Technology Management Assignment

Innovation and
Technology
Performance
analysis of
OYO Group

15th June ,2020

Rehanshu Vij
(K12735)

To:Dr. Marina Ranga

1|Page
1. Introduction

Oyo (also known as OYO hotels and homes) is the world’s largest and the
fastest-growing hotel chain. It was founded by Ritesh Agarwal in 2013 in India.
The start-up expanded with over 1.2 million rooms across over 800 cities in
India, China, Malaysia, Nepal, UAE, UK, Brazil, Mexico, Philippines, Japan, Saudi
Arabia, Vietnam, the US and more

“The company supports the growth of hospitality, travel and tourist industry
across the globe” as quoted by Its Founder and CEO Ritesh Agarwal. It’s total
revenue in financial year 2019-20 was $ 951 Million and is valued over $ 10
Billion

The company's investors include SoftBank Group, Greenoaks Capital,

Sequoia India, Lightspeed India, Hero Enterprise, Airbnb and China
Lodging Group

1.1 Organisational structure of OYO

CEO: Ritesh Agarwal

COO: Abhinav Sinha
CTO: Anil Goel
CFO: Abhishek Gupta
CPO; Dinesh Ramakrishnan
CGO: Kavikrut
CSO: Maninder Gulati
COO China:: Sam Shih

2|Page
 Regional heads

North Head: Gaurav Ajmera

South Head: Burhauddin Pitwala
East head: Prasun Chaudhary
West head: Shreerang Godbol

2. Business Model of OYO

Problem Identification by Mr Ritesh Aggarwal:-

Being a profound traveller, Ristesh Identified a huge unorganised sector in

hospitality industry in India. He experienced lack of adequate services and
customer support, which cannot be judged while booking a hotel. He had some
bad experiences while accommodating in hotels which almost every tourists
comes across.

Oyo started as a hotel aggregator which used to lease rooms from different
hotels and sell them to travellers under it’s brand name. However, OYO shifted
it’s business model from a hotel aggregator to a franchise model. It includes
partnering with hotels and asking them to operate as franchise and sell rooms
to the customers

What’s unique in the franchise model of OYO is, OYO does not own a hotel
property but it renovates the hotel rooms according to their standardised
checklist, to improve the user experience. It provides a standardised hospitality
experience to customers, satisfying all the basic needs of a traveller

3. Business strategies implemented by OYO

3.1 Asset Light strategy

Oyo doesn’t own a property, it partners with numerous hotels and get
booking under it’s own brand name. Bigger hotel chains like Marriott,
Radisson Blu, Taj usually partners with hotels with more than 100 rooms.
But around 90% hotels are operating with 30-50 rooms which OYO aims to
partner.

3|Page
 Oyo targets living spaces for Middle class and lower-middle class segment.
Major requirements for this category are good quality experience at an
affordable price , also location of hotels is also essential

Aim of OYO towards customer is to give

• Uniform in services
• Quality
• Affordable Price
• Standardization of services

3.2 End to end responsibility for Customer Experience

Oyo manages every other operation by itself, Customer is directly in touch

with OYO instead of depending on hotel, Customer can book the hotel
directly from OYO app, it gives the ease of hotel search and booking,
customer can manage check ins and checkout’s via app and can complain an
OYO executive if requirements are not met. With the help of it’s mobile
application OYO deals directly with its customer and provide a world-class
experience to the customer

3.3 Predictability will bring repeatability

Company closely analysis consumer behaviour and takes full measures to

provide what’s being offered. It increases the predictability of the customer
when it gets all the basic amenities promised.

To achieve that OYO schedules regular weekly audits where a cluster

manager, assigned to number of hotels, does regular audits to check the
quality of services provided by the hotels.
Also with help of customer reviews company tries to identify the needs and
complaints which customers emphasise on

With the help of well managed checklists OYO ensures the quality of its
hotels , which eventually brigs repeatability from customer because he is
satisfied

4|Page
 3.4 Technology for speed and scale

Oyo extensively use technology and research for providing speed and scale
to their business. OYO works on its end to end mobile application to make
it easier to use for the customer. It claims to book a room in 3 clicks and 5
seconds.

It has a dedicated data science team which analyses customer experience

and research to increase the operational capability and efficiency of the
process

One example of it’s innovations are it’s internal mobile application handled
my it’s zonal members to retrieve the rate of return, yield , earning and
inventory status to take decisions, handle distribution and decide the price
point for every booking.

With complex application of Internet of things, machine learning and

artificial intelligence OYO manages its pricing, distribution and monitoring
seamlessly

Main idea behind investing in technology is to speed up operations for the

company and the customer

3.5 Focused team for acquisition and expansion ( expansion strategy)

OYO is focused on growing very rapidly. It has a separate dedicated team to

acquire new partners and enlist and create new properties for OYO and
business expansion.

Today OYO is spread over more than 800 cities iin more than 12 countries
due to it’s strong expansion policy. It is one of the main reasons of OYO’s
fast growth in a short time span of 7 years.

This team makes new hotel ready for stay in less than 8 days. With the help
of top end technology and connectivity it coordinates with help of mobile
application. It has a huge team to manage this department across the world.
It’s target it expand at rate of 50,000 rooms per month

5|Page
 3.6 Feedback to Feedforward

With the help of end to end connection with the regional management
customer can directly contact the OYO regional hub if it has a complaint,
Oyo works in authorative position where customer can complaint them if
they are not satisfied by hotel services.

3.7 Lowest attrition with continuous training (Human asset management)

Oyo believes in continuous upgrading of the human resource. It has

developed my skill centers for training of staff, OYO monitors complaints
against the staff and assign a training plan after which staff is asses again.
This maintains low attrition rate of the company. None of the CXO’s have
changed since starting of the company, which shows strong management of
the company.

OYO knows that Human element is critical in Hospitality business, hence it

plan to control it with help of regulat training of staff, based on customer
feedback. In this way it provide world class experience to its customers

4. Products and services

4.1 OYO Hotels (Formerly OYO Rooms)

These are the basic Oyo hotel rooms, the major part of the business. Budget
accommodations but that promise to offer much better Wi-Fi and
aesthetically pleasing design. While they may vary from country to country.

4.2 OYO Townhouse

It has over 150-plus locations in India, UK, and the U.S.

The neighbourhood hotel, in the midscale segment targeted at millennial

travellers aspiring to premium economy accommodations.
Townhouse is Oyo’s take on a lifestyle hotel, which has become very popular
with both legacy hotel operators and industry newcomers as a way to
attract younger travellers.

6|Page
 4.3 Capital O
Chain in India, Southeast Asia, the Middle East, and Latin America. Estimate
800-plus properties.
The perfect offering for the new-age travelers with the functionalities that
they look for when it comes to business & leisure stays. These premium
hotels are located in prime locations and specially curated to deliver Oyo’s
quality-assured experience at an affordable price.
Launched in June 2018, Capital O is a premium offering for business
travelers, launched as part of Oyo’s push to capture more corporate
accounts. Oyo’s second largest brand as the company has made capturing
business travel a priority. It is also, after Oyo Hotels (Oyo Rooms), the brand
with the second most international locations, speaking to the global
business travel landscape.

4.4 SilverKey

Estimately 150-plus properties at current, expanding as part of plan to add

400 in next year
Launched in April 2018, SilverKey caters to the needs of the corporate
traveler undertaking business trips for a short or long duration. With
SilverKey, we are providing executive furnished accommodation to
corporates for their personnel stay. Located in the heart of business hubs
and equipped with spacious rooms, upscale interiors, meals, gym, and
dining area to cater to all the requirements of business travelers.

Oyo’s executive stay product, SilverKey is for the modern corporate traveler
that dreads going from one hotel to another. Instead, the goal is to make
business travelers feel like they are at home and tap into emotions they may
feel when staying at a vacation home or Airbnb. In April of this year, Oyo
announced expansion plans for this brand to be in 19 cities by the end of
2019, up from the current 10, and to add 400 properties and 8,000-plus
rooms.

4.5 Collection O
Spread across Indian main cities. We estimately 250-plus properties.
The newest category under Oyo’s hotel portfolio that caters to the
requirements of discerning business travelers. The category offers bigger
and spacious rooms with premium furnishing and linen, on-request
laundry, unlimited breakfast, 24X7 in-room dining, high-speed WiFi,
workstations in every room and Oyo-trained customer service. This brand

7|Page
 is currently only available in India

Launched in March 2019, this mid-scale brand caters to corporate travelers.

Oyo says it is seeing strong traction with business accounts, racking up stays
from 300-plus corporate brands. That said, we struggle to see much of a
distinction in positioning between Collection O and Capital O. Oyo is
experimenting with the idea of launching this brand wider, with
experiments in Mexico and Indonesia.

4.6 OYO Homes

Across India, Malaysia, and the United Arab Emirates. We estimate 2,600-
plus homes and villas.

India’s maiden Home Management System that offers beautiful private

homes in great locations are fully managed by Oyo and make a perfect
choice for staycations.

4.7 OYO LIFE (Apartments and Lifestyle)

In India and Japan.Targeted at millennials and young professionals in search

of fully managed homes on long-term rentals, at affordable prices. Under
this category, Oyo offers an end-to-end managed, comfortable, high-quality
living experience that eliminates the hassles of finding, accessing and
managing everyday housing.
This is effectively a move into renting out fully-managed apartments. In a
best case, this is a shift into an exciting new category that several other
startups, both in the U.S. and elsewhere, are trying to crack. We see the
potential, but it also is oddly reminiscent of fellow SoftBank-backed startup,
WeWork’s move into WeLive, which hasn’t lived up to its potential, and may
prove to be a distraction from the core offering.

5. Conclusion
According to the analysis OYO’s strategies have helped it to expand
exponentially. OYO can become one of the great success stories. It is already
ranked 3rd in the list fo top 10 indian companies. Oyo’s approach towards
technology is dynamic with across 200+ Engineers developing products ands
applications to make operations smoother and to provide world class
experience to it’s customers.

8|Page
 However, OYO might be sharing maximum in market but OYO’s image in
people’s mind is getting damaged due of safety and legal aspects. New laws for
documentation is also an hindrance in OYO’s path. In present situation it might
not affect OYO but in future perspective if consumers find an affordable
alternative , OYO might lose business due to lost mind share of customers

6. References

6.1 https://www.moneycontrol.com/news/business/oyo-says-it-is-worlds-3rd-largest-
hotel-chain-by-room-count-4191531.html

6.2 https://www.oyorooms.com/officialoyoblog/2017/07/28/oyo-report-card-fy-2015-
2017-2

6.3 https://pitchbook.com/profiles/company/61868-17#overview

6.4 https://en.wikipedia.org/wiki/Oyo_Rooms

6.5 https://www.ft.com/content/e515c058-5e24-11ea-b0ab-339c2307bcd4

6.6 https://craft.co/oyo-rooms/competitors

6.7 https://www.oyorooms.com/officialoyoblog/2019/09/10/innovations-at-oyo-hotels-
homes-that-make-it-a-global-hospitality-giant

6.8 https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/have-become-the-
second-largest-hotel-group-in-china-oyo/articleshow/69445392.cms

6.9 https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/oyo-commences-
hotel-operations-in-japan/articleshow/68716847.cms

9|Page