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The Channel Partners for OYO are the Hotels associated with them, who

are using the brand name of OYO for promoting their services.
Questions posed for discussions with the channel partners are as follows:
1- Why are you associated with OYO?
The reasons why most of the hostels are associated with OYO are:
 Oyo is giving more business to the hotels.
 Oyo is the most widely used app among the generation.
 Association with Oyo helps the hotels in spreading awareness
about their existence to their potential customers.
2-How long have you been associated with OYO?
All the 5 Channel partners have been associated with OYO for a
time period of 1-2 years, which suggests that they are happy with the
association for the time being and are not planning to exit this soon.

3-What is the age group of most of your customers?


After a discussion with the Channel partners it was found that 70%-75%
of the customers were falling in the age group of 21-29 years unmarried
couples, suggesting that OYO is very well targeting the younger
generation.
4- How is your association with OYO helped you in getting more
business?

 OYO has positioned itself as providing hotels with a cheaper price,


Rooms costing Rs 1500 are being offered to customers at Rs750-
870 which is a huge discount, thus increasing the frequency of
visitors to the hotels.
 The hotels do not have to worry about advertising and promotional
cost, because that is being taken care by OYO.
 Awareness about the presence of these hotels have increased upto
a great extent.
5- What is the deal you have struck with OYO?
The Channel partners have to share a margin of 20% of the Revenue
they have generated from the booking made via OYO, with the pricing
strategy being controlled by OYO.

ANALYSIS REPORT OF THE CHANNEL PARTNERS OF OYO:


The association of these Channel partners with OYO has a mixed review
from the partner’s side. Although they were happy about the fact that
they are associated with OYO but at the same time they were very
skeptical about the fact that this is a WIN-WIN deal. When asked about
the biggest competitor of OYO, during the time of launch Goibibo , Just
Dial and Make My Trip were considered to be its biggest competitors
but very soon OYO surpassed all of its competitors big time and
creating a mark of differentiation for itself in terms of providing hotels
at the cheapest price.
The other important Strategy acted upon by OYO was the introduction
of OYO COUPLE for unmarried couple just after the Mumbai Moral
Policing also acted as a catalyst for the brand image of OYO and this
step has undoubtedly strengthened its Brand Equity.
Although OYO has designed some impressive strategies and moves yet
there remains chance of improvement for OYO in the long run, the point
to be noted here is that although the customers are very happy but there
are some negative thoughts from its Channel Partners, which have been
listed below:

POSITIVE POINTS OF VIEW:

 Association with OYO has certainly given a lot of benefits to the


channel partners in terms of fetching them business in really good
numbers. This association has increased their frequency of fetching
visitors to a great extent. OYO has resulted in increasing the visitor
frequency by 4 times.
 The channel partners don’t have the worry of incurring huge cost
for advertisement and promotion, because they are being
advertised by OYO pretty well.
 This has resulted in extending their awareness among potential
customers. Since OYO is the most widely used app and website in
comparison to Make My Trip, Stay Uncle and Air BNB so this
association is justified.
 Reach of OYO is higher than that of its competitors.

NEGATIVE POINTS OF VIEW:

 The only matter of concern for the channel partners is that OYO
is the sole decider of the Pricing Strategy that will be applied,
the Channel Partners have no role to play in deciding the price,
as a result of which even the premium priced rooms are giving
almost a discount of 35%-50%, which is definitely not making
the owners very happy.
 The profit margin of all the Channel Partners are not very high
because of the positioning of OYO as the provider of cheapest
hotels.
 The Channel partners are not sure of the price of their rooms the
next minute because the price keeps on fluctuating really fast
which can frustrate them to some extent.

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