Value Proposition

Value proposition basically defines the value being served to the customer segment that you have
chosen. It defines the particular need of the customer that your product or service is satisfying. This can
also be seen as the differentiating factor that makes your customer come to you rather than other
competitors in the market. Different kind of value propositions can be newness, performance,
customization, design and price

1. Standardization
The major problem faced by the consumers is the lack of predictability in the Indian hospitability
industry. More than 50% of the bookings by travelers are now being done online, and the numbers are
further increasing. In most of the cases, people feel dissatisfied with the services that are offered when
they reach the hotels as compared to the services shown online. To tackle this problem, the company
has introduced an intensive standardization process. As a part of this process they send their sales
representatives to partner hotels to collect data and take pictures based on which all the hotels are
filtered. Only those hotels that meet the standards are included in the portfolio.
The company has also came up with an application to make sure that the process of standardization
remains same in all the hotels across 150+ cities. All the sales representatives that go for site visits
follow the app on their tables. The app has defined parameters based on which any hotel will be
evaluated. The representative checks down the complete checklist to make sure nothing is left as a part
of the standardization process. Also the application takes into consideration the customer reviews which
plays crucial role while evaluating any hotel. Making use of the application and technology, the company
has been able to come up with strict quality checks across all the locations where they exist.

2. Technology
Success lies in taking the best use of available technology in a way that maximizes efficiency of your
business thereby leading to higher customer acquisition and thereby profits. A lot of innovation these
days is happening around making the consumer experience better with the help of latest technology.

1. Mobile Application for Hotel Booking

The key factor where technology plays a major role is in making the transaction cycle smaller. In the
hospitality industry where you are always in a touch-point with customer, the company focused on
creating a highly efficient, easy to use mobile application for the customers. The company managed
to develop an application where a customer can book the hotel within 2 steps. In first step, you
search your query, based on which the application comes up with a number of suggestion in the
locality. The second step will be just to click the book button to confirm your booking. This is an
attempt of the company to provide a simple and seamless way to access and manage your booking.
A major contributor to the two-step process developed is the standardization process which has
made the used comfortable in booking without worrying about reviews of the place.
2. Tablets in Rooms
This is another step taken by OYO Rooms, where the company has come up with a tablet application
for hotel owners that allows them to keep a track of room status and room service requests. The
tablets have been installed at all the hotel locations by the company. This helps both the hotel
owners and the company. The app provides the owners logistics of their inventory whereas also
provide better visibility and data about the hotel to the company.
The company has now also come up with an idea to put up a tablet in each room in some of the
hotel rooms. Customers can order room service directly via the tablet. The application designed for
the tablet also includes other information like hotel directory along with the list of restaurants and
other places to visit around the hotel.

3. Low cost
Another major value proposition provided by OYO is the prices at which rooms are available. The
prices are normally 35% below other hotels of similar standards. Also this is the first time in India
that services like tablet and online booking are being provided in budget hotels.

4. Ties up with Airtel

To further increase its value proposition, OYO rooms has recently made a strategic agreement with
Bharti Airtel. As a part of this agreement Airtel will provide seamless internet connectivity and
Direct-To-Home (DTH) services across more than 3,000 OYO Rooms pan India – enabling OYO
Rooms’ customers to enjoy a world class in-room internet and TV viewing experience at no
additional cost.