Customer Segment

The soul of any business lies in the customers it serves. No business model can survive without taking
into consideration the customer segment it wants to cater its product or services. And then create the
rest of the model based on needs and demands of your customer.
Since OYO works as a platform that serves two interdependent customer segments, the visitors and the
hosts:

1. Hosts
In this section the company targets anyone who has a spare room or property that can be rented giving
the owner extra income. The owner has to spend some initial amount on the room to make it as per the
standard set by OYO. Currently it has tie-ups in 158 cities in the country and has around 5000 hotels.

2. Visitors
The hotel industry in the country has been traditionally dependent on tourists both travelling across the
country and the tourists from abroad who come to see the diverse culture, climate and historical places.
Another growing segment of the customers are business travelers. This segment prefers comfort and
normally have a long stay which may even extend to months in many cases depending on the project
requirements.

Even for budget hotels of the category of OYO, these two customer segments stand valid as the trend of
staying in luxury hotels has recently shifted to budget hotels where along with low costs, people feel
more connected to the place. It also proves to be economical for business travelers who have to stay for
prolonged durations and are looking for a more authentic staying experience than the one they get in a
hotel.