<ul><li>The stocks of <keyword id="106317" type="CITY" weightage="20" keywordseo="Asian-Paints">Asian Paints</keyword> and <keyword id="82073" type="COMPANY" weightage="20" keywordseo="Berger-Paints">Berger Paints</keyword> plunged nearly 3% on Monday. </li><li>The grey market premium for unlisted Indigo Paints also crashed. </li><li>The paints industry has high entry barriers, and new entrants have had minimal success over the years. </li><li>However, analysts fear that the entry of one of the country’s biggest billionaires into the space is likely to alter the game.</li></ul>Asian Paints and Berger Paints faced Monday blues like never before with both stocks falling over 3%. Kumar Mangalam Birla, one of India’s biggest billionaires ⁠— with a net worth of over $10,5 billion, according to Forbes⁠— had decided that his $45 billion <keyword id="44373" type="CITY" weightage="20" keywordseo="Aditya-Birla-Group">Aditya Birla Group</keyword> is going to start making and <keyword id="10652241" type="UNKNOWN" weightage="20" keywordseo="selling-paints">selling paints</keyword>. This was bad news for Asian Paints, Berger, and Kansai Nerolac, who control over 60% of the country’s $7.5 billion <keyword id="10652242" type="UNKNOWN" weightage="20" keywordseo="paints-market">paints market</keyword>. It was worse for those who invested in the initial public offering (IPO) from Indigo Paints, because a challenge from someone like Birla was not a risk they had factored in. Though the grey market was still quoting a premium of ₹790-800 for a piece of Indigo, it was down ₹80 compared to Friday’s premium. It is fair to assume that the listing on February 2 won’t be as hot they expected. <div type="image" title="Paint market share (2)" msid="80451061" hostid="261"></div> Birla, a giant in the cement and aluminium industry, has decided to spend ₹5,000 crore over the next three years via his flagship firm Grasim to rattle the incumbent market leaders. That’s more than what Berger and Nerolac have planned for, combined! <div type="image" title="Grasim capex" msid="80451064" hostid="261"></div> <cmsannotation type="cmsannotation" annotationid="Why did Birla decide to enter the decorative paints category?" comment="subhead" text="Why did Birla decide to enter the decorative paints category?">Why did Birla decide to enter the decorative paints category?</cmsannotation> The owner of the multinational commodities giant has been increasingly optimistic about the recovery in the Indian economy, particularly in the construction space. “In India too, the initial prognosis and narrative of experts proved to be excessively pessimistic. The economists, I am told, are now searching for alphabets that will adequately describe this trend of cautious optimism,” said <a href="https://www.businessinsider.in/budget/news/kumar-mangalam-birla-says-markets-are-too-euphoric-and-the-economists-are-too-pessimistic/articleshow/80367439.cms">Birla in a Linkedin post</a>. Even before that, in a conversation with <a href="https://www.businessinsider.in/business/corporates/news/kumar-mangalam-birla-says-cement-industry-is-recovering-and-analysts-find-evidence-of-it-outside-ultratech-too/articleshow/78791281.cms">Business Insider in October 2020</a>, Birla said, “There was a big question around what would happen to infrastructure spending. If I just see aluminium and cement businesses, they’ve both come back to pre-COVID levels very quickly.” <div type="Youtube" id="B4n3pCFuBJ8" title="Kumar Mangalam Birla Talks On Globalisation." thumbUrl="https://i.ytimg.com/vi/B4n3pCFuBJ8/mqdefault.jpg"></div> <cmsannotation type="cmsannotation" annotationid="The market will grow but the profits will dry" comment="subhead" text="The market will grow but the profits will dry">The market will grow but the profits will dry</cmsannotation> The entry of any new, and serious, player is good for the consumer but bad for the competitors. According to Emkay, “Grasim’s entry may provide impetus to volume growth over the medium-to-long term, but it is also likely to impact margins and profitability of incumbents.” Particularly, in the industrial segment⁠— e.g selling paints for use by car makers⁠— the margin is likely to get squeezed and it will hurt the incumbent players. The paints industry has high entry barriers, and new entrants have had very limited success over the years. And large players such as Sherwin Williams, Jotun, and Nippon have failed to gain more than 2% market share in the Indian paint industry. And Birla is not entirely new to the construction space. Ultratech’s Birla Putty, already sells through 54,000 outlets (2nd largest distribution), and three out of four among these outlets also sell paints. The network is already in place, and it is waiting for the product. <div type="image" title="Grasim shares" msid="80451104" hostid="261"></div> Birla has been at the receiving end of the disruption in telecom. Rival billionaire Mukesh Ambani’s Reliance Jio entered with a bang, started a price war that nearly pushed Birla’s Vodafone Idea to the brink of a collapse. Those invested in Asian Paints or Berger Paints or Kansai Nerolac hope he won’t start a similar price war in their space. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/new-realme-stores-in-india-and-ceo-says-there-is-plan-for-new-devices/articleshow/80443801.cms" data-type="tilCustomLink">Realme plans to open 500 new stores in 2021⁠— the CEO reveals the company will go beyond smartphones in the 5G era</a> <a href="https://www.businessinsider.in/budget/news/indias-co-working-sector-wants-recognition-under-real-estate-tax-benefits-as-flexible-workspaces-aim-for-a-significant-revival-in-the-post-covid-era/articleshow/80431768.cms" data-type="tilCustomLink">India’s co-working sector wants recognition under real estate, tax benefits as flexible workspaces aim for a significant revival in the post-COVID era</a>

Birla is making Asian Paints and Berger Paints change colours⁠— and it’s bad news for those who got shares in Indigo IPO too

<ul><li>Tensions along the border between India and China continue to worsen that India ‘thwarts’ a fresh Chinese incursion. </li><li>The Ministry of Defence claims that the Chinese People’s Liberation Army (PLA) tried to change the status quo with ‘proactive military movements’ along the banks of Pangong Tso Lake. </li><li>"PLA troops violated the previous consensus arrived at during military and diplomatic engagements during the ongoing standoff in Eastern Ladakh," said Colonel Aman Anand in a statement. </li></ul>Amid talks of disengagement and disarmament, the Chinese took to the offensive, according to India’s <a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1649940">Ministry of Defence</a>. On the night between August 29 and 30, the Indian Army claims that the People’s Liberation Army (PLA) tried to change the status quo, yet again — an attempt that was ‘thwarted’ by the armed forces. <div type="Article" hostid="261" msid="77779668" title="Ladakh will be the 'front to hold' for India and China for at least a year if not longer as per experts" mstype="2" mssubtype="0"></div> “PLA troops violated the previous consensus arrived at during military and diplomatic engagements during the ongoing standoff in Eastern Ladakh,” said Colonel Aman Anand in a statement. <div type="Article" hostid="261" msid="76085340" title="India says there are five treaties to push the Chinese army behind the Line of Actual Control⁠ — while experts tell Modi to remain cautious" mstype="2" mssubtype="0"></div> There was ‘proactive military movement’ by the Chinese side along the banks of the Pangong Tso Lake where the border between India and China is disputed. “Indian troops preempted this PLA activity on the Southern Bank of Pangong Tso Lake, undertook measures to strengthen our positions,” said Anand. The development comes after the Chinese were irked by one of the Indian Navy’s frontline warship being deployed in the South China Sea — an issue that was brought up during the discussions between India and China, sources told <a href="https://www.ndtv.com/india-news/indian-navy-sent-warship-to-south-china-sea-after-ladakh-clash-report-2287648">ANI</a>. <div type="Article" hostid="261" msid="76725494" title="India is ready for the ‘long haul’ with China until winter after the third round of military talks" mstype="2" mssubtype="0"></div> The tit for tat game India’s deployment of its warship in the South China Sea came after the violent <a href="https://www.businessinsider.in/defense/news/indian-army-on-india-china-war-in-galwan-valley-soldiers-killed/articleshow/76402297.cms">Galwan Valley clash</a> between the two countries left 20 Indian soldiers dead and an undisclosed number of fatalities on the Chinese side. India also deployed vessels along the <a href="https://www.businessinsider.in/defense/news/india-military-options-against-china-explained-by-experts/articleshow/77743778.cms">Malacca Straits</a> near the Andaman and Nicobar islands — a busy route also used by Chinese vessels for trade. China’s former president Hu Hintao referred to the situation as the ‘Malacca dilemma’ because the dragon needs to access it but the control lies with India. <div type="image" title="malacca headline" msid="77862196" hostid="261" caption="&amp;lt;p&amp;gt;The Malacca Straits, between peninsular Malaysia and the islands of Indonesia, open into the waters next to Andaman and Nicobar islands controlling access to the Indian Ocean&amp;lt;/p&amp;gt;"></div> “We have to be prepared for everything from trench warfare to space warfare,” Brigadier Anil Gupta told Business Insider in an <a href="https://www.businessinsider.in/defense/news/india-military-options-against-china-explained-by-experts/articleshow/77743778.cms">earlier interview</a> explaining India’s ‘military options’. Is it Finger 2 or Finger 8 or somewhere in between? ‘Fingers’ are mountainous ridges that jut out onto Pangong Tso Lake and are used as location markers. India claims that the India-China border lies at Finger 8. For China, Finger 2 marks the boundary. The area in between is where the confrontations take place. <div type="Article" hostid="261" msid="76570174" title="India and China agree to respect the ‘Line of Actual Control’ ⁠— but it is not clear if the two sides agree on where the line is" mstype="2" mssubtype="0"></div> For instance, the first alternation between India and China that took place on May 5 was near Finger 5. While face-offs between the two sides were common, this was the first time that a physical confrontation occurred making the August 29’s incident even more rare. SEE ALSO: <a href="https://www.businessinsider.in/policy/foreign-policy/news/three-reasons-why-china-showed-aggression-against-india-on-border-according-to-a-former-diplomat/articleshow/76462632.cms">China wants India to stay in its lane — three reasons why China is puffing its chest, according to a former diplomat</a> <a href="https://www.businessinsider.in/defense/news/new-drones-rafale-fighter-jets-tanks-and-much-more-india-china-border-dispute-has-lit-a-fire-to-upgrade-military-technology/articleshow/77098939.cms">New drones, Rafale fighter jets, tanks and much more — India-China border dispute has lit a fire to upgrade military technology</a> <a href="https://www.businessinsider.in/tech/news/after-jio-swiggy-paytm-ola-and-byjus-and-other-startups-on-target-of-chinese-hackers/articleshow/77497819.cms">After Jio, India's unicorn startups are the top target for Chinese hackers trying to get their hands on Indian users' data</a>

India says the army 'thwarted' China's 'proactive military movement' to change status quo along Ladakh border

<ul><li>India is set to open Digital Content Complaints Council, a self regulatory body that will resolve all the complaints related to content viewed on OTT platform. </li><li>The Internet and Mobile Association of India (IAMAI) said it will soon roll out a new content that will provide for the formation of the council, reported MediaNama. </li><li>Once formed, the council shall address all the complaints that were not looked at by the OTT platforms.</li></ul>Internet and Mobile Association of India (IAMAI) released its second draft of code of conduct for OTT platforms, <a href="https://www.medianama.com/wp-content/uploads/IAMAI-Digital-Content-Complaint-Council-NEW.pdf">reported MediaNama</a>. This code can morph into a self-regulatory body for streaming platforms to address issues and complaints over their content. Once formed, the Digital Content Complaints Council will be empowered to address complaints from individuals as well as the government - who can approach them online. “The DCCC’s jurisdiction to entertain complaints will be limited to escalation of unresolved issues pertaining to the following: a. content related; b. incorrect age-classification; c. incorrect content descriptor; and d. parental and/or access controls” <a href="https://www.medianama.com/wp-content/uploads/IAMAI-Digital-Content-Complaint-Council-NEW.pdf">the code said. </a> The code of conduct is signed by major streaming giants including <keyword id="2739840" type="COMPANY" weightage="20" keywordseo="Hotstar">Hotstar</keyword>, Jio, <keyword id="320882" type="COMPANY" weightage="20" keywordseo="Network-18">Network 18</keyword>, Eros. However, Netflix is yet to sign it. This may also not be the final version of the content code as IAMAI tried its hand at it earlier too. Previously, all the leading platforms including Netflix, Hotstar, SonyLiv, <keyword id="6245082" type="PERSON" weightage="20" keywordseo="ZEE5">Zee5</keyword> held a discussion with the Indian government over self regulation policies. In January 2019, all the platforms reportedly came together to sign an industry code to self-regulate online content. OTT platforms in India have been <a href="https://www.businessinsider.in/policy/news/from-cuts-to-deleting-an-entire-episode-heres-how-netflix-amazon-prime-and-other-streaming-services-are-censoring-its-own-content/articleshow/72234927.cms">self-regulating themselves for quite some time now -</a> to avoid possible backlash. <keyword id="18635" type="COMPANY" weightage="20" keywordseo="Amazon">Amazon</keyword> Prime Video deleted an entire episode of the CBS political drama Madam Secretary in its India version. The episode contained violent scenes involving Muslims and other minorities in India. Netflix’s popular Indian series — Sacred Games — <a href="https://www.businessinsider.in/policy/news/from-cuts-to-deleting-an-entire-episode-heres-how-netflix-amazon-prime-and-other-streaming-services-are-censoring-its-own-content/articleshow/72234927.cms">landed in a lawsui</a>t after several political parties alleged that the thriller drama has defamed India’s late Prime Minister Rajiv Gandhi. See also: <a href="https://www.businessinsider.in/tech/news/disney-plus-india-launch-date-price-hotstar/articleshow/73954640.cms">Disney+ to make its Indian debut on March 29 - as a premium offering on Hotstar</a> <a href="https://www.businessinsider.in/policy/news/from-cuts-to-deleting-an-entire-episode-heres-how-netflix-amazon-prime-and-other-streaming-services-are-censoring-its-own-content/articleshow/72234927.cms">From cuts to deleting an entire episode, here’s how Netflix, Amazon Prime and other streaming services are censoring its own content</a>

Netflix stays away from a self-regulatory body which is in the works, says report

hoichoi adds 13 million cumulative subscribers in 3 years with 40% of its direct revenue coming from International users

In mid-February 2018, the domestic broadcast rights to the English Premier League (<keyword id="37225" type="CITY" weightage="20" keywordseo="EPL">EPL</keyword>) <keyword id="64" type="SPORT" weightage="20" keywordseo="Football">football</keyword> matches from 2019 to 2022 were sold to <keyword id="302760" type="ORGANIZATION" weightage="20" keywordseo="Sky-Sports">Sky Sports</keyword>, and BT Group, a telecoms company, for £4.46 billion (₹415 billion) with the former securing four packages and the latter purchasing one. In early April 2018, Star India bought the global rights to the Indian <keyword id="1521" type="CITY" weightage="20" keywordseo="Cricket">cricket</keyword> team’s home games from 2018 to 2023 for a staggering figure of ₹61.38 billion. Rather unsurprisingly, Rupert Murdoch was at the centre of both bids. Murdoch’s 21st Century Fox owns a 39% stake in Sky while Star India functions as Fox’s fully-owned subsidiary in India. The winning bid for the EPL has extended Sky’s stronghold on sports broadcasting in the UK for another three years. The media company, which has held the rights to the EPL since its inception in 1992, joined forces with former competitor BT for its bid. The purchase price fell significantly short of the £5.1 billion that Sky bid in 2015 for the three-year rights to the EPL. In contrast, Star India’s bid represents a 60% increase over the ₹38.5 billion it paid for the media rights to India’s cricket games between 2012 and 2018. Star India reportedly outbid Sony by a mere ₹200 million. It had also beat Sony for the ten-year rights to the India Premier League (IPL) in November last year with a bid of ₹163.5 billion. Despite the varying nature of the bids, the auctions for the rights to the EPL matches and Indian cricket team’s games reveal a number of important details about the direction the global sports broadcasting industry is headed in. Bidding will go the open, electronic route The bidding for the Indian cricket rights was conducted through an electronic auction (e-auction) - the first such instance in the history of sports broadcasting. Bidders were given a login and password for an online portal and allowed to submit and revise their bids in real time, while monitoring the highest bids for each category. The Board of Control for Cricket in India (<keyword id="6354756" type="UNKNOWN" weightage="20" keywordseo="bcci">BCCI</keyword>) said that it opted for an e-auction as opposed to a closed bidding process in the interest of transparency. However, in conducting an open electronic auction, it was able to make the bidding process a lot more competitive, more so given the fact that there were two main bidders- Star India and Sony. In fact, in <a href="https://economictimes.indiatimes.com/industry/media/entertainment/media/sony-ensured-bcci-rights-went-only-at-an-unviable-price/articleshow/63904106.cms">the words of NP Singh</a>, the CEO of Sony Pictures Networks India, ““We were clear that either we will get the BCCI media rights at the right price, or let them go at a price which would be economically unviable”. The open auction process allowed the bids to keep going up and will likely become the norm as the broadcasting industry moves towards consolidation. There will be joint bids, especially from media and telecoms firms Future rounds of auctions will likely see former competitors joining forces in a bid to even out the risk and keep prices manageable. In the EPL auction in 2015, BT forced Sky to shell out a price that <a href="https://www.theguardian.com/football/2015/feb/10/premier-league-tv-rights-sky-bt">was 70% higher than what it paid in 2012</a> in order to retain the rights to the most popular time slots for matches. However, the lower deal value in February 2018 is widely seen as a correction, as opposed to an indication that the EPL bubble has burst. The recent auction followed <a href="http://www.bbc.com/news/business-42364401">a cross-licensing agreement signed in December 2017</a> between BT and Sky Sports to sell their content and channels on each other’s platforms and television packages. Under the deal, which seems more like a truce, BT will offer Sky’s Now TV streaming service to its subscribers while Sky will be able to broadcast BT’s sports content, which includes the UEFA Champions League.The move came in response to competition from online streaming platforms. As a result of the deal, the two companies were not compelled to aggressively bid against each other in the auction for the 2019-2022 EPL rights. In bidding for the rights to Indian cricket matches, Sony and Star India were joined by telecoms upstart Reliance Jio. It wouldn’t be a stretch to imagine a tie-up between two of these companies in the next round of auctions, or see Reliance, which <a href="http://variety.com/2018/biz/asia/tv18-viacom18-india-contol-1202683872/">recently took control of the Viacom 18 network</a>, submit a joint bid between Jio and Viacom 18. Global broadcasters will increase their focus on India Make no mistake, the deals for the rights to the IPL and the Indian cricket team’s home games reveal Rupert Murdoch’s ambitions in India. The Indian market will be an important growth driver for global broadcasters like Fox, especially in terms of online video consumption. Star India’s monopoly over cricket broadcasting rights in India means it will have hundreds of millions of viewers every week for its sports content alone. It has expanded regional language coverage and also doubled down on its online streaming platform, Hotstar, which has helped drive its viewership of the IPL <a href="https://www.medianama.com/2018/04/223-183600/">to record highs</a>. China is also an important market for broadcasters. The English Premier League was able to sell its broadcasting rights in China for the 2019-2022 seasons to PPTV, an online video service, <a href="https://qz.com/840801/china-is-about-to-make-the-english-premier-league-700-million-richer/">for around US$700 million,</a> culminating in its largest ever international deal. PPTV, which is a subsidiary of the Suning retail group, reportedly paid 10 times more than the previous broadcasting contract for the EPL in China. Tech giants like Facebook, Amazon and Netflix will be bigger players in the market Both the BCCI and the owners of the English Premier League included digital and/or smaller packages to accommodate streaming platforms and non-traditional broadcasters like Facebook, Amazon and Netflix. The EPL offered two new packages which included the live streaming rights to two entire rounds of ten matches. Amazon was reported to be interested in one of these packages and even submitted a bid. However, the these packages weren’t sold, and there sale will reportedly <a href="https://www.telegraph.co.uk/football/2018/03/05/two-remaining-premier-league-tv-packages-remain-unsold-almost/">be delayed until the summer</a>, as their reserve prices weren’t met. The EPL will likely make the deal more attractive by allowing rights-holders to broadcast additional games after a short delay. Similarly, the BCCI offered a digital rights-only package in the recent auction. While both Facebook and Google bought the tender document, neither submitted a bid. In the previous auction, the BCCI has bundled television and digital rights into one package. Amazon is no stranger to sports broadcasting, however it is still in experimental mode, opting for smaller offerings as opposed to large packages like the EPL. In September last year, it beat Sky for the rights to <a href="https://www.theguardian.com/media/2017/aug/01/amazon-outbids-sky-to-win-exclusive-atp-tour-tennis-rights">ATP tennis games</a> and also bought the rights to the Thursday games of the USA’s National Football League (NFL). It also recently bought the <a href="https://www.theguardian.com/technology/2018/apr/19/amazon-prime-100-m-subscribers-video-music-streaming-netflix">UK rights for US Open tennis matches</a>. Facebook has also experimented with live streaming of UEFA Champions League matches and the ICC Champions trophy cricket tournament. While its <a href="https://www.businessinsider.in/Facebook-bid-610-million-for-the-rights-to-stream-Indian-cricket-matches/articleshow/60380207.cms">US$610 million bid</a> for the IPL rights in September proved to be unsuccessful, it showed that the company has an appetite for sports broadcasting. The entry of tech firms and streaming platforms will shake up the traditional broadcasting. As incumbent broadcasters like Sky and Star India are preparing themselves for this threat by expanding their own streaming services and tying up with telecoms firms, it is the viewers and the organisers of sports events who stand to gain the most. They will be spoilt for choice- the former in terms of viewing options and the latter in terms of bids.

Here's what we learned from two recent auctions about the future of sports broadcasting

Travel eco system in India has reached a point where start ups dealing in packaged trips, hotel and flight bookings are reaching the breakeven of investments quite fast. Thanks to the disposable income of the Indian middle class, people here are more serious about travelling than ever before. Earlier people traveling for weekend getaway had months of planning to be done. Cut to 2010, <keyword id="6607315" type="ORGANIZATION" weightage="20" keywordseo="OTA">OTA</keyword> (<keyword id="1036098" type="UNKNOWN" weightage="20" keywordseo="Online-travel-agents">Online Travel Agents</keyword>) have changed the game overnight. There are plenty of packages on offer along with ‘discounts’, which makes it more lucrative for the middle class Indians to travel more frequently. That’s where the success story of OTAs like <keyword id="1805678" type="COMPANY" weightage="20" keywordseo="Booking-com">Booking.com</keyword> and <keyword id="54613" type="COMPANY" weightage="20" keywordseo="makemytrip">MakeMyTrip</keyword> lies. With 277 million internet users, India has surpassed USA to achieve the second position in internet penetration just after China. If surveys are to be believed, India’s travel market growth will surpass its GDP growth by 2020, which is already at 10.2% compared to 6.1% GDP of the first quarter this year. <a href="http://www.businessinsider.in/Travelers-from-Tier-2-and-Tier-3-cities-are-more-outbound-Heres-how-they-travel/articleshow/59068309.cms" data-type="tilCustomLink">ALSO READ: Travelers from Tier 2 and Tier 3 cities are more outbound! Here’s how they travel</a> Agency Model VS Merchant Model While most OTAs follow merchant model of business, it is agency model that has gotten the global success. Before going any further, let’s break the concepts for you. In Merchant model, the contract is between the hotel and OTA, where the latter sells rooms at a lower price than standard. The aim is to get bulk bookings and there is no standardization of guest profiles. This gives the OTAs a large room for profit of almost 20-30%. The agency model, on the other hand is far different. Here, the bookings are made on per room basis. The hotel owner gets to decide the final price and shares the commission with OTA only after the guests have checked out. While there isn’t much bargaining involved or the offers cannot be punched with others, this model is transparent. At a price sensitive market like India, discounts do work. But when there is value added, it makes a huge difference. <a href="http://www.businessinsider.in/Meet-this-Gujarati-street-food-seller-who-just-introduced-Jio-like-schemes-of-unlimited-paanipuris/articleshow/58870232.cms" data-type="tilCustomLink">ALSO READ: Meet this Gujarati street food seller, who just introduced Jio like schemes of unlimited paanipuris</a> Why hotels prefer agency model? The agency model of Booking.com is one of the cost-effective ways for hotel and accommodation partners to grow their business and their brand globally. The accommodation partners only pay commission to Booking.com once the guests have stayed, paid and checked out of the hotel. They pay once Booking.com has generated actual business for them. In addition, the agency model enables accommodations to maintain complete control over their businesses as there is no cost to list the properties. The properties have the freedom to decide their own rates and decide the type of rooms that can be made available to customers. <a href="http://www.businessinsider.in/Heres-why-this-is-the-worst-time-to-be-in-the-business-of-hospitality-in-India/articleshow/58805542.cms" data-type="tilCustomLink">ALSO READ: Here’s why this is the worst time to be in the business of hospitality in India</a> When the option of agency model wasn’t there, hotels were bound to go for the merchant model to sell more rooms. But once they got the taste of Booking.com’s agency model, hotels now know how to sell rooms without a major chunk of commission. How Booking has an edge over Merchant-model enabled OTAs? Booking.com’s biggest challenger Expedia has acquired Italy-based Venere, which uses an agency model. Even if that doesn’t hint to Expedia’s preference for agency model, it seriously poses a question on if that’s the future. But one definitely can’t stop asking, how one makes profit with paltry 12-15% of commission from hotels! <a href="http://www.businessinsider.in/Travelers-from-Tier-2-and-Tier-3-cities-are-more-outbound-Heres-how-they-travel/articleshow/59068309.cms" data-type="tilCustomLink">ALSO READ: Travelers from Tier 2 and Tier 3 cities are more outbound! Here’s how they travel</a> According to Vikas Bhola, Regional Manager of Indian subcontinent for Booking.com, focusing on standalone hotels, Booking.com has the best-in-class availability of hotels, that too in the tertiary global market. The breadth of supply of the OTA, powered by ample money poured into Search Engine Marketing has helped Booking.com convert more customers on its landing page. And believe it or not, Booking.com is believed to be one of Google’s largest advertisers. <a href="http://www.businessinsider.in/Heres-why-this-is-the-worst-time-to-be-in-the-business-of-hospitality-in-India/articleshow/58805542.cms" data-type="tilCustomLink">ALSO READ: Here’s why this is the worst time to be in the business of hospitality in India</a> Level playing of technology along with understanding the area-wise travelers have helped Booking.com scale up its empire even with low commissions. (The writer was at Amsterdam on invitation of Booking.com)

You Searched For "jio game controller" and got 6 results

Birla is making Asian Paints and Berger Paints change colours⁠— and it’s bad news for those who got shares in Indigo IPO too

Navdeep Yadav

India says the army 'thwarted' China's 'proactive military movement' to change status quo along Ladakh border

Prabhjote Gill

Netflix stays away from a self-regulatory body which is in the works, says report

Preeti Soni

hoichoi adds 13 million cumulative subscribers in 3 years with 40% of its direct revenue coming from International users

BI India Partner

Here's what we learned from two recent auctions about the future of sports broadcasting

Dilsher Dhillon

This is why Booking.com’s agency model has an edge over other OTAs

Suchayan Mandal