Not Shimla Or Manali, OYO’s Ritesh Agarwal Surprised By The Hill Stations That Took The Lead In New Year Bookings

OYO Rooms’ founder, Ritesh Agarwal, recently revealed some surprising trends in New Year’s travel bookings. Instead of the typical crowd-pullers like Shimla or Manali, lesser-known hill stations and spiritual destinations saw a dramatic surge in popularity. With OYO experiencing a 58% global increase in bookings compared to 2023, and over 10 lakh users booking rooms on New Year’s Eve, the company has a lot to celebrate as it enters 2025.

Underdog Hill Stations Take the Lead

In a surprising twist, several underrated hill stations became the most-booked destinations during the New Year holiday. Coorg, known for its lush coffee plantations and scenic beauty, saw an incredible 28-fold surge in bookings. Similarly, Mussoorie, a well-loved hill station in Uttarakhand, recorded a remarkable 10-fold rise in demand. This shift highlights how travelers are exploring fresh, lesser-known destinations for a more unique holiday experience, stepping away from the traditional tourist hotspots like Shimla and Manali.

“While Dehradun and Srinagar were expected to be top destinations, Coorg and Mussoorie have outshone them this year,” Agarwal noted.

The Rise of Spiritual Travel

Another key trend revealed by Agarwal is the growing demand for spiritual destinations. Cities like Banaras (Varanasi) continued to draw large crowds, with 12,841 bookings recorded over the New Year period. More surprising, however, was the rise of Ayodhya as a new spiritual hub. The city, steeped in religious history, is expected to grow in prominence, especially around key religious events like the Pran Pratishtha anniversary.

Shirdi, a renowned pilgrimage site, witnessed a staggering 940% increase in bookings, while Ajmer saw a 761% surge. These numbers reflect a wider trend where travelers are seeking meaningful cultural and spiritual experiences, particularly during festive seasons like New Year’s.

OYO’s Impressive Growth: Bookings and Traffic Soar

The trends observed in new and spiritual destinations coincide with a broader surge in OYO’s global performance. On New Year’s Eve, OYO welcomed over 1.1 million travelers, a 58% increase compared to the previous year. The company also saw a 41% increase in website traffic at 2 a.m., indicating that more and more people are booking their stays at late hours, becoming what Agarwal playfully called “certified night owls.”

OYO’s Strong Financial Performance and Expansion Plans

The spike in bookings was accompanied by OYO’s strong financial results, with the company posting a net profit of ₹132 crore for Q1 of FY25, a remarkable turnaround from a ₹108 crore loss the previous year. This growth is partly attributed to OYO’s strategic acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6. This acquisition is expected to strengthen OYO’s position in the U.S. market and boost earnings significantly in the coming years.

As Ankit Tandon, OYO’s Global Chief Business Officer, noted, “Our success in Europe, where we nearly tripled our EBITDA, has set a clear roadmap for value creation globally.”

OYO is also expanding rapidly, opening new hotels every 2-3 days. With approximately 1 lakh customers booking rooms daily in India and a similar number overseas, OYO is on track for sustained growth through 2025 and beyond.

Looking Ahead: A Promising Future for OYO

The surge in bookings for lesser-known hill stations and spiritual sites highlights a shift in traveler preferences. OYO’s focus on offering diverse travel experiences, from scenic hill stations like Coorg to spiritual hubs like Shirdi, positions it as a leader in the global hospitality industry. As the company continues to innovate and expand its footprint worldwide, it is poised for even greater success in the coming months.