SUMMER INTERNSHIP PROJECT

“A STUDY ON EFFECTIVNESS OF SMART AGREEMENT IN

PROPERTIES ACQUIRED BY OYO”
Submitted by

ALLURI ROHITH REDDY

17382007

Under the Supervision of

Dr. P.Sridharan, Professor

DEPARTMENT OF INTERNATIONAL BUSINESS, PONDICHERRY UNIVERSITY

DEPARTMENT OF INTERNATIONAL BUSINESS

School of Management, Pondicherry University, Pondicherry – 605014
 DECLARATION

This is to certify that this project titled “A STUDY ON EFFECTIVNESS OF

SMART AGREEMENT IN PROPERTIES ACQUIRED BY OYO” is submitted by me

as a part of the requirements for the degree of Master of Business

Administration, Department of International Business, School of
Management, Pondicherry University, Pondicherry.
I declare that this is an original record of my Observation Study on
consumer awareness and expansion of business, conducted by me for a
period of 59 days from the 2nd of May to the 30th of June 2018.

Date: 30TH JUNE Signature:

Name of student:
ALLURI ROHITH REDDY
17382007
 CERTIFICATE

This is to certify that the project titled, “A STUDY ON EFFECTIVNESS OF

SMART AGREEMENT IN PROPERTIES ACQUIRED BY OYO”. Is
submitted by Ms. Ayushi Jain, second year MBA student to the Department of
International Business, Pondicherry University in partial fulfillment of the
requirement for the award of Master of Business Administration degree and it is
certified to be an original and bonafide work done during
May-June 2018.

DR.P.SRIDHARAN,
PROFESSOR
DEPARTMENT OF INTERNATIONAL BUSINESS,
PONDICHERRY UNIVERSITY
 ACKNOWLEDGEMENT

The summer internship has been a very good experience for me in the
way that it has given me the chance to obtain a great insight on the day
to day activities by being a part of the organizational workforce. I’ve
learned about the different activities carried out by the various
individuals in the employee infrastructure and my interpersonal skills
have improved significantly.

Firstly I would like to thank Dr.P.Sridharan sir, for providing me such

an opportunity and helping me to utilize the summer holidays in an
effective manner.

I extend my thanks to Mr. Madhan from whom I have gained a lot of

practical knowledge about the various activities that goes on in the world
of Education, from marketing to sales and supply. He helped me
understand the various activities undertaken by OYO and this hand on
experience was very insightful and interesting to me.
 Executive summary
The total hospitality market in India is worth $10-12 billion dollars. Of
this, 70% comprises budget hotels. A Deutsche Bank report also states
that almost two-thirds of India’s rooms supply in 2020-21 will comprise
budget hotels.
And with an opportunity so huge Oyo is aggressively expanding it’s
presence to capture the fast growing segment. A testament to the
opportunity is also the fact that investors are betting on the market and
hence investing in the startups like OYO.
Oyo too, raised $250 million (Rs 1600 crore) in a Series D financing
round led by SoftBank through SoftBank Vision Fund and Hero
Enterprise, with participation from existing investors Sequoia India,
Lightspeed Venture Partners and Greenoaks Capital. It also raised $10
million from China Lodging Group Limited last week.

OYO is india’s largest network of branded hotels with a market share of

68% in budget segment having around 8000+ properties under its
franchise in 230+ cities.
OYO planning to add more than 500 hotels per month by the end of
2018 and the overall room capacity will increase from 70000 to 180000.

Business development :
Business development entails tasks and processes to develop and implement
growth opportunities within and between organizations. It is a subset of the fields
of business, commerce and organizational theory. Business development is the creation
of long-term value for an organization from customers, markets, and relationships.
Business development can also be taken to mean any activity by either a small or
large organization, non-profit or for-profit enterprise which serves the purpose of
‘developing’ the business in some way. Business development activities can be
done internally or externally by a business development consultant.

In the limited scholarly work available on the subject, business development is

conceptualized as or related to discrete projects, specific modes of growth, and
organizational units, activities, and practices. Sorensen integrates these different
perspectives with insights from chairmen and managing directors, senior business
developers, and venture capitalists from successful high-tech firms worldwide,
which is adopted in the Palgrave Encyclopedia of Strategic Management.

“Business development is defined as the tasks and processes concerning analytical

preparation of potential growth opportunities, and the support and monitoring of
the implementation of growth opportunities, but does not include decisions on
strategy and implementation of growth opportunities”.

Business development at OYO:

The development of business at OYO takes place by adding more properties into
the franchise of OYO.OYO is currently operating in more than 230cities in india
and more than 8000+ properties .OYO is currently adding its properties into
Franchise model whereas in previous it was following aggregate model of
business.
OYO planned to change its business model to franchise by end of the 2017 but
some of the properties holders are not accepted to hand over the overall inventory
to OYO then they planned to shift all its properties to Franchise model by june
2018.
The Business development team in particular hub takes care of selection of
properties , acquiring properties and developing those properties into OYO
standards and fixing the price for properties and etc..The properties are selected on
basis of many factors that the number of rooms available in the property, location
of property inventory available etc. After selecting the property the team of
quality engineers will visit property and in the time period of 20 to 30 days.
after the acquisition of property it will be assigned to the cluster manager in
particular cluster to look after the queries and to resolve issues in all the aspects
maintenance and booking issues.
OYO is planning to add around 180000 rooms by the end of 2018. The goal of the
company can be achieved if the clients are satisfies over the Franchise model and
the OYO is supporting over all the issues that are faced by property holders.

ABOUT THE STUDY:

The study conducted on the agreement which is being made between OYO and
property holders in order to develop that property under OYO franchise.
OYO is having different types of agreements earlier it started with
aggregate(Dynamic) type where OYO acquires only some rooms in properties and
develop them to oyo standards and sells under oyo brand. Oyo used to charge the
commission over bookings. Whereas Dynamic agreement had so many issues over
quality and booking confirmations oyo announced its change of business model in
acquiring properties from aggregate to franchise(smart).
In the SMART agreement OYO acquires whole property (inventory and access
over blocking of rooms).the properties which are acquired under smart agreement
are known as smart properties.
The Smart agreement is having two types of proposals to property holders
1)Oyo will invest money in order to develop the property into oyo standards and
after acquiring oyo manger and oyo staff will be appointed to look after the
property .This properties are known as FLAGSHIP properties
2)The second type of agreement in smart offers property holders to sell under OYO
franchise but the up gradation cost should be spent by property holders and oyo
will be having control of all the room bookings in property .This is are known as
Smart properties.
3)The other two types of properties that oyo is offering to its customers in
premium segment such as OYO town house and oyo homes are also comes under
smart agreement but those are renovated and maintained by oyo completely.

The standards that are following in Flagships and smart properties are almost same
but the property holders commission and oyo commission varies in these two
types of agreements.
The factors that are considered to acquire property under different agreements are
for smart and flagship properties:
1)minimum number of rooms should be available in a property is 10
2)Location of property
3)amenities around the property
4)The rooms and bathrooms quality and spacing
other than this OYO is preferring to join the properties under smart agreement
which are already in dynamic agreement with OYO .
for OYO Town house:
1)The property should me minimum of 2 floors with lift and parking facility in it
2)The lounge space
3)The spacing of rooms
4)location.
OYO is having more than 400 properties in Chennai including all types of
agreements such as Dynamic, smart and flagship.
OYO is about to close all its dynamic properties agreement by july 31 st which is
extended from December 2017.Most of the hotels for converted into Smart and
flagship properties from may of 2017 to December 2017.
The properties which are not converted into Dynamic will be no longer listed in
oyo application and website. At the same time oyo acquired more than 70 new
properties under smart agreement .

RESEARCH DESIGN AND METHODOLOGY::

Title:
A STUDY ON EFFECTIVNESS OF SMART AGREEMENT IN PROPERTIES
ACQUIRED BY OYO”

Objectives:
1)To study the transformation process of SMART properties
2)To analyze effectiveness of smart agreement.
3) To Study the influence of demographic factors in occupancy and standards .
4) To suggest the best possible ways to get good business to OYO

Source of data collection:

● Primary data: Questionnaire

● Secondary data: Company records, Books.
Sampling Technique: Convenience sampling

Sample Size: The sample size is “100”.

Limitations:

⮚ The study is limited to Chennai city only

⮚ The occupancy considered for the time period of six months
⮚ Sample collected based on convenience sampling.
⮚ Properties which are in DYNAMIC agreement with OYO and converted to
SMART are considered.
⮚ Some of the factors are neglected like issues with the application offline
booking issues which are very less
Statistical Tools used:
Anova(one-way),Paired t-test

Software used: IBM SPSS

HYPOTHESIS:
Hypothesis is considered as the most important instrument in research. A hypothesis
is an assumption or some assumption to be proved or disapproved.

Hypothesis can also be divided as (1) Null Hypothesis or (2) Alternative Hypothesis.

Null Hypothesis: is a statement that no difference exists between a population

parameter and a sample statistic

Alternative Hypothesis: When the null hypothesis is rejected, then, we are

accepting the alternative hypothesis. The alternative hypothesis is the logical
opposite of the null hypothesis.
H0:Assuming that the Smart agreement is not effective
H1: Assuming that the Smart agreement is effective
H0:There Is No Significance Difference Between Location And Occupancy of
properties
H1:There Is A Significance Difference Between Location And Occupancy of
properties
H0:There Is NO Significance Difference Between Pricing And Standards.
H1:There Is A Significance Difference Between Pricing And Standards.

Introduction:
Global Scenario:
The Hospitality is a broad class of fields among industry that features lodging,
event coming up with, theme components, transportation, cruise line, and extra
fields among the tourist trade. The industry trade may be a multibillion-dollar that
depends on the supply of time off and income. Such unit like an eating house,
hotel, or associate green consists of multiple teams like facility maintenance and
direct operations (servers, housekeepers, porters, room staffs, bartenders,
management, marketing, and human resources etc.).
Usage rate, or its inverse "vacancy rate", is a vital variable for the business. even as
an industrial plant owner would need a productive quality to be in use the
maximum amount as attainable (as opposition having to pay fixed charge whereas
the industrial plant isn't producing), thus do restaurants, hotels, and theme parks
ask for to maximize the amount of customers they "process" all told sectors. This
diode is the formation of services with the aim to extend usage rate provided by the
consolidators where based on information needed for offer merchandise square
measure brokered on business networks who are employed by vendors in addition
as purchasers.
In observing varied industries globally, "barriers to entry" by new entry comers
and competitive benefits among the current players’ measure is very important.
Among different things, those players realize advantage in previous classics
(location), initial and current investment support (reflected within the material
maintenance of facilities and also the luxuries set therein), and specific themes
adopted by the selling arm of the organization in question (for example at theme
restaurants). Conjointly important square measures of the characteristics of the
personnel operating in direct contact with the customers. The genuineness,
expertise, and actual concern for the happiness and well-being of the customers
that's communicated by prosperous organizations may be a clear competitive
advantage.

OYO Rooms is India’s largest network spread of hotels founded by young

entrepreneur Mr. Ritesh Agarwal in 2013. Within a short span of time, OYO
Rooms currently operating in more than 230+ Indian cities and towns and 5
international countries including Delhi, Gurgaon, Mumbai, Bangalore, Hyderabad,
Goa, Chennai, Kolkata are few to name. Similarly, OYO has been trying to be
present in south East Asian markets and middle east by opening its business in
Malaysia, Nepal, china, Indonesia and dubai.
OYO entered into Chinese Its current chain comprises of over 11,000 exclusive,
franchised rooms in 26 cities including Hangzhou, Xian, Nanjing, Guangzhou,
Chengdu, Shenzhen, Xiamen and Kunming among others.
According to a research carried out by CB Insights, a US based business
analytics firm, for The New York Times, OYO Rooms is among the companies
that may be the next start-up unicorns. As it provides standardized rooms at budget
hotels with features such as an air condition, complimentary breakfast and Wi-Fi
with 24 hours customer service support number of guests using OYO Rooms App
for booking hotels has been increasing exponentially. Since, the services are fully
IT enabled guests can also order beverages and request room service through the
OYO Rooms app. Hotel owners who partner with OYO Rooms are connected via
world’s first tablet based property management App and become part of the OYO
brand.

Vision and Values:

Vision To change the way people stay away from home.

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 in OYO. OYO introduced
pioneering technology to the hospitality industry to deliver better and more
efficient operations, management, service and CRM. OYO app allows a user to
book a room in just 3 taps, or within 5 seconds.
Business Model:

OYO has started with an aggregator model of business in 2013 where as it started
acquiring rooms in hotels and selling them under OYO brand .OYO has acquired
more than 60000+ rooms in aggregator model. But later in march 2017 OYO has
announced that it is going to change the business model from aggregator model to
franchise model where instead of acquiring some rooms in properties they started
acquiring whole property i.e inventory and pricing which makes hassle free for
property holders. Till april 2018 OYO has 70000+ rooms under brand name OYO
in which more than 60000 are franchise model and 10000 are aggregate model. By
august 2018 OYO planned to shut it’s services completely in aggregate model.
OYO planned to close the aggregate model because of issues that has faced by
property holders .When a question was asked to OYO official about strategic
change the officials responded “This was a natural progression and there were
hundreds of learning’s. When we take up 100% inventory rather than 50%, it
actually makes life easier for hotel owners. Our company is transparent with
management, investors, shareholders and employees. We are happy to be
questioned about our services.
We have transformed ourselves from our past learning’s. We are choosy about the
hotels we on-board and tell them how much to invest in a makeover.
tried to acquire whole property for lease with whom it has an aggregate model of
agreement with them.
OYO was named as india largest network of budget hotel in 2015 but in an
interview the CEO Ritesh said that “we are looking into providing a better
experience for customers instead of providing it at low cost”. As ritesh said the
OYO rooms are now more called as a budget hotel the price of hotels changed
from a minimum price of 999 to 1200 -1400 with an improved quality in services.
Its Oyo TownHouse category, launched in January 2017, was one of the company’s
strategies to turn into a fully managed and exclusive hotel chain. At the time of
launch, of hotels where the price starts from 2500 and gives customers an
unimaginable experience at that price and provides facilities like a home. Ritesh
agarwal founder of OYO said that the customer never feels that he is away from
home once he enters into the OYO town house which has developed in the pleasant
and peace full environment along with residential properties.
Oyo said that the Town House hotels are mostly aimed at millennial customers and
local residents who will be able to use the property as an alternative workspace. Town
House hotels also have retail stores, cafes and merchandise for sale.
“For the customers, Town House may look like just another Oyo branded hotel chain.
But for us, Townhouse was a different category at a very different price point,
primarily catering to a specific consumer category, with a better location in the city,”
Agarwal said during a press meet.

Evolution and Funding

The journey of OYO Rooms was started when Ritesh Agarwal dropped a college
and launched his first start‐up Oravel Stays Pvt. Ltd. in the year 2012. Oravel was
designed as a platform to enable listing and booking of budget accommodation.
Being an enthusiastic entrepreneur, he soon realized that the budget hospitality
sector lacked predictability. Therefore, he converted Oravel to OYO Rooms in
2013 with an aim of offering affordable and standardized accommodation. In 2013,
Ritesh was selected for the Thiel Fellowship- a two-year program started by Pay
pal founder- which granted support of USD 100,000 to pursue his start-up idea.

The company has raised multiples rounds of funding, the last one being an
impressive USD 25 Million funding from Light speed Ventures, Sequoia Capital,
Greenoaks Capital and DSG Consumer Partners in March 2015 and provides the
same amenities and the same experience across all its rooms at prices that no other
player offers across so many locations.

As Ritesh's story had been widely covered by the Indian media, he has won
Business World Young Entrepreneur Award and the TiE-Lumis Entrepreneurial
Excellence Award; investors like the Softbank Group, Greenoaks Capital, Sequoia
Capital and Lightspeed India have started to fund OYO Rooms.
In September 2017 has also raised funding of around $250 Million from its
existing partner in funding Softbank and another investor Hero enterprise came
into board by acquiring small percentage of stake in OYO.In march 2018 oyo has
funded around $10 Million by shanghai based “china-lodging group” which is one
of the world’s largest multi branded hotel group.

Funding of OYO Rooms:

Year Amount Series Funding Source

2012-December $ 5 million Seed Venture Nursery

funding

2013 $0.1 Million Seed Thiel Fellowship

funding

2014-Febreury NA Light speed Ventures

2015-March $ 25 Million Series-A Light speed, Sequoia and others

2015- July $100 Million Series-B Soft Bank

2016-August $90 Million Series-C Soft bank

2017-September $250 Million Series-D Softbank,Hero group

2018-march $10 Million China-lodging group

Source: www.OYOrooms.com

Growth:

OYO Rooms started with one city and one hotel (OYO Rooms Huda City Centre)
in Gurgaon in May 2013 and has seen a tremendous growth. With whopping
budget hotels under its branded network across the India, OYO Rooms‘growth has
been nothing short of phenomenal, and the rapid expansion has meant that the
funded start-up now owns India’s largest branded network of hotels. The company
as of April 2018 has more than 8000 hotels with more than 70000 room capacity
spread over 230+cities of India and five international countries. Moreover, the
company has planned to increase its room to 180000 rooms by increasing its hotels
under franchise model in tier 2 and tier 3 cities by the end of 2019. Now, OYO
Rooms has been named India's largest budget hotel chain.
OYO has announced its town house category in January 2017 with one property in
Bengaluru and expanded it to 25 properties in Bangalore and more than 250+
properties across india in 25+ major cities by January 2018.OYO has also entered
into OYO hostels,OYO homes in 2017 to acquire more market share in hospitality
service.
OYO Joined hands with Biotique in April 2016 to provide the toiletry kit for the
customers who stays in OYO properties.The OYO officials answered about the
partnership with Botique that “we’ve bid adieu to generic soaps and shampoos.
And, after a long search for a brand which matches our promise of quality we have
partnered with Biotique. Now every OYO room is equipped with Biotique
toiletries perfect for a contemporary, quality conscious traveler.
The toiletry kit at an OYO is a complete set comprising a shampoo, skin lotion,
body wash and a nourishing bar of soap. Rich in ingredients and infused with fine
fragrances, the toiletries offer an experience that will revitalize your senses.
In April 2016 OYO Rooms and Ola Cabs join hands to take hospitality to the next
level – on the wheels. As a part of this partnership, customers can book Ola Rooms
in just three taps through the OYO App
In April 2017 OYO started accepting OLA money to book the hotels through the
OYO app. Ola Money can be used for bookings via OYO app and web platforms,
as a seamless payment experience. This integration also enables consumers to pre-
book an Ola cab while booking a hotel across our network of 7,000 hotels in 200
cities. Both OYO and Ola enjoy a wide network reach.
OYO named the Most Promising Hotel Network in India at the Better Holiday
Awards 2017 ceremony by HolidayIQ. HolidayIQ is the biggest online travel
community in the country, but also because the winners were chosen on the basis
of ratings and reviews shared by millions of Indian travelers on the platform.

Avid traveler Kayanat Kazi, who has clocked over 1,00,000 kilometres during her
journeys across the globe presented this award to Chief Operating Officer,
Abhinav Sinha, OYO.

Continuing with its rapid expansion drive, OYO Rooms today became the biggest
network of branded hotels . Backed by the funding from various sources and strong
consumer partners, OYO Rooms also has set itself a revised target to expand its
network. RiteshAgarwal, Founder and CEO of OYO Rooms are quite hopeful that
India’s budget hospitality market is ripe for disruption and as the market leader,
OYO is best poised to lead this change. Strong customers’ feedback and loyalty
encourages the company to redouble its growth efforts to bring the OYO
experience to as many Indian travelers in as many different cities as possible and at
the earliest.
As a leader, OYO Rooms has created a new paradigm in the hospitality sector
through an asset-light managed marketplace model. This innovation coupled with
sound execution has been recognized by several national and international
accolades including TIE Lumis Business Excellence Awards, India International
Travel Mart Award and Lufthansa ET Now Runway to Success Award.
Detail of OYO Rooms’ Properties

Year Number of Property (Hotels)

2013 January 1 Property

2013 June 3 Properties

2014 July 13 Properties

2018 April 8500+ Properties

Source: www.OYOrooms.com

Organization structure of OYO:

OYO TEAM:

CEO : RITESH AGARWAL

COO : ABHINAV SINHA

CTO : ANIL GOEL

CFO : ABHISHEK GUPTA

CPO : DINESH RAMAKRISHNAN

CGO : KAVIKRUT

CSO : MANINDER GULATI

REGIONAL HEADS

North Head :GauravAjmera

South Head :Burhauddin Pithawala

East Head : PrasunChaudhary

West Head : ShreerangGodbole

OYOAPP & OYO ROCKET

OYO started working on mobile app in March and shipped the first version of it
on 22nd April, 2015 on the Android Play Store. The iOS version went live on 1st
May, 2015 on the App Store. Over the course of the last few months, OYO haS
refined it, added more features and have grown to over 2 million downloads in less
than 7 months of its launch and a significant share of OYO business now comes
through it.
The OYO Rooms mobile app is also the world’s first personal room service app
that allows guests staying at an OYO to order room service directly from their
smart phones. The app has already crossed more than 100,000 downloads within a
month of its launch. Available on Android and IOS platforms, more than 15,000
bookings have been made through the OYO Rooms mobile app within a week.

According company statement, OYO Rooms started its mobile app segment and
OYO for business which is ahead of other players who have recently entered this
space. OYO is the pioneers in bringing the comfort and experience of an expensive
hotel at a really affordable price and use technology to enhance customer
experience. That is why most of the branded hotels associated with OYO witness
more than 80 per cent occupancy, which indicates a huge success of business and
customers satisfaction. It is what that made the company confidence to continue to
grow at such a rapid pace.
OYO Rooms tried to redefine the meaning of a budget stay and provide our guests
a truly seamless experience with the app which allows customers to book an OYO
in just a few clicks. The app has been a real hit among users, with over 3 lakh
downloads in just three months. The company gets almost half of its bookings
through the app as of today, which just goes on to show how tech-enabled utilities
are truly the way forward.
OYO now have more than 10 million app downloads and three lakh daily active
users. OYO rooms can be booked on other online travel aggregator (OTA)
platforms like Booking.com and Yatra. OYO have more than 7,000 corporates as
part of our Oyo for Business segment and we get 25% of OYO business from that
segment.

Future Prospect

Tech-enabled, branded hospitality network OYO Rooms, which went live with its
website OYOrooms.com in April 2013, it become India’s largest branded
hospitality network of hotels . By having the 60,000 branded hotel rooms in the
country, the largest inventory is held by the The Taj Group with 9,000 –10,000
rooms. Pointing out that there are 350 million budget travelers in the country who
are looking for high quality, standardized rooms are 1.5 million unbranded budget
rooms in the country which are priced between Rs.2500 to Rs.4000. However, very
few of them offer the budget traveler a standardized, predictable experience with
assured facilities, services and amenities.
OYO has enterd into international markets also by expanding it’s business in
Malaysia, Nepal, Bhutan, Indonesia, dubai and china.
In 2018, the company aims to further its market share in the hospitality industry
and strengthen its existing verticals. The company's market share is merely 1.3% of
India's hotel market, and the belief within the company is that there is a vast
potential for expansion. The company is targeting to grow its room inventory to
1,80,000 from the existing number of 70,000 by entering into partnerships with
various hotels. It is here that Oyo's newly adopted franchising model will come
into play, making it easier for the company to expand horizontally.
The company also plans to build on the success of Oyo Homes and Oyo
TownHouses. The townhouse project, in particular, has been very successful with
all townhouses reporting 90% occupancy and the company plans to expand this
segment vertically, with geographical expansion not being a priority right now.
Besides the aforementioned expansion plans, the company also hopes to become
stronger in the food, beverage and banquet segments. 2016 and 2017 saw Oyo
Rooms expand into the midscale segment and the coming years could also see
them expand into the luxury segment.
In china they have started in 23 cities with 11000 rooms which they are planning to
expand into all major cities in china by end of 2019 under franchise model and
expand its business into all south east asiean countries which is having the highest
business potential after india and china.
OYO entered into middle east by opening OYO homes in Dubai in 2016 May now
they are planning to expand to all major countries in middle east including
Qatar,Saudi arebia etc..
By the mid of 2019 OYO is planning to enter into UK and European markets.
OYO started its business by taking commission of 17% from bookings which is
now increased to 20% and OYO wants to make this as 22% by the end of 2020.
OYO had faced a continuous losses in last three financial years .In 2017 fiscal year
OYO reduced its losses 33% from 496 crores to 326 crores. And it is trying to
reduce losses by 20%.
SOME OF THE PROPERTIES ACQUIRED BY OYO AND THEIR
IMPROVEMENT OF INFRASTRUCTURE :
THE JOURNEY OF OYO:

ANALYSIS AND INTERPRETATION:

Test 1:
PAIRED T TEST:
The paired sample t-test, sometimes called the dependent sample t-test, is a
statistical procedure used to determine whether the mean difference between two
sets of observations is zero. In a paired sample t-test, each subject or entity is
measured twice, resulting in pairs of observations. Common applications of the
paired sample t-test include case-control studies or repeated-measures designs.
Suppose you are interested in evaluating the effectiveness of a company training
program. One approach you might consider would be to measure the performance
of a sample of employees before and after completing the program, and analyze the
differences using a paired sample t-test.
where as my objective is to measure the effectiveness of smart agreement over the
variables mentioned below
Variables considered for effectiveness:
1)payments
2)support
3)Standards &maintenance
Hypothesis:
H0:Assuming that the Smart agreement is not effective
H1: Assuming that the Smart agreement is effective

Paired t-test
 Mean N Std. Deviation Std. Error Mean

Q7 3.0900 101 1.34235 .13357

Pair 1
Q8 4.1600 101 .75789 .07541

Q9 3.4500 101 1.03320 .10281

Pair 2
Q10 4.1100 101 .70562 .07021

Q11 2.9100 101 1.42194 .14149

Pair 3
Q12 4.160000 101 .7578918 .0754131

Paired Samples Test

t df Sig. (2-tailed)

Pair 1 Q7 - Q8 -6.934 100 .000

Pair 2 Q9 - Q10 -5.597 100 .000

Pair 3 Q11 - Q12 -7.871 100 .000

Six questions were asked to the property managers over the variables support,
maintenance and payments and response for each question has been recorded.
The significance value is <0.05 so the null hypothesis is rejected
And from the result we can say that the Smart agreement is effective
From the result it can also be found that the mean values of before and after
scenarios over first two variables are not differ much but when compared to the
variable payments it is highly varies.
From that it has been proved that the smart agreement is much effective over
payments but when compared to other variables it is not much effective over
support.

Test 2:
ANOVA (ONE-WAY)
The one-way analysis of variance (ANOVA) is used to determine whether there
are any statistically significant differences between the means of two or more
independent (unrelated) groups. For example, you could use a one-way ANOVA to
understand whether exam performance differed based on test anxiety levels
amongst students, dividing students into three independent groups (e.g., low,
medium and high-stressed students).

OBJECTIVE:
To Study the influence of demo graphic factors in occupancy and standards .
Hypothesis:
H0:there is no significance difference between location and occupancy of
properties
H1:there is a significance difference between location and occupancy of
properties
The Location of the property is divided into four groups they are
1)north chennai
2)south chennai
3)east chennai
4)west chennai
The responses were recorded over the occupancy from properties from different
locations in chennai.

Anova(one-way)

N Mean Std. Deviation Std. Error 95% Confidence Interval for Mean Minimum

Lower Bound Upper Bound

NORTH 25 9.36 2.378 .476 8.38 10.34 4

SOUTH 25 9.36 2.215 .443 8.45 10.27 5

EAST 24 9.83 2.220 .453 8.90 10.77 7

WEST 26 8.62 2.758 .541 7.50 9.73 4

Total 100 9.28 2.412 .241 8.80 9.76 4

TOTAL

Sum of Squares df Mean Square F Sig.

Between Groups 19.153 3 6.384 1.100 .353

Within Groups 557.007 96 5.802

Total 576.160 99

From the above result it has been found that the significance value is greater than
0.05 so the null hypothesis is accepted
Hence it can be concluded that
There is no significance difference between location and occupancy of properties.

Hypothesis :
H0:There is no significance difference between pricing and occupancy.
H1: There is a significance difference between pricing and occupancy.
The properties were divided into three groups based on pricing they are
1)1000-1500
2)1500-2000
3)2000 and above

The responses were recorded over the occupancy from properties that are having
different pricing in Chennai.
 Anova(one-way)

N Mean Std. Deviation Std. Error 95% Confidence Interval for Mean

Lower Bound Upper Bound

1000-1500 39 8.62 2.380 .381 7.84 9.39

1500-2000 36 8.94 2.898 .483 7.96 9.92

2000 AND ABOVE 25 9.68 2.545 .509 8.63 10.73

Total 100 9.00 2.625 .262 8.48 9.52

ANOVA

TOTAL
 Sum of Squares df Mean Square F Sig.

Between Groups 17.440 2 8.720 1.273 .285

Within Groups 664.560 97 6.851

Total 682.000 99

From the above result it has been found that the significance value is greater than
0.05 so the null hypothesis is accepted
Hence it can be concluded that
There is no significance difference between pricing and occupancy of properties.

FINDINGS:
● Increased commission of OYO over bookings is high when compared to
previous agreement which is 20%.
● The study proved that OYO is following the same standards over all the
properties in Chennai but the properties which are priced above 2000 are
having better standards
● The study proved that the SMART agreement is more effective over
payments but it was not much effective over support.
● The study proved that the occupancy does not depend on location but
whereas the EAST Chennai(9.83) having highest occupancy compare to
other locations.
SUGGESTIONS:

⮚ OYO should increase the quality managers to look after the maintenance and
query issues of properties .whereas now one cluster manager is handling
over 30 properties it should be reduced to 10 properties for one cluster
manager like other competitors following.

⮚ Over payment issues oyo improved a lot when compared to previous

agreements but over support like booking issues and queries regarding the
quality oyo should maintain their customer service center in each hub which
is now operating only in gurgaon only.

⮚ Regular inspections should be done in properties once in 10 days.

⮚ Property managers should be accessible to the operations team to solve

queries.