SUMMER INTERNSHIP

A STUDY OF BUSINESS

MODEL

OF
OYO HOTELS AND
HOMES

UNIVERSITY OF MADRAS

In partial fulfilment of the requirements for the

Award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
JAYASREE. S. R
(Register No. 712000422)

UNDER THE GUIDANCE OF

Dr. SAIJU M JOHN
M.B.A; MFT; M.Phil.; UGC NET; TN SET; M.B.A Finance; PhD

MEENAKSHI SUNDARARAJAN SCHOOL OF MANAGEMENT

(Formerly known as Indian Institute of Engineering Technology)

CHENNAI-600024
AUGUST 2021
 ACKNOWLEDGEMENT

I am thankful to the management of Meenakshi Sundararajan School of Management which

has imparted me sufficient knowledge and confidence to complete this project.

I extend my thanks and deep sense of gratitude to my guide Dr. SAIJU M JOHN, DIRECTOR,
MEENAKSHI SUNDARARAJAN SCHOOL OF MANAGEMENT, for guiding me in all works
in a kind manner and enabling me to march towards the successful completion of the report.

I am very grateful to all the faculty members of MBA department for their encouragement and kind
hearted advice.
 BONAFIDE CERTIFICATE

This is to certify that the report titled “SUMMER INTERNSHIP AT OYO HOTELS
AND HOMES” is a bona fide work carried out independently by MISS. JAYASREE.S.R,
student of MEENAKSHI SUNDARARAJAN SCHOOL OF MANAGEMENT, during 30 days in
partial fulfilment of the requirement for the degree of MASTER OF BUSINESS
ADMINISTRATION and the report has not been used for the award of any degree, diploma,
scholarship, fellowship orother similar titles.

Signature of the Director Signature of Internal Examiner

 DECLARATION

I, JAYASREE.S.R, hereby declare that this internship report submitted for the Master of
Business Administration degree is my original work and has not formed the basis for the
award previously of any degree, diploma, scholarship, fellowship or other similar titles.

PLACE:

DATE: Signature of the Student

 EXECUTIVE SUMMARY

OYO Rooms is India’s fastest growing branded network of budget hotels founded by young
entrepreneur Mr. Ritesh Agarwal in 2013. Within a short span of time, OYO Rooms operates in more
than 100 Indian cities including Delhi, Mumbai, Bangalore, Kolkata, Chennai, Gurgaon, Hyderabad,
Goa are few to name. Similarly, OYO has been trying to be present in major metros, regional hubs,
leisure destinations and pilgrimage towns.

According to a research carried out by CB Insights, a US based business analytics firm, for The New
York Times, OYO Rooms is among the companies that may be the next start-up unicorns. As it
provides standardized rooms at budget hotels with features such as an air condition, complimentary
breakfast and Wi-Fi with 24 hours customer service support. Number of guests using OYO App for
booking hotels been increasing exponentially. Since, the service is through the OYO Rooms app, hotel
owners who partner with OYO Rooms are connected via world’s first tablet based property
management App and become part of the OYO brand.
 INDEX

PAGE
CHAPTER TABLE OF CONTENTS NO.

I LEARNING OBJECTIVES 1

II WEEKLY REPORT 2

III INTRODUCTION 3

IV INTERNSHIP DISCUSSION 5

V CONCLUSION 20

REFERENCE
 CHAPTER I
LEARNING OBJECTIVES

❖ The objective of the internship was to learn about Human Resource Activities and their
development functions followed at OYO.
❖ Apply the theoretical concepts and knowledge of management in practical applications.
❖ To analyse the financial performance during the covid crisis.
❖ To know the organization structure and to understand the roles, responsibilities of the
different levels of management.
❖ To have a Bird’s eye view and Earthworm’s view about the functions of the company.
❖ To learn about the ERP software which is used for updating the employee information and
other Human resource activities.
❖ To understand the process of:
1. Development of Business
2. Operations department
3. Sources of revenue
4. Demand

1
 CHAPTER II
WEEKLY REPORT

WEEK I:

❖ To know about the history of OYO from the scratch and the development process of the
company.
❖ To know about the founder of the company and his efforts and struggles to develop the
company.
❖ To analyse the business model of OYO.

WEEK II:
❖ To learn about the organization structure of the company and the levels of
management.
❖ To learn about the functions of the various departments and the activities carried
over.
WEEK III:
❖ To know about the products and services offered by OYO.
❖ To analyse the demand for the products and services.
❖ To learn about the marketing techniques and operations.

WEEK IV:
❖ To make a SWOT analysis of the company and analyse its strengths and
weaknesses.
❖ To analyse the external environment and prepare PESTEL analysis of the
company.

2
 CHAPTER III
INTRODUCTION

Ritesh Agarwal is an Indian entrepreneur, the founder and CEO of OYO Rooms- the fastest growing
branded network of hotels offline and online.
He started his entrepreneurial journey at the age of 17 and is considered to be one of the youngest
CEOs in India. Oravel Stays Pvt. Ltd was his first start up in the year 2012. Oravel was designed as a
platform to enable listing and booking of budget and premium accomodations. In simple terms, it was
meant to be destination for short and midterm rentals for bed and breakfast joints, private rooms and
service apartments.
Soon Agarwal realized that just a combination of bed and dinner would not fulfill the expectation of
budget travelers in India so he transferred Oravel Stays to OYO Rooms, in 2013 with the key position
of offering affordable and standardized accommodation.

VISSION AND MISSION STATEMENT

VISION:
The company’s vision is to become the most preferred and trusted hotel brand in the world.
MANAGEMENT VISION:
To reinforce internal understanding of our mission, which is to pioneer safer and securer
being of society from specialist’s perspectives on geoscience.
OYO GROUP VISION:
OYO keeps on challenging the best of its technologies for problem solving to achieve a
future society and natural environment harmonize each other.
MISSION:
OYO mission is to create and offer good quality living spaces at the right place and location.
To enable this, we intend to tap existing supply and repair /upgrade to add the overall inventory
pool. We observed that locked homes represent a significant supply opportunity across top holiday
destinations in the country. We are confident about the potential and our teams have a considerable
head start in this direction.

3
OBJECTIVES OF OYO:
❖ OYO Rooms has one objective to offer standardized stay experience at an unmatched price.
❖ OYO provides standardized hotel rooms with features such as an air-conditioner, TV,
complimentary breakfast and Wi-fi with 24*7 customer service support.
❖ OYO rooms can be booked online using app.
❖ Also they have their presence in all the travel/booking websites.

TAGLINE OF OYO:
❖ One For Everyone.
❖ Raho Mast.
❖ Aur Kya Chahiye.
❖ Worlds Fastest Growing Hotel Chain.

4
 CHAPTER IV
INTERNSHIP DISCUSSION

COMPANY PROFILE

Type : Privately owned company

Industry: Hospitality
Founded: 2013; 6 years ago
Founder: Ritesh Agarwal
Headquarters: Gurgaon, Haryana, India
Area served: Asia, Europe and America
Key people: Ritesh Agarwal, CEO
Website: www.oyorooms.com
Logo:

5
INDUSTRY PROFILE:

❖ The hospitality is a broad category of fields within service industry that includes
lodging, event planning, theme parts, transportation, cruise line and additional fields
within the tourism industry.
❖ The hospitality industry is a multi-billion-dollar industry that depends on the
availability of leisure time and disposable income.
❖ A hospitality unit such as a restaurant, hotel or an amusement park consists of multiple
groups such as facility maintenance and direct operations.
❖ Usage rate, or its inverse “vacancy rate” is an important variable for the hospitality
industry.
❖ Just as a factory owner would wish a productive asset to be in use as much as possible,
so do restaurants, hotels and theme parks seek to maximize the number of customers
they “process” in all sectors.
❖ This led to formation of services with the aim to increase usage rate provided by hotel
consolidators. Information about required or offered products are brokered on business
networks used by vendors as well as purchasers.
❖ In looking at various industries, “barriers to entry” by newcomers and competitive
advantage between current players are very important.
❖ Among other things, hospitality industry players find an advantage in old
classics(location), initial and ongoing investment support, and particular themes
adopted by the marketing arm of the organization in question.
❖ The authenticity, professionalism and actual concern for the happiness and well-being
of the customers that is communicated by successful organization is a clear competitive
advantage.

6
ABOUT THE CEO:

Born 16 November
1993 (age 27)

Bissam
Cuttack, Rayagada, Odisha

Occupation CEO and Founder of OYO

Years active 2012–present

Organization OYO Rooms

Net worth (₹7253 Crores)

Title Group CEO OF OYO

Awards Thiel Fellowship

7
The teenage boy – Ritesh Agarwal is the young Founder & CEO of OYO Rooms – fastest growing
Branded network of hotels offline & online.
With a current valuation of nearly 360Cr, OYO rooms does nothing out of the box but provides
travellers the coolest yet cheapest efficient, young, standardized rooms with no add-ons attached to
it!
Personally, Ritesh with his common-man qualities of whitish, tall, thin, scruffy look, isn’t easy to
find in a crowd. But mind you, this is also the look of the founder who puts in 16 hours a day to
make his dream come true, and has been through a wild journey from as far back as he
can remember, to get this ahead.

BUSINESS MODEL OF OYO ROOMS:

❖ OYO Rooms business model is a hotel aggregator model. The users under the name of
OYO rooms buy the services. Just like Uber, OYO provides rooms with standardised quality
and price.
❖ OYO rooms provide visitors with quality hotel room stays at different places around India.
They have partnered with hotels and made them work with them under their name.
❖ Now, OYO work in Franchise model.
❖ It makes a contract and signs the properties under its flagship with 70% hotel share and 30%
OYO share.
❖ Through this model, the guest check in issues reduces and many hotel categories launched
under OYO:
1. Smart property(budget)
2. OYO flagship
3. OYO flagship and frontier
4. OYO Township.

8
ORGANISATION STRUCTURE

CEO Ritesh Agrwal CFO Abhishek Gupta

COO Director Abhinav Sinha Betsy atkins

Director Mohit Bhatnakar

Director Aditya Gosh

Director Mark Schwratz

Director Bejul Somania Dirctor Munish Verma

9
HISTORY OF OYO

In 2012, Ritesh Agarwal launched Oravel Stays to enable listing and booking of budget
accommodations. After undertaking months of research and staying in various bed and breakfast
homes, guest houses, and small hotels across India, he pivoted oravel to OYO in 2013.

OYO partners with hotels to give similar guest experience across cities. Shortly after launching oravel
Stays, Ritesh Agarwal received a grant of $100,000 as part of the Thiel Fellowship from Peter Thiel.
OYO currently has over 17,000 employees globally, of which approximately 8000 are in India and
South Asia. OYO Hotels & Homes now identifies as a full-fledged hotel chain that leases and
franchises assets. The company claims to invest in capex, GMs to oversee operations and customer
experience as well as generating around a million job opportunities in India and South Asia alone.
OYO has also set up 26 training institutes for hospitality enthusiasts across India.

FUNDING

The company is currently valued at $10 billion dollars as per the last round of funding. September
2018 – raised $1 billion, of which the ROC filing for the amount of $100 million raised from Star
Virtue Investment Ltd. was made on 13 February 2019.

October 2019 – Series F funding of $1.5 billion led by SoftBank Group, Lightspeed Venture Partners
and Sequoia India. Founder & CEO, Ritesh Agarwal, through RA Hospitality Holdings (Cayman) in
2019 signed a $2 billion primary and secondary management investment round, supported by global
institutional banks and his financial partners, subject to regulatory and shareholder approvals.
Lightspeed Venture Partners, and Sequoia India, OYO's early supporters, are selling part of their
holdings in order to help the founder increase his stake and thereby commitment while remaining
invested significantly in the company's long-term mission. OYO is backed by leading global investors,
including the SoftBank Group, Lightspeed India, Sequoia Capita, Green oaks Capital, Hero Enterprise
and China Lodging Group.

10
MANAGEMENT:
❖ In 2018, the hospitality chain company announced the appointment of Adithya Gosh,
the former president of India’s largest airlines, IndiGo, as the Chief executive officer
of its South Asia business. Gosh would be in charge of India and Nepal.
❖ In November 2018, OYO appointed Max as health care executive director and Rohit
Kapoor as the CEO of its new real estate business.
❖ In 2018, OYO hired Prasidha Menon as Global head of communications.
❖ In 2016, OYO announced the hire of Amazon India’s Anil Goel as Chief technical
officer.
❖ OYO hired former Pepsi China COO to head its China operations as Chief operating
officer.
❖ In September 2018, OYO hired Jeremy Sanders who co-founded and sold Italian fast-
food
chain Coco di mama as its country head.
❖ In January 2020, OYO announced the appointment of Raj Kamal as COO of its vacation
Homes business in the UK and Europe.
❖ In August 2019, OYO hired DR. Mandar Vaidya a medical doctor by education and
former partner at McKinsey to lead its operations in Southeast Asia and the Middle east.
❖ In February 2019, OYO started its Japan operations in a joint venture with yahoo Japan
and hired former Japan market leader for Handy and booking.com as the CEO of OYO
technology and hospitality. Yahoo has since sold its interest back to OYO as of December 2019.
AWARDS AND HONOURS:
1. In 2019- “The amazingly ambitious hotelier”
2. Tycoons of tomorrow by Forbes India.
3. Market entrant of the year 2019.
4. Most innovative company for the year 2019.
5. Best start up- SATTE awards.
6. Topped the LinkedIn’s top start up in India (2018).
7. Best travel start up.
8. India’s most promising hotel network.
9. NO.2 in BT start up survey 2016.
10. Start up of the year – Express IT award (2015).

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VARIOUS DEPARTMENTS AND THEIR FUNCTIONS:

BUSINESS DEVELOPMENT:
It describes the functions within a business that seek to enable it’s growth,
increase impact or achieve an objective. Business development can be engaged with the business
at anytime in it’s life cycle. Same in OYO BD peoples meet with the owners property and deal
with them to add hotels and homes in our business.
❖ Plan and oversee business development efforts for OYO Indonesia in assigned
area/ clusters with a goal to on board high-quality budget hotels on OYO network.
❖ Identify new hotels that meet OYO standards in terms of location, pricing,
infrastructure
Quality, owner willingness.
❖ Negotiate OYO’s commercial agreement with interested hotel.
❖ Strengthen relationship with existing hotel partners and other relevant stakeholders.
❖ Work closely with revenue management team to drive top line fot the partner gotel.
❖ Collaborate with other teams in OYO such as operations, marketing, pricing,
customer Support, finance to ensure smooth functioning of hotels on day-to-day
basis.
OPERATIONS:
❖ Mainly operation department deals with running the hotels and homes in ground
and maintaining property needs also interacting with guest.
❖ Only operation persons are directed to interact with guest.
PROCESS AND SYSTEMS:
❖ Plan and implement operation systems and procedures.
❖ Monitor operation budget; implement opportunities to achieve optimal
operational costs.
PEOPLE MANAGEMENT:
❖ Experience leading multiple teams of varied strengths should be able to plan
hiring needs, Manage the capacity and plan for the peak.
❖ Should also able to manage the performance objectively, Coach and engage the
team.

12
PROBLEM SOLVING:
❖ Should have worked in a fast paced environment, should have solved multiple
problems and resolve them.
❖ Should be able to think on the feet and be self-drive in resolving problems in hand.
❖ Should be able to take decisions.

VENDOR MANAGEMENT:
❖ Managing different vendors- sourcing, commercial negotiations, performance
Management would need to manage manpower vendors and repair and maintenance vendors on a daily
Basis along with the support from the central team.

DATA ORIENTATION:
❖ Should have a sound understanding of numbers and data. Should be able to identify
Trends, patterns, outliers and deep dive on core issues.

TECHNOLOGY DRIVEN:
❖ Should be able to get familiarised with technology and willing to adapt.
REVENUE:
❖ Execute solutions for properties and data orientation. Devise and execute plans to
Develop multiple channels and take initiative to boost demand.
❖ Develop processes and maintain dashboards and work closely with revenue head.
❖ Closely monitor property level performance and devise solutions to improve
performance.
❖ Work with cross functional teams.
❖ Identify trends, patterns, outliers and deep dive on core issues.
❖ Planning and executing new initiatives.
❖ Using data and solid why analysis to improve the process parameters.

13
 TRANSFORMATION TEAM:

CONDUCTING AUDITS:

❖ Conducting a run through of all the potential OYO hotel properties and
submitting
Feasibility report; reviewing the infrastructure and equipment.
❖ Creating a budget and schedule for transformation of OYO property.

OPERATIONS AND COST OPTIMIZATION:

TIME:
❖ To ensure all property launches are achieved in a timely manner.
COST:
❖ Managing costs by resource planning, cost estimating, budgeting and control.
QUALITY:
❖ Managing quality is about quality planning, quality assurance and quality
control.
❖ Working closely with purchase department to plan inventory and delivery
timeliness of goods and services for launching properties as per scheduled launch
dates.
DEMAND TEAM:
❖ Retain/acquire/ new accounts/ clients in the specified region/ market.
❖ Manage the entire sales process effectively from query generation to payment.
❖ Review and maintain monthly sales tracker, plan and execute market site visits as
agreed with region.
❖ Create new products by interacting with marketing and demand teams.
❖ Collect data on competitor’s activities.
❖ Should be able to understand client requirements and tailor pitch the product
accordingly.
❖ Interact regularly with the clients to ensure a committed and partnership based
Relationship.

14
DAILY ACTIVITY

15
16
PRODUCTS AND SERVICES
Hotel Rooms
Oyo’s earlier strategy was to book a part of the hotels’ inventory, to maintain it as per the quality
standards, and to hold it captive exclusively for Oyo customers. They used to lease some rooms every
month and provide them to their own customers at profits. The only thing that has changed is that the
rooms are now not leased but operated as Oyo Rooms franchise. Since the hotels and place owners act
as the franchisee, they are bound to operate as per the pre-determined standards. The company even
offers plans where it runs the place instead of the hotel staff or owner.
Oyo Flagship
The partners used to book their own hotels when they used to see less prices on the Oyo’s platform
and this became malpractice benefiting the partners while burning holes in Oyo’s pockets. To curb
this, and to expand the business, Oyo Rooms has started leasing of hotels and places where it has full
control over the day-to-day operations of these establishments.
Oyo Townhouse
The company has recently launched the Oyo Townhouse to hone its value proposition and stand
out of the competition when it comes to standardised hospitality. Oyo Townhouse is based on the needs
of the millennial traveller. These hotels are planned and built based on the needs and wants of the
millennials.
Oyo Home
OYO claims is India's maiden Home Management System that offers private homes in different
locations and are fully managed by OYO began full-time exploration into the opportunity of locked
homes in February 2017. It was a venture to go beyond the known supply of hotel real estate into
quality living spaces called OYO Homes. One year down, now in 2018, we have over 3500+ OYO
Homes. OYO Homes can be categorized as a) Single Homes b) Large Residential Complexes. These
quality living spaces offer good space and comfort keeping in mind the guest expectations. We Turn
Locked Homes into Beautiful Living Spaces. The coolest part is the check-in process because it is
automated and the same happens with the help of WhatsApp.

17
ANALYSIS OF THE COMPANY

PESTEL ANALYSIS

18
SWOT ANALYSIS

19
 CHAPTER V
CONCLUSION

This internship helps in achieving all its learning objectives. The results/ observations
which was conveyed through the internship report was beneficial. It helps to know how
to maintain good cordial and harmonious relationship with the other members in the
department by giving them due respect and treating them equally. And also learnt to
maintain confidentiality when needed and have utmost care on the responsibility
assigned. The skills learned during the internship would be of use in future. The
internship experience brought out my strength and also the areas I needed to improvise.
The experience that I have gained will be a valuable one for my future endeavours as
well. The training program also revealed many unknown facts about the company and
management process. Thus, this training program was beneficial for the management
student to know the HR process and functions of various departments and to develop
ourselves with the management skills, abilities and attitudes to face the competitive
world.

20
 REFERENCE

www.google.com
www.wikipedia.org
www.oyorooms.com
www.coursehero.com
www.economictimes.com