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STRATEGIES OF OYO ROOMS - A CASE STUDY

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 ISSN - 2229-3620 SHODH SANCHAR BULLETIN
APPROVED UGC CARE Vol. 10, Issue 40, October-December, 2020
VVS Page Nos. 140-146
AN INTERNATIONAL BILINGUAL PEER REVIEWED REFEREED RESEARCH JOURNAL
Ms. Tanya Negi*
STRATEGIES OF OYO ROOMS – Mr. Ravish Kukreti**
Dr. Rakesh Dani***
A CASE STUDY Mr. Akash Rawat****
Mr. Manish Semwal*****

ABSTRACT
The research paper would be focusing on the essence of hospitality, as hospitality is the significant key use by
hotel industry to exhibit their goodwill and concern towards the guest. The component which we will be showcasing
through our research is the positive and the negative footprint branding image of OYO Rooms which they are
maintaining for their online and offline booking. The overview of the research will be based upon the relationship
between the guest and the staff of the OYO rooms which is also referred as known as OYO Hotels. Title of research
was chosen on OYO Rooms owing to the fact that OYO Hotels are surprisingly unordinary it provides the safe space
not only to the different categories of guest. They are known for their wonderful experience at a price it is impossible
especially when it comes to family stay. The research work of author would also be discussing OYO hotels branding
strategy and business models, they are offering for excellent customer service.
Keywords : Oyo Rooms, Hospitality, Branding, Customer Service.

INTRODUCTION cities in 80 countries. OYO Brand has initiated perfecting

“When you do a reservation for staying in a hotel
after an ample research irrespective to online or offline
you book an ABC Hotel according to your convince with
lot of compromises but when you plan to stay in OYO
they make sure that your stay in make you feel like
staying at home keeping in mind your comfort zone
which they can provide with their hospitality with less
expenditure plus safety''.
OYO Hotels & Homes, is well known for its hotel
start up, the company has world's leading hotel chains
wit. The image covers the hotels and homes along with
fully operated hotels with more than 43,000 hotels with
more than over one million rooms along with holiday
homes business stay, the OYO group promises its
customer to give access to city dwellers at over 130,000
homes around the world. OYO today operates in over 800
the art of reviving old, worn down properties, and
injecting them with new OYO style.
OYO Rooms has been a crucial competitor in all
over the world; the lucrative hospitality of Oyo Rooms is
the biggest registered branded network of hotels which is
presently operating 4,50,000 listings in 5,000 cities in
Indonesia, China, India, UAE, Nepal, China . The OYO
planned to strategies by developing its company business
replica around the different location of the world
Oyo Rooms have become a synonymous name
with the hospitality sector in India. Its boom in the recent
years has given a serious reason for traditional hospitality
avenues to worry about their day-to-day business. A
reformative business idea where good hotel rooms are
made affordable has made Oyo Rooms jump up the ranks
in India's start-up ecosystem.

*Student MHM II Semester, Graphic Era Deemed to be University, Dehradun

**Research Scholar - Department of Hospitality Management Graphic Era Deemed to be University, Dehradun
***Assistant Professor - Graphic Era Deemed to be University, Dehradun
****Research Scholar - Department of Hospitality Management Graphic Era Deemed to be University, Dehradun
*****Senior Lecturer - Institute of Hotel Management, Dehradun
Vol. 10 Issue 40 October to December 2020 140 BI-LINGUAL INTERNATIONAL RESEARCH JOURNAL
The Initial stage
Oyo was founded under the original name of
Oravel in 2012 by Ritesh Agarwal, a young boy of 18
years from Cuttack, Orissa. He was a college dropout
who detested preparing for his IIT exams in Kota. Every
weekend, he got used to going to Delhi to network with
young entrepreneurs.
Oravel was initially made by Ritesh as a website to
aggregate, enlist, and book budget accommodations. He
pursued three months of research by travelling and living
at bread and breakfasts (B&BS), small hotels, and guest
houses and then turned Oravel into Oyo in 2013.
After launching Oravel Stays brand , Ritesh
Agarwal received a “20 under 20”Thiel fellowship of
USD 100,000 from Peter Thiel. Peter Thiel is a US-based
entrepreneur who is also the founder of the online wallet –
PayPal.Having a set goal, dedication, and not being
bogged down by being told what to do, is what has
contributed to the young entrepreneur's multi-million
success today. Mr Ritesh Aggarwal was nominated as
one of the 8 best young teenage start-up developers of the
world by renowned Business Insider in 2013.
He also became the world's youngest CEO at the
age of 17. Agarwal till this date functions as the CEO for
Oyo Rooms. He has also roped in IIT-Kharagpur and
Harvard graduate Abhinav Sinha as his COO.
Funding
The initial capital of INR 30 lakh was given to Oyo
by Venture Nursery. In the year March 2015, Oyo Rooms
ran their first round (Series A) of funding which ended up
being a successful venture. A total collection of USD 24
million was raised from 4 investors – Light speed Venture
Partners, Sequoia Capital, Green oaks Capital, and DSG
consumer partners.
August of the same year, the company ran another
round of funding and raised an additional USD 100
million from the Softbank Group. Jumping forward a
year – in 2016 – Softbank group, Innoven Capital, and the
previous investors showed their trust in Oyo again by
raising USD 90 million. The company's evaluation at this
point was a stagnant USD 400 million. 2017 was the year
of Series D funding for the startup which was now scaling
up. In this series, the company locked in a whopping USD
Vol. 10 Issue 40 October to December 2020
250 million led by bigwigs in the capital business. Some
of them included Hero Enterprises and former backers
like Sequoia Capital, Greenoaks Capital, and Lightspeed
Venture Partners.
Growth :
Oyo started off with a small service that was
launched for 5 cities in India. Today, it has grown into an
international service which has partnered up with 8500
hotels in 230 cities, which include countries like
Malaysia, Nepal, China, and Indonesia.
Further Plans :
Oyo Hotels& Homes are ready to boom in the
future and getting enough funds to expand and soon going
to be India's next unicorn. The future strategies they have
planned are quite popular and successful even though
with two controversies already defaming the OYO,
which is leading them to even lose their funds and
acquisition deals, the situation has become more
complicated and we are not sure about how far in the
future the unicorn status will be fulfilled.
Formerly ,Oyo used to systematize the associate
with hotels, lease some rooms, and use Oyo brand to sell
rooms. Oyo Even though the process is still the same,
Oyo's business strategy has changed its route to a new
structure.
Objectives
· To study the positive and negative impact of
hospitality service in OYO Rooms.
· To examine the branding strategy used by OYO
rooms for increasing their booking.
· To focus on the safety measures taken by hotel staff
to provide safe space.
· To identify the factor in Online Hotel Booking
which are most liked by Customers.
Review of Literature
Review of literature is an important integral part of
research so according to my stay in OYO villa, I am going
to give my personal review. Training is an essential part of
the hotel operation (Kukreti & Dani,2020) .the staff in
OYO Hotel are well trained
I as of late remained at OYO estate with my
companions in Chandigarh, during my conference
function. We were 20 individuals and wanting to remain
141 BI-LINGUAL INTERNATIONAL RESEARCH JOURNAL
at a similar lodging. We reached to a few of inns yet
couldn't discover anything beneficial. Afterward, we
reached OYO and everything was arranged. Inside 60
minutes, we had a rundown of inns that were most
appropriate for us – in the best spot, at the best cost. We
remained at OYO 9449 Shan shank estate, the rooms,
food and offices were according to the guidelines. We had
a remarkable involvement in OYO. The loosening up
bed, ideal room temperature and marvelous cordiality
helped me to remember home.
As I leave this property with crushing sadness, I'm
super siphoned about investigating another OYO in
another city today." I would propose everybody to think
about OYO for all their movement appointments." – Miss
Tanya Negi
OYO Homes& Hotels Branding Strategy
Oyo has an arrangement made up to save a piece of
the inns' record, to maintain it according to the quality
guidelines, and to hold it detained totally for OYO clients.
Past they used to rent a few rooms each month and give
them to their own clientsat an incredible edge benefits.
Presently they have arranged minor changes where the
rooms are currently not rented however individuals know
them as Oyo Rooms property.
While the Land owner serves the OYO go about as
the franchisee, OYO has a legitimate agreement with
them where the land owner needs to work according to
the pre-decided guidelines. We can even observe OYO
directing offers intends to run the OYO Manor, Homes
and Visitor House without the impedance of the genuine
Land owner.
Oyo Rooms branding strategy are :
· They lease a portion of Hotel's inventory before
signing the legal contract,
· Strategizing by giving the hotel accommodation
under their brand name – Oyo Rooms
· The property owner has to work according to the
OYO hotels provided standardized service for
customers for those rooms as they have legal
contract with Oyo.
· Reservations are done through the website and
mobile application of Oyo room
Currently the strategies of OYO Homes & Hotels
Vol. 10 Issue 40 October to December 2020
are same as they were earlier.
Whereas now the OYO brand doesn't lease the
hotel rooms anymore, but ask the property partners to
operate them as franchise.
It can be seen that they have good brand equity and
boast a 100% increase in revenue for themselves as well
as for the property partner.
Business model of OYO Rooms
· Strategy of OYO tries to focus on quality service at
affordable price, various amenities and supplies
are used as a marketing tactics in the room to
promote
· These Rooms are sold under the brand name of
OYO rooms through different Oyo application
· Practice employee development through training
in various kind of software
1. Partnership Model: Gives visitors quality lodgings
remaining at better places around India and
different nations as well. OYO homes has joined
forces with inns and use their name to do work in
various operational function.
2. Franchise Model: The inns that were the piece of
collection plan of action have now become the
piece of establishment plan of action, they have
changed over to establishments working under
OYO' s brand name to decrease operational cost
and improve usefulness.
Research Methodology
To understand the positive and negative impact of
hospitality services provided by the OYO to customer,
research paper case study research methods ,formulated
in a way that it help to reveal the perception of a the
traveller.
· Customer satisfaction with OYO hospitality
· Identifying the reasons for choosing OYO stay,
· Satisfaction with the Location booked Online
· Providing safe space for bachelorhood.
Research Locale
House no 531 known as OYO 9449 Shashank
Villa, behind DT mall, Panchkula, Chandigarh. They
provide all the basic amenities for the customer happy
stay with heartfelt satisfaction.
142 BI-LINGUAL INTERNATIONAL RESEARCH JOURNAL

Sources of Data
Data were collected during my stay in OYO Villa
with my 19 friends. Researcher has used an common
technique of data collection including important
interviews observations and reviewing literature related
to OYO room
Additionally, participant observation was a
continuous method of collecting data throughout the
duration of the research. Interviewees were my with our
friends as this our original research work. In addition to
interviews, which provided a setting for formal
conversations, which was honest as professional as more
than 8 were studying the hospitality administration and.
Research work conducted focused group
discussion Focus group discussants were chosen based
on referred by my key informants. My groups included
the age group of 20 to 27 years old people, 2 friends were
married and their wife were staying with us during that
stay and we have 1 couple with 2 twin kids in the group.
So in total 6 people were married and 14 were single.
Whereas 11 were male and 9 were female with two new
born babies.
A. Customer satisfaction while happing an pleasant stay at OYO 9449 Shashank Villa
Vol. 10 Issue 40 October to December 2020
Primary data are those which are gathered and for the
direct and consequently end up being unique in character,
which we gathered on the field examining with
respondents. We posed number of inquiries from them
and got reaction from their side. The principle wellspring
of Primary information was Focus bunch conversation
and contextual investigations.
Secondary data .these are the data which is prepared by
someone else and used by us such as books, magazines,
article etc
In this study both qualitative measures and quantative
measures have been used. In qualitative method field
observation, FGD, case study and photography have been
used. In quantitative analysis, I have self-prepared
questionnaire and done my survey .The descriptions of
both the methods are as follows:-
Qualitative Tools
Observation
Observation is a fundamental aspect of any
discipline and has been playing pivotal role in the
discipline. It deals with noting and recording of events
and human behaviour without formal manipulation of
variables operating in the events was undertaken in the
present research.
Interview
Interview is a formal or informal meeting between
two people or among a group of people for the purpose of
obtaining information about something in particular. It is
more appropriately a face to face conversation which is
always goal directed.
143 BI-LINGUAL INTERNATIONAL RESEARCH JOURNAL
 According to my research work out of 20 people
staying in the villa , 12 people have said that they were
overjoyed with the villa services and specially enjoying
the Wi-Fi, Swimming Pool amenities , 5 people said that
they were happy with the services and would like to
B. Identifying the reasons for choosing OYO for their stay.
According to this chart out of 20 customers 9
people were staying in OYO because it gives online
reservation discount, 3 people said they were revisiting
c. Satisfaction with the Location booked Online
According to the responses 12 people said that they
are happy with the online booking and satisfied with the
location and photos shown of the rooms and amenities are
true and they are satisfied, 5 people said that they will
revisit and again try to gain the hospitality and would like
Vol. 10 Issue 40 October to December 2020
return again except the food needs to improve whereas
rest 3 people were just satisfied with the hospitality the
main reason for their dissatisfaction was they were not
having a open balcony and going through Wi-Fi
connectivity issue .
but in different city, 4 people said that it is pocket friendly,
and 4 people cracked a joke that we wanted to stay with
our friends and enjoy our bachelorhood
check other rooms and rest 3 percent were not happy as
they were facing problems related to Wi-Fi and not
having a balcony to see the beautiful view which was
shared by their friends.
144 BI-LINGUAL INTERNATIONAL RESEARCH JOURNAL
D. Providing safe space for bachelorhood.
According to my research out of 20 people there
were 14 single people so I have only recorded their
response for this question so out 14, 1 person was not
happy with the hospitality and safety measures due to his
personal reason , 4 were satisfied with the safety space as
they were tired during the time of checking and the staff
was following the rules by asking about the Identification
card with lead them to bit irritation due to tiredness and
rest 9 people were happy with the safe space provided,
according to them the OYO gives the best stay without
any interference with the nice room and basic amenities
with pocket friendly charges.
Conclusion
OYO rooms is the emerging new concept which
can be stated as the marketing platform of the budget
hotels, the pricing structure is on the lower side along
with various supplies and amenities.OYO group has
categorically used the target market for the budget hotel
and standardize the services of the hotel which could
benefit the budget guest
Another Strategy of OYO rooms is the
personalised service the staff is confident and provide
personalised services to all category of guest
According to my research OYO Rooms has
positioned itself as an forerunner brand rather than a
traditional hotel chain. This has helped them to stay fit on
capital and operational costs, and more importantly, ramp
up in no time.OYO Hotel provide safe stay for solo
travellers, couples, business travellers, women, etc.
Vol. 10 Issue 40 October to December 2020
Customers are getting attracted towards the fancy
lobbies, elegant lounges, superior spa, for there stay in
OYO.
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