India’s Largest Branded

Networking of Hotels

India’s Largest Branded Networking of Hotels

By Jithin Saju
 CONTENTS
 INTRODUCTION
 FOUNDER
 GROWTH HISTORY AND FACTS
 REASONS TO BE BRANDED
 MARKETING STRATEGIES
 FACILITIES PROVIDED IN OYO
ROOMS
 MAJOR PROBLEM FACED BY
OYO ROOMS
 SUGGESTIONS TO OVERCOME
THE PROBLEM
 SWOT ANALYSIS
 FUTURE PLANS
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INTRODUCTIO

N
OYO Rooms, commonly known as OYO, is an Indian hotel brand that
aggregates standardized hotel rooms. “OYO Rooms” is a hotel aggregation
based model that helps customers book a room with good facilities at low
fares starting at 999 INR using an app on tap of a button to the customers
especially travelers.
 OYO was founded in 2013 by Ritesh Agarwal, who is its CEO. The company
started with a single hotel in Gurgaon January 2013. The company as of
December 2016 has around 7500hotels in more than 220 cities of India, and
has been named India's largest budget hotel chain. It has also launched in
Malaysia
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FOUNDER

Ritesh Agarwal

Ritesh Agarwal was born in Bissam Cuttack town of Odisha state,

India and brought up in Titilagarh. Ritesh comes from a family that
used to run a small shop in Southern Orissa. At the age of 13, he
started selling SIM cards. He graduated from St. Johns Senior
Secondary School and moved to Delhi in 2011 for college.

“Don’t worry about being successful but work

toward being significant and the success will
naturally follow”
-Ritesh Agarwal
CEO, OYO Rooms
GROWTH HISTORY AND
FACTS
◦ From a single hotel in May 2013 to over 4500+ hotels at present, it has been an inspiring journey from a smart
idea to India’s largest branded network of hotels with the dream of becoming the world’s largest branded
network of hotels.
◦ GOAL: Our goal is to change the way people stay away from home.
◦ RANGE: OYO’s budget stays range from 999 to 1500 rupees while its mid scale rooms are priced at 1600 to
4000 rupees.
◦ RANGE: OYO’s budget stays range from 999 to 1500 rupees while its mid scale rooms are priced at 1600 to
4000 rupees.
◦ Listing of hotels: OYO Rooms reaches out to prospective hotels to partner with them. A hotel owner can also
reach out to OYO through their webpage. The OYO team then contacts the hotel and audits the hotel to
understand the changes needed to standardize the property as per OYO standards, and shares details of the
partnership agreement.
REASONS TO BE BRANDED

 AFFORDABLE: With Budget Hotels you choose to SAVE! Yes save smart on
 AFFORDABLE room rates & Spend more to explore your Holiday destination, sightseeing, buying
souvenirs, experimenting with their taste buds.
 BED & BREAKFAST
 BED & BREAKFAST: Excellent Bedding & Interiors is the pre-requisite of a
 STAY CONNECTED pleasurable trip. At OYO Rooms , they standardize every property of our budget
hotels chain to create state-of-the-art bedrooms with super comfy beds & lavish
 STRATEGIC LOCATIONS interiors.
 SECURITY  STAY CONNECTED: Yes, stay connected to your friends, family & your favorite
movies, not to miss news; even when you travel with FREE WI-FI & FLAT LCD
TVs.

 STRATEGIC LOCATIONS: Whenever you may want to stay, you’d find an OYO
Strategically located near Air Ports, Railway Stations, Bus Terminals, Business
Hubs, Metro Stations etc.

 SECURITY: With a 24 hour reception and secured premises we ensure that your
safety is not jeopardized at any given moment while you stay at OYO Rooms.
Marketing Strategies of OYO

Product

 Oyo Rooms is one of the most popular hotel

booking online brands in India
Price
 Oyo Room’s strategy is to attract customers with a lower
room price in comparison to the base price of the hotel
 The main goal is to offer at an unmatched price and
which matches with the budget of user.

 Their room price varies from Rs. 999 to Rs. 4000

depending on the location and luxury of hotel.
 Overall Oyo rooms are following a very sensible
strategy which aims to provide rooms at a moderate
rate with awesome services and generate loyalty from
customers.
Place

 Oyo rooms started from a single hotel in Gurgaon and

now has extended its empire in all the parts of country
along with going beyond the seas in Malaysia and
Nepal.

 You can book it online with a confirmation and then you

can avail the services on reaching the booked hotel on
specific date.
 Promotion
 It has strong social media presence on Facebook
with over 3.65 lakh fans and a Twitter following of
over 26,000 followers.
 The brand claims to have over 5 million app
downloads with a good number of active users.
 To fast track its growth, OYO Rooms is
organizing several campaigns on social media
platforms such as:
 #AurKyaChahiye videos on YouTube.
 Dubsmash Contest
 Father’s Day Celebration campaign, and IPL
Final Verbal Combat.
Advertisements on Web
Place
 Oyo team comprises of young and energetic
people who wants to deliver maximum both for
the company and individual growth.

 With the dynamic team Oyo also provides a

very friendly working environment which
helps in the employees work according to
their convenience, come up with new
innovations and work beyond their strengths.

 Even the leaders of Oyo are two youngsters

who were driven by the need to create a
change in the hospitability industry of India.
Process
 Oyo helps the users to search the hotels
according to the location and price.

 It acts as an intermediate between the

hotels and the users and on booking
collect their commission fees as their
income.

 The services provided by the hotel is not

in the hands of Oyo but they help users
in picking hotels according to their
convenience.
Physical Evidence
 Oyo provides a confirmation mail to the
users registered email id on booking any
room and also send them a confirmation
message on their mobile number which
ensures their payment and booking of
hotel.

 This message or email is used to show

your room confirmation while check in the
respective hotel. Hence, this completes
the marketing mix of Oyo Rooms.
FACILITIES PROVIDED
IN
OYO ROOMS
  Just like Ola and Uber faced a storm of opposition from taxi and
autorickshaw unions, all through last year OYO had to contend with
protests from traditional hoteliers.
 OYO came at a particularly difficult time for them: it was a bad
downcycle and, with demand in upscale segments slack, the big boys
MAJOR PROBLEM FACED of the hotel industry were championing their mid-market or budget
brands, the only growth avenue.
BY OYO ROOMS  Taj had Ginger, ITC had Fortune, Lemon Tree had Red Fox, and
brands like Premier Inn, Keys had all entered the category, most of
them with big investments.
  Oyo should also provide overnight laundry and iron services as
many a times customer books a room for the night and has to wash
and iron his clothes for tomorrow’s meeting
 They can also work on providing 24 hour room service.
 As Oyo doesn’t buy all the rooms in the property but the hotel is
standardized. So most of the times when a customer comes in
SUGGESTIONS TO directly hotel owners sell their unsold rooms to the customers and
not the Oyo ones as those rooms also have the same standards. Oyo
OVERCOME THE can work in this regard and may be can only standardize that part of
the property bought by them.
PROBLEM  Along with expanding its business and numbers, Oyo needs to
really pay attention to customer feedback and reviews as it’s the
service offering industry. Also it needs to bring in more stringent
offline quality control mechanisms on-board to manage customer
experience and keep the brand growing.
 SWOT Analysis
• Ever Growing Network • Tight Margin
• Standardization of quality • Poor Service Quality
• Spirit of Innovation

Strength Weakness

Opportunity Threat

• Focus on Budget accommodation • Competition

• Growing demand for Aggregators • Concern of Safety
• Rise in the number of business • Different Laws in the
travelers in Emerging Company different country
FUTURE PLANS
 The company is planning to expand to other businesses such as providing loans to hotel partners for their
financial support for which it is in talks with financial services providers.
 To strengthen its services Oyo is introducing a concierge service called OYO Captains. Oyo Captains will be
like concierge service who will ensure smooth travelling experience and build personal relationship with
customers. Each Oyo Captain will be responsible for 30-40properties in his locality constituting an average of
300-400 rooms. People initially employed to do quality audit will be turned into OYO Captains with additional
responsibility of smoothening consumer experience. Customers can directly reach out to OYO Captains for any
complaints and guidance of the area.
 The company is finding ways to ease the tedious processes of check-ins and check-outs. They are planning for
easy walk-ins and walk-outs without manual formalities to provide home feel. The integration of Oyo with
Mobikwik is a positive step in this direction that facilitates one tap online payment and no need of stopping to
pay. This will maximise the customer experience and will make services better.
 Oyo is planning to introduce early morning check-ins at 6 a.m.
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