Name of Degree

B.SC HOTEL MANAGEMENT

Submitted to

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA, PUNJAB

From 26/09/2019 to 08/02/2020

SUBMITTED BY

Name of student: Prakash Jha

Registration Number: 11700970
Signature of the student:
 Student Declaration

To whom so ever it may concern

I, Prakash Jha, Reg No-11700970, hereby declare that the work done by
me on “Project Report On OYO” from Sep, 2019 to Feb, 2020, under the
supervision of Nareder Yadav, Operation Manager, OYO HOTELS &
HOMES, and Lovely professional University, Phagwara, Punjab, is a
record of original work for the partial fulfillment of the requirements for
the award of the degree, B.sc Hotel Management.

Name of the Student: Prakash jha

Registration Number: 11700970
Signature of the student:
Date:
 Declaration by the Supervisors

To whom so ever it may concern

This is to certify that Prakash Jha, Reg No-11700970 from Lovely

Professional University, Phagwara, Punjab, has worked as a trainee
in OYO HOTELS & HOMES on “Project Report On OYO” under my
supervision from from Sep, 2019 to Feb, 2020,. It is further stated that
the work carried out by the student is a record of original work to
the best of my knowledge for the partial fulfillment of the
requirements for the award of the degree, B.Sc Hotel
Management.

Name of External Supervisor:

Designation of the External Supervisor:
Signature of the external Supervisor:
Date:

Name of Internal Supervisor:

Designation of the Internal Supervisor:
Signature of the Internal Supervisor:
Date:
ACHIEVEMENT
➢ Company’s Vision and Mission

➢ Origin and growth of company

➢ Various departments and their functions

➢ Organization chart of the company

➢ Position of Internship and roles

➢ Activities/ equipment handled

➢ Challenges faced and how those were tackled

➢ Learning outcomes
About OYO

Launched in 2013, OYO is India’s largest hospitality company. Its network currently spans over
230 Indian cities including all major metros, regional commercial hubs, leisure destinations, and
key pilgrimage towns. It also has an international presence with hotels in Malaysia and Nepal. The
company’s vision is to become the most preferred and trusted hotel brand in the world.
Over a span of six years, the startup expanded globally with thousands
of hotels, vacation homes and millions of rooms in hundreds of cities in India,
Malaysia, UAE, Nepal, China, Brazil, Mexico, UK, Philippines, Japan,] Saudi Arabia, Sri
Lanka, Indonesia, Vietnam, the United States and more.
OYO revolutionized the fragmented and legacy-driven budget hospitality space in India by
enabling standardization of services, amenities and in-room experience. Through use of its
proprietary apps for inventory-management, room-service, revenue-management and
customer-relationship management, OYO has delivered predictable, affordable and available
budget-room accommodation to millions of travellers in India. A booking with OYO comes with
the promise of hassle-free stays. The popular OYO app (> 10 MILLION downloads) enables guests
to search and book rooms, request room-service (food and beverages), book a cab and also
search nearby restaurants. OYO also offers a unique concierge-like assistance service through
OYO Captains - the company’s local representatives at hotels who ensure on-ground support for
hassle-free travelling and on-stay experience. Guest can avail their services by booking via call
centre, app or website.
Hotel-owners partnering with OYO see a significant increase in occupancy levels, get
access to the world’s first tablet-based property management apps and become part of a
brand recognized and loved by travelers nationwide.

In January 2017, OYO launched Townhouse - a managed hotel-brand designed to

function as social hotspot to cater to city dwellers and a new generation of guests.

OYO was founded by Ritesh Agarwal, the first resident Asian to be accepted to the Thiel
Fellowship (started by Paypal founder Peter Thiel). He was featured in Forbes 30 under
30 in Consumer Tech (2016) for creating a global disruptor. OYO was recently chosen as
India’s Most Promising Hotel Network (HolidayIQ Better Holiday Awards 2017) and has
received several accolades including Express IT Startup of the Year Award (2015), NDTV
Dream Chaser of the Year (2016) and IAMAI Digital Startup of the Year (2016). It was
recognized by Business Today as among the Coolest Start-Ups in India (2016) and ranked
by LinkedIn as one of the top employee attractors in India two years in a row (2016,
2017). OYO is backed by leading global investors, including the SoftBank Group,
Lightspeed India, Sequoia Capita, Greenoaks Capital, Hero Enterprise and China Lodging
Group.

History

In 2012, Ritesh Agarwal launched Oravel Stays to enable listing and booking of budget
accommodations. After undertaking months of research and staying in various bed and
breakfast homes, guest houses, and small hotels across India, he pivoted Oravel to OYO
in 2013.
OYO partners with hotels to give similar guest experience across cities. Shortly after
launching Oravel Stays, Ritesh Agarwal received a grant of $100,000 as part of the Thiel
Fellowship from Peter Thiel. OYO currently has over 17,000 employees globally, of which
approximately 8000 are in India and South Asia. OYO Hotels & Homes now identifies as a
full-fledged hotel chain that leases and franchises assets. The company claims to invest
in capex, GMs to oversee operations and customer experience as well as generating
around a million job opportunities in India and South Asia alone. OYO has also set up 26
training institutes for hospitality enthusiasts across India.
Funding

The company is currently valued at $10 billion dollars as per the last round of funding.
September 2018 – raised $1 billion, of which the RoC filing for the amount of
$100 million raised from Star Virtue Investment Ltd. was made on 13 February 2019.
October 2019 – Series F funding of $1.5 billion led by SoftBank Group, Lightspeed
Venture Partners and Sequoia India.

Founder & CEO, Ritesh Agarwal, through RA Hospitality Holdings (Cayman) in 2019
signed a $2 billion primary and secondary management investment round, supported by
global institutional banks and his financial partners, subject to regulatory and
shareholder approvals. Lightspeed Venture Partners, and Sequoia India, OYO's early
supporters, are selling part of their holdings in order to help the founder increase his
stake and thereby commitment while remaining invested significantly in the company's
long-term mission.

OYO is backed by leading global investors, including the SoftBank Group, Lightspeed
India, Sequoia Capita, Greenoaks Capital, Hero Enterprise and China Lodging Group.
 Management

In 2018, the hospitality chain company announced the appointment of Aditya Ghosh, the
former president of India's largest airlines, IndiGo, as the chief executive officer of its
South Asia business. Ghosh would be in charge of India and Nepal.
In November 2018, OYO appointed Max Healthcare executive Director, and Rohit Kapoor
as the CEO of its new real estate businesses. In 2018, OYO hired Prasidha Menon as
Global Head of Communications.
CTO
In 2016, OYO announced the hire of Amazon India's Anil Goel as Chief Technical and
Product Officer.
COO OYO China
OYO hired former Pepsi China COO to head its China operations as Chief Operating
Officer.
OYO UK
In September 2018, OYO hired Jeremy Sanders who co-founded and sold
Italian fast-food chain Coco di Mama as its country head.
In January 2020, OYO announced the appointment of Raj Kamal as COO of its Vacation
Homes business in the UK and Europe.
CEO OYO Technology & Hospitality Company, Japan
In February 2019, OYO started its Japan operations in a Joint Venture with Yahoo!
Japan and hired former Japan market leader for Handy and Booking.com, as the CEO of
OYO Technology & Hospitality Company. Yahoo! has since sold its interest back to OYO
as of December 2019.
CEO Southeast Asia and Middle East
In August 2019, OYO hired Dr Mandar Vaidya – a medical doctor by education and
former partner at McKinsey – to lead its operations in Southeast Asia and the Middle
East.
Acquisitions And Partnerships

In March 2018, OYO acquired Chennai-based service apartment operator Novascotia

Boutique Homes marking its first major buyout as well as establishing its presence in the
service apartment and corporate executive stay.
In 2018, the company acquired Weddingz.in, a Mumbai-based online marketplace for
wedding venues and vendors marking its entry into the fragmented $40 billion dollar
wedding industry.
In April 2019, OYO announced a strategic global distribution partnership with bedbank
Hotelbeds. The company also announced two joint-venture with Softbank and
Yahoo!Japan.
In 2019, OYO and Airbnb announced a strategic partnership with Airbnb investing in OYO
and the company will list their properties on Airbnb platform. OYO in March 2019,
announced a 1400 cr investment in its India and South Asia businesses over 2019 as a
part of its efforts to increase infrastructure, strengthen technology and internal
capability.
In May 2019, OYO announced the acquisition of Amsterdam-based @Leisure Group,
Europe's largest vacation rental company.
In August 2019, Oyo made its first major investment in the United States by purchasing
the Hooters Casino Hotel, near the Las Vegas Strip, in partnership with US-based real
estate company Highgate, for $135 million.
Awards And Honours

❖ In 2019 Agarwal was featured in the Bloomberg 50 list as ‘The

Amazingly Ambitious Hotelier’, the 50 most powerful people in India by
India Today and the Tycoons of Tomorrow’ by Forbes India.
❖ His net worth in 2019 was estimated to be approximately $1 billion
(7000 crore INR) according to IIFL Wealth Hurun India Rich List.
❖ Market Entrant of the Year 2019 (UK-India Awards)
❖ Fast Company's World's Most Innovative Companies for 2019 – India
edition
❖ Best Startup – SATTE Awards 2019
❖ OYO topped the maiden list of LinkedIn's Top Startups in India (2018)
❖ LinkedIn has recognized OYO as one of the top employee attractors in
India four years in a row (2016, 2017, 2018, 2019)
❖ Fast Company: OYO among Top 10 Most Innovative Companies in India
(2018)
❖ Startup of the Year at The Economic Times Startup Awards (2018)
❖ TiE's QGlue Design-led Entrepreneurship Awards (2018)
❖ Best Travel Startup – Jury at Zee Business Travel Awards (2018)
❖ India's Most Promising Hotel Network, HolidayIQ Better Holiday Awards
2017
❖ New Age Entrepreneur Award by Asian Centre for Corporate
Governance & Sustainability (2016)
❖ OneDirect Quest CX Award for Best Use of Social Media (2016)
❖ No. 2 in BT Coolest Start-ups Survey 2016
❖ Startup of the Year- Express IT Award (2015)
OYO APP

1. Shorten the booking funnel – Our app allows you to make a booking in just 3 taps (if
you want to book a hotel near you) including the tap to open the app and cuts down on
the booking steps and time over other hotel booking apps. We laid down an interesting
internal target of 50% of the new users to cancel the booking immediately after making
one – the booking flow had to be this seamless that people don’t realize they just made
a hotel reservation. When we released this to the customers, we got some customers
who were pleasantly surprised by it and some who got shocked by it and panicked when
they saw they had made a booking while just playing around with the app. We took this
feedback and added a little delay in the booking creation process and prepared the
customer for what was to happen next through some subtle animation and provided a
way to cancel the next step if they chose to.

2. Mandatory Sign-up/Sign-in – This one was the most controversial choices.

Conventional wisdom told us to remove any steps that came in letting a customer
explore the app and browse the hotels. However, we wanted to separate the sign-up,
data entry and user authentication steps from the booking flow to retain the
seamlessness of the booking experience, even for the first time booker. To mitigate the
impact, we tried to make the sign-up process simpler by eliminating the need of a
password and using One Time Password (OTP) as the authentication mechanism. We ran
some exciting offers for our first time users of the app and made sure that we didn’t lose
many customers from the top of the funnel. It is important to look at this approach with
respect to the context of your business. Ours is a transactional heavy business where
most customers download our app when they have a need to book a hotel. If you are
building a game or a utility app, the same approach may not work as well there.

3. Payment to be done post booking – This was a deviation from the norm again. Most
sites/apps (including our own web app) fork the payment step into two and ask for a
choice between paying now and paying at the hotel. The drop-offs at the payment step
on the mobile form factor are quite high in India (given our internet speeds and the
second factor authentication for payments). We decided to make this into a linear flow
by first creating a confirmed booking for the customer and then providing an optional
step to make a payment.

4. Dynamic Home Page – Our home screen is not a booking widget and we don’t
presume every time you open the app, you are there to make a booking with us,
especially when you already have a booking with us. We believe it is our karma to help
our customers to get a better stay experience and we want to support them at all steps –
booking a cab, finding nearby restaurants, ordering room service, etc. Our app’s home
page is a cards based layout where you can see your bookings and get some quick action
buttons (relevant to your booking state) along with options to search and the nearest
OYOs shown upfront without the need to a search.
PRODUCT AND SERVICES

Hotel Rooms

Oyo’s earlier strategy was to book a part of the hotels’ 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 less 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 of hotels and places where it has
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
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 – 24 x 7 Kitchen which lets you order from the mobile application.

.. and many more smart services.

Oyo Home
OYO claims is India's maiden Home Management System that offers private homes in different locations and are fully
managed by OYO
OYO began full-time exploration into the opportunity of locked homes in February 2017. It was a venture to go
beyond the known supply of hotel real estate into quality living spaces called OYO Homes. One year down, now
in 2018, we have over 3500+ OYO Homes. OYO Homes can be categorized as a) Single Homes b) Large
Residential Complexes. These quality living spaces offer good space and comfort keeping in mind the guest
expectations. We Turn Locked Homes into Beautiful Living Spaces. The coolest part is the check-in process
because it is automated and the same happens with the help of WhatsApp.

OYO Vacation Homes

which identifies itself as the world's 3rd largest vacation home brand with vacation rental management
brands Belvilla, Danland], and DanCenter along with Germany-based Traum-Ferienwohnungen.

SilverKey launched in April 2018, caters to the needs of the corporate travellers undertaking business
trips for a short or long duration.

Capital O are premium hotels located in prime locations and especially curated to deliver OYO's
quality-assured experience at an affordable price.

Palette offers the perfectly curated staycation for those in search of an intuitive experience at
competitive prices, an upper-end leisure resorts category.

Collection O is the newest category under OYO's hotel portfolio that caters to the requirements of
discerning business travellers.

OYO LIFE, targeted at millennials and young professionals in search of fully managed homes on
long-term rentals, at affordable prices.
 OYO LOYALTY PROGRAMME

5% additional discount on all Wizard member hotels and 10% off on Wizard Base

Unlimited usage during the membership validity period. Experience true infinity

Enjoy Wizard-exclusive, exciting deals at OYO

Oyo Hotels and Homes announced on Tuesday that OYO Wizard, its paid loyalty programme, has
reached 1.5 million subscribers contributing to 25 percent of OYO bookings. OYO Wizard, which
recognises and rewards frequent customers, comes with unique benefits, including guaranteed
discounts, cashback, discount coupons and upgrades. The programme was launched in August 2018,
said a statement released by the company.
According to media reports, OYO Wizard had reached one million memberships in April this year.

The company claims the repeat rate among OYO Wizard members is twice compared to regular users.
According to the statement, for Wizard hotels, 70 percent of the transactions are made on Wizard
hotels, resulting in higher income as compared to non-Wizard ones.

At present, over 6,000 hotels under OYO's portfolio have partnered with OYO Wizard.

OYO Wizard is currently available across three tiers – Wizard Blue (Rs 99 for six months membership),
Wizard Silver (Rs 199 for one year membership), and Wizard Gold (Rs 399 for two years membership).
 The programme offers certain benefits to members in the higher tiers. This includes 40 percent
discount vouchers (one for Silver and two for Gold) and OYO Money cashback on every check-in (Rs 75
for Silver, and Rs 200 for Gold).

There is also an ongoing rewards campaign where Wizard members can earn a free membership
upgrade to OYO Wizard Silver by checking-in to an OYO. Additionally, they can earn Rs 200 in OYO
money on every check-in as part of this campaign in June 2019.

Various departments and their functions

Business Development-

Business Development describes the functions within a business that seek to enable it’s growth,
increase impact, or achieve an objective. Business Development can be engaged with the business at
anytime in it’s life cycle. Same in Oyo BD peoples meet with the owners property deales and deal with
them to add hotels and homes in our business.

◆ Plan & oversee business development efforts for OYO Indonesia in assigned areas / clusters with a goal
to on-board high-quality budget hotels on to OYO network
◆ Identify new hotels that meet OYO standards in terms of location, pricing, infrastructure quality, owner
willingness etc. and pitch OYO’s partnership proposal
◆ Negotiate OYO’s commercial agreement with interested hotel
◆ Strengthen relationship with existing hotel partners & other relevant stakeholders
◆ Work closely with revenue management team to drive topline for the partner hotel
◆ Collaborate with other teams in OYO such as operations, marketing, pricing, customer support, finance
etc. to ensure smooth functioning of hotels on day-to-day basis

Operations-

Mainly opertaion department running the Hotels and Homes in ground and Maintaining the property
needs also intracting with the guest.
Only operation persons are direct intracting with guest.
 • 1-Process and Systems: Plan and implement operations, systems and procedures. Monitor
operations budget; implement opportunities to achieve optimal operational costs and wow
Guest Experience
• 2-People Management: Experience leading multiple teams of varied strengths - should be able
to plan the hiring needs, manage the capacity and plan for the peak. Should also be able to
manage the performance objectively, coach and engage the team.
• 3-Problem Solving: Should have worked in a fast-paced environment, should have solved
multiple problems and resolved them. Should be able to think on the feet and be self-driven in
resolving problems in hand. Should be able to take decisions

• 4-Vendor Management: Managing different vendors - sourcing, commercial negotiations,

performance management, etc. Would need to manage Manpower vendors, and Repair and
Maintenance vendors on a daily basis along with the support from the Central Team
• 5-Data Orientation: Should have a sound understanding of numbers and data. Should be able
to identify trends, patterns, outliers and deep dive on core issues.
• 6-Technology Driven: Should be able to get familiarized with technology and willing to adapt
•

REVENUE

● Execute solutions for properties Data Orientation: Devise and execute plans to develop multiple
channels and take initiatives to boost demand .
● Develop Processes and maintain Dashboards and work closely with Revenue head
● Closely monitor property level performance and devise solutions to improve
performance and revpar
● Resolve property wise issues and execute plans keeping in mind local considerations
● Work with cross functional teams (Operations, BD, Technology, Finance etc.)
● Identifying trends, patterns, outliers and deep dive on core issues
● Working on Excel and understand basic data analytics.
● Using data and solid Why Why Analysis to improve the process parameters.
● Planning and executing new initiatives

Transformation Team

1-Conducting Audits:
Conducting a run through of all the potential OYO Hotel properties and submitting feasibility reports;
reviewing the infrastructure and equipment.
Creating a budget and schedule for transformation of OYO property.
2-Operations and Cost Optimization:
3-Time: Ensure all property launches are achieved in a timely manner.
4-Cost: Managing costs by resource planning, cost estimating, budgeting, and control.
5-Quality: Managing quality is about quality planning, quality assurance, and quality control.
Working closely with the purchasing department to plan inventory and delivery timelines of goods
and services for launching properties as per scheduled launch dates.

Depending upon your market, creating comparative tables of different contractors.

Full accountability of daily follow ups of current projects to ensure they are completed by projected
deadline.
Proactively raise blockers or potential risks that could impact the project delivery.

Demand Team
1-Retain/acquire new accounts/clients in the specified region/ market

2-Manage the entire sales process effectively from query generation to payment.

3-Review & maintain monthly sales tracker, plan and execute market site visits as agreed with Region.

4-Create new products by interacting with Marketing and Demand teams tailor made to client requirements.

5-Collect data on competitor's activities.

6-Should be able to understand client requirements and tailor pitch the product accordingly

7-Share regular feedback on market conditions, competition, pricing and other factors influencing sales

8-Interact regularly with the clients to ensure a committed and partnership based relationship
Organization chart of the company

CEO CFO
Ritesh Agrwal Abhishek Gupta

COO
Director Abhinav Sinha
Betsy atkins

Director
Mohit Bhatnakar

Director
Aditya Gosh

Director
Mark Schwratz

Director
Bejul Somania

Director
Munish Verma
COO
 Position of Internship and roles

Area General Manager/Cluster Manager

complete property management of 25 Homes.

Ensuring great Guest Experience at the properties in the portfolio including

call handling and expectation setting for the guests

** HK resource management - roster / leaves approval etc. Vendor

coordination for HK availability and task assignment
** Managing operational expenses for the property including ensuring timely
bill payments
** Managing laundry and linen count for the properties, inventory count for
HK tool kits, chemicals
** Ensuring proactive Repair & Maintenance and Pest Control for the
properties
** Handling Guest Escalations
** Providing physical check-ins & check-outs for the guests and ensure
properties are audited post checkout
** Auditing the housekeeping and infra health of the property and
proactively solving for issues
** Daily cash closing and maintaining cash hygiene
** Collecting and updating the relevant property data like maplinks,
addresses, direction SMSes etc.
** Execution of peak management plan
** Conducting post transformation audits of the properties.

DAILY ACTIVITY
Question.1. What is OYO Home?

OYO is now partnering with home owners, to provide an authentic homestay experience.
We
have tied up with homeowners in cities across India and taken up the task of re-designing
their homes
and increasing revenue from a property lying vacant. Owners who have purchased
secondary homes can
now make sure that their property is not only maintained in their absence but also
becomes a revenue
generator.

Target properties- Apartments, flats, villas and independent houses

Question.2. How does OYO Home function?

OYO OS

➢ OYO OS. As part of our latest offering, we're delighted to introduce a

unique hotel management solution (HMS) called OYO OS. It not only helps
you reduce cost, increase profitability and prevent fraud, but also makes
operations more efficient while delivering an impeccable guest experience.

➢ We launched our Hotel Management System for the web called OYO OS. It
is now used in over 25 countries around the world. OYO OS facilitates
an OYO Hotel Manager (HM) to manage today's check-in, checkout, room
prices, and property performance. He can also check his total earned
incentive in real time.
MAESTRO

Maestro is an excellent system developed by OYO to solve pragmatic

complex task management problems. It improves efficiency of
getting a field work done by enabling mobile platform to workforce,
communication and allowing dynamic workflows
KRYPTON
Mobile-based audit application Krypton, developed
in-house, is one such. Krypton helps Oyo
employees audit properties to identify patterns in
guest behaviour to improve customer experience.
NOTE FROM THE CEO

OYO Hotels & Homes is South Asia’s largest, China’s second largest, and the
world’s third largest and fastest-growing chain of leased and franchised hotels,
homes & living spaces. OYO works with small-scale budget hoteliers to improve
guest experience and occupancy, and thereby yield. No other hotel company is
using technology or empowering small hotels to deliver value like OYO does. All of
this is being driven by passionate OYOpreneurs who are the custodians of our
amazing company culture. They are empowered to run OYO like they would run
their own companies, and we respect and celebrate their entrepreneurial spirit.
While we are relentlessly pursuing our mission of creating quality living spaces
everywhere, it is always Day 0 for us. That’s because we feel that OYO’s journey
has only started and we have a great opportunity in front of us to create history
and leave a lasting legacy through our work
Ritesh Agarwal
Founder & CEO OYO Hotels & Homes
 ANNUAL REPORT CARD 2018

(99M ANNUALISED STAYED NIGHTS BASED ON DECEMBER

PEAK)
In the last year 2018, OYO Hotels & Homes completed it’s transition
to becoming a 100% leased & franchised hotel chain. Following this, the
entire hotel is renovated as per OYO brand and quality standards with capex
invested in assets primarily by asset owners to deliver core promises to our
customers and ensure higher returns to asset owners.
OYO has also seen global stayed room nights (Annualised based on December
run-rate) increase from 6m in December 2016 to 13m in December 2017
to 75m (99m based on December 2018 peak) in December 2018 (with a
growth of 5.7x on y-o-y basis).
 OYO LIVING IS ADDRESSING A $ 1.2 TN GLOBAL
MARKET OPPORTUNITY

13m+ customers have used OYO Hotels & Homes globally until December
2018. As a testament to the strong customer loyalty it enjoys, OYO
has 790,000+ Advocates in India as at December 2018 (OYO Fans who have
stayed minimum 5 times at OYO in last 6 months).

GLOBAL OPERATING METRICS

OYO HOTELS & HOMES HAS CONTINUED TO EXECUTE IN HOME
MARKETS OF, INDIA AND CHINA AND HAS EXPANDED INTO GLOBAL
MARKETS INCLUDING MALAYSIA, NEPAL, UK AND UAE
AMONG TOP 10 HOTEL CHAINS AND FASTEST GROWING TO BE #1 | 458K ROOMS AS OF
DECEMBER 2018
OYO Hotels & Homes is already among the Top 10 Hotel chains in the world
and is growing exponentially to be the World’s #1 hotel chain. We are already
at 458k fully controlled, leased and franchised keys as at December 2018.
FROM ECONOMY (OYO HOTELS), CHIC MID SEGMENT (OYO
TOWNHOUSE) TO UPMARKET RESORTS (PALLETE):
 •
• New products: Significant growth in our bouquet of new products viz. Living,
Weddingz (integrated into OYO Hotels & Homes business), F&B (Food &
beverages) and delivery serve as motivating signs of success.
•
• OYO have 74 OYO Townhouses as at December 2018, running at more than 85%
occupancy showing the incredible value we are generating for our asset owners
and great guest experience. We expect to cross 100 OTHs by April 2019 having
made record

❖ OYO Townhouse (OTH) is an example of OYO operational efficiency. The latest

research report from Redseer, a consulting firm suggests that OTHs have the fastest
turnover around time, lowest staff-to-room ratio and minimal demand dependency on
3rd Party Online Travel Agent channel.

•
•

❖ OYO Hotels & Homes in fact, adds more assets than the total size of our look-alikes.
OYO is a leading player of choice with ~12x the size of the second largest player in
the Indian hospitality market.
 RENOVATION | ELITE GROUP OF ENGINEERS,
ARCHITECTS AND DESIGNERS RENOVATED 9,000+
BUILDINGS IN INDIA IN 2018
⚫ An elite group of engineers, architects and designers make the magic
happen at one of the most sophisticated and fast quality renovation
engines.
⚫ Technology-driven renovation and superior supply chain capabilities allow
us to reduce costs and time.
⚫ A Renovation app enables us to make sure we leverage on our
tremendous tech capabilities to renovate the properties.
 CORE OPERATIONS COMPETENCE | INDUSTRY
ACKNOWLEDGED BEST IN CLASS HOSPITALITY DELIVERED
WITH TECH AND HIGHLY TRAINED ON-GROUND GENERAL
MANAGERS
8,700+ PROPERTIES OPERATE ON PROPRIETARY MANAGEMENT
SYSTEM | MORE THAN 800 OYO GENERAL MANAGERS ON GROUND
WITH PROBLEM SOLVING ABILITIES | INDUSTRY-LEADING TECH SUITE
TO ENABLE ACTIVITIES INCLUDING HOUSEKEEPING TO BE
PERFORMED EFFICIENTLY

➢ Our operations capabilities set us apart allowing us to

deliver industry acknowledged best-in-class hospitality as well as
smooth operations of hotel operations.
➢ 8,700+ assets in India are being operated on
our proprietary management system(PMS & POS) : OYO OS that
enables Express check-in and check-out, hotel service and operations
including housekeeping, food ordering and tracking as well
procurement management.
➢ General Manager: More than 800 OYO Hotels & Homes General
Managers in India with problem solving abilities, have been
deployed to ensure stellar customer experience and to resolve
concerns faster.

➢ General Manager and 20+ OYO Skill Institutes get 90%+

repeat/word of mouth customers with low monthly spend on
marketing.
ENABLING 100,000+ JOBS FOR YOUNG PEOPLE RANGING
FROM HOUSE-KEEPING TO AI & DATA SCIENCE

➢ OYO continues to build capabilities to serve our customers

better by investing in the OYO Skill Institute (OSI) that trains to close
to 3,000 talent every month in India.

➢ Our incessant focus on customer experience has seen our

NPS scores in India increase from 47% to in December 2017 to 51.4%
in December 2018.

➢ We also see that on Booking.com – which is one of the

largest hotel OTAs in the world – our customer experience score
reached a high of 8, averaging across several parameters. This score
considers location, value, comfort, cleanliness, service, and staff — a
clear indication of our strong focus on the end-to-end customer
experience.
 29.3% CUSTOMERS REPEAT IN THE NEXT QUARTER AFTER
THEIR STAY, BRINGING IN A WORLD LEADING HOSPITALITY
METRIC.
⚫ OYO Hotels & Homes is the largest selling brand on almost all major 3rd
Party Online Travel Agents (OTAs).

⚫ Unlike our look-alikes, who continue to rely on 3rd party agents, OYO
continues to build capabilities to allow our guests to have great direct
brand booking experience, while ensuring win-win relationships with
OTAs.

⚫ OTA partners: Guests can have a direct booking experience for OYO on all
major OTAs such as Booking.com, MMT, Go-Ibibo and Expedia.

⚫ Customer cohorts Our India Customer (Android) cohorts indicate

that 29.3% of customers of July-September 2018 returned to stay at OYO
spaces between October-December 2018. These are industry best repeat
metrics. It is heartening to note that we also had 10.4% of customers
from as early as April-June 2016 coming back to stay with us.

⚫ Our seamless apps and web site continue to be our strong suite
with more than 18m travellers being shown personalized and
localized content on the OYO App. We clocked close to 1.3m new
installs in Dec18.
 GOT ON-BOARD 2,300+ SALES PEOPLE TO INCREASE
OMNI-CHANNEL, ENTERPRISE AND CORPORATE BUSINESS TO
20%+ OF SALES WITH 16,000 CORPORATE ACCOUNTS.
➢ To ensure our customers are able to reach us through omni-channel OYO
also continues to invest significantly on offline ground capability across
140+ markets to cater to various forms of demand and these are met by
travel agents, SMEs, intermediaries, corporates. OYO Hotels & Homes has
access to 16,000+ corporate clients who use us as their accommodation
partner in India.
STILL DAY 0
 LEARNING OUTCOMES
What started from a single hotel service in India, Oyo has now
turned out as one of the world’s largest hotel network brands. It has
stretched out its roots to 230 cities with over 8500 hotels. Through
its app-based booking facility, Oyo allows customers to book rooms
within a few seconds. Oyo delivers similar awesome experience
across all of its rooms with its excellent room services and amenities.

Business Model Canvas of Oyo

Oyo started as a hotel aggregator and used to lease some rooms and sell
them under its brand name. However, it changed its business model from the
aggregator to the franchise model. It involved partnering with hotels, asking
them to operate as a franchise, and selling their rooms to customers
at competitive prices.

So, what does the franchise model mean in the hotel industry?

What it means – Oyo does not own hotel properties that are listed on their website. Oyo
renovates the hotels according to its checklist of standard services, and make the hotel
property a part of its “standardized budget hotel chain” with Oyo’s branding.

What makes Oyo’s business model unique and different from other hospitality
companies is its standardized hospitality services. It focuses more on user
experience rather than only hotel’s room availability and prices.

To become Oyo’s partners, every hotel has to meet a set of guidelines for services,
pricing, staff quality, features of rooms, security, etc.
1. Customer Segments of Oyo
The customer segments of Oyo include:

⚫ Adventure Travelers – All those travelers who want to explore different

destination independently (in the low budget) or in a small group. Also known
as backpack travelers.
⚫ Leisure travelers – Travelers who want to take a vacation from everyday
busy life.
⚫ Family travelers – Those who travel in large groups and look for a spacious
and comfortable stay, where they can also arrange parties, family events,
weddings etc.
⚫ Business travelers – Oyo also has commercial places on its platform where
customers can book office spaces and conference rooms for their business
purposes.

2. Value Propositions of Oyo

The value propositions of Oyo are its standardization of services to
enrich the guest experience.

⚫ Customer experience: Unlike Airbnb that only connects travelers

with local hosts, Oyo takes full responsibility of services of the
hotels listed on its platform.

⚫ Other value propositions are:

✓ Well-designed app
✓ simple and easy-to-use app for booking
✓ speed and reliability in finding hotels, bars, theatres
✓ personalized room features
✓ Holiday packages & discounts
✓ Discount membership program
✓ community and entertainment services
✓ Amenities

❖ To refine its value propositions, it has launched separate banners of

unique services.

 Oyo Townhouse: Through Oyo Townhouse, millennial travelers can get

smart services for their smart needs. ‘Smart rooms’ with
specially-designed beds, formulated toiletries, power sockets, and TVs
with Netflix installed are offered with 24/7 kitchen services. ‘Smart
menus’ can be ordered by a mobile application.

 Oyo Studio Stays: Through Studio Stays, people can book rooms for their
internships, jobs, or corporate stays. They can rent rooms for either single
occupancy or twin sharing.

 Oyo B Direct: It is primarily for business stays, which provide simplified

reimbursement by GST ready invoices.

 Oyo Homes are fully designed private homes for people who are on their
holidays.

 Oyo Flagship: Oyo leases whole buildings/apartments for its Oyo Flagship
brand. These buildings give a homely atmosphere as well as the comfort
of the hotel. Friendly staff, vibrant decorations, theme-based rooms, and
building walls with lovely quotations are some of its unique features.
 Oyo Silver Key: it’s another exclusive service that provides executives and
corporate clients executive apartments with private, spacious, and
multi-utility services.

 Weddingz.in: Oyo has also partnered with several banquet halls’ vendors
to allow people to book their wedding venues through its easy booking
services and within best prices.

 Oyo Wizard: Oyo has introduced a subscription model where wizard

members can avail exclusive discounts, offers, deals, and cash back
advantages. Oyo offers popular packages and hot selling deals for
travelers.

4. Customer Relationships of Oyo

 Self-Serve Platform – Oyo has self-serve website and app, which

is a primary tool for customers to access Oyo services.

 Hotel accommodation Staff – the hotel staff interacts with

customers at the time of check-in and provides hotel services.

 Customer Service Support – It maintains 24/7 active customer support to

respond to customer queries. Moreover, to ensure customer loyalty and
increase their trust, Oyo tracks their Net Promoter Score metric
thoroughly. And that’s its why customer repeat rate of Oyo is highest in
the industry.

 Social Media – It does brilliant digital marketing and social media

networking to reach customers.
4. Channels of Oyo
The channels of Oyo are:

◆ Website and mobile application

◆ Blogs
◆ Social media networks like Twitter, Facebook, and Instagram
◆ Neighborhood hotels
◆ Student organizations

5. Key Resources of Oyo

The key resources of Oyo include:

◆ Hi-tech app architecture

◆ 458,000 fully leased and franchised hotel properties.
◆ Customer Database – Oyo has a large database of loyal repeat
customers
◆ Employees with technical knowledge like programming, development,
and maintenance, and other staff for business management.
◆ Venture Funding – Oyo has secured funding from many venture capital
firms such as Sequoia Capital, SoftBank’s Vision Fund, etc
6. Key Activities of Oyo
The key activities of Oyo are:

◆ Platform – Creating, developing and maintaining Oyo’s website and app

◆ Partnership– Partnering with hotels, vendors, event planners, etc

◆ Customer experience – Ensuring the hotel services and maintaining

quality

◆ Sales & Marketing – Performing advertising and marketing activities.

Active social media activities including updating pages of Facebook,
Instagram.

◆ Recruitment – Hiring and retaining talented employees

◆ Business growth – Developing a friendly and promising community to

invite friends and attract people to sign up

◆ Communication – Sustain effective communication with hotel partners,

vendors, service providers, clients, and customers

7. Key Partners of Oyo

The key partners of Oyo are:

◼ Hotels, clubs, corporations, banquet halls, etc.

◼ Event organizations
◼ Booking confirmation, location, navigation details, and cancellation can
be managed through communication platform such as WhatsApp.
◼ Electronic payment services such as Paytm
◼ Taxi service providers such as OLA

◼ Dinner Reservation Services such as Dineout

◼ GPS services with Google maps
◼ In-room entertainment services with Netflix

8. Cost Structure of Oyo

The cost structure of Oyo includes:

◆ Platform (website and app) development and maintenance

costs
◆ Renovation and branding cost
◆ IT infrastructure cost
◆ Marketing and advertising costs
◆ Employees salary costs
◆ Hotel Partners’ commissions
◆ Legal cost
◆ Other operational and administrative cost

9. Revenue Stream of Oyo

As of Dec 2018, Oyo has annual revenue of $1.8 Billion. Now let’s
discuss how Oyo makes money?

How does Oyo make money?

➢ Commissions
Oyo charges around 22% of commissions every month from hotels owners.
Commissions may vary as per the services and features offered.

➢ Room Reservation Fee

Customers pay a room reservation fee according to their services chosen. The room fee
is charged with a few percentage margins of the hotels’ prices. For example, if a room is
priced at Rs. 1,000 per night, Oyo makes only 10-20% commission from it, and that is
their actual revenue.
➢ Membership fees
Users who subscribe to Oyo Wizard memberships are charged with premium fees
ranging from Rs 500 to Rs 3000.

➢ Advertising
Oyo also charges different companies to place their ads on Oyo’s app and website. It also
generates sizable revenue for Oyo.

➢ Sponsors and Partnerships

Oyo also charges some amount from its sponsors and key partners by promoting their
brand name through advertising on their app.

➢ Consulting Services
Oyo charges for its business consulting and data analysis services, it provides to its
clients, including hotel, clubs, organizations, etc. It provides these services as it owns an
extensive database of locations, hotels, event organizations, users, and their
preferences.
Final Word
Oyo has truly revolutionized the hotel industry with its efficient use of
technology. It has redefined living spaces and taken the user experiences to
the next level. With its quick booking facility, hassle-free rental experience,
and convenient pricing, it has transformed the way people stay away from
homes.

Its growth is unstoppable with its continual expansions to newer markets

while it has strongly built its brand name as the most prominent hotel
network with both high quality and affordability.