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Oyo Business Model
Oyo Business Model
Oyo Business Model
Oyo rooms is the largest branded network of hotels currently operating in India and Malaysia.
Oyo Rooms Business Model is a hotel aggregator model.
REVENUE MODEL
The revenue model of Oyo Rooms is simple.
Oyo Rooms books a part of the hotels’ inventory (EXPENSE)
These rooms are put to match the standardized quality like free Wi-Fi, clean toilets, etc. (EXPENSE)
These Rooms are offered to the customers at Oyo Rooms Website/Application
Users buy these from Oyo Rooms at a predetermined price. (REVENUE)
Oyo is currently in its introduction stage in many cities (and in growth stage in others) and it has to provide
(and has being providing) heavy discounts to the customers.
These discounts often result in prices which are even less than the cost price of these hotel rooms and
hence result in losses to Oyo rooms.
The expenses also include the heavy expenses on promotional activities to increase the brand equity
among the users as well as the remuneration of the employees.
To be precise, the business is at loss.