OYO ROOMS

SHAIKH SAIF ALI

9124
 • OYO rooms, commonly known as OYO
was founded by Ritesh Agarwal in 2013
and in merely 5 years since the inception
of the company it already has a PAN
BACKGROUND India presence and recently it even
OF OYO ROOMS started it’s operations in china
• With a single property in Jan 2013 and
now with 8500+ properties, OYO has
marked it’s presence in the Hospitality
Industry
WHAT DO WE THINK?

• We as management students think that

OYO has still a huge market which is yet
to be tapped and the rate on which it is
growing is directly in proportion with this
objective
• So, We think that the company has bright
prospects in the future due to various
factors and we would analyze those
factors and even list out the opportunities
and threats the company has to face
 No Investment in
Infrastructure

Acts as an intermediary
between the customer and the
property owner
OYO
ROOMS- Budget Stays
INDIAN AIR
BNB? Complimentary Breakfast

Presence in Tier II and Tier

III cities
WHY DOES OYO HAS AN EDGE?

NO Investment- Generally it is seen that, Hospitality Industry

requires huge sum of investments but the model OYO follows
is, it acts as an intermediary between the consumer and the
property owner, and due to this the funds can be diverted into
functions like marketing and customer engagement
“OYO Welcomes Couples”: OYO started this marketing
campaign, and “Link”, within a few days it gained 50K plus
views
 PAN India Presence : OYO has
a presence in 80+ cities in
India, with mostly targeting tier
II and tier III cities, with the
WHY DOES service available at affordable
OYO…CONTD. cost OYO’s revenue two folded
Introduction of OYO
townhouse: OYO townhouse
are owned by OYO and
managed by it’s staff to provide
better service to the clients
FUTURE PROSPECTS
OF OYO
 OYO recently moved to event hosting
space and provided banquets to it’s
customers at a affordable cost, this
segment of market has huge potential
which was yet to be explored
WEDDING The company believes “wedding
banquet” segment as fragmented, low
BANQUETS yield and broken service business.

OYO would focus on digitizing the

wedding banquet sector and provide the
service at an affordable cost
 OYO has already started it’s operations in
China which is a huge market but they
have a stiff competition in the budget
hotel segment

GLOBAL Would require fresh round of funding and

the company is in talk with softbank to
PRESENCE raise up $800 million to accelerate
business in India and expand
internationally
Already functioning in Malaysia and
Nepal
 Introduction of a membership
scheme named “OYO
WIZARD”

OYO The members of this club would

WIZARD receive an additional discount of
10% and receive extra benefits
such as extra OYO money
OYO is planning to widen it’s
customer base and retain the
original customers
 OYO planned to penetrate into
travel packages segment to compete
with Makemytrip and other travel
agents

TRAVEL With categories like ‘nature’,

PACKAGES ‘honeymoon’ and ‘budget trip’,
OYO plans to target different
customers according to their
requiremnents
Cater to National and International
travel needs of the customers
 An AIR BnB model,
where anyone can register
their property and take a
OYO HOME charge for it’s use on a
daily basis
The company faces
serious competition from
AirBnB which is already
established it’s brand
holding in India
SWOT ANALYSIS
 Standardization : The
properties are owned by
various providers but they are
standardized and they follow
STRENGTH some protocols as guided by
OYO
S
Growing Network : Starting
from one room and now with
8500+ properties in India,
OYO is clearly growing at a
compounded rate, and that is
it’s one of the major strengths
 Innovation: From budget stays to
wedding banquets to global expansion,
OYO has showed innovation in every
business strategy

STRENGTHS
.. CONTD..
Subsidizing Hospitality Industry : With
rooms starting at 999 inclusive
breakfast is something of a benchmark
that the industry has received, with
OYO the hospitality industry has
shifted it’s focus from Money Making
to Customer Satisfaction
 Poor Service quality: a lot of customers
complain about this issue (as seen in
OYO budget stays reviews). With room
@ 999 INR it is difficult for OYO to
even provide with proper service that a
customer expects, this can be considered
WEAKNESSES as an area of improvement for the
company
Tight Margins: Property owners can even
tie up with other branded agents like ‘Go
Ibibo stays” and OYO can’t do anything
about it
 Global Expansion: OYO has already expanded
in China with ride hailing giant DIDI and
existence in 26 cities. It is now setting up
businesses in Indonesia, UK and Europe.

OPPORTUNITIES

Growing demand for aggregators: As the

world reels from the aftermath of repeated
recessionary trends, pay cuts, and job losses,
most higher end hotels are struggling to
balance supply and demand. This increases the
scope for aggregators like Oyo since most
hotels would prefer to take external support
for sourcing new business.
 Competition: Competition is a threat
prevailing for any kind of business, but
in case of hospitality it is most evident.
One bad service and the customer
would try not to book you next time.
Major competitors are Goibibo, MMT,
THREATS Stayzilla, Yatra.com and Paytm.

Safety Concerns : Multiple researches

are done by OYO in this regard. OYO
does not guarantee safety at any point
in time for its hotels they have a moral
commitment to ensure that no such
untoward incidents happen.
SUGESSTIONS THAT WE
RECOMMEND
• OYO should improve the service quality in the low budget
rooms they offer
• The property owners should get some higher margins on
their property so that they would be motivated for
expansion
• OYO should improve it’s presence on social media so that
they could receive continuous feedback from the consumers
• OYO does not target the luxury hotel segment, so they are
losing out in that category
FUTURE OF OYO

• OYO will grow as a company as it also has the advantage of

being among the few start ups that created a global brand in
India.
• With many investments in the start up, recently from Soft
Bank,OYO is raising it’s value.
• To retain their position in the market, OYO should focus
aggressively on digital marketing strategies.
• OYO recently got a billion dollar funding for upscaling it’s
international operations
THANK YOU