Marathwada Shikshan Prasarak Mandal’s

Deogiri Institute of Engineering and Management Studies,

Aurangabad

Mini Project

Report On

“A STUDY OF CUSTOMER PERCEPTION AND CONSUMER

BUYING BEHAVIOUR OF OYO HOTELS WITH SPECIAL
REFERENCE TO AURANGABAD CITY”

Submitted by
Valse Rohit Sanjayrao

Roll No 713190

MBA I semester

Batch - 2020-2022

In partial fulfillment of the completion for MBA course of

Dr. Babasaheb Ambedkar Marathwada University, Aurangabad

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 Acknowledgement

I, Valse Rohit Sanjayrao thank to Prof. Chandrakant Phad.

His expertise was valuable during each step of the project from

narrowing the scope of the research to theoretical development

and analysis.

I also thank Prof. Rupesh Rebba (HOD) and Dr. Ulhas Shiurkar

(Director), Deogiri Institute of Engineering and Management

Studies, Aurangabad for encouraging and guiding me through

mini Project.

Valse Rohit Sanjayrao

MBA I semester
Batch 2020-2022

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 Certificate

This is to certify that, Valse Rohit Sanjayrao a student of Deogiri Institute

of Engineering & Management Studies, Aurangabad Batch 2020-2022, has
duly completed his/her Mini Project (MANB 452) and has satisfactorily
submitted the report in partial fulfilment of Master of Business
Administration course.

Project Guide Class Teacher HOD

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 Declaration

I, Valse Rohit Sanjayrao, hereby declare that I have

completed the Mini Project on “A STUDY OF CUSTOMER

PERCEPTION AND CONSUMER BUYING BEHAVIOUR OF OYO

HOTELS WITH SPECIAL REFERENCE TO AURANGABAD
CITY” and submitted the report for the same.

It has not been previously submitted for the basis of

the award of any degree or other similar titles of this or any
other examining body or university.

Place:-Aurangabad Name: - Valse Rohit Sanjayrao

Date:- 22/04/2021 Roll No. 713190

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 INDEX

SR.No CONTENT PAGE NO

1 CHAPTER I: 6

1.1 INTRODUCTION 6

1.2 OBJECTIVES OF THE STUDY 7

1.3 SCOPE OF THE STUDY 7

1.4 LIMITATIONS OF THE STUDY 7
2 CHAPTER II: 8
2.1 RESEARCH METHODOLOGY 8
3 CHAPTER III: 9-21

3.1 LITERARURE REVIEW 9-10

3.2 DATA ANALYSIS & INTERPRETATION 11-21

4 CHAPTER IV: 22
4.1 FINDINGS 22
4.2 CONCLUSIONS 22
4.3 BIBILIOGRAPHY 22
5 CHAPTER V: 23-25
5.1 ANNEXURE 23-25

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 CHAPTER I

1.1 INTRODUCTION:-

OYO is India's largest hospitality company offering standardized rooms in different locations across the India.
OYO Rooms, commonly known as OYO, is India's largest hospitality company, consisting mainly of budget
hotels. It was founded in 2013 by Ritesh Agarwal and has since grown to over 8,500 hotels in 230 cities in
India, Malaysia, UAE, Nepal, China and Indonesia. In 2012, then 18-year-old Ritesh Agarwal, hailing from
Odisha's Rayagada district, launched Travel Stays, a website designed to enable listing and booking of budget
accommodation. OYO partners with hotels to give similar guest experience across cities. In late 2017, OYO
launched OYO Home, an Airbnb-like marketplace for short-term managed rentals. In September 2018, OYO
raised $1 billion. The majority of the funding — $800 million, to be exact — was led by Softbank’s Vision
Fund with participation from Light speed, Sequoia and Green oaks Capital. The network of branded hotels
currently includes over 8500+ hotels spread across 230 cities with more cities and hotels planned to come up
very soon. Rooms usually start at Rs 999 but can be lower than this price due to Sale, Coupon Discounts etc.
There are no hidden charges. The standard check-in time is 12 PM and the standard check-out time is 11 AM.
One can cancel room booking using OYO website or mobile app.

OYO Rooms, an aggregator in online hotel booking service organization is getting popularity and fame across
various cities/countries for their technology based and innovative services. In this century almost everyone has
smart phones and people are becoming more tech savvy and they are booking hotel rooms online via internet.
And hence it is important to know what are the factors affecting or determining the consumer’s changing
behavior. The purpose of the research paper is to understand the factors influencing the consumer’s decision
to stay at OYO Rooms. An exploratory research study was conducted by taking 100 individual responses from
Aurangabad and analyzing them statistically with the help of Chi-square analysis. The contribution of study is
that it develops an additional insight to understand consumer behavior in online hotel booking services.

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1.2 OBJECTIVES OF THE STUDY:-

-To understand and study the consumer satisfaction level of OYO.

-To understand the business model of OYO Rooms and services provided by OYO Rooms.
-To study the strategies used by OYO for their business expansion in India and other countries
-To understand the problems faced by customers while using OYO and providing solutions for existing
problems.
-To suggest the ideas on new segment to target and how to position it better.

1.3 SCOPE OF THE STUDY:-

-Studying the strategies adopted by OYO.

-Studying the increasing business scope of hotel industry.

-To know about the operations of Oyo rooms.
-To apply business concepts and theories to real-world decision making.

1.4 LIMITATION OF THE STUDY :-

Every work has its own limitations. Limitations are extent to which the process should not exceed, Limitations of
this project are:-

1. The project was constrained by time limit.

2. The major limitation of this study shall be data availability as the data is proprietary and not readily
shared for dissemination.
3. Some customers refuse to co-operate and do not disclose their Genuine opinion.
4. Customers information is highly confidential, so organization doesn’t disclose it properly.
5. Information is collected from the customers and dealers only.

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 CHAPTER II

2.1 REASEARCH METHODOLOY:

Research methodology is the process of collecting information and data for the purpose of business
decision making.

(a)Time and Date of data collection :

(b)Research Design : The research follows an exploratory research approach to analyze the propositions,
and satisfaction level of consumers of OYO Rooms and to determine why certain group of consumers prefer
other online hotel booking applications over OYO Rooms.

(c)Research Instrument : A structured questionnaire was circulated and was administrated by google
forms and telephonic interview and in some cases questions were mailed to respondents.

The interviews help to elicit further detailed information. During the study, important factors were considered
viz., Age, Occupation, Education, Demographic factors etc.

(d)No of Respondents : 100

Sampling method : Convenience sampling

Sample size : 100

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 CHAPTER III

3.1 REVIEW OF LITERATURE:-

OYO Rooms is the hotel aggregator and not a marketplace because customers buy the services from the brand
OYO Rooms and they are not bothered who the partner is. OYO Rooms is the largest branded network of
hotels currently operating in various countries as the firm organizes the unorganized business operating under
the same domain, they make them work as their partners by signing a contract and sell their products under its
own brand. The main focus is on quality of services provided. To make the services visible to their user-base,
OYO makes their partners provide services at predetermined standard.

1. CHANGE IN BUSINESS MODEL:-

OYO Rooms, a Soft-Bank based startup has changed its business model from aggregation to franchise, or operating
hotels under the OYO brand introduced in May 2017. The hotels that were the part of aggregation business model
have converted to franchises. To improve serviceability, and to reduce operational costs, this transition was incurred
by OYO Rooms. This change was to rationalize the cost of resources deployed at partner hotels.

The operational cost was increasing as OYO had to keep one OYO captain at hotels where they had 5 to 15 rooms
or so. But after this transition in business model, OYO has improved their serviceability as they are using same
number of resources but at fully operated hotels.

2. BUSINESS MODEL OF OYO ROOMS:

1. Adopts hotels to get them in fold by booking a part of hotel’s inventory beforehand.

2. It gets them to follow certain standards of services , features, staff, pricing, security etc. and invests in
marketing and management of quality improvement for the hotels under its fold.

3. And these rooms are sold to customers under its own brand name: OYO Rooms through their website
and mobile application

3. SERVICES PROVIDED BY OYO ROOMS:

OYO believes in changing the way people stay away from home.

1. Hotel Rooms: Standardized, Affordable and Technology driven, fully furnished rooms.

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 2. OYO Capital O: Capital O is a premium offering for business travelers, launched as part of oyo’s push to
capture more corporate accounts.
3. OYO Flagship: OYO Rooms has started giving hotels on lease where they have full control over day-
to-day operations to expand the business. These leased properties come under OYO Flagship.
4. OYO Home: Be it a vacation near a beach, or a villa in an exotic island; a savvy studio apartment OYO
home seeks to find you a ‘home away from home’ in every location.
5. Long Stays: OYO Rooms provides hotel rooms for family functions such as wedding, parties etc. as
well as corporate functions such as seminars, meetings, parties etc. to stay for long.
6. OYO Spot On: Spot on rooms are targeted towards the customer who wants a comfortable stay and his
budget is very low.
7. Corporate Stays: OYO also provides fully furnished rooms and flats for long stays like internships,
corporate stays, work etc. The rooms can be rented on single occupancy as well as twin sharing basis.
8. OYO Total Holidays: In this holiday package segment, OYO mainly targets couples, families and
friends travelling together between 21-45 years.
9. OYO Bazar: OYO Rooms has set up OYO Bazar, which is a one-stop solution for hotels to procure
their daily essentials. This is not done only for profitability but to grow and maintain their partnership
with hotels, they need to expand their services.

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3.2 DATA ANALYSIS :
The data analysis has been discussed from responses collected from 100 various age group people who were
using OYO Rooms for online hotel booking in Aurangabad city. Data has been analyzed and presented in a
meaningful way to facilitate the research to find out the customer satisfaction level of OYO Rooms with the
help of tables and diagrams.

Oyo is a sort an aggregator, the way Uber is – an online ‘hotel’ marketplace-and even as I write, it’s turning
into India’s largest chain of hotels. Just 23, Ritesh aggrawal seems set for getting 9000 properties in its fold by
the turn of 2017. OYO’s model is simple; it adopts hotels to get them in its fold; get them to follow certain
standards of service, features, staff, pricing, security, etc. and then sells their rooms under its own brand, for a
certain cut. Currently, the company is under the consolidation and profitability mode, hiring and market
development activities – and has attracted five rounds of PE funding already from the likes of Sequoia and
Softbank. This new segment operates on the asset light business model, and is a sure disruptor for the traditional
capital-weighed-down hospitality industry.

OYO’s traction and market coverage has swiftly increased thanks also because of being listed with travel
aggregators like Make My Trip, Trivago and Goibibo. Add app-based booking facility to this launched in
September 2014. The hospitality industry segment targeting small business travelers and budget tourists is
eminently swift-cash, and that works in the favor of OYO, because revenues get realized quicker too.
OYO doesn’t own any of these properties, and instead, invests in marketing and management quality
improvement for the hotels under its fold. It’s a win-win for OYO and the hotels, many of whom just don’t
have the network, knowledge or the budget for smart marketing, and they run empty. OYO helps them improve
their yields. It now has more stringent offline quality control mechanisms onboard to manage customer
experience and keep the brand growing. While
some may say it’s no great shakes, as one just needs to copy the AirBnb model. It’s not easy in India, where
there are no standards being followed by class B and C hotels; where the owners are not entirely professionally
trained or oriented for the hospitality space, and where, it’s not easy to get money to improve your hotel. To
OYO’s credit, it seems to have created an understandable and compelling value proposition for partner hotels.

It can be anybody’s guess, that after a year’s good going, OYO can be in a great situation to get some big cash
after a stake-sale. Unless there’s some drastic mess, OYO looks sure to stay. It’s time when Ritesh Aggarwal
needs to get down to the task of building the OYO organization into a compelling, high-quality unit, ready to
handle the load of ten million+ customers.

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SWOT ANALYSIS :-

1. STRENGTH :

 Though OYO Rooms are mostly owned by the various providers but they are standardized under the
OYO franchise and thus people experience the same standardized service in all OYO Rooms wherever
they may be located.
 OYO started off as a one room one hotel thing in Gurgaon and now it has around 8500 properties in
230+ cities that’s its clear strength.
 It is one of the one stop shop for a budget stay in India. OYO Rooms was conceptualized with a root
idea of innovation for making the hotel stays more comfortable and easy.
 OYO focuses on making rooms available in affordable prices for its customers by subsidizing them.
 Excellent use of advertising for high brand recall.


2. WEAKNESS :

 OYO has tried to provide standardized amenities in less prices but they have not been able to do
the same with services.
 Customer is more concerned with the privacy hence they hesitate to book a hotel room online.

 OYO seems to have less integration with customer loyalty programs.

 The main drawback of OYO Rooms is that it is restricted only to budget hotels/lodges.

3. OPPORTUNITIES :

 As most of the population in India is trying to minimize their spending and focus on savings hence they
prefer affordable budget travels and stays which leads to business growth of OYO Rooms.

 People are becoming more tech savvy these days which makes OYO a overgreen.

 As the number of people who travel on business tours from both the genders is increasing in the
emerging economies which in turn increases the demand for OYO budget stays.


4. THREATS :

 Every entrepreneur in this business is looking at aggregating services. There are various online portals
such as Goibibo, Trivago, makemytrip etc. which offer various gamut services similar to OYO Rooms.

 As the number of cases of harassment are increasing, there is a negative imagery of unsafe stays.
Though OYO is not providing guarantee safety in the hotel rooms but ensures that no such incidents
happen by giving the moral commitment.
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
Data Analysis & Interpretation:- The demand for affordable stays across India is increasing manifold. The
responses from the primary research support the same. A sample of 100 respondents across the Aurangabad
have been target audience for the questionnaire to understand their preference of travelling and their perception
for OYO rooms. People go out for stay in OYO for a single day, two days, three-four days or more. The deatails
of the results of this primary research is mentioned below.

AGE OF THE RESPONDENTS

41-50
4% Below 20
15%
31-40
19%

21-30
62%


Interpratation:- From the above graph it can be stated that major 62% age group was 21-30 yrs
followed by the 31-40 yrs followed by the 0-20 yrs followed by the 41-50 yrs.

OCCUPATION OF RESPONDENTS
Professional Student
22% 20%

Self Employed
22%
Salaried
36%

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Interpretation:- It can be seen from the above graph that 36% respondents were salaried employee,
22% were self employed, 22% were professional and 20% were students.

HAVE YOU EVER FACED TROUBLES

WITH FINDING HOTELS?

No
40%

Yes
60%

Interpretation:- From the Above graph it was found that 60% of customers are having troubles
with finding budget friendly hotel.

HAVE YOU EVER HEARD OF OYO

ROOMS?
No
15%

Yes
85%

Interpretation:- The above graph depicts the opinion of the customers, 85% of them heard of OYO
rooms and 15% of them have not heard.

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 WOULD YOU DOWNLOAD AN APP FOR
BOOKING A ROOM?

No
38%

Yes
62%

Interpretation:- From the above graph 62% people would download an app and 38% of them
would not.

PREFERENCE FOR THE HOTEL BOOKING

APP
MMT
9%
GOIBIBO
9%

TRIVAGO
10%

OYO
72%

Interpretation:- It is reported that 72% respondents preferred OYO hotel booking app followed
by the TRIVAGO 10%, followed by the GOIBIBO and MMT 9%.

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 PREFERENCE FOR THE OYO BUDGET &
OYO PREEMIUM
OYO Premium
19%

OYO Budget
81%

Interpretation:- From the above graph only 19% opt for OYO Premium, while remaining of them
would prefer OYO Budget. Hence majority of people are looking for OYO budget.

PURPOSE BEHIND THE STAY AT HOTEL

Long Stays
8%
OYO Total
Holidays
12%

Corporate
Stays
9%

Fully Furnished
Hotel Rooms
71%

Interpretation:- It was found that 71% respondents said their purpose behind the stay at hotel was
Fully furnished hotel rooms, followed by the OYO total holidays 12%, followed by the Corporate
stays 9% and, followed by the Long stays 8%.

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 IF YOU GET COUPON THAT GIVES YOU 10%
OFF ON ELITE WOULD YOU GO FOR IT?
No
14%

Yes
86%

Interpretation:- From the above graph we can say from sample of 100, 86% of them would
consider going for OYO Elite in future and 14% may not buy.

DISCOUNT&OFFERS WERE MOTIVATIONAL

FACTORS
Strongly
Disagree
8%
Disagree Strongly agree
11% 27%

Neutral
13%

Agree
41%

Interpretation:- It was revealed that most of the respondents 41% agree and 27% Strongly agree
that Discount & Offers were major motivational factors , followed by the Neutral 13%, followed by
the Disagree 11%, followed by the Strongly disagree 8%.

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 CONVINIENCE IN USING APP
Strongly disagree
6%
Disagree
10% Strongly agree
29%

Neutral
13%

Agree
42%

Interpretation:- It was reported that 71% respondents were agreed that app was convenient, 13
respondents were Neutral, 16% respondents were Disagree.

PERSONAL SAFETY AND SECURITY

Strongly disagree
9%
Disagree
9%

Neutral Strongly agree

11% 47%

Agree
24%

Interpretation:- From the above graph it was found that 71% respondents were agreed that
personal safety and security were major influencing factor, 18% were disagreed, 11% were Neutral.

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 GOOD PROMOTION AND BRANDING
Strongly disagree
6%
Disagree
9% Strongly agree
28%

Neutral
16%

Agree
41%

Interpretation:- It was disclosed that good promotion and branding were major motivational factors
reported by the 69% of the respondents and 15% were disagree.

COMFOTABLE CHECK IN, CHECK OUT AND STAY

Strongly disagree
8%
Strongly agree
Disagree
24%
10%

Neutral
11%

Agree
47%

Interpretation:- It was come to know that 71% respondents were agreed that stays and check in
and check out were comfortable 18% were disagree and remaining 11% neutral.

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 CANCELLATION OF BOOKINGS WAS EASY
Strongly disagree
Disagree 6%
7%

Strongly agree
34%
Neutral
15%

Agree
38%

Interpretation:- It was reported that 72% respondents from sample were agreed that cancellation of
booking was easy, simple and fast.

SERVICE QUALITY IS GOOD

Strongly disagree
6%
Strongly agree
Disagree 25%
15%

Neutral
10%

Agree
44%

Interpretation:- It can be seen that 69% respondents reported that service quality was good.

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 GOOD OFFICIALS
Strongly AND STAFF
disagree
6%
Disagree
9%
Strongly agree
33%

Neutral
14%

Agree
38%

Interpretation:- It was found that 71% respondents said officials and staff were good and
cooperative and 15% were disagreed.

BRAND IMAGE
Strongly
OF OYO IS GOOD
disagree
Disagree 5%
9%

Neutral Strongly agree

11% 40%

Agree
35%

Interpretation :- It was reported that 75% respondents from sample said that brand image of the OYO
hotels was good and it is a major motivational factor, remaining 11% neutral, followed by the 14% disagree.

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 CHAPTER IV
4.1 FINDINGS:-
1) It can be inferred from the study that, when it comes to booking a hotel room online ‘OYO’ is the first
preference followed by ‘TRIVAGO’ and the most important purpose behind stay at OYO is ‘fully
furnished hotel rooms’ followed by ‘OYO total holidays’.

2) It is found from the research that mostly ‘students and salaried’ are using OYO Rooms, an online hotel
booking app having age from 21-30 years and below 20 too, whereas people having age more than 40
years don’t seem to be using online hotel booking apps more.

3) It was revealed from the research that OYO provides most budget friendly rooms in the hospitality
industry compares to other online hotel booking platform.

4.2 CONCLUSION:-

1. Discount offers, affordable prices for stay, convenience of using the app, personal safety and security,
quality of hotel rooms, comfortable check ins check outs and stays, easy cancellation of bookings,
accessibility and availability of staff to solve problems, brand image of OYO are the most important
motivating factors behind choosing OYO Rooms for online hotel booking over its competitors and
people are interested in giving recommendations of OYO Rooms.

2. The growth of the company is increasing by providing the rooms in the less price and good place.

3. The company is trying to increase the customer by giving them comfort zone of the place.

4.3 BIBLIOGRAPHY:-
https://www.oyorooms.com/about

https://www.feedough.com/business-model-oyo-rooms/?amp

https://en.m.wikipedia.org/wikiOyo_Rooms

https://www.oyorooms.com/blog/

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 CHAPTER V
5.1 ANNEXURE:-

Questionnaire on customer perception about oyo hotels.

Dear sir/madam, We are the student of DIETMS Aurangabad, Pursuing MBA. As a research part of our post
graduation we are doing research project on "A STUDY OF CUSTOMER PERCEPTION AND CONSUMER
BUYING BEHAVIOUR OF OYO HOTELS WITH SPECIAL REFERENCE TO AURANGABAD CITY."
This survey is aimed for collecting data about quality of services of oyo hotels, and customer satisfaction. The
collected data will be used for academic purpose only. We request your kind cooperation in regard.
* Required
1. Name *

2.Age *

Below 20
21-30
31-40
41-50

3.Gender *

Male
Female

4.City *

5.Occupation *

Professional
Self Employed
Salaried
Student

6.Have you ever faced any trouble in finding hotel?

Yes
No

7.Have you ever heard of OYO Rooms?

Yes
No

8.Would you download an app for booking a room?

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Yes
No

9.Which app do you use for hotel booking? *

Trivago
Make My Trip
Goibibo
Oyo

10.Would you prefer oyo budget or oyo premium?

OYO budget
OYO premium

11.What is the purpose behind the stay at hotel?

Fully furnished hotel rooms

Corporate Stays
Oyo Total Holidays
Long Stays

12.If you get coupon that gives you 10% off on Elite Would you go for it?

Yes
No

13.Discount & offers were major motivational factors at oyo.

Strongly agree
Agree
Neutral
Disagree
Strongly Disagree

14.Oyo booking app was convenient to use.

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

15.Personal safety and security were major influencing factors at oyo.

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

16.Good promotion & branding were major motivational factors at oyo.

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Strongly agree
Agree
Neutral
Disagree
Strongly disagree

17.Stays, check in and check out were comfortable at oyo.

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

18.Cancellation of Booking was easy, simple and Fast at oyo.

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

19.Service quality was good at oyo hotels.

Strongly agree
Agree
Neutral
Disagree
Strongly Disagree

20.Oyo hotel officials and staff were good and cooperative.

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

21.Brand image of the OYO hotels was good and it is a major motivational factor.

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

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