Group 8 | Project OYO1

Team Details
Name Location Association
Gayathri S Chennai Current (15 years)
Divya Mani Tripathi Lucknow Past (1 Year)
Anand Deshpande Bangalore Past (1 Year)
Rohan Paliwal Udaipur Current

Project Objective Deliverables

Develop a 'Hunting Model' for property owner
onboarding that will capture maximum market
growth for Oyo by means of structuring the
efforts of the sales network of BDMs across the
Oyo Frontier Business - Hotel, Home and Co-
Living Space.
 Recommend Channels for Business
Development across the 3 businesses.
 Suggest division of BDM team efforts to be
directed to each of thesen businesses.
 Define key focus areas within the city for each
business and provide cluster mapping.

Project Background
I. Market

The India hospitality market accounts for the highest number of domestic travelers in the world. Business travelers
are also gradually increasing volumes, owing to the growth of IT sector and the emergence of several MNCs in India.

The KPIs used by the industry to measure business development and management of accommodations are average
room rate (ARR) and revenue per available room (RevPAR).

ARR of the hotel industry in India stood at INR 5,844 in FY19 as against INR 5,527 in FY16, and is expected to reach
INR 6,707 by FY 2024, expanding at a compound annual growth rate (CAGR) of ~3.16% during the FY20-FY24 period.
RevPAR of Indian hotels stood at ~INR 4,002 in FY 2019 and is expected to reach INR 5,305 by FY 2024.

The home and the co-living business are still a new business model in India and is expected to see high adoption in
coming years owing to change in customer preferences and a shift towards more “homely” living spaces.

II. Business Categories in focus

a. Hotel - The independent/unbranded segment comprises more than ~70% of the total available hotel rooms.
b. Home - Alternate accommodation is the second-largest segment, owing to the growing popularity of homestays
among tourists
c. Co-living – This is a growing category (especially in metros) and caters mostly to students/working individuals

Based on the city-wise supply of rooms, tier I cities like New Delhi and Mumbai reported the highest number of
rooms, followed by Bengaluru and Chennai, and together they account for ~30% of the total market share in the
country. About 27% of the industry is dominated by smaller cities where the market is mostly unorganized and is
primarily dominated by independent/unbranded hotels. However, the emergence of the COVID-19 pandemic has
created new troubles for the industry and there is a need to re-strategize and re-align key resources.
 III. Lead Generation

Channel Onboarding process

App Online registration
Website Online registration
Call Center Property owner calls in
Walk-ins Property owner visits Oyo office
OTAs (Online travel agents) BD team generates leads from properties listed on OTTs
Other Sources BD team generates leads from sources like listings, newspaper ads etc.

IV. Distribution Network of Oyo

India divided into zones and hubs for the purpose of structuring BD efforts:

4 zones – East, West (West further divided into West 1 and West 2), North, South

26 hubs across the country (Metro cities and high traffic areas) e.g. Delhi, Gurgaon, Jaipur, Chennai etc.

Clustering - Each city if further divided into clusters on the basis of selected criteria:

a. Hotel – e.g. Prime locations (Lakeside, Hill facing etc.) vs Non-Prime (Other areas)
b. Home – e.g. Prime locations (Connectivity, Near to tourist places) vs Non-prime locations (outskirts)
c. Co-living – e.g. Posh areas (Near SEZs, offices etc.) vs outskirts

The above parameters (for all 3 categories) are used to estimate ARR and RevPAR for every area (also taking the
demand into consideration) and the city is divided into clusters on the basis of this information. A separate BD team
strategy is then developed for each of the clusters so as to streamline the team efforts.

Approach
Conducting Primary and secondary research for the selected city to
Data Collection understand the dominant and evolving channels
Understand the channels available and map the key success factors for
every channel (demographics, geography etc.)
Develop a “hunting model” to streamline channel information on the
Analysis
basis of selected clustering criteria for all 3 businesses and define the key
focus areas within the city using the model developed
Develop a “hunting model” to streamline channel information on the
Model
basis of selected clustering criteria for all 3 businesses
Development
Recommend key channels and focus areas for BD across the businesses.
Recommendation Suggest a split of the team efforts to be directed towards each business

Timeline
S. No. Time in Weeks Week 1 Week 2 Week 3 Week 4 Week 5
1 Interviewing property owners for insights on
ARR, RevPAR, Customer profile etc.
2 Interviewing target customers for every segment
to understand pain points across channels
3 Identify Key areas within each city across the 3
categories
4 Validation of the developed model and
determining split of BD efforts across categories