Well I hope you have understood the business model of OYO.

Now let’s try and focus as to what is

their revenue model or how does oyo earn money right. To be honest when I was analyzing the
company I thought they earn revenue through subscription model , so because they are providing
their tech stack to the hotel, they might charge some monthly fee or annual fee or something like
that, but when I try to go into the details , I found out that they actually work on a revenue sharing
model, which means

If 100 rupees is the room rent OYO might say that 33 rupees is our revenue share and 66-67 is your
share again, you would think that revenue sharing is done only when the booking is done through
their app, but what about walk-in customers? Will there be a revenue sharing even if there is a
walk-in customer booking. The answer is Yes. So basically OYO says that we are not an advertising
agency that whatever booking happens through us we will charge only for that. OYO says that we
are trying to transform your business, we are giving you a full solution not only for advertising, not
only for revenue but everything related to customer complaints and feedbacks that is why we will
charge or we will do a revenue sharing for each and every booking that happens for your hotel.

There are other sources of income also for OYO:

 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.