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Study On Customer Satisfacation On The Service Provided by Oyo Rooms
Study On Customer Satisfacation On The Service Provided by Oyo Rooms
On
“STUDY ON CUSTOMER SATISFACATION ON
THE SERVICE PROVIDED BY OYO ROOMS”
TO
Guru Govind Singh Indraprastha University, Delhi
Hotel Booking:-
OYO'S beginning
Hotel Rooms
Oye's carlier strategy was to book a part of
the hotel's inventory, to maintain it as per
the quality standards, and to hold it captive
exclusively for Oyo customers. That is they
used to lease some rooms every month and
provide them to their own customers at
profits.The only thing that has changed is
that the rooms are now not leased but
operated as Oyo Rooms franchise. Since the
hotels and place owners act as the
franchisee, they are bound to operate as
per the pre-determined standards. The
company even offers plans where it runs
the place instead of the hotel staff or
owner.
Oyo Flagship
The partners used to book their own hotels
when they used to see low prices on the
Oyo's platform and this became malpractice
benefiting the partners while burning holes
in Oyo's pockets. To curb this, and to
expand the business, Oyo Rooms has
started leasing hotels and places where it
has the full control over the day-to-day
operations of these establishments.
Oyo Townhouse
The company has recently launched the
Oyo Townhouse to hone its value
proposition and stand out of the
competition when it comes to standardised
hospitality. Oyo Townhouse is based on the
needs of the millennial traveller. These
hotels are planned and built based on the
needs and wants of the millennials. They
have
Smarter Rooms- With specially designed
beds, showers, sockets, and
internet.infrastructure. Even the TVs have
Netflix installed.
Smarter Spaces - common spaces designed
to have meetings Free printer, business
services, magazines, coffee and tea in the
common area.
Smarter Menus-24x7 Kitchen which lets you
order from the monu and many more smart
services.
Studio Stays:-
Apart from providing hotel rooms, Oyo
Rooms also provides fully furnished rooms
and flats for long stays like internships,
corporate stays, etc. The rooms/flals can be
rented on single occupancy as well as on
twin sharing basis as well (other provisions
are also applicable). Rents are paid
monthly, Commission (take-up rate) is
charged from the owners if the customer
comes through Oyo rooms.
Events & Other Long Stays:-
Just like studio stays. There are many family
functions(weddings, partics) as well as
corporate functions (seminars, meetings,
parties) which involve hotel rooms for their
guests to stay for long. This service is also
provided by Oyo.
Commercial Places:-
Oyo has expanded its branches in the
commercial places domain as well. Now the
customers can even book office spaces on
Oyo as well.
Oyo Wizard:-
The company has also launched a
subscription model where the subscribers
get exclusive discounts, deals, and cashback
offers.
Swot Analysis
Strengths:-
Excellent use of advertising for High Brand
Recall
User-Friendly / Easy-To-Use Interface
3. Budget Hotels
4. Continuous Innovation
5. Easy to reach hotels
Weakness
1.Fast Expansion Leading to Compromise on
Quality
2. Overbooking of hotels leads to guest
inconvenience
3. Communication gap between property
owner and their respective ABMicar
business manager), HDMbusiness
development manager)
4.Lack of knowledge of property owns
Opportunities:
1.More and More People are Becoming
Technology Driven
2. Use of Social Media to Enhance
Consumer Experience
3. No of budget travellers increases
nowadays
4. No of travellers using Oyo.
5 Nowadays people are ready to spent
more
Threats;
1.Customer inconvenience
2. Mo .of competition that arises nowdays
Chapter-3
3.1 LITERATURE REVIEW:
Choi, T. Y., & Chu, R. (2001)
This study examined the relative importance of
hotel factors in relation to travelers" overall
satisfaction levels with their hotel stays in Hong
Kong and the likelihood of returning to the same
hotels in their subsequent trips. Using a factor
analysis technique. the study identified seven hotel
factors that were likely to influence customers'
choice intentions: Staff Service Quality. Room
Qualities'. General Amenities", "Business Services,
"Value". "Security and IDD Facilities. Multiple
regression analysis technique was then applied to
examine the relative importance of each of these
hotel factors in determining travelers' overall
satisfaction levels and their likelihood of returning
to the same hotels. In order of importance. 'Staff
Service Quality', 'Room Qualities and 'Value' were
the three most influential factors in determining
travelers overall satisfaction levels and their
likelihood of returning to the same hotels.
Mey et al, (2003)
The findings indicated, as a whole, that the hotel
iniests perceptions of service under provided by the
hotel industry were lower than their expectations.
The Sw expectations and perceptions were given by
Malaysian hotel guests towards the hotels in
Malaysia. Between Malaysian hotel guests and
hotel guests from other Asian countries. there was
no significam difference in the overall satisfaction
levels for the sample as a whole. However, between
Malaysian hotel guests and non-Asian hotel guests,
the results showed that the overall customer
satisfaction levels towards the hotel stay was
significantly different for the sample as a whole.
Sim et. al. (2006):-
A survey among hotel customers in the San
Francisco Bay Area was conducted. A LISREL
structural equation model with confirmatory factor
analysis was developed to analyze the data. Results
indicated that the latent construct customer
retention was dependent on the latent construct of
customer satisfaction. Added value was found to
have positive effects on customer satisfaction and
customer retention
. Abbasi et. al, (2010)
The aftermaths of the study showed that improved
and superior service quality and service features
will augment the customer satisfaction and the
future intentions of satisfied customers will be
magnified. The domino effect of the study
discovered that the ervice quality and service
features play a significant part in customer
satisfaction. It ates the argument that satisfied
customers will be having future intentions
Satisfaction in Hotel Industry of Pakistan 104 for
visiting that ed from the outcome that the service
features were hair satisfaction.
Li et. al. (2013)
This study illustrates that determinants of customer
satisfaction in hospitality venues can identified
through an analysis of online reviews. Using text
mining and content analysis of 42,668 online
traveler reviews covering 774 star-rated hotels, the
study found that transportation convenience, food
and beverage management, convenience to tourist
destinations and value for money are identified as
excellent factors that customers booking both
luxury and budget hotels consider important and
for which the performance is much satisfactory to
them. Customers paid more attention to, but were
less satisfied with, bed. reception services and room
size and decoration. Most determinants of
customer satisfaction also showed a consensus over
luxury versus budget hotels, except for factors
referring to lobby and sound insulation. As per its
findings, the article concludes by presenting
theoretical and managerial implications.
Accourding to Xu, X.. & Li, Y. (2016).
Customers online reviews play an important role in
generating electronic word of mouth these reviews
serve as an online communication tool that highly
influences consumers demand for hotels. Using
latent semantic analysis, which is a text mining
approach, we analyze online customer reviews of
hotels. We find that the determinants that create
either customer satisfaction or dissatisfaction
toward hotels are different and are specific to
particular types of hotels, including full-service
hotels, limited-service hotels, suite hotels with food
and beverage, and suite hotels without food and
beverage. Our study provides a clue for hoteliers to
enhance customer satisfaction and alleviate
customer dissatisfaction by improving service and
satisfying the customers' needs for the different
types of hotels the hoteliers own.
The hotel industry involves high degree of
interaction between employees & guests and
provides many opportunities for service failures to
occur. Service quality issues have cern to
researchers for close to twenty years & no: of
projects focused on For example, McColl-Kennedy &
White (1997), Pizam & Ellis satisfaction in hotels &
mismatch between expectations terms of
measurement O' Neill (1996), used hotels in
northern Ireland used it in hotels in itality industry
were developed by by Knutson et al. (1991)
Loyality
Loyality of a firm's customer has been recognized as
the dominant factor in the organization's success.
This study witps inxtending our updontanding of the
relationship between customer yalty, customer
action, and mass. This is of considerable interest to
both practitioners and academics in the field if
picality management. One of the greatest
challenges facing hotel orgetization today even
growing volume and pace of competition,
Competition has a major implications for
thecustomer, providing:
Increased choice.
Greiser value for money.
Augmented levels of service
There are two strategies most commonly used by
hotel managers in order to gain a Strateg
competitive advantage: dury are
1. Low-cost leadership through price disunting and
2. Developing customer loyalty by providing unique
benefits to customers
Loyal customer is a customer who repurchases from
same service provider whenver possible and who
continues to recommend or maintain a positive
attitude towards the service provider.
3.5.1 LOYALTY DIMENSIONS:There are two
dimensions to customer loyalty: Behavioral &
Atudinal The behavioral dimensions refers to the
customers behavior on repeat purifities indicating a
preference for a brand or a service overtime
Attitudinal dimensions on the other hand, refer to a
customer intention to repurchase and recommend,
which are good indicators of loyal customers.
3.5.2 RELATIONSHIP BETWEEN CUSTOMER
SATISFACTION AND LOYALITY
Customer satisfaction considers to be ine of the
most important tons of all marketing activities in a
market-oriented firm. The obvious for satisyong the
firm's mer is to expand the business, to gain a
higher market share, and to acquire a repeat
winess, all of which lead to improved profitability
(farsky, 1992) Stadity Tastor (1993) in service
section such as honeis tand that ticant effect on
purchase intention.
3.5.3 RELATIONSHIP BETWEEN IMAGE AND
LOVALTY:
An Organization's Insage is an important variable
that positively or negatively influences marketing
activities, Imags is considered to have the ability to
influence the customers' perception of the goods
and services offered Zeithaml and titner, 1996).
Thus, Image will have an impact on cassumers
hoying behavior. Image is considered to influence
customers minds through the combined effect of
advertising, public stations physical image, sord-of-
mouth and their actual experiences with the goods
and the services Norman, 1991)
Chapter-4
4.1 SWOT ANALYSIS
STRENGHTS:
1.Excellent use of advertising for High Brand Recall.
2.User-Friendly/Easy-To-Use Interface.
3.Budget Hotels
4.Constant Innovation.
5.Presence almost everywhere.
WEAKNESS:
1.Fast Expansion Leading to Compromise on
Quality.
2.Renovation of Run down Hotels Raises Questions
of Trust and Credibility.
3.Lack of proper deductions of charges to property
owners.
OPPORTUNITIES:
1.The Number of Budget Travelers in India is on a
Rise.
2.More and More People are Becoming Technology-
Driven.
3.Use of Social Media to Enhance Consumer
Experience
THREATS:
1.Competitors like ZO Rooms and STAYZILLA.
2. "Backpacker travel/tourism" In India is still very
unpredictable.
3.Fewer Repeat Customers
4.Social media escalations.
Chapter-5
5.1. RESEARCH METHAODOLOGY
RESEARCH PROCESS:
Before embarking on the details of research
methodology and techniques, it seems appropriate
to present a brief overview of the research process.
Research process consists of series of actions or
steps necessary to effectively carry out research and
the desiredsequencing of these steps.
1. Formulating the research problem
2. Extensive literature survey
3. Development of working hypothesis
4. Preparing the research design
5. Determining the research design
1. Collecting the dataBy observation through
personal interview By questionnaires
2. Execution of the project
3. Analysis of data
4. Hypothesis-testing
5. Generalization and interpretation
6. Preparation of the report
5.1.3 LIMITATIONS
The limitations are as follows:
1. Some customers refuse to co-operate and do not
disclose their Genuine opinion.
2. Customer information is highly confidential, so
organization doesn't disclose it properly.
3. Respondent's answers might have influence or
bias.
4. Information is collected from the customers and
dealers only.
5. Meeting to the Guests is tough job, because they
are very busy and don't wants to givetime to
anyone.
6. Sometimes customers are angry because of the
staff behaviour.
5.2 Project Profile: Operations
Operations: Operations involves two Functions:
1. Product Knowledge: Here we are primarily
concerned in obtaining the knowledge of the
product i.e. OYO Rooms. OYO Rooms owns
reservations along with. gives & Sells Standards as
well as Services. These Services remains same in all
PAN India whether it is North, South, East, and
West.
In order to maintain those standards, there are
PROPERTY AUDITS every week It makes Ensure that
the property which is in collaboration with OYO are
up to the standards. For each property, OYO use
different property codes starting from DLS064 to
DLS063, each property was assigned with a different
property Code DLS 034 in DLS034 DLS is the area
code and 034 is the property code this is very
helpful in figuringout the customer related enquiry
or issues.
This is Helpful when we get data on a daily basis
from Cluster Manager and with that we need to go
to respective properties for Cex & Ensuring Delight.
Below is the sample how the data looked like in
CRS.
Chapter-6
Findings:-
1. It is found that by regular interactions with stake-
holders & PMs, we are able to manage the
inventory properly because of which we decrease
the number of shifting to Zero which in turn helped
us in maintaining Un-Happy%
2. During peak season overbookings are done from
the back end at negative inventory because of
which unhappy % increases. To overcome such
situation we requested to make a buffer for the
extra bookings.
3. During weekends bookings increased enormously
so in order to maintain that we mnagedd inventory
accordingly.
4. It has been seen that maintaining good relations
with all internal & external stakeholders helps in
smooth conductions of Operations.
5. It has been seen that the major reasons for the
customer dissatisfaction are:
a) Shifting from one hotel to another.
b) It's difficult to connect to customer care and if
someone connected than call cutted down many
times without giving the resolution.
c) Main problem arises for those customers who
make their bookings some other aps like gommt or
goibibo.
d) Variety and quantity in the breakfast is also the
major concern for the people.
e) cleanliness is also one concern for the people.
6. It's also been seen that incentives on delight
ratings motivates owners and managers totake
delight feedbacks.
7. it is seen that property owners and managers are
also disappointed with the respective ABMs
because of which also they didn't treat sometimes
customer in a better manner.
Learning outcomes:-
This internship has been an excellent and rewarding
experience. I have been able to meet and network
with so many people that I am sure will be able to
help me with opportunities in the future. One main
thing that I have learned through this internship is
time management skills as well Team work.In this
internship I learn to work under extreme pressure
conditions, handling extremely hyper customers. It's
firstly a lot of challenging but after few weeks its
seems to be familiar. It feels like I am the part of the
organisation and that because of my mentor they
are like big brother and hard working. They teach
me almost everything they know.Always try to
improve yourself is one thing I learn there. Hard
working sometime till 3. in the morning. I able to
learn about their way of working how they work.