After releasing an app to book train tickets, online travel planner Cleartrip has now launched a new option to make payments during hotel booking simpler by getting rid of the online payment option.
The option called ‘Pay@Hotel’ allows users to book rooms at certain hotels across India without having to pay for it right away. Cleartrip guarantees reservation of the rooms booked through this option.
Cleartrip changed the payment option with a view to get users to book hotels online even if they are unaware of the brand or type of experience the hotel will provide.
Company executives will call and reconfirm travel plans and stays at booked hotels a few days prior to the date of arrival to know any change in travel plans. The company will inform hotels in case of cancellation of a room without charging any cancellation penalty. Cleartrip also claims that guests can change their rooms upon arrival if they aren’t happy with the room given. All hotels eligible for the option will have a “Pay@Hotel” tag on them.
Only problem here: won’t this mean many cancellations and few customers if people decide to change plans enmasse? Is this precisely the problem e-commerce companies are facing with Cash on Delivery now?
MakeMyTrip, which is one of the few large players in the space, recently renewed its push on selling hotel reservations and holiday packages as margins on flight bookings got thinner.
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