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About OYO and Business Model

• Industry: Hospitality

• Founded: 2013; 6 years ago

• Founder: Ritesh Agarwal

• Headquarters: Gurgaon, Haryana, India

• Area served: Asia and Europe

• Key people: Aditya Ghosh, CEO

• Website: www.oyorooms.com

• Realized Value: $1.8B (Dec,2018)

• Franchised Keys: 172822 (Dec, 2018)

Business Model: Oyo Rooms Business Model used to be a hotel aggregator.


The customers used to buy the services from the brand Oyo rooms and didn’t
care who the partner was. Just like Uber, Oyo provided rooms with standardized
quality and price.

This model was a mix of aggregator business model and now they have changed to
franchise business model. In which OYO acquires the complete hotel and runs it on
behalf of the owner. A certain percent of the profit is OYO’s cut.

Marketing mix:

• Product: OYO encapsulated unbranded hotels in branded ecosystem and created great living
spaces for common man. It standardized the rooms by having all essential features at an
affordable prize. All this supported by cutting edge technology. Maintaining such standards
at affordable prices has made OYO the most trusted online hotel booking app.

• Price: The main aim of OYO has been market share acquisition. Price varies from ₹ 999 to ₹
4000. For maintaining such low prices OYO has faced loses but are backed up investors
Lightspeed India and Softbank Group. OYO has recently updated its business model from
aggregator to franchise model, and they are predicted to reap higher profits.

• Place: World’s 6th largest chain of operated hotels, homes, managed living and workspaces.
It has 23,000+ hotels in 800+ cities in 18 countries around the World. It takes just 5-6 days
for a hotel to registered as franchise of OYO. Due to this fastracked process, OYO has been
able to serve such a big area in such short time.

• Promotions: OYO is focusing on the mass as well as on digital marketing section aggressively
for lead generation and customer acquisition. It is strategizing to use all means of social
media by targeting potential customers based on their interest, behavior and other
parameters which are readily available via digital marketing. OYO Rooms is organizing
several campaigns on social media platforms such as: Dubsmash Contest #AurKyaChahiye
videos on Youtube and IPL Final Verbal Combat. Jai Hind was the most successful one.
About Expedia Group and Business Model

• Industry: Travel technology

• Founded: October 22, 1996; 22 years ago (as a division of Microsoft)

• Headquarters: Bellevue, Washington, U.S.

• Key people: Barry Diller (Chairman), Mark Okerstrom (CEO)

• Revenue: US$10.06 billion

• Operating income: US$625.1 million

• Total assets: Increase US$18.51 billion (2017)

• Number of employees: 22,615 (December 2017)

• Website: www.expediagroup.com

Business Model: It is a platform based online travel agencies and it has merchant
business models. In this business model, the platform buys hotel rooms and then
resells them to travelers. The merchant gets the rooms cheaper by buying the rooms
very early as well as in bulk. Often, the merchant bundles them with airfares, rental
cars and/or other things.

Marketing mix:

• Product: It has the largest catalogue of offerings across all segments with over 150000
hotels and 300+ airlines. Expedia’s mobile and web-based solutions are very technology
driven and aims to simplify problems faced by travel enthusiasts. It meets the need for
consumers by providing a wide variety, easy access, deals and most importantly, feedback
from users. As a part of its marketing mix like vacation packages, car rentals, flight bookings,
hotel bookings, cruises, things to do at the destination, etc.

• Price: The pricing of the services of the company is done keeping in mind that the company's
motive to tap the major chunk of the demographics, that is the middle class. It offers secret
deals and discount vouchers to attract customers. The company also does not levy extra fees
for cancellation of hotel reservations. The company also provides premium services mainly
targeted towards the high-end customers.

• Place: Expedia.com has a global presence, United States, China, Brazil, Germany, France,
Malaysia, Australia, Vietnam, United Kingdom, Thailand, Sweden, Singapore, Norway, Japan,
Italy etc.

• Promotion: It has a defining tagline titled “Where you book matters”. It’s another popular
slogans is “Your trip, your way”. As part of its promotional activities company
created Expedia+ card after a partnership of Citigroup and Expedia Inc. Members can now
earn incentives, benefits and bonus points through its activities on the website. Expedia.com
has entered into a partnership with National Football League and become its Official Travel
Sponsor.