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    Oyo Vacation Homes

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    shreya bhandary
    OYO has acquired Leisure Group, one of the largest players in the European vacation rental market. The acquisition allows OYO to expand into the multi-billion euro European vacation rental market and gain access to Leisure Group's expertise and over 30,000 vacation home listings across 13 countries. After the acquisition, Leisure Group was rebranded to OYO Vacation Homes.

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    Oyo Vacation Homes

    Uploaded by

    shreya bhandary
    262 views15 pages
    OYO has acquired Leisure Group, one of the largest players in the European vacation rental market. The acquisition allows OYO to expand into the multi-billion euro European vacation rental market and gain access to Leisure Group's expertise and over 30,000 vacation home listings across 13 countries. After the acquisition, Leisure Group was rebranded to OYO Vacation Homes.

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    OYO VACATION HOMES

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    OYO has acquired Leisure Group, one of the largest players in the European vacation rental market. The acquisition allows OYO to expand into the multi-billion euro European vacation rental market and gain access to Leisure Group's expertise and over 30,000 vacation home listings across 13 countries. After the acquisition, Leisure Group was rebranded to OYO Vacation Homes.

    Copyright:

    © All Rights Reserved
    262 views15 pages

    Oyo Vacation Homes

    Uploaded by

    shreya bhandary
    OYO has acquired Leisure Group, one of the largest players in the European vacation rental market. The acquisition allows OYO to expand into the multi-billion euro European vacation rental market and gain access to Leisure Group's expertise and over 30,000 vacation home listings across 13 countries. After the acquisition, Leisure Group was rebranded to OYO Vacation Homes.

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    © All Rights Reserved
    of 15

    OYO VACATION HOMES

    (OYO acquires Leisure Group)


    Prepared by
    GUIDED BY
    Shreya Bhandary(02)
    Professor Sumeet Paradkar(31)
    Dr. Purvi Sanchita Choudhary(40)
    Pujari Gayatree Yadav(55)
    Vishal Dhumal(05)
    • FOUNDER: Ritesh Aggarwal
    • FIRST BUSINESS : ORAVEL in 2012 ---------> OYO in 2013
    • He always felt that the biggest problem people in India while travelling
    face is to find affordable hotels to stay in and are not able to get very
    History of basic facilities from the hotels.

    OYO • The portfolio combines fully operated real estate comprising more
    than 43,000 hotels with over 1 million rooms. Through its vacation
    homes business, the company offers travellers and city dwellers access
    to over 130,000 homes around the world. OYO today operates in over
    800 cities in 80 countries.
    • OYO is currently one of the tourism industry's fastest-growing
    companies. It is the world's sixth-largest chain of operated hotels,
    homes, managed living, and workspaces
     The Leisure Group is one of the largest players in the European
    market in vacation rentals management, having built deep data-driven
    capabilities in revenue management, homeowner engagement, and
    History of property management services.

    Leisure group  The company has four brands—- Belvilla, DanCenter, Traum-
    Ferienwohnungen, and Danland. Belvilla, DanCenter, and Danland
    offer more than 30K-fully managed holiday homes across 13 countries
    in Europe.
    At the beginning of June 2019, OYO, the fast-growing budget hotel start-
    up that’s backed by Airbnb, SoftBank, Grab, and Didi has made an
    acquisition to expand its footprint into Europe, specifically around self-
    catering home rentals
    Axel Springer had a 51 percent share of the company and said it would
    be receiving €180 million in the deal, including the repayment of a
    OYO Acquires shareholder loan of around €60 million, and a spokesperson for OYO
    Leisure Group confirmed that the full price was €369.5 million
    After the acquisition Leisure Group announced its rebranding to OYO
    Vacation Homes. The OYO Vacation Homes brand will be used for
    corporate and employer branding purposes.
    Weakness
    Strengths
    A strategy of co-branding
    Standardization
    Ever-growing network Poor service quality
    Spirit of Innovation Tight margins
    Subsidizing Hotel Stays
    Young and highly spirited leader
    SWOT OF SWOT OF
    OYO Opportunities OYO Threats
    Growing demand for budget hotels. Competition
    Focus on budget accommodation Growing concerns about safety
    Surge in the number of business travellers
    Strengths Weakness
    Leading Vacation Rental Company
    Core competency Not owning any of the real estate listings .
    Experienced professionals and skilled labour Business model can be copied.
    Expanded presence across Europe
    SWOT OF Threats
    Opportunities Leisure Group
    Diversifying into other markets Many competitors
    Government regulations may turn out to be
    extremely problematic
    MODE OF Why to enter in Europe?
    ENTRY  Multi-billion Euro Opportunity
    FDI with  Demand for vacation homes
    Strategic  Unique position
    Alliance
    (Acquisition) Why use the Acquisition strategy?
     Localization
     Special skill set
    Why to acquire the Leisure group?
    MODE OF  Same approach
    ENTRY  Skill set
    FDI with  Size and Scale of company

    Strategic
    Alliance OYO’s Strategy Behind This Acquisition
    (Acquisition)  Massive opportunity
     Management
     Mindset
    Strengths Weakness
    Data-driven
    Workforce Cases
    3rd largest brand Sold out
    Change of game O.Y.O

    Opportunities
    SWOT OF OYO Threats
    Vacation Homes
    Rentals market Competition
    Revenue Safety
    1.New possibilities provided by the European market
    2. OYO has obtained easier access to skilled labour force
    3. Diversification of portfolio
    Pros of the 4. Low operating cost

    Alliance 5. Fastest mode of entry into an international business on a large scale


    6. Market power(synergy)
    7. Increased strength
    1. Brand not known to the people in Europe
    Cons of the 2. Culture and values clash
    Alliance
     The global vacation rental market size was valued at USD 87.09 billion
    in 2019 with the market’s growth rate of 6.9%
     The travel industry is one of the major sectors that’s been hit
    extremely hard by the COVID-19 pandemic
     Scenario in Europe, in Scandinavian (Denmark, Norway, and Sweden)
     Scope of vacation homes is more as people may prefer isolation
     Recently they have revamped the consumer website “Belvilla” with
    Current the complete update of UI/UX, intelligent search experience and they
    have witnessed positive results
    scenario  Hospitality giant OYO has acquired Germany-based TUI’s vacation
    homes tour operator business for an undisclosed amount in a bid to
    increase its presence in the European market.
     The global vacation rental market size is expected to expand at a
    compound annual growth rate (CAGR) of 3.4% from 2020 to 2027
     A massive opportunity
     The market for vacation rentals is expanding fast — and with the rise of
    IoT across the world, more and more people are turning to innovative
    options .
    Future  Technology will been the root of the growth in the vacation rental
    market.
    Scenario  Now, OYO is planning to join several US Companies in a bid to grow its
    Vacation home rental business in the US.
     In India, China, Indonesia, and Malaysia, OYO plans to build its
    portfolio of vacation homes in Europe and the UK over the next 12
    months.
     In the wake of COVID-19, people seem to feel an even greater need for a
    vacation despite travel restrictions
    THANK YOU

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