Introduction of Oyo Rooms, Competitor analysis, Challenges & responsibility, Achievements of Oyo Rooms, Analysis report

1. RISE OF OYO ROOMS

2. TABLE OF CONTENT
• Overview
• Digitalization of hotel industry.
• Opportunity knocks for OYO rooms.
• Approach/strategy adopted by OYO rooms.
• Achievements /benchmark of OYO rooms.
• Competitors.
• Revenue per employee.
• Challenges & recommendation.
• Analysis report.
• Learning of Oyo rooms.

3. On a mission to change the way people stay away from home, OYO Rooms has
caught the fancy of travellers in more than 173 cities of India. OYO Rooms has
disrupted the hotel industry by bringing 4500+ non-branded hotels under a brand
name and is offering amazing hotel stay experience to travellers at an affordable
price.
OYO Rooms is India’s largest network of hotels offering standardized stay
experiences at an unmatched price. Currently in 173 cities and still expanding
without even a slight hint of slowing down, check out these facts about this
successful startup and read through their story.
OYO Rooms: Startup Facts
• Startup Vertical: Hotel Bookings.
• Founder and CEO: Ritesh Agarwal
• Funding Received: $125.65M (Till Feb 2016)
• Headquarters: Gurgaon, Haryana, India
• OYO Rooms Tagline: India’s Largest Branded Network of Hotels
• Number of Hotels under OYO Rooms: 4500+

4. DIGITALIZATION OF HOTEL INDUSTRY.
• Perhaps the greatest impact of digitalization is in the creation of new business
models in hospitality.
• It is made possible through the brilliant scale use of mobility, social networks, big
data and high speed internet.
• It is the innovative application of technology to traditional processes that will truly
disrupt the industry.
• Many companies have multi-channel platforms; alas they are all operating in
silos. A good omni-channel strategy ensures that all customer touch points are
seamlessly connected, with its look and feel as intuitive as possible, so the
customer needs not relearn any interaction.
• Digital tools are not only useful for the guests, but also for hotel staff working on
property.
• There are opportunities to help staff be more productive and examples include
mobile alerts to staff members when rooms are ready for cleaning after guests
check out, dynamic scheduling by the system to adjust to changing staff
availability and environmental needs, and real-time communication of issues to
all affected parties as they unfold.

5. OPPORTUNITY KNOCKS FOR OYO ROOMS
• STANDARDIZED
OYO Rooms promises to provide the same amenities and the
same awesome experience across all its rooms.
• AFFORDABLE
OYO offers rooms at prices that no other player in the budget
segment offers today.
• TECHNOLOGY DRIVEN
The most advanced hospitality tech takes shape here. They
introduced pioneering technology to the hospitality industry to
deliver better and more efficient operations, management, service
and CRM. Their app allows a user to book a room in just 3 taps, or
within 5 seconds.

6. APPROACH/STRATEGY ADOPTED BY OYO ROOMS.
Lead Generations
It has strong social media presence on Facebook with over 2.7 lakh fans and a
twitter following of over 8,000 followers. The brand claims to have over 1.5
million app downloads with a good number of active users. To fast track its
growth, OYO rooms are organizing several campaigns on social media platform
such as:
• Dubsmash contest
• #Aurkyacahiye videos on YouTube.
• Father’s day celebration campaign and IPL final verbal combat.
• Jai Hind was the most successful one that featured Bollywood actor Manoj
Bajpai and Raveena Tandon.
• The Video fetched over 1 million views to the brand. Some of their recent
endeavors area salutes to the heroes of 1965war and OYO Explorer-Pune.

7. Value Proposition
• OYO Rooms promises a
standardized and delightful
customer experience across
properties. Upon checking into an
OYO Room, customers get access
to free wifi, TV, complimentary
breakfast, hygienic washrooms and
24-hour customer support.
• We use technology to make the
booking and on-stay experience
seamless. Customers can book a
room in less than five seconds
through our app. Once they have
checked-in, they can use the same
app to order room service, look for
nearby restaurants and even book
a cab.
APPROACH/STRATEGY ADOPTED BY OYO ROOMS.

8. ACHIEVEMENTS /BENCHMARK OF OYO ROOMS
No. of Advocates
• Advocates are defined as guests, who have stayed minimum 5 times at
OYO in last 6 months with minimum 3 bookings made using our app.
On an average, a guest books 1.5-2 nights per booking which means
around 8-10 nights per guest
0
10
20
30
40
50
60
70
80
90
100
Q1, 2016 Q2, 2016 Q3, 2016 Q4, 2016 Apr, 2017 May, 2017 June, 2017
No of Advocates 75.3 33.4 47.8 59.6 82.8 91.4 99.6
No of Advocates

9. ACHIEVEMENTS /BENCHMARK OF OYO ROOMS
While we are proud of the fact that we have been able to grow our business as per
the topline metrics shown above, we are also keenly aware that this growth has
come along with the costs that a first mover would run into. For us, it was primarily
for long-term capability building.
21
496
325
2015 2016 2017
Profits( In Crores)
Profits( In Crores)

10. MAJOR COMPETITORS
YATRA.COM
 7500 Hotels and
Holiday Packages a
day.
 21.17% Revenue from
Hotel Service
MAKEMYTRIP
 13,000 Hotels and guest
houses India
 184000 Hotels in outside
India

STAYZILL
 55,000 Stays across
4000 towns.
GO-IBIBO
 5x Hotel booking in 2015.
 70% on Mobile App.

11. REVENUE PER EMPLOYEE
• The Revenue of the OYO rooms and the No. employees comparison
within the competitor shows that the revenue per employee is higher
than the other revenue per employees.
3 1.5 2.3
24.3
150
27
19
10
0
20
40
60
80
100
120
140
160
Oyo Treeboo Fab Hotels Stayzilla
RevenueinMillion$
Hotels
Revenue Per Employee

12. CHALLENGES & RECOMMENDATION
• Entry of Airbnb in Indian Market
• Further Reduction of Shifting rate which at present is 3.8%
• Stiff competition from other brand like
– Zip Rooms.
– Treebo Hotels.
– Stayzilla.
– And even from Paytm which has entered the last minute hotel booking
space.

13. ANALYSIS REPORT
• Called OYO Rooms, the company partners with property owners
across India and makes sure that their facilities meet a baseline of
requirements from linen quality to breakfast to Internet access for a
starting price of 999 rupees or $16 a night. The company, which has
booked around 60,000 stays so far (Update: per month) since starting
almost two years ago, works with each partner hotel to improve their
facilities over the span of a week before launching on the platform.

14. CONCLUSION
The conclusion part of the rise of Oyo rooms is that as the country is going
to increase the demand of the hotels as compare to the competitors.
The company is trying to increase the customer by giving them a comfort
zone at the place.
The growth of the company is increasing by providing the rooms in the less
price and good place.