OYO Rooms is the third-largest hospitality chain by

room count. Incorporated in 2013 by Ritesh Agarwal.

Headquartered in Gurgaon, it has expanded its reach

worldwide within the span of 10 years and has
employed over 17,000 employees globally.
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OPERATIONS
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.

Customer Segments of Oyo.

• Adventure Travelers
• Leisure travelers
• Family travelers
• Business travelers
Key Resources of Oyo

• oyo has 44,000+ fully leased and franchised hotel properties with over
1.2 million+ rooms, Oyo has a large database of loyal repeat customers,
and Employees with technical knowledge like programming,
development, and maintenance, and other staff for business
management.

Channels of Oyo:-
• Blogs
• Website and mobile application
• Social media networks like Twitter, Facebook, and Instagram
• Neighborhood hotels Student organizations.
Key Activities of Oyo

• Creating, developing and maintaining Oyo’s website and app

• Partnering with hotels, vendors, event planners, etc
• Performing advertising and marketing activities.
• Hiring and retaining talented employees
• Business growth etc.

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
• Oyo charges around 22% of commissions every month from hotels owners.

• Customers pay a room reservation fee according to their services chosen.

Users who subscribe to Oyo Wizard memberships are charged with premium
fees ranging from Rs 500 to Rs 3000.

Oyo also charges different companies to place their ads on Oyo’s app and website. It also
generates sizable revenue for Oyo.
Oyo also charges some amount from its sponsors and key partners by promoting their brand
name through advertising on their app.
Oyo charges for its business consulting and data analysis services, it provides to its clients,
including hotel, clubs, organizations, etc.
 SEGMENTATION

OYO uses a mix of demographic, geographic, and psychographic segmentation strategies to

understand the changing needs of the customers in the competitive market. OYO segments the
market in the following manner:-

• OYO Townhouse targets Millennial travelers.

• OYO Silver Key caters to the needs of corporate travelers.
• OYO Vacation Homes targets people who come on vacation at the beach or a villa on an exotic
island.
• OYO Life provides residential space.
 Targeting

Targeting strategy is the cornerstone of the product development process. OYO uses a differentiated targeting
strategy for different products categories. Corporate tie-ups for airline travelers Tours and travels College
students or working professionals who are in search of fully managed homes on long-term rentals at an
affordable price.
 POSITIONING

OYO uses a value-based positioning strategy for its customer by providing:-

• Standardized budget hotels
• Luxurious productive place
• Open grass greenery
• Better room service
 Product
Product in the Marketing Mix of OYO
Oyo has a wide range of products and services that they offer to their customer as per their need. OYO
Rooms, OYO Hotels & Homes has a multi-brand approach. These include:
OYO Townhouse
OYO Home
OYO Vacation Homes
Silver Key
Capital O
Promotion
Promotion/Advertising in the Marketing Mix of OYO. OYO prefers to promote via various social media
sites such as Facebook, Twitter, Instagram, Pinterest, etc.

OYO organizes several online campaigns such as #AurKyaChahiye on YouTube.

 Pricing

The strategy of OYO Rooms is to attract customers with a lower room price than the hotel's base price.
The primary objective is to provide an unequaled price that suits the user's budget. The room price varies
depending on the location and luxury of the hotel, between Rs. 399 and Rs. 4000.

Place
Oyo rooms work fully online where one can book the available hotels at an approximate cost either via an
app or through online platforms.
Once booked with a confirmation one can avail of the service on reaching the booked hotel on a specific
date.
finance
Current ratio -9.99
Debt to equity ratio-3.47
Quick ratio- 4.84
RETURN ON EQUITY-127.4%
Hospitality firm OYO Monday launched its corporate social responsibility assistance
programme 'OYO Reach' from Shimla, where majority of hotels under the company's
brand have been equipped with rainwater harvesting systems.

Through its CSR assistance programme, the company is aiming to provide necessary
technical and financial assistance to its partners across the nation in a wide variety of
projects and activities.

• Unlocking rooms for first responders, communities and families

• Provided 300K+ room nights for people in need via initiatives like OYO Care, Donate
a Night, and Vande Bharat.
• Building a legacy of Inclusion comes from our mission to serve every one While we
have room for everyone, we don't have room for discrimination based on anything
whether, religion, gender, colour or favouritism.

• Empowering women patrons across geographies. Upgrading their business plan with
OYO’s suite of products and technology.

• Investing in the next generation of women OYO Preneurs; 1 in 4 roles are held by
women.

• We recognize the value of building a diverse workforce and creating an inclusive

workplace where all employees are treated equally with respect and dignity.
The company announced a series of initiatives in this direction to help employees
upskill and prepare for the changing needs of the hospitality industry.

Some of these measures include-

• Five day work week, weekend curfew & new ways of working: With effect from
August 2020, all Saturdays across regional and corporate teams will be a
holiday. There will be roasters for field roles that require working on Saturdays
to ensure a five-day working week.

• Hybrid Workplace Model: Employees in India will continue to follow the

Hybrid Workplace model, giving them the flexibility of ‘working from
anywhere.
• OYO X Cure. fit: OYO has also partnered with Cure. fit to offer its 12 month-
membership at specially negotiated rates, where OYO will bear 50% of the fee.

• Upskilling platforms: In order to offer upskilling and career growth

opportunities by investing in employees’ professional growth, OYO launched
Data Science Academy & Young Turks program.

• Surprise Holiday: OYO also announced that it would offer employees a surprise
holiday to showcase gratitude to employees
 BIBLIOGRAPHY
https://wwipl.com/services/oravel-stays-limited/fi
nancial
www.oyorooms.com
www.peoplematters.in
www.wikipedia.combstrategyhub.com