OYO Rooms

Presented By
Group-2:
• Founded by in May 2013, by remodeling Oravel Stays Pvt Ltd
• Initially an accommodation discovery marketplace
• Converted into a Managed market place for predictable and standardized hospitality experiences.
• First-of-its -kind, technology enabled budget hotel chain

• Earlier, customers could book hotels through hotel websites or online Travel Agencies (OTAs)

• OYO stood out by building a chain of branded and co-branded budget hotels under the OYO brand.
• Conscious effort to ensure standardization before a hotel was added to the platform
• An asset–light model: Acquired and transformed a hotel using minimal investment, without owning any
property

Rapid
Growth December 2015
Attracted investments worth more than
– 4000 hotels, $6.3 billion in two rounds of funding by
Dec 2014 – 65 40,000 rooms in
hotels and 1200 165 cities
August 2015.
Aug 2014 – 300 rooms in 4 cities
rooms
 •International •Travel
Tourists

Internatio
nal Travel
Tourists

Partnerships

Mobile/
Online Food
•Mobile/Online Payments •Food
Payments

Took over Indian Hotels, previously owned by Tata Group in

December 2015
Acquisitions • Catered to the upper end of the market

Became the largest branded hotel network in India.

 The Indian Budget Hotel Industry

India • 2 hotel rooms per 10,000 people

The Indian lodging market was
valued at $7.2 billion China • 400 hotel rooms per 10,000 people

USA • 2,000 hotel rooms per 10,000 people

Indian Organized Hotel

Luxury
Independent budget hotels in the
Market

Mid-market unorganized category accounted for 60

% of the total lodging market.
Budget
40-50 % or air and rail travel in India was booked
through online channels.
The Hotel Website OTAs

Share of Online Bookings in total Hotel room bookings

Four online
platforms used by
Europe USA India Hotels

70 % 45 % 16 % Aggregators that provide

online accommodation and Meta search services
reservation services

Internet users in India

Major customer segments:
2020 Customers who –
2015 700 million • Researched and booked online
• Researched online but booked offline
2013 332 million • Researched and booked offline
193 million
• Google searches for hotels from smartphones
Smartphone users in India
increased by 147% from 2013 to 2014.
2020 • Nearly 29% who searched forhotel information online
2015 500 booked accommodation online.
2013 171 million
67 million million
 Designed for: Designed by: Date: Version:

Business Model Canvas

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

• Hotels, Clubs • Platform- Creating, developing • standardization of services to • Self Serve Platform • Adventure Travellers
• Taxi Service Providers such as and maintaining OYO’s enrich the guest experience. • Hotel Accommodation Staff • Leisure Travellers
Ola website and app • speed and reliability in finding • Social Media • Family Travellers
• Restaurant aggregator app • Partnering with hotels hotels, bars, theatres • Customer Service Support • Business Travellers
such as Zomato • Ensuring the hotel services and • Personalized room features.
• In room entertainment maintaining quality E.g.- Smart rooms
services with Netflix • Performing advertising and • Separate banners of unique
• Electronic payment services marketing activities services.
such as Paytm E.g.- OYO Studio Stays,
Key Resources Channels
• Dinner Reservation Services OYO Bdirect,
such as Dineout • Hi Tech app architecture Weddingz.in etc. • Website and Mobile
• Fully leased and franchise application
hotel properties • Blogs
• Customer database • Social Media
• Employees with technical • Student Organizations
knowledge

Cost Structure Revenue Streams

• Platform development and maintenance cost • Commissions

• Renovation and branding cost • Room Reservation Fees
• IT Infrastructure cost • Membership Fees
• Marketing and Advertising cost • Advertising
• Employee salary cost • Sponsors and Partnership
• Legal cost • Consulting Services
Technology to link all functions
1 • Consideration Compatibility Playbook Software

• Acquisition Orbis - BI tool for Sales to understand the demand in area

2 and offers they should be making to partner hotels
• Transformation Optimus – transformation app understand the
3 requirements of a building with cost, budgets, tasks

4 • Ready Branded and advertised as OYO room

• Operations OYO OS - Operational Software, apps, portals, tablets

5 front-end, back-end capabilities

6 • Customer Feedback Integrated with customer support systems

7 • Quality Audits Cluster management app Krypton

Concerns of hotel owners

Low occupancy rates Customer experience Undesirable customers Compatibility Playbook Software Operational software
– OYO OS
How OYO helps
• Information repository of hotels
Sophisticated algorithm
Brings in scale online being considered for acquisition
Standardization which is handling huge
• Parameters like infra, location,
economies and • online booking authentication and transactional data
facilities, tariffs, owner details,
marketing powers • App check-in/checkout credentials
management styles, promoter
through effective • Standard facilities
background etc.
online/mobile platform • 24/7 customer support
to reach out to large
segment of consumers
Technology and Analytics for Operations
Excellent interface between customers, hotel owners & OYO
Mobile app for customers Portal & tablet for hotel Transformation app ‘Optimus’
• User friendly design owners/managers understand the requirements of a
• Upfront payment on app or at • Property manager app to track building with cost estimates,
hotel and manage real-time business budgets, tasks
• City-, location-, landmark- transactions enable a strong on-ground team of Apps, software &
based searched • CO-OYO app Hotel manager civil engineers, architects,
backend are integrated
• Geotagging with directions app to track check-in/check- designers to transform an asset
• Ordering and managing a host within 3-14 days. for customer
outs, payments, customers
of services after checking in – orders, service delivery, information, hotel
booking cabs, room service, • complete visibility on cash Cluster manager app operations, pricing etc.
nearby restaurants flows, business performance, ‘Krypton’ for quality audits
• Deals and packages on pricing, customer reviews and Detailed check of rooms,
homepage of app End-of-month analytics equipment, hotel staff by OYO
• OYO Lite app captain
• Telephonic booking 160 checklist items on tablets

Easier to make decisions regarding Ensure properties and transformed  End-to-end

value-added services, boosting and maintained as per standards technology for all
performance by providing insights
and easy-to-understand metrics the hotel
and graphs that allow daily partners
monitoring of performance.
Value derived from data
Localization of
Dynamic Room Pricing
• Oyo charges around 22% of commissions properties
Commissions every month from hotels owners. may vary as
If a room goes empty, the optimum price point Technology infrastructure
per the services and features offered.
where the overall yield – the combination of price handles localizations such as
and occupancy is maximized is found. metrics from time of day,
Room • Customers pay a room reservation fee weather, location to local
according to their services chosen. Hundreds of signals on the demand — from traffic events, while ensuring that
Reservation Fee patterns to conversions, upcoming events, data security is optimum and the
from offline sources and even historical occupancy transaction cost is the least.
rates.
Membership • Oyo Wizard memberships are charged
fees with premium fees from Rs 500-Rs 3000.
Understanding Customer Behaviour
• promotional campaigns, by observing customer behavior
offline, online and from third party channels.
• Charges companies to place their ads on
Advertising Oyo’s app and website.
• personalize offers for each customer
• learn about room preferences
• Optimize search results
• charges some amount from sponsors and • Learn about interactions customer carry out while at hotels
Sponsors and key partners by promoting their brand
Partnerships through advertising on app.
• Cloud technology - to avail capacity on-demand, optimally tuned to serve
customers
Consulting • business consulting and data analysis • IoT pilot projects -which experiment with smart switches and smart lighting
services, it provides to its clients, i.e hotel, to significantly improve the guest experience and save electricity, enable
Services clubs, organizations, etc. unassisted check-ins with smart locks
• Chat interfaces - through partnership with AI startup Niki.ai to book rooms
via their bot.
OYO ZO Fab
Rooms Hotels

TG Rooms go Stays

How do they challenge OYO ?

Huge Technological Yield Operational

Customer base Competence management efficiency
Tasks at Hand

 Scaling Up
 Recruiting right talent
 Building Cutting Edge Technology
 Creating Compelling Brand
 Generating more avenues for revenues

**OYO Café **Keyless check-in **Aura Ventures

 Impact of COVID-19 IMPACT
Oyo is poised to be the world’s Hospitality on halt: The unprecedented lockdowns
largest hotel chain in the next and fear among travellers had aggravating impact on
few years the hospitality sector
OYO’s Agony:
Seized operations: Shut operations in many regions
Hit on the top line: Oyo’s revenue dropped by 75%
Furloughs: It had to furlough and grant leaves to a
Masayoshi Son said in September 2019 significant percentage of employees
(Founder Soft Bank) Lay-offs: 15% of 12,000 wokers in India laid off
Salary Cuts: 25% salary cut from April

SURVIVAL STRATEGY

ROAD Dependency on other businesses: OYO’s Weddingz.in has already

AHEAD seen a 40% growth
Focused Strategy: Pull out from 200 non performing cities and focus
more on the other 400 cities
Target more small hotels: It plans to on-board more small hotels in
order to minimize
Be the best in economical segment: Provide optimum facilities
abiding by the safety norms and economical prices
QUESTIONS