Marketing Management

CIA – I

1. Introduction

OYO Rooms, also known as OYO Hotels & Homes, is the world's third-largest hotel
network, offering consumers a comfortable room stay and assuring the acceptability of
services in over 80 countries. OYO Rooms was launched in 2013 by Ritesh Agarwal (one of
India's youngest entrepreneurs and the company's founder and CEO), and it has since grown
to become the fastest-growing hotel network both offline and online.

Product Profile:

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  Hotels Rooms
 OYO Flagship
 OYO Townhouse
 OYO Wizard
 Studio Stays
 Events & Other Long Stays
 Commercial Places

Vision:

The company's vision is to become the most preferred and trusted hotel brand in the world. 

Mission:

OYO is a global platform that empowers entrepreneurs and small businesses with hotels and
homes by providing full stack technology that increases earnings and eases operations.
Bringing affordable and trusted accommodation that guest can book instantly.

2. Macro Factors and PESTEL Analysis

2.1 Political Factors:

Government stability

 OYO Rooms' growth and development are aided by solid political structures and
organisations. Another Unicorn in the Making the commercial and business decisions,
the judiciary of the country is independent to a large extent Government stability
allows enterprises such as OYO Rooms to flourish. 
 High government stability will also attract resources for industrial action as a whole,
which in turn will boost competitors performance and improve overall competitive
positioning in the market. Furthermore, the government is adhering to all the rules and
regulations under WTO norms.

 
Tax policy

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  Government subsidies and advantageous tax rates will also assist OYO Rooms
Another to keep its competitiveness by limiting its costs of doing business, thanks to
favourable tax regulations. As a result, corporate costs will not be passed on to
consumers, allowing consumers to benefit from favourable and competitive pricing.

Competition regulation

 The government and political institutions and authorities must keep an eye on industry
competition. This will ensure that businesses use fair play in their product
development as well as their commercial techniques and strategies. Competition
regulation is critical for the protection of all groups and stakeholders, as well as the
preservation of the rights and interests of linked stakeholders.

Trade blocks

 Businesses like OYO Rooms, as well as ,it  can benefit from trade blocs and treaties
established and ratified by the respective country of origin. Hence trade blocks can
help companies like OYO Rooms Another Unicorn in the Making by cutting resource
prices, lowering the cost of doing business, and expanding the availability of skilled
individuals.
 Companies like OYO Rooms can use trade blocks to make their products and services
easily accessible to consumers through numerous channels and distribution agents.

2.2 Economical Factors:

Inflation rate

 For companies like OYO Rooms to thrive, the economy needs a moderate inflation
rate. A low inflation rate would also assist the business expand and contribute
positively towards enhancing customer confidence and spending habits. A higher
inflation rate would result in lower disposable income, which could harm businesses
and companies, as well as lower consumer confidence. 

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  A higher inflation rate would result in lower disposable income, which could lead to
lower overall expansion, which could harm businesses and companies, as well as
lower consumer confidence. A lower inflation rate will result in a significant rise in
disposable income, which could boost competition, particularly through pricing
methods that could lead to unethical price wars that exploit consumers.

Interest rate

 A low interest rate will assist businesses and companies such as OYO Rooms, in
obtaining bank loans. This business loan would be utilised for expansion and
development. This business loan would be utilised for expansion and development. 
 Individuals would be able to take out personal loans with moderate to low interest
rates. Lower to moderate interest rates on personal loans will lead to increased
consumer purchases and consumption patterns. As a result, firms like OYO Rooms
hence will see an increase in sales, consumption, and penetration.
 
Consumer spending trends

 The higher consumer’s spending is also reflective of higher purchasing power, which
is important for increasing overall consumption patterns, and health of the economy.
These higher consumer trends can be positively influenced through product quality
and marketing strategies

Unemployment trends

 Rising unemployment rates could be a sign of a skills and knowledge gap in the
labour force, which would affect consumers by raising product pricing. When labour
is imported from other sources for work, the higher pricing will be related with an
increase  the cost of doing business.

2.3 Social Factors:

Demography

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  Because the majority of customers are from the younger spectra, a higher proportion
of the younger population is advantageous for OYO Rooms because it opens up
avenues for the company to a larger consumer population base.

Education

 A higher level of education in the population is desirable for a variety of

reasons .Higher education results in more talented, skilled, and knowledgeable
individuals in the talent pool.

Concern for health

 According to consumer research and behavioural assessments, OYO Rooms has

introduced health aspects into its marketing and has added health features to their
products (health and hygiene factors especially post the covid situation)

2.4 Technological Factors:

Technological Infrastructure

 Businesses such as OYO are increasingly incorporating technological advancements

and innovation to improve business efficiency and effectiveness. There is a high rate
of innovation across all industries, making companies like OYO Rooms both
competitive and progressive.
 Improved technological infrastructure also aids in the attraction of foreign direct
investment, which leads to further development and advancement. Improved
technological infrastructure also aids in attracting foreign direct investment, which
leads to additional development and growth.

Internet adoption

 Internet penetration is high in the country and across all consumer markets. The
internet is widely used in personal and social lives, as well as for professional
purposes.
 Higher internet penetration reflects a more progressive and educated population,
which is advantageous for OYO Rooms to reach consumers, as well as for marketing
and promotional strategies to directly interact with consumers and gather feedback.
As internet penetration has increased, OYO Rooms has been able to improve its

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 quality and delivery while also engaging in strategic communications and marketing
processes.

Utilization of social media

 A larger proportion of the population is made up of youth and middle-aged people

who rely heavily on social media for connectivity.
 Increasingly, businesses such as OYO Rooms are using social media to gather
consumer data and information. OYO Rooms also interacts with, gathers feedback
from, and communicates promotions to customers via official social media channels.

R&D investment

 There is a high level of both domestic and international investment in the country's
technological R&D.The large investment aids in the advancement of industries and
the provision of new, more flexible, and effective methods of business operation and
other business processes.
 Increased investment and related research has also resulted in a higher rate of
innovation. Businesses benefit from innovation and development as a result of overall
industrial growth, as well as the development of a competitive edge for the industry in
the global market.

2.5 Environmental Factors:

Recycling

 OYO Rooms has established designated places for the disposal of recyclable
materials.
 OYO Rooms, like many other players, is launching a new product line of recycled
products for consumers to enjoy.

Waste management

 OYO registers with waste management authorities and institutions in order to comply
with legislation, maintain checks, and avoid future complications.
 In terms of environmental sustainability, OYO Rooms already has a controlled and
designated waste management mechanism in place, as well as a waste disposal
method that is ecologically benign.

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Green consumption

 OYO Rooms participates in environmentally responsible CSR activities on a regular

basis.
 OYO Rooms has also launched a green product line, which is a spin-off of its existing
items. The company intends to gradually raise the weightage of the green product line
in order to increase its role in environmental sustainability.
 OYO Rooms also has relationships with suppliers and distributors in its integrated
back chain who adhere to strict environmental sustainability criteria.

Renewable energy investments

 OYO is rapidly utilising solar energy and hydroplanes for operation management and
business activities.
 OYO Rooms has a small-scale company-controlled hydro plant to assist with
production activities.

2.6 Legal Factors:

Health and safety law

 OYO Accommodations have stringent laws in place to protect employees' health and
safety at work. The organisation periodically checks in with firms to ensure that safety
nets, drills, and preventative measures are in place.
 The focus of OYO Accommodations is not just on Employees' bodily safety and
health, but also their emotional and mental well-being. OYO Accommodations values
staff safety and health and is continually seeking to improve it.

Employment laws

 OYO ensures employability contracts to ensure a good relationship between all

parties concerned, as well as the absence of misunderstanding or collusion. OYO
Rooms adheres to employment policies and tells employees about the contract during
the hiring process.
 The HR department at OYO Room also organises workshops and training sessions for
employees on a regular basis in order to engage them and make them aware of
employment regulations and other legal forms.

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Anti-discrimination law

 OYO Accommodations has always been comfortable with workplace diversity and
has created internal company standards to promote it. From recruitment through
promotion, the organisation adheres to anti-discrimination legislation in all of its
procedures.
 All personnel are subjected to diversity trainings and workshops on a regular basis in
order to avoid discriminatory and biased behaviours, which could have serious
consequences. OYO Accommodations is an equal opportunity employer.

 OYO Accommodations also assures that there is no prejudice within the company and
that the organisational culture is devoid of poisonous substances. OYO
Accommodations abides by anti-discrimination regulations and regularly invests in
training and employee development even

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 Micro Factors

The term "micro environment" refers to the environment that comes into direct contact with a
corporation and has an immediate impact on its daily operations. It is a collection of forces or
variables that are near to the organisation and have the potential to influence the firm's
performance as well as day-to-day operations.

Customers:

Customer satisfaction is directly related to growth of the business. One of the most essential
variables influencing positive customer behaviour such as loyalty and personal
recommendation is customer experience. Customer satisfaction gives Oyo with significant
competitive benefits in the hospitality business, leading to increased profitability and
expansion.

Age, income, profession, gender and education of customers have a significant impact on
Oyo’s segmentation decisions.

Company:

Previously, the Oyo Rooms Business Model was a hotel aggregator. However, Oyo's business
model differed from Airbnb's in that it focused not only on the discoverability of partners
among users, but also on the standardised quality of services supplied. Customers used to buy
services from the Oyo Rooms brand, regardless of who the partner was. Oyo, like Uber,
offered rooms of consistent quality and price.

However, as the company's brand equity grew, the founders decided to shift the company's
business plan to a pure franchise business model. Under the franchise model, hotels currently
account for 90% of the company's revenue.

The corporation no longer leases hotel rooms, but instead asks its hotel partners to run them
as franchises. They have a strong brand and can boast a revenue gain of 100% for its partner
hotels. Previously, the business would lease hotels at a certain fee and then sell them to
consumers at a take-up rate. This has been changed to a revenue model based on
commissions.

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Oyo rooms takes a 22 percent commission from its hotel partners. This commission,
however, varies depending on the services supplied by the business.

Public:

Oyo looks into the nature of social contract between government and society. It also focus on
attitude towards Health & Safety which is often reflected in the quality of the products and
cost structures of manufacturing processes. Oyo Vit has stringent norms for health and safety
norms so in emerging economies it may have to compete with players who don’t have high
cost structures that of Oyo Vit. 

With regard to the Level of Social Concerns & Awareness in Society , higher level of social
concerns in the society often result higher consumer activism and pressure from non-
governmental organizations, & pressure groups. 

Political and Public Intermediary 

Political Governance System –The Political Governance System is an intermediary and

strategies based on the stable political environment make an impact on the way business is
run.

Local Governments Play

Local governments are highly influential in the policy making process and implementation as
most of the policies and regulations are implemented by the local government as enforcement
agencies mostly report to local government in their own states regarding various laws.
Unrest within the Country & Chances of Civil Unrest – This can be a major challenge for
business, however Oyo operations are not facing any dangers from any kind of civil unrest or
internal militant operations in the country.

Segregation of Political Responsibilities between Different Government Agencies – There are

numerous government agencies which reduces the risk of pressure by one agency, this can
increase time and cost of doing business and getting certifications and clearances.

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International Trade & Other Treaties – The country has a good record of adhering to
international treaties it has done with various global partners. The government of each party
has adhered to the treaties done by previous governments, so there is a consistency in both
rule of law and regulations.

Competitors:

Oyo has grown exponentially in the last seven years, with thousands of hotels, vacation
homes, and millions of rooms in hundreds of cities across India, Malaysia, the United Arab
Emirates, China, Brazil, Mexico, the United Kingdom, the Philippines, Saudi Arabia, Sri
Lanka, Indonesia, Vietnam, and the United States. Great success is accompanied by a slew of
competitors eager to eat into your market share. Various competitors to OYO Rooms in
budget hospitality industry are:

o Makemytrip
o Yatra
o Cleartrip
o Expedia
o Booking. com
o Agoda
o TUI
o Sita Travel
o Kuoni
o Via. Com

Marketing Intermediaries:

Agents, wholesalers, and retailers; marketing services agencies; physical distribution

organisations; and financial institutions are examples of independent firms that aid in the
flow of goods and services from producers to end-users. Middlemen are another name for
them.

As OYO itself provides a platform which bring all the hotels together in a single platform
providing an platter full of options to choose from hence, OYO itself acts as a marketing
intermediately.

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 STP Analysis

Segmentation:

This is not, however, the only reason for OYO's

enormous success. Its effective marketing strategy
has ensured that it remains a top hotel chain. As
long as there are low-cost travellers and customers,
OYO's future will be bright. Geographic,
Demographics, Psychographics, Behavioural, and
Benefits Sought market segments are used to divide the market.

Geographic

OYO operates with its hotels in all around the world hence, they have to segment their
product offerings on the basis & preferences of the customer profile of that region they are
operating. Based on the place OYO divided their products in various types of
accommodations starting with premium to mid-range and budget hotels which can be availed
by all sets of consumers.

Statistics and demographics

 OYO rooms can be found in 170 Indian cities. As a result, finding an OYO room is
easier for any average customer, regardless of region, city, or climatic conditions. It
has a partnership with around 2000 hotels, allowing people to find a decent hotel
room anywhere.

Demographic and psychographic information

Age, income, gender, generation, marital status, family size, occupation, education, ethnicity,
and religion are examples of demographics, whereas psychographics are examples of
psychographics. With OYO rooms, there are no such constraints. Regardless of the above-
mentioned demographic and psychographic characteristics, OYO offers its customers rooms
with all of the previously mentioned amenities.

Behavioural

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The most important behavioural role is usage rate. The usage rate of any regular customer is
determined by customer loyalty. Customers are dissatisfied with a few of the hotels and their
standards under OYO, so the company lags behind in terms of customer loyalty.As a result,
OYO should establish some guidelines for hotels in order to better serve its customers. If the
company can find a way to increase customer loyalty, there are plenty of opportunities for the
company to move forward in a positive direction.

Desired Advantages

The main characteristics of an OYO should be convenience in finding the room. This aspect
can be found and served well throughout OYO. Second, value for money is critical. The room
rates are not more than Rs 4000, which will satisfy most customers. Finally, safety
precautions and the condition of the rooms are discussed.

Segmentation based on Behavioural:

1. Luxury Travellers:

OYO Townhouse:

The OYO Townhouse is designed to meet the needs of millennial travellers. From the
booking process to the customer-friendly service, every amenity provided by the hotel is
designed to ensure that every guest has the most comfortable and cost-effective stay possible.

The modern and sleek living room areas provided by townhouses with elaborate cuisine
variety serve exactly this purpose. It is the ideal informal setting for rejuvenation, catching up
with friends, or holding meetings. They, on the other hand, make our personal space the most
interesting place to be.

OYO Luxe Stay:

The OYO Home Luxe Hotels provide the ideal blend of residences that provide warmth and
comfort, as well as a luxurious and stress-free stay-all without requiring us to frequently
reach for our wallet. The OYO Home Luxe residences provide us with a comfortable and
memorable stay, with parking facilities, wheelchair accessible routes, 24/7 customer-friendly
service, and neighbourhoods that offer everything we could possibly want.

2. Backpackers:

OYO Homes:

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OYO Home seeks to find a 'home away from home' in every location, whether it's a vacation
near a beach or a villa on an exotic island; a smart studio apartment or a trek through the hills.
OYO Homes are specially designed to provide a one-of-a-kind and distinctive lodging
experience. Each one is designed to complement its beautiful surroundings and offers the
same level of service, amenities, comfort, and convenience as OYO managed hotels. They
are completely private homes that provide high-quality amenities, service, and surroundings
while being managed by the OYO team on a budget.

OYO Spot On:

SPOT ON is a category aimed at extreme budget travellers and transit passengers with a low
price point. With SPOT ON, we get a stay with few amenities but clean rooms, sanitary
restrooms, and good value for money. If we are on a tight budget or travelling for a short
period of time and all we want is a comfortable place to stay, the nearest SPOT ON is the best
option within the constraints.

3. Business Executive:

Oyo SilverKey:

OYO SilverKey combines comfort with space to maximise productivity. Fully equipped with
cutting-edge amenities, professional staff, 24-hour service, and power technology, SilverKey
provides a secure environment in which to work and play.

Because it is typically located near corporate clusters, it is an ideal stop for those on business
trips or those who cannot afford to be away from modern surroundings for too long. After a
day at work or a trip into the city, we can return to these residences and relax in the soothing
atmosphere—all without the formality, rules, and rates of hotels.

Collection O:

Collection O is intended to assist guests travelling for business or pleasure in locating

premium hotels where they can stay and enjoy a luxurious experience. The mid-market brand
is a mid-scale business hotel that caters to business travellers. No matter where we are or how
much money we have, the Collection O Hotels strive to provide affordable stay options
without sacrificing quality, location, or service.

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With an increase in corporate travel, it can be difficult to find the ideal accommodation that
meets all of your requirements. Meeting with clients on a regular basis, attending multiple
training sessions, and navigating a new city- corporate travel can be exhausting.

Recognizing this, Collection O hotels are located in 37 cities across India, catering to the
needs of corporate travellers looking for quality and cost-effective options that meet their
personal and professional needs. The brand's goal is to change the way corporates travel and
ensure that every type of trip, whether for pleasure or business, has a stay-option that meets
its nee

Targeting:
Targeting is a three-step process used by marketers to select the appropriate sector to target.
In marketing, this method is known as STP, which stands for segmentation, targeting, and
promotion. Marketers divide their target audience into segments based on demographic
information such as age, geographic location, hobbies, interests, and previous purchase
history.

Positioning:

OYO's position is referred to as standardized budget hotels,' which is also known as

aggregators. It is aimed at business
executives and frequent travellers, as
previously stated.

These are the characteristics:

Price/Quality Ratio

OYO has established itself in a market

where money is valued. OYO offers all
of its best services at a low cost, which
adds value to the company and, as a
result, attracts more and more customers on a regular basis.

Brand Positioning

It has positioned itself as a brand that genuinely cares about its customers.

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Oyo Money Concept

Customers have received numerous offers and discounts on a regular basis. OYO uses the
concept of 'OYO money,' where discounts are sent to the wallet and customers can use that
OYO money the next time they check in. This gives OYO an advantage in retaining its
customers as long-term customers.

Value for money in a standardised budget hotel-

OYO rooms have chosen to be a standardised budget hotel aggregator with locations all
across the country. OYO rooms, India’s largest budget hotel brand, are one of the most
popular hotel booking platforms for the country's young demographic. The exceptionally
flexible booking regulations of OYO, which accommodate unique requirements and wants of
youthful guests, are credited with the company's increased popularity among young
generation

Luxurious productive place

In addition to budget rooms for students, they also provide luxury productive places for
businessmen and other members of the working class.

Open grass greenery

Depending on the hotel chosen, Oyo lodgings provide open grass greenery options. Despite
the many changes in the Hotel sector, there are always a few rigorous guidelines to follow.
One of them is the 11 a.m. check-in, which has become more of an industry norm.

Most of the hotels refuse an earlier check-in, even after multiple requests. This is a real
problem for students who travel during the night and look for immediate check-ins at hotels
early in the morning.

Room service might be better

It has positioned itself as a company that cares about its customers, with no sacrifice on
quality. In recent years, having access to the internet has become more of a need when
staying in a hotel. Because students are always connected to their mobile devices, an
immediate Wi-Fi connection is always a good indication. Avoid the headache of manually
connecting to a Wi-Fi router by asking the hotel reservation for the name and password.

Marketing Framework

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The marketing mix framework, which incorporates the four Ps, is used to analyse Oyo
Rooms' brand (Product, Price, Place, Promotion). Marketing methods include things like
product development, pricing strategy, promotion planning, and so on. These business
techniques help the brand succeed, according to the Oyo Rooms marketing mix.

SWOT Analysis

Strengths

 Standardization: Oyo rooms are largely held by diverse providers, but they have
recently been standardized under the Oyo franchise, ensuring that consumers receive
consistent service in all Oyo rooms, regardless of where they are located.
 The spirit of innovation is at the heart of Oyo rooms, which were created in response
to a highly innovative need for a one-stop shop for an affordable stay in India. The
company's strong spirit of innovation is seen in policies such as the policy to
standardise rooms, among many others.
 Subsidizing Hotel Stays: Oyo subsidises hotel rooms to make them more inexpensive
for customers, and the company, like Ola and Uber, has done well in its field.

Weakness

 A co-branding strategy: Oyo does not own any of the rooms it rents out. However, it
functions more like a hotel aggregation platform, allowing buyers and sellers to trade
with one another through a single Oyo-provided window. As a result, they just
cobrand with a number of low-cost hotels but do not own the rooms.
 Tight margins: Hotels with an Oyo partnership can also use other agencies, which
Oyo can't do anything about. In this scenario, the strategy relies only on the
profitability of the margins provided to their hotels, which can be problematic in the
long run.

Opportunities

 As the world grapples with the legacy of repeated recessionary trends, salary cuts, and
job losses, most higher-end hotels are failing to balance supply and demand. This

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 expands the market for aggregators like Oyo, as most hotels prefer to hire outside help
to get new business.
 Focus on low-cost lodging: Previously, the trend was more skewed toward luxury and
boutique hotels, but that is no longer the case. People are attempting to cut costs and
save money, thus budget hotels that can provide adequate boarding and lodging
services are in high demand today.
 In emerging economies, there has been an increase in the number of business
travellers: In emerging nations, the number of people travelling for business, both
men and women, has increased dramatically. As a result, inexpensive stays are in high
demand.

Threats

 With decreasing entry barriers, every new entrepreneur is considering aggregating

services. Many internet portals, such as ibibo, trivago, makemytrip, and others, offer a
comparable range of services to Oyo.
 Growing safety concerns: There is a lot of negative imagery these days regarding
hazardous stays, and the number of complaints of harassment is on the rise. Though
Oyo cannot guarantee the safety of its hotels at any given time, it has a moral
obligation to ensure that no such tragedies occur.

Blue Ocean Strategy

The Blue Ocean Strategy (BOS) suggests a new approach in which there is no competition.
Rather than competing in an existing market with your goods, create a market where you
have complete monopoly.

Chan Kim and Renee Mauborgne coined the term "Blue Ocean Strategy" to characterise this
new economic approach. In general, businesses operate in a "Red Ocean" environment, where
they compete for a larger chunk of the pie. The purpose of "Blue Ocean," on the other hand,
is to make the competition obsolete, not to defeat the competition. The authors presented a
"Four Actions Framework" to help businesses uncover an uncharted blue ocean.

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Eliminate: Which variables in the long-running competitiveness in the industry should be
removed?

Reduce: In relation to industry standards, what factors should be maintained to a minimum?

Raise: Which criteria should be raised considerably above industry standards?

Create: What components of the mix should be introduced that the industry has never
offered?

Oyo provides room recommendations for solo travellers, couples, business travellers, women,
and others.

The majority of what you see at 3 star hotels, such as beautiful lobbies, gorgeous bars, and
outstanding spas, are rarely the reasons people choose them. Basic hygiene, a pleasant
setting, and regular service attract customers to such branded hotels. The core of Oyo's value
innovation is to eliminate the extras while maintaining hygiene and uniformity.

As a result, compared to 3 Star, Oyo is able to drastically cut the price per room while
boosting the value to clients.

Oyo Rooms invites 3 star customers to trade down, while non-star customers trade up,
resulting in a disproportionate amount of business. As a result, Oyo has a stronghold over
both customer groups.

Business Model

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Given the scale of the market, OYO Rooms set out to create a dependable, trustworthy brand
in the budget hotel category ($15-$30/night) that would give consumers with a consistent
experience. On the one hand, it encourages hotels to join the platform and improve customer
service, while on the other, it attracts travellers by serving as the go-to-brand for the budget
market. Travellers are more inclined to stay at an OYO Rooms facility than at an
unknown/unbranded hotel, resulting in higher OYO platform member hotel utilisation. OYO
Room makes money by taking a cut of all reservations placed on their website.

Asset Light:

Rather than building hotels from the ground up, which would cost a lot of money and time,
OYO works with existing hotel owners to bring them under their umbrella brand. This is a
low-cost, asset-light approach to brand expansion across the country. The hotel's day-to-day
operations are also entrusted to a local entrepreneur who is significantly more capable of
business management than OYO.

Standardization:

Budget travellers are looking for low-cost lodging with basic amenities like wifi, clean
bedding, breakfast, air conditioning, and hot showers. Oyo works with existing hotel owners
to update infrastructure and provide these important services to visitors. Hoteliers are more
likely to invest in these facilities in order to provide greater service to their customers. At all
OYO locations, travellers get the promised experience, which leads to repeat purchases and
word-of-mouth referrals.

Marketing and brand building:

Hotel owners are promised by OYO that by attracting more guests to their establishment,
they will increase utilisation and revenue. To fulfil this promise, OYO invests in marketing
and brand building initiatives such as national advertising in major publications and
SEO/SEM/internet advertising. OYO now has over 3500 homes in over 150 cities across
India, allowing them to invest in marketing. Each of the partner hotels benefits from the
national brand development, which they could not have done on their own.

Value-added Services:

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Due to its reach and presence across all major Indian cities, OYO has dived into giving
additional income creation chances to its partner hotel. It recently launched on-demand café,
which allows users to order food from one of its partner hotels, as well as on-demand
cleaning, which allows partner hotels to execute housekeeping services at other customers'
residences. These and other value-added services would allow OYO to expand its platform
and profit from scale by adding additional partner hotels.

Business & Operating Model Alignment:

OYO's business and operations concepts are tightly connected. They are aware that they are
not a hotel management company and do not manage hotel properties as a result. They are
totally focused on bringing more hotels onto the platform, building the 'OYO Rooms' brand
to attract more clients, and investing in technology to enhance this solution and provide more
revenue generation choices to their partner hotels. They've raised a lot of money ($125
million or more), and they're on their way to becoming a multibillion-dollar company.

Conclusion

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Oyo, India's largest hotel room chain and fastest-growing hospitality chain of living spaces,
franchised hotels, and homes, was founded with the goal of providing affordable living
spaces. Ritesh Agarwal founded the Desi Airbnb OYO with India's price-sensitive, luxury-
seeking, and deal-conscious segment in mind. As the Government of India pushes the
envelope on Make in India, OYO is undoubtedly among the notable ones. With a global
presence that includes China, Brazil, Mexico, the United Kingdom, the Philippines, Japan,
and the United States, among others.

OYO has been aggressively promoting new content in order to attract tier-2 and tier-3 cities.
It wanted to reach out to its target demographic of young people who are constantly fidgeting
with their phones and scrolling down until they find something interesting. OYO's digital
marketing campaign spans multiple channels, with a focus on personalised customer service.

Bibliography

 Pahwa, A. (2021, September 14). Business Model Of Oyo Rooms - How Oyo Rooms
Work. Feedough. https://www.feedough.com/business-model-oyo-rooms/

 PESTEL Analysis of OYO Rooms Another Unicorn in the Making. (2021).

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