OYO Strategies To Emerge As A Brand

OYO Stratagies to
emerge as a brand
About OYO
• Oyo is a hotel network that offers standardised
and hassle-free stay experiences.
• Ritesh Agarwal is the founder and CEO of
OYO Rooms - the fastest growing Branded
network of hotels offline & online.
• The headquarter is in Gurgaon, Haryana.
• OYO operates in 25 countries and more than
250 cities in India

How did his journey
begin?
• Born and raised in Bissam, Cuttack in Orissa and belong to a business
class family.
• Interestingly, he had started coding when he was just eight years old and
by the time he reached his 10th grade, he had a keen interest in software
and made up his mind that he wanted to take up coding for a living.
• In 2009, during his coaching for IIT, started writing a book– ‘Indian
Engineering Colleges: A Complete Encyclopedia of Top 100 Engineering
Colleges’. This book turned out to become huge on Flipkart and was sold
out in a while too.
Life as an Entrepreneur
• Formation of Oravel
Travels
• Transformation to
Oyo Rooms
Business Model
OYO Rooms - An Aggregator or a Franchisor?
OYO Rooms business model was earlier similar to the usual

aggregator business model (Uber for x business model) but had the
essence of the franchise business model as well.
• As the time passed, the company built its brand equity and
the founders decided to shift its business model to a pure
franchise business model. The company now gets 90% of
its revenue from hotels under the franchise model.
• The company doesn’t lease the hotel rooms anymore, but

ask the hotel partners to operate them as franchise. They
have good brand equity and boasts a 100% increase in
revenue to their partner hotels.
Services provided by
OYO Rooms
• Hotel Rooms
• OYO Townhouse
• Smarter Rooms
• Smarter Spaces
• Smarter Menus
• Studio Stays
• Events and Other Long Stays
• Commercial Places
• OYO Wizard
Timeline of
OYO
Market Condition 2018-19
Annualised Stayed Room
Nights
GLOBAL OPERATING METRICS
INDIA OPERATING METRICS
• Fully controlled leased
and franchised keys • Stayed room nights
• Realised value
• Advocates
INDIA FINANCIAL METRICS
SWOT Analysis
STRENGHTH:
· Standardization
· Ever Growing Network
· Spirit of Innovation
· Subsidizing hotel stays
· Young and high spirited leader
· Strong brand recognition
· Diverse revenue model
· First mover advantage
· Talent management
· Wide geographic presence
WEAKNESS:
· A strategy of co-branding
· Poor service quality
· Tight margins
· Declining market share
· Loyalty among suppliers is low
· High cost of replacing existing experts within organization
· High turnover of employees
OPPURTUNITIES:
· Growing demand for aggregators
· Focus on budget accommodation
· Lowering of the cost of new product launches
· Customer preferences are fast changing
· Opportunities in online space
· Increasing government regulation
THREATS:
· Competition
· Going concern about safety
· Changing political environment
· Competitors catching up with product development
7Ps Of OYO
Facilities By OYO
• Standardized Hotel Services
• Assured Quality Experience
• Expansion in City Operations
• Business Development
• Couple Friendly Hotels
• Tie ups with Hotels
• Complimentary Breakfast
• Hygienic Washrooms
• Free Wifi
• Spotless Linen
Promotional Strategy
• Television ( #Aur Kya Chahiye) and
Print ads
• Social Media - Facebook, Twitter,

Instagram
• Campaigns and contests
• Influencers (through Vlogs) - like

Prajakta Kohli, Shivya Nath,
Mumbaikar Nikhil
• Display Advertisements, Transit Ads.
• Logo and Hoardings (On Hotels for

branding), website and app
• OYO Blogs ( Chalon Nikal Chalein)

Let’s Get updated
• OYO to scale up its Silver key hotel portfolio to 19 cities across
India
• OYO is in talks to acquire China’s Qianyu
• OYO commits $300 million investment in the US for growth
• Airbnb checks into OYO with $75 in row
• OYO - Make My Trip extend commercial agreement for the

further 5 year period.
Expansion Strategies
ORAVEL STAYS PRIVATE LIMITED
• India’s largest hospitality company.
• Founded in 2013.
• Expanded globally.
EXPANSION IN INDIA
12X Growth in 2 years from 2016-18.

What makes this exponential growth
possible?
Standardized Affordable
Innovative Technology driven

EXPANSION OVER THE YEARS
GLOBAL PRESENCE AND
EXPANSION
• Presence in 500 cities opearating half a million

rooms globally.
• Presence in ,India, China, Malaysia, Nepal, the
United Kingdom, the United Arab Emirates,
Saudi Arabia, the Philippines, Indonesia and
Japan.
• Going to gradually enter the Sri Lankan Market.
OYO Expansion Strategies
OYO Expansion
• Amazon, Uber, and Google struggled in China, but Indian hotel
chain Oyo is succeeding.
• OYO and SoftBank form JV to launch hotels business in Japan.
• India's Oyo to have 12,000 rooms in the UAE amid 2020 expansion
plan
• Where all Where about:
OYO have increased their international footprint to another 7

countries
Such as..
China
Malaysia
Nepal
UK
UAE
Indonesia
& US
• OYO checks into UK, to put £40 million over 2 years.
OYO invests $300 million in US
to open a hotel every day; Plans
to go worldwide soon
Jun 24, 2019, 11:37 am GMT+5:30
By 2023, we will be the world’s

largest hotel chain. We want to
convert broken, unbranded assets
around the globe into better-quality
living spaces
The world is not enough for OYO
Conclusion
• Asset light model

• End to end responsibility for customers experience (eg.,
Promotional Strategies)
• Predictability will bring repeatability
• Technology for speed and scale
• Focused team for acquisitions and expansion
• Feedback to feed forward
• Lowest attrition with continuous training

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OYO Stratagies to

and hassle-free stay experiences.

• Ritesh Agarwal is the founder and CEO of

OYO Rooms - the fastest growing Branded

network of hotels offline & online.

• The headquarter is in Gurgaon, Haryana.

• OYO operates in 25 countries and more than

250 cities in India

OYO Rooms - An Aggregator or a Franchisor?

OYO Rooms business model was earlier similar to the usual

• The company doesn’t lease the hotel rooms anymore, but

• Events and Other Long Stays

• Social Media - Facebook, Twitter,

• Campaigns and contests

• Influencers (through Vlogs) - like

• Display Advertisements, Transit Ads.

• Logo and Hoardings (On Hotels for

• OYO Blogs ( Chalon Nikal Chalein)

• OYO is in talks to acquire China’s Qianyu

• OYO commits $300 million investment in the US for growth

• Airbnb checks into OYO with $75 in row

• OYO - Make My Trip extend commercial agreement for the

ORAVEL STAYS PRIVATE LIMITED

• India’s largest hospitality company.

12X Growth in 2 years from 2016-18.

Innovative Technology driven

• Presence in 500 cities opearating half a million

• OYO and SoftBank form JV to launch hotels business in Japan.

OYO have increased their international footprint to another 7

By 2023, we will be the world’s

• Asset light model

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