CASE ANALYSIS

ON
‘OYO’
CREATING EFFECTIVE SPACES
Group members:
Vaishali Choithani
Nilesh Tripathi
Shivani Singh
Neha Thakur
Bharti Gupta
INTRODUCTION
 FOUNDER OF OYO: Ritesh Agrawal
 FOUNDED IN: 2013

 PURPOSE OF OYO:
• To provide the best of their services to the guest
(“QUALITY CUSTOMER SERVICE BROUGHT GREAT
VALUE”)
• Focuses on adding customer experience (upscale
interiors, highly trained staff and 24 hour customer
support).
WHY FROM ORAVEL TO OYO ROOMS..
ABOUT ORAVEL……
 Oravel (Beginnings): 1st venture, a home-stay
model inspired by Airbnb. Formed in 2012

 ISSUES IN ORAVEL :
• Lack of reliability
• Did not deliver the basic promises
• Fundamental problem of trust deficit in India
• Problem of standardization
• Lack of predictability
JOURNEY FROM ORAVEL TO
OYO……
 Aimed to build trustworthy brand identity by gathering a
large network of budget hotel rooms.

 OYO OPERATIONS:
• Standardizing Experience
• Acquiring rooms
• Auditing rooms
• Ranking Hotels
• Pricing rooms
BUSINESS MODEL
Aggregator Business Model
 Transforming the under utilised properties and
converting into fully furnished hotels.

 Using the brand name of OYO.

 Business will start working.

REVENUE MODEL
 Minimum guarantee payment model.
 Paying only for booked rooms.

 Dynamic pricing: on the basis of demand and supply.

VALUE PROPOSITION:
Standardizing and larger network of budgeted rooms.
LEARNT FROM OWN EXPERIENCE
After oravel success , he travelled for two months
to different places
Stayed in bed-n-breakfast hotels across the country.

Main problems :
 Advance reservation were not entertained by hotels.
 Advertisement amenities were not focused by
middle –level hotels.
 Trust factor plays a very important role in Indian
culture
 TECHNOLOGY
OYO uses technology to link all its functions and provide the customer
Better experience

OYO Rooms had also launched its mobile app, which promised a hotel
room booking in less than 10 seconds The OYO Rooms mobile app is
also the world’s first personal room service app that allows guests staying
at an OYO to order room service directly from their smart phones.

It uses technology to enhance customer experience. That is why most of

the branded
hotels associated with OYO witness more than 80 per cent occupancy,
which indicates a huge success of business and customers satisfaction.
 AUDIT MECHANISM
 ‘OYO’ auditor gathered data from ‘Krypton app’
 The OYO auditors focus on the cleanliness of the

 room, efficiency of wi-fi,etc

 ‘OYO CAPTAINS’ met regularly with customers

 who had rated their rooms as one or two stars as

 well as ‘advocate’

 OYO’s analytics team originally had a color coded rooms

TRAINING CENTRE
 OYO hospitality training team providing training for 15
days
 They invest on their employees for better management
work
 They have more than 20 skill institute

 After the training only they send employees to work

 To increase customer satisfaction

 PRICING STRATEGY
 OYO Room’s strategy is to attract customers with a
lower room price in comparison to the base price of the
hotel
 OYO pivoted to a dynamic pricing contract

 OYO promises Predictability & availability

 OYO provides rooms at a moderate rate with awesome

services and generate loyalty from customers
 CAPTURE LOW AND MEDIUM RANGE
HOTELS
 Turning unmonitored Real Estate into modern hotels
 Quality and price

 Standardization

 Launched OAM ( Oyo asset management)