Apr 17, 2019 weaknesses in the swot analysis of oyo rooms. The robust business model with limited marketing spend generates. Let us go step by step to understand the business model of oyo rooms. But it is more like a hotel aggregation platform where the buyer and seller are. To understand the business model of oyo rooms and services provided by oyo rooms. Meet oyo rooms, a startup committed to provide amazing. An oyo story a case study international journal of. Dec 16, 2017 well, first of all, it is still a long way to go for oyo and quite early to call them or even the business model in the geography they operate in a success, but they have certainly been making a mark and putting quite some serious dent in a high. Thus oyo is capturing the both segment of customers. Aggregator business model oyo rooms business model is a hotel aggregator model. Operator of a branded network of hotels designed to offer standardized stay experiences. Oyo rooms become one of the key players in the fiercely competitive indian hotel industry.
The latest to now join the race of longterm rental housing and shared housing is ritesh agarwals oyo. This is softbank backed startups third foreign venture as it has already forayed into nepal and malaysias hospitality market. The name oyo means on your own, nothing but an idea to create indias largest chain of efficient, young and standardises budget rooms. The company used to lease a part of hotels inventory beforehand, organize those hotel rooms under their brand name oyo rooms. Started in the year 20, oyo is turning into indias largest chain of hotels. Oyo rooms in blue ocean a strategy that is working well. Make them work as their partners by signing of a contract, and sell their products under its own brand. Oyo business development manager salaries glassdoor.
Business model oyo rooms is an online aggregator of budget hotels. During our early days, convincing hotel owners to put their property under the oyo platform was a herculean task. 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. Business model of oyo rooms, though a lot similar to the usual aggregator business model or uber for x business model, is different from. Oyo rooms business model and generous funding case study.
It can be compared with ola as it does the same with hotels. Oyo rooms business model, how does oyo rooms make money, how. Oyo rooms said that its current chain of hotels in china compromises of 11,000 exclusive franchised or manchised rooms. He compares airbnb to a sidecarlike model while oyo has a more uberlike approach where they focus on instant gratification and minimum quality. Why oyo life is betting big on the coliving market in. Oyo rooms in delhi, oth in bengaluru, oyo home in goa, oyo silverkey in kochi, oyo palette in pondicherry new products.
Oyo business model so after getting deep knowledge of oyo rooms case study now, we should also see how this business model works its expenses and revenue generation oyo rooms professes to be a marked system of spending lodgings and in this way unique in relation to other in aggregators and otas online travel agents, for example, cleartrip, goibibo, yatra, makemytrip, and so on. Oyo organizes the booked rooms under their brand name. Join the worlds fastest growing hotel chain and unlock the potential of your assets. Here is the marketing mix of oyo rooms which is of indian origins and was founded in the year 2012 by its founder ritesh agarwal as oravel stays pvt ltd. It is associated with hospitality industry via its dealings in hotels. Feedough is the onestop resource for everything related to startups. Later in 2014, the company raised rs4cr from lightspeed venture partners and dng.
Indias oyo hotels expands across china and indonesia. Well, first of all, it is still a long way to go for oyo and quite early to call them or even the business model in the geography they operate in a success, but they have certainly been making a mark and putting quite some serious dent in a high. Oyo rooms was started by ritesh agarwal in 20 and since then company got. We are currently ranked as the 17th best startup website in the world and are paving our way to the top. Being an entirely new, untested business model, hotel owners were sceptical about the value and prospects we offered.
The ventures unique business model helped it to offer effective solutions for the difficulties that were faced by customers seeking budget hotel accommodation in. Request a call today and jump aboard our oyo family. Significant growth in our bouquet of new products viz. Onboarding with oyo is a hasslefree three step process. As the cracks in the business model employed by the budget hotel aggregator oyo are becoming apparent, both disgruntledhoteliers and investors are questioning its strategy of attracting investments at rising valuations. Oyo does not own any of the rooms that it lets out. It doesnt have a straight plan of action like the conventional lodging networks, for example, marriott, hilton and so forth. Jun 21, 2018 budget hotel provider oyo rooms on wednesday officially announced its foray into chinas burgeoning hospitality industry. It is one of the largest and fastestgrowing hospitality chain of leased and franchised hotels, homes and living spaces. Oyo signs a contract with the hotels to provide standardized services to their customers. Business model of oyo rooms how oyo rooms work feedough. Organize those hotel rooms under their brand name oyo rooms.
Reader, school of management, indira gandhi national open university, new delhi, india. With so many players aggressively fighting for the budget hotel pie, clearly, oyo has its hands full, as it scales up from the 100 city mark, building an empire, room by room. Oyo rooms partners with hotels with the aim of standardization on various measures in each room including. Mar 16, 2020 the typical oyo business development manager salary is. How to partner with oyo rooms oyo rooms registration.
Oyo rooms founder believes that the future of travel is brands becoming their own distributors, which is, of course, every brands dream. I would often see myself committing to bear the losses, if. Oyo is an online platform for hotel booking in india. Dec 08, 2017 oyo changes business model from aggregation to franchise the hotels that were part of the aggregation model have converted into franchises. However, it was different from airbnbs business model as oyo didnt focus just on the discoverability of the partners among the users but also on the standardized quality of the services provided. However, the operating model of oyo remains the same like the hotel aggregator business model, but has the essence of the franchise model as well. That will enable you to get oyo rooms registration and commence the oyo rooms business. The business model of the over hyped budget hotel network oyo rooms doesnt make sense to me for many reasons. Our philosophy is to research, curate, and provide the best startup feeds and resources to help you succeed in your venture. Why oyo life is betting big on the coliving market in india.
However, it changed its business model from the aggregator to the franchise model. Oyo is indias largest hospitality company offering standardized rooms in different. Oyo unlocks disproportionate business by attracting 3 star customers to trade down while nonstar customers trade up to oyo rooms. Apr 23, 2017 business model of oyo rooms oyo rooms business model is a hotel aggregator model. With a current valuation of nearly 360cr, oyo rooms does nothing out of the box but provides travellers the coolest yet cheapest efficient, young, standardized rooms with no addons attached to it. Aug 08, 2018 the business model of the over hyped budget hotel network oyo rooms doesnt make sense to me for many reasons. The shift in its business model has also allowed oyo to raise its commission by 5. The case allows the students to critically analyse the strategies of oyo for deliberation on whether the business model was sustainable in the.
The firm organizes the unorganized businesses operating under the same domain. Oyo rooms, an online aggregator for budget hotels in india. Why is the business model for oyo rooms so successful. Meet oyo rooms, a startup committed to provide amazing hotel. It involved partnering with hotels, asking them to operate as a franchise, and selling their rooms to customers at competitive prices. Founder of oyo rooms is ritesh aggarwal, started his company in 20 when he was just 21. I would often see myself committing to bear the losses, if any, and share profits. The services are bought by the users under the name of oyo rooms. Dec 09, 2016 here is the business model of oyo rooms. Business model of oyo rooms how oyo rooms earn money.
It has a very simple business model where it adopts hotels, get them to follow certain. The typical oyo business development manager salary is. In this article, i will tell you about what is oyo rooms, what is the business model of oyo rooms and how to tie up with oyo rooms or partner with oyo rooms. See insights on oyo rooms including office locations, competitors, revenue, financials, executives, subsidiaries and more at craft. Oyo changes business model from aggregation to franchise the hotels that were part of the aggregation model have converted into franchises. Enter your details and we will call you to discuss the right solution for your asset. Oyo room marketing strategy and case study oyo rooms was started in 2012 with the aim to disrupt the indian hospitality business just like the way ola did in car rental industry with the help of technology. This case study understands how a small player can enter a fiercely competitive industry with the help of a robust business model and generous funding. Business model of oyo rooms oyo rooms is an aggregator that provides a market place for online hotel booking similar to uber, which provides a marketplace for online cab booking.
Joining the worlds largest hospitality network can benefit you in many ways. To understand this better, lets look at that strategy canvas, a critical tool of blue ocean strategy used to create value innovation. It was started in 2012 by a 17 years old college dropout ritesh aggarwal the aim was to change the indian hospitality business with. Oyo rooms partners with hotels with the aim of standardization on various measures in each room including free wifi and breakfast, flat screen television spotless white bed linen of a certain thread count, branded toiletries, 6inch shower heads, a beverage tray and so on. Operating from guragon and funded by light speed venture partners, venture nursery and peter thiel founder paypal. This estimate is based upon 74 oyo business development manager salary reports provided by employees or estimated based upon statistical methods. On a mission to change the way people stay away from home, oyo rooms has caught the fancy of travellers in more than 173 cities of india. The companys hotels offer rooms at prices falling under a reasonable budget segment all across south asia, along with services like free breakfast facility, holiday packages, refer and earn, among others, enabling customers to access seamless amenities and experiences. Weaknesses are used to refer to areas where the business or the brand needs improvement. The next wave of business models in asia innosight. The case talks about the inception and growth of oyo rooms, a company that originally started as oravel stays ltd. Nov 20, 2016 aggregator business model oyo rooms business model is a hotel aggregator model. Business stays, early checkins, personal concierge find it all on the oyo app.
Business model of oyo rooms oyo rooms business model is a hotel aggregator model. Oyo rooms business model, how does oyo rooms make money. It has a very simple business model where it adopts hotels, get them to follow certain basic standards of services, features, sta, pricing. It was started in 2012 by a 17 years old college dropout ritesh aggarwal the aim was to change the indian hospitality business with the help of technology. Airbnb uses an aggregator business model, as uber or the indian organization oyo rooms. In a business model shift with parallels to changes in its global strategy, oyo this week laid off around 360 u. Business development manager salaries at oyo can range from. Oyo rooms is an online aggregator of budget hotels in india claiming to be the largest chain of hotels. Oyo rooms had been growing exponentially since its inception in 20. Dec 21, 2015 oyo rooms founder believes that the future of travel is brands becoming their own distributors, which is, of course, every brands dream. Oyo network is spread across 200 cities in india and also in nepal and malaysia with more than 6500. Guaranteed best price, quality hotel rooms with premium amenities. Oyo business model can be compared with ola as it does the same with hotels. Oyo rooms business model was similar to the usual aggregator business model uber for x business model but had the essence of the franchise business model as well.
Oyo rooms business model used to be a hotel aggregator. Oyo started as a hotel aggregator and used to lease some rooms and sell them under its brand name. Founded in 20 by ritesh agarwal, oyo initially consisted mainly of budget hotels. Oyo claims to be the biggest chain of hotels in the world. To understand this better, lets look at that strategy canvas, a critical tool. Oyo now gets over 90% of revenue from hotels under franchise. I have tried my best to give you the fair idea of oyo rooms business model. The shift was mainly to reduce operational costs and improve serviceability, the company said. Marketing mix of oyo rooms oyo rooms marketing mix. Just like uber, oyo provides rooms with standardized quality and price. Oyo rooms is a marketplace of branded budget hotels bnbs. They refer or to be precise they give customers to the hotels and keep a part of profits with them.
How oyo is building an empire, room by room inc42 media. Ritesh agarwal the mastermind teen behind oyo rooms. Investor facebook, quora, yelp, yammer etc we have grown from 3. By january 2016, it had registered 1 million checkins and was set to become indias largest budget hotel chain.
Model of oyo rooms oyo rooms is an aggregator that provides a market place for online hotel booking similar to uber, which provides a marketplace for online cab booking. With its new business segment called oyo life, the company is now betting big on this. The conventional inn organizations need to put millions in building and keeping up their properties. Read more about oyo losses cut to rs 325 cr, revenue still a secret on business standard. Oyo rooms business model case study how oyo rooms earns. Oyo rooms company profile office locations, competitors. Oyo credits its claimed positive performance to business model that doesnt emulate global template. Agarwal said that oyo is now adding 10,000 rooms or close to 500 hotels every month under its franchise model. And as a last stress site ritesh tweet about the new business model and in 20 he relaunched oravel as oyo rooms. Research scholar, aima, new delhi, india statement of originality the case study is the authors own work and has not already been presented, published or submitted for. The bookings are made through the website and mobile.738 675 941 163 743 528 566 1083 1328 392 1017 1179 484 1093 1022 163 1622 31 185 1299 1394 687 1318 47 853 348 195 1309 751 680 1155 624 1041 224 503 1084 805 1348