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Strategies of Oyo Rooms - A Case Study: Name:-Biradar Ganesh Taterao Roll No: - CF15
Strategies of Oyo Rooms - A Case Study: Name:-Biradar Ganesh Taterao Roll No: - CF15
●Was 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 800 cities with over 44,000 hotels with over 1.2 million rooms in more than
80 Countries. 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.
●Oyo is the largest hotel room chain and fastest-growing hospitality chain of living spaces, franchised hotel
and homes in India and was started with a vision of providing budget living spaces in India.
●Ritesh Agarwal is the founder & CEO of OYO. OYO started with one city and one hotel in Gurgaon in
January 2013.
Aim of the Project
Oyo Rooms Business Model is a hotel aggregator model. The services are bought by the
users under the name of Oyo rooms. Just like uber, Oyo provides rooms with standardized
quality and price.
Oyo Rooms provide visitors with quality hotel room stays at different places around India.
They have partnered with hotels and made them work with them under their name.
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.
AGGREGATOR BUSINESS MODEL
● Aggregator visits the Good/service providers.
● Aggregator shows them the model (more customers).
● Service providers are now the partners.
● Aggregator builds up his own brand.
● Brand attracts the customers
● Brand also provides offers.
● This results in customers to the partners
● Promises fulfilled.
● Aggregator gets the commission.
BUSINESS MODEL OF OYO ROOMS
● Books a part of Hotel’s inventory beforehand,
● Organizes those hotel rooms under their brand name – Oyo Rooms
● These partner hotels provide standardized service to customers of those rooms as decided
in a contract with Oyo
● Bookings are made through the Oyo Rooms website and mobile application.
● 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.
● It focuses more on user experience rather than only hotel’s room availability and prices.
The Success Story Of OYO
● OYO did not become a success overnight. It also had to go through some
sequence of events and rough phases. The company’s business was also
impacted by the COVID outbreak.
● After starting in 2013, OYO went on to acquire rooms in hotels across the country
and transformed them into OYO. The company’s sole aim was to make
accommodation good and affordable for its people.
Grouth Of OYO
● OYO has continuously grown after 2013. It first started its services in India, and today,
after 8 years of establishment, it operates in 800 cities in more than 80 countries of the
world.
● The company started its international operations in 2018 starting with Malaysia. It then
entered into the markets of the UK, UAE, Dubai, China, Singapore, Indonesia, and
others.
● The company has not yet released its annual report of 2020. But in 2019, OYO generated
a revenue of $951 million and witnessed an increase of 740 million dollars, 4.5 times
more than 2018.
● OYO now operates under the name ‘OYO Hotels & Homes’.
Oyo Rooms branding strategy are :
● They lease a portion of Hotel's inventory before signing the legal contract,
● Strategizing by giving the hotel accommodation under their brand name – Oyo Rooms
● The property owner has to work according to the OYO hotels provided standardized
● service for customers for those rooms as they have legal contract with Oyo.
● Reservations are done through the website and mobile application of Oyo room
Key Activities of Oyo
●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
.
OYO rooms is the emerging new concept which can be stated as the
marketing platform of the budget hotels, the pricing structure is on the lower side
along with various supplies and amenities.OYO group has categorically used the
target market for the budget hotel and standardize the services of the hotel which
could benefit the budget guest
Another Strategy of OYO rooms is the personalised service the staff is
confident and provide personalised services to all category of guest.
.
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