Reasons for failure
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When it first came out, Stayzilla was well ahead of its time. Such technology was not ready for the public. Nevertheless, the business managed for a while on the capital it received. However, as more individuals were accustomed to purchasing travel online, new rivals with better offers and prices arose.
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Stayzilla began in 2006 as an online directory of cheap hotels. After their ticketing business slowed down due to increased competition, well-funded rivals like MakeMyTrip and Ibibo recognized inexpensive hotels as the next growth engine.
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While SoftBank invested in Oyo, Stayzilla altered its course to compile homestays. However, the bigger competitors also had homestays in their sights, steadily outspending Stayzilla, which could hardly compete with their marketing expenditures and promotions. In the end, the business stopped operating in February 2017.


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