and also carry a print out of those. In hill stations or remote locations, it’s also useful to carry a few copies of these documents in case of loss or theft.

• Tip: Use digital apps like Google Drive to store copies of your documents for backup.

 

4. Health Precautions and Local Emergency Numbers
Depending on your destination, certain vaccinations or medications may be required. For instance, travelers to high-altitude areas like hill stations should be aware of altitude sickness and take necessary precautions. Always carry a first-aid kit with essentials like painkillers, antiseptic, and bandages. Be aware of local emergency contacts and healthcare facilities.

• Tip: Drink plenty of water and acclimatize to high altitudes slowly.

 

5. Learn Basic Local Phrases
While most tourist destinations have English/Hindi speakers but still learning a few basic phrases in the local language can enhance your travel experience. Whether it’s greeting locals or asking for directions, making an effort to speak their language is always appreciated.

• Tip: Download language translation apps on your phone for easy communication.

 

 

6. Stay Safe and Secure
Always be aware of your surroundings, especially in unfamiliar areas. Keep your valuables secure and avoid showing off expensive items like jewellery or cameras. For hill stations, be cautious when trekking or hiking, as paths may be rocky or slippery. Also, ensure your accommodation is in a safe area with easy access to emergency services.

• Tip: Always share your itinerary with a friend or family member in case of an emergency.

 

 

7. Money and Currency Tips
It’s advisable to carry a mix of payment methods, such as credit/debit cards and some cash, especially for hill stations or remote destinations. In hill stations, some local markets or small shops might only accept cash, so ensure you have cash on hand.

• Tip: Avoid carrying large amounts of cash and keep your cards in a secure wallet.

 

 

8. Respect Local Culture and Customs
Every destination has its unique culture and customs, so it’s important to be respectful towards the local culture and customs. In hill stations, for example, local customs might include dress codes or particular ways of interacting with the environment (such as not disturbing wildlife). Take time to learn about the region’s culture and traditions to avoid inadvertently offending locals.

• Tip: Research local etiquette, such as tipping practices, cultural taboos, or festivals, before your trip.

9. Train and Flight Tickets
Train tickets can be booked from website like IRCTC and if you are planning to fly to your destination, look for budget airlines like IndiGo or SpiceJet, and use apps like Skyscanner to compare airfares. Apps and websites like easemytrip, makemytrip, goibibo and ixigo always offer some discount.

• Tip: Travel during the off-peak season (usually just before or after the holidays) which can help you secure cheaper tickets. Avoid traveling during weekends or festivals when prices are higher. Also look for deals or discount coupons while booking for train or flight tickets.