FIELD STUDY REPORT

On
“CUSTOMER SATISFACTION ON OYO”

Towards partial fulffilment of

Bachelor Of Business Administration (B.B.A.)
School of Management Babu Banarasi Das University, Lucknow

Guided by Submitted By
Mrs. Shachi Kacker Arun Pratap Singh Gurjar
BBA II Year IIIrd Sem.
Univ. Roll No. 1180671095

Session 2019-20
School of Management

Babu Banarasi Das University

Lucknow

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 DECLARATION

This is to declare that I Arun Pratap Singh Gurjar of BBA have personally worked on the
project entitled “CUSTOMER SATISFACTION ON OYO” The data mentioned in this report
were obtained during genuine work done and collected by me. The data obtained from other
sources have been duly acknowledged. The result embodied in this project has not been
submitted to any other University or Institute for the award of any degree.

Date: `
Place: Lucknow

Arun Pratap Singh Gurjar

BBA II Year IIIrd Sem.
Univ. Roll No. 1180671095

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 ACKNOWLEDGMENT

First of all I thank God for giving me this wonderful opportunity to undertake this research
which is a part of my BBA program.
I would like to sincerely thank Mrs. Shachi Kacker giving me the wonderful opportunity to
work under her able guidance and support throughout my research.
I also thank persons working at Amul office for giving me their valuable time and vital
information which forms a part of this report.
I would also like to thank my colleagues for rendering their help to me in this research.
Last but not the least, I thank my parents for their prayers, help and advice which helped me a lot
to complete this project report.

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Executive Summary

OYO Rooms is a branded network of hotels in India. OYO Rooms currently operates in more

than 120 Indian cities including Delhi, Gurgaon, Jaipur, Mumbai, Bangalore, Hyderabad, Goa,

Chennai, Kolkata and others. OYO is present in major metros, regional hubs, leisure destinations

and pilgrimage towns. OYO Rooms provides standardized hotel rooms with features such as an

air-conditioned room, complimentary breakfast and Wi-Fi with 24x7 customer service support.

Guests can use the OYO Rooms App for booking rooms on the go. They can also order

beverages and request room service through the 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. According to a research carried out by CB Insights for The New York Times,

OYO Rooms is among the companies that may be the next start-up unicorns. The company is

backed by investors like the Softbank Group, Green oaks Capital, Sequoia Capital and Light

speed India.

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 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

OYO uses technology to link all its functions and provide the customer a seamless awesome

experience.

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1. Introduction

1.1Origin of the report

As a student of Business Administration, I had to complete a 90 days attachment with any

organization. My attachment was with Oravels Stays Pvt. Ltd. Commonly known as OYO

Rooms and worked as an intern from May 20, 2017 to July 31, 2017. And that period, all

information were collected regarding preparing a report on ensuring customer delight and

reducing unhappy percentage of guests.

1.2 Objectives

The objective of this report is specific, comprising three objectives. These are:

To work on the core operations i.e. (Product Knowledge & ProductRetainbility) of OYO Rooms.

Secondly to work on Business Development i.e. (Introducing SMART PROPERTY) concept.

Finally to increase the demand/sales of OYO Rooms.

1.3 Scope

To know about the Operations of OYO Rooms.

To know what kind of activities are done in hotels sector.

To know about the customer response and behavior towards the OYO Rooms.

To expand network of contacts with various stakeholders, owners and vendors.

To apply business concepts and theories to real-world decision-making.

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1.4 Methodology

Primary Data:Data is collected directly from customers’.

1.5 Limitations

To enrich and complete this report my level best attempt was dedicated although there are some

limitations:

Unfortunately it was not possible to acquire sufficient information due to the company’s

limitations (business secrecy and confidentiality). As this is my first report about hotels sector so

I had to face some difficulties to preparing the report. Time was also a limitation. Gathering

information during working was a tough job.

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 Chapter-2

2. Organizational overview

2.1 ABOUT OYO Rooms

OYO Rooms is India’s fastest growing branded network of budget hotels founded by young

entrepreneur Mr. Ritesh Agarwal on 2013. Within a short span of time, OYO Rooms currently

operating in more than 100 Indian cities including Delhi, Gurgaon, Mumbai, Bangalore,

Hyderabad, Goa, Chennai, Kolkata are few to name. Similarly, OYO has been trying to be

present in major Metros, Regional hubs, leisure destinations and pilgrimage towns. OYO Rooms

provides standardized hotel rooms with features such as an air-conditioned room, complimentary

breakfast and Wi-Fi with 24x7 customer service support. Guests can use the OYO Rooms App

for booking rooms on the go. They can also order beverages and request room service through

the 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.OYO Rooms, commonly known

as OYO, is an Indian hotel brand that owns and operates as well as aggregates standardized hotel

rooms. It currently operates in more than 200 Indian cities and in Malaysia.

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2.2 Products and Services offered by OYO:

HOTEL BOOKING

A traveler can book a room online at Oyorooms.com and can choose to opt for online payment or

pay at the hotel.

2.3Evolution 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.

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Ritesh Agarwal, Founder, OYO Rooms

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.

Table-1: Funding of OYO Rooms

Year Amount Funding Source

2012-December $ 5 Million Venture Nursery

2013 $0.1 Million Thiel Fellowship

2014-Febreury NA Light speed Ventures

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

2015- July $100 Softbank

2016-August $90 Million Softbank And Others

2017-April $250 Million Softbank and others

2.4 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

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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. Now the company has more than 1000 employees including 10-20 people from

IIMs, more than 200 people from IITs, HBS and Ivy.

Table-2: Detail of OYO Rooms’ Properties

Year Number of Property (Hotels)

2013 January 1 Property

2013 June 3 Properties

2014 July 13 Properties

2015 August 2000+ Properties

2016 June 5500 Properties

2017August 7000 Properties

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2.5Revenue Model

Oyo rooms books a part of the hotels inventory by paying monthly rent in advance at discounts

(Expenses)

These hotels are put to match the standardized quality like free Wi-Fi, clean toilets etc.

(expenses)

These rooms are offers to the customers at OYO room’s website, application and various OTA

platforms

Users buy these from at a predetermined price (revenue)

The expenses also includes the heavy expenses on promotional activities to increase the brand

quality among the users as well as the remuneration of the employees. It provides heavy

discounts to the customers. These discounts often results in prices which are lesser than the cost

price of these hotels and results in losses.

Precisely Oyo Rooms is running in loss. Despite heavy losses Oyo rooms is able to expand in

the market as it is backed by several investors like light speed India, Sequoia Capital, Green oaks

Capital and Softbank Group. The price sensitivity in this case is high due to high competition

and customers are also awarded about different services and can easily compare the quality and

price with its substitutes. Oyo Rooms refer clients to hotels and get a percentage as cut for this

transaction. They also have deals for minimum guaranteed customers and can offer its clients

beneficial deals and discounted rates. All its transactions are swift-cash variety and it works in

favor of the company as they are able to realize their revenues at a faster pace. They provide

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different services at different but definite prices. Budget hotel room prices varies from rupees

999 to rupees 4,000 but a floor price is kept and the competitor’s price according to their quality

is also kept in mind. Leisure rooms are priced 15-20% higher than business rooms, and 20-30%

lower than the nearest three-star hotels. It tries to meet the budget of an individual and set up his

accommodation accordingly. Price of the rooms are also set according to their geographical

locations, categories and inclusions. Rooms at tourism spots are generally high priced compared

to a room in a general city.

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2.6 Organization Structure:

Figure: Organization structure

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2.7BUSINESS MODEL of OYO Rooms:

OYO Rooms is an aggregator that provides a market place for online hotel booking similar to

Uber, which provides a marketplace for online cab booking. Started in the year 2013, OYO is

turning into India’s largest chain of hotels. It has a very simple business model where it adopts

hotels, get them to follow certain basic standards of services, features, sta , pricing and security

and then list them on its web portal and sells them under its brand, earning a part of the profit

from the deal. Currently the company is following invest and expand mode. Till now it has

received funding from the big firms like Sequoia and is estimated to be worth $400 million after

its latest round of funding in August this year, where it received $100 million.

OYO’s asset free business model has now challenged the capital heavy hotel industry. The

company does not own any of the properties listed on its site. It only invests in marketing and

quality improvements for the hotels under its banner. The model provides a win-win situation for

both the small budget hotels and owners of spare properties, who do not have enough capacity,

network and knowledge of smart marketing. OYO has helped them increase their bookings by

more than 100% thereby improving their yields.

2.8 Unique Selling Proposition of OYO Rooms:

Finding hotels in India is not a big problem, the major issue is the trust factor and predictability

of services. OYO founder, Ritesh Aggarwal, capitalized on this basic need by providing

standardized hotel rooms across the country. The complete model of hotel industry is based on

consumer experience, and with the beautiful amalgamation of technology and quality control

mechanisms has improved customer experience even at economical rates. The complete model

is designed keeping in view the consumer experience, right from booking to finding hotel to

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standardized services to high technology room service option. To further enhance the customer

experience, company has Ked with Airtel to provide its customers a world class in-room internet

and TV viewing experience at no additional cost.

OYO rooms has also started two new sub-divisions to increase its hold on the market:

OYO Premium – Moving from the budget room segment, company has also started premium

roomservice in metro cities to increase its customer base. OYO premium rooms will cater those

business travelers or families who are looking for premium services and are ready to shell out

few extra bucks for higher comfort.

OYO SMART: Introducing this concept which includes fully ownership of reservations by

OYO whether it is by normal walk-in, any OTA like MMT, GOIBIBO, CLEARTRIP, and

YATRA.COM.

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 Chapter-3

3.1 LITERATURE REVIEW:

The hotel industry involves high degree of interaction between employees & guests and so

provides many opportunities for service failures to occur. Service quality issues have been of

concern to researchers for close to twenty years & no. of projects focused on hospitality industry.

For example, McColl-Kennedy & White (1997), Pizam & Ellis (1999) considered consumer

satisfaction in hotels & mismatch between expectations & perceptions of Service Quality. In

terms of measurement O’ Neill (1996), used SERVQUAL (Parasuraman et al., 1988) in hotels in

no0rthern Ireland used it in hotels in Korea. Alternative measurement tools for the hospitality

industry were developed by Wong et al. (1999) for hotels in Australia (HOLSERV) & by

Knutson et al. (1991) (LODGSERV).

3.2 SERVICE FAILURE:

Integral to the consideration of the provision of quality service is service failure & recovery.

Service failures are inevitable and occur in both the process and the outcome of service delivery.

They include situations when service fail to live up to the customers’ expectations (Michel,

2001). Service failures have been categorized by Bitner et al. (1990) according to the Employee

behaviors when failures occurs, relating to: the core services; request for customized service; and

unexpected employee actions.

There are various consequences of service failures, namely:

 Dissatisfaction (Kelley et al., 1993);

 A decline in customer confidence (Boshoff, 1997);

 Negative word-of-mouth Behavior (Bailey, 1994);

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  Loss of revenue & increased costs (Armistead et al., 1995); and

 A decrease in Employee morale & performance (Bitner et al., 1994)

3.3 SERVICE RECOVERY:

If service failures does occur, then what can service providers do to recover? “Service recovery

involves those actions designed to resolve problems, alter negative attitudes of dissatisfied

customers and to ultimately retain this customers.” (Miller et al., 2000, p.38), and “It includes

situations in which a service failures occur but no complaint id lodged by customers.” (Smith et

al., 1999, p.359).

Successful service recovery has significant benefits. It can:

 Enhance Customers’ perception of the quality of the service & the organization;

 Lead to the positive word –of-mouth communication;

 Enhance customers’ satisfaction; and

 Build customer relationships, loyalty & impact on profit.

Service recovery can also be poor and ineffective with the consequence that the customer is let

down for the second time: This may lead to loss of confidence in the organization and possible

defection, together with the spread of negative word-of-mouth communication.

3.4 SERVICE RECOVERY STRATEGIES:

Actions that service providers take, in response to defects or failures, comprise a combination of

psychological recoveries and tangible efforts, and have been researched by no. of academics. The

strategies they identify may be classified as:

 Apology

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  Correction

 Compensation

 Follow-up

 Acknowledgement

 Explanation

 Exceptional treatment; and

 Managerial intervention

From the research evidence, it can be concluded that the type & magnitude of service failures

depend on the industry and service (i.e. outcome or process-based).

3.5 Loyality:

Loyality of a firm’s customer has been recognized as the dominant factor in the business

organization’s success. This study helps us in extending our understanding of the relationship

between customer loyalty, customer satisfaction, and image. This is of considerable interest to

both practitioners and academics in the field of hospitality management. One of the greatest

challenges facing hotel organization today is ever-growing volume and pace of competition.

Competition has a major implications for the customer, providing:

 Increased choice;

 Greater value for money; and

 Augmented levels of service.

There are two strategies most commonly used by hotel managers in order to gain a

competitive advantage; they are:

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 1. Low-cost leadership through price discounting , and

2. Developing customer loyalty by providing unique benefits to customers

Loyal customer is a customer who repurchases from same service provider whenever possible

and who continues to recommend or maintain a positive attitude towards the service-provider.

3.5.1 LOYALTY DIMENSIONS:

There are two dimensions to customer loyalty: Behavioral & Attitudinal

The behavioral dimensions refers to the customers’ behavior on repeat purchases, indicating a

preference for a brand or a service overtime. Attitudinal dimensions, on the other hand, refer to a

customer intention to repurchase and recommend, which are good indicators of loyal customers.

3.5.2 RELATIONSHIP BETWEEN CUSTOMER SATISFACTION AND LOYALTY:

Customer satisfaction considers to be one of the most important outcomes of all marketing

activities in a market-oriented firm. The obvious for satisfying the firm’s customer is to expand

the business, to gain a higher market-share, and to acquire a repeat and referral business, all of

which lead to improved profitability (Barsky, 1992).Studies conducted by Cronin & Taylor

(1992) in service sectors such as hotels found that customer satisfaction has a significant effect

on purchase intention. Hence, it can be concluded that there is a positive relationship between

customer satisfaction & customer loyalty.

3.5.3 RELATIONSHIP BETWEEN IMAGE AND LOYALTY:

An Organization’s Image is an important variable that positively or negatively influences

marketing activities. Image is considered to have the ability to influence the customers’

perception of the goods and services offered (Zeithaml and Bitner, 1996). Thus, Image will have

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an impact on customers’ buying behavior. Image is considered to influence customers’ minds

through the combined effect of advertising, public relations, physical image, word-of-mouth and

their actual experiences with the goods and the services (Norman, 1991).

CUSTOMER SATISFACTION

CUSTOMER LOYALTY

HOTEL IMAGE

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 Chapter-4

4.1 DEMOGRAPHIC PROFILING:

 Age-Wise PROFILING

Total Walk -In (in %)

7%

22% 25%
38%

5 to 15 16 to 26
27 to 37 More Than 48

 Gender-Based PROFILING

TOTAL WALK-IN
No. of Males No. of Females

45%
55%

 INCOME-Based PROFILING

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 TOTAL WALK-IN
8%

22%
22%

48%

5000 - 20000 20001 - 35000

35001 - 50000 More than 50001

4.2 SWOT ANALYSIS:

STRENGHTS:

 Excellent use of advertising for High Brand Recall.

 User-Friendly/Easy-To-Use Interface.

 Budget Hotels

 Constant Innovation

WEAKNESS:

 Restricted to Budget Hotels/Lodges.

 Fast Expansion Leading to Compromise on Quality.

 Renovation of Run down Hotels Raises Questions of Trust and Credibility.

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OPPORTUNITIES:

 The Number of Budget Travelers in India is on a Rise.

 More and More People are Becoming Technology-Driven.

 Use of Social Media to Enhance Consumer Experience

THREATS:

 Competitors like ZO Rooms and STAYZILLA.

 “Backpacker travel/tourism” In India is still very unpredictable.

 Fewer Repeat Customers.

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 Chapter-5

5.1 RESEARCH METHODOLOGY

5.1.1 RESEARCH PROCESS:

Before embarking on the details of research methodology and techniques, it seems

appropriate to present a brief overview of the research process. Research process

consists of series of actions or steps necessary to effectively carry out research

and the desired sequencing of these steps.

1. Formulating the research problem

2. Extensive literature survey

3. Development of working hypothesis

4. Preparing the research design

5. Determining the research design

1. Collecting the data

By observation through personal interview

By questionnaires

2. Execution of the project

3. Analysis of data

4. Hypothesis-testing

5. Generalization and interpretation

6. Preparation of the report

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RESEARCH PROCESS:-

The research was carried out as per steps of consumer research process. The

figure below depicts a model of consumer research process.

STEP1: DEFINE THE O

Define the Objectives of the Research

BJECTIVES OF
Collecting and evaluating secondary data
G AND EVAL

Designing a primary research study

Collection of Primary data

Processing and Interpretation of Data

Therefore to achieve the objectives of my research I have used quantitative

method for research.

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5.1.2SAMPLING PLAN FOR THE PROJECT:

7. Data source : Primary Data

8. Research approach : Survey method

9. Geographical area : Katra Market

10. Sampling unit : Hotels , Katra

11. Sample size : 100 Customers.

12. Research instrument : Questionnaire.

13. Contact method : Personal contact

5.1.3LIMITATIONS

The limitations are as follows:-

1. Some customers refuse to co-operate and do not disclose their Genuine

opinion.

2. Customer information is highly confidential, so organization doesn’t

disclose it properly.

3. Respondent’s answers might have influence or bias.

4. Information is collected from the customers and dealers only.

5. Meeting to the Guests is tough job, because they are very busy.

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5.2Project Profile:

1. Operations

2. Business Development

3. Sales/Demand

5.2.1 Operations:

Operations involves two Functions:

1. Product Knowledge: Here we are primarily concerned in obtaining the knowledge of the

product i.e. OYO Rooms. OYO Rooms owns reservations along with, gives & Sells

Standards as well as Services. These Services remains same in all PAN India whether it is

North, South, East, and West.

In order to maintain those standards, there are PROPERTY AUDITS every week .It

makes Ensure that the property which is in collaboration with OYO are up to the

standards. For each property, OYO use different property codes starting from KTR001 to

KTR063, each property was assigned with a different property Code

KTR 034

AREA CODE PROPERTY CODE

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This is Helpful when we get data on a daily basis from Cluster Manager and with that we need to

go to respective properties for CeX & Ensuring Delight. Below is the sample how the data

looked like in CRS

Figure CeX Data

The standards are to be maintained at these respective areas:

 Kitchen

 Hotel Facility

 Rooms

 Property Entrance

 Common Area

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 For making Audits OYO has created an application called “KRYPTON”. By

using this application we Audit the properties which is to be submiitted Online.

Below are the samples of what the Audit work includes and efforts of OYO for

enlighting the experiences of Customers.

Figure: AUDIT

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Figure: Audit of common area

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Figure: Rooms Audit

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Figure: Property entrance audit

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Figure: Hotel facility audit

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Above areas of Standards consists of sub-standards which is to be checked every week at audit of

Property so that standards are being met and guests are not feeling any kind of trouble.

Below are the few samples of OYO toiletries provided by the OYO to guests to increase their

level of hygiene, so that their guests don’t suffer with any kind of infection after experiencing

OYO?

Figure Toiletry Kit

2. Product Retainbility:Here we are primarily concerned about the retainbility of

customers or Guests in order to increase the Customer Experience (CeX) along with

increasing the delight of guests. Better the CeX of guests, more the retainbility and

repetitive of Guests. Hence, this step play a pivotal role in operations department.In an

Operations Department of OYO Rooms, CeX is quite important .Higher the CeX, more

the Un-happy Guests and lesser the retainablity of guests.

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 Parameters of CeX & Un-Happy% Guests are decided by feedbacks that guests give at

the time of Check-out at the hotel. Feedbacks are in the form of Ratings of 1 – 5:

1 star: very Bad Experience

2 star: Fair Experience

3 star: Average Experience

4 star: Good Experience

5 star: Excellent Experience

1 star and 2 star are considered as negative feedbacks in Oyo operations. Un-Happy % is

calculated as total number of negative feedbacks (1 star & 2 star) divided by Total

number of feedbacks.

Methodology for Retainbility:

 Sharing Real Time Information: So on the daily basis we used to interact with each and

every guest personally ensuring there is no such problem and if the problem arises try to

solve the problem engaging with property manager to ensure guests remains satisfied.

Some of the concerns of the guests were:

I. Room is not the same as shown in the OYO APP.

II. Complimentary breakfast is not good or sufficient to the number of persons.

III. Rude staff behavior.

IV. Delay in the order.

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 V. OYO kits not available.

VI. Some of the Concerns of the Properties Manager were

VII. More number of guests entering on few guest booking.

VIII. Early check-in was not possible because it is subject to availability.

IX. Guests checking out late from the mentioned time.

These were the some concerns that used to arise on day to day basis and by engaging with both

customers and with property managers and sharing real time information with our cluster

manager and property manager to find out what is convenient to both guest as well as property

manager, guest remains satisfied &happy and the manager also don’t faces losses.

 Feedback Call: Regular Feedback call from Centre team are made on daily basis

to guests at the time of Check-Out in order to ask their respective feedback

regarding the services at the OYO. Based on these attention, guests feels good

that he is being cared.

 Public Relations: It Includes meeting the guests personally at specific timing and

interacting with guests so that guests should feel the sense of caring. Secondly,

Building Good Relationships with the Stake-Holders and Property Managers so

that if in any case Guests need help, PMs are ready to provide them solutions.

 Property Manager Incentive (PMI) Scheme: Since, OYO executives are not

always present at full time near guests but person who is every time near to guests

37
 are Property Managers (PMs). So, Keeping in consideration of increasing the

delight of guests , PMI scheme was launched .Under this Scheme , for every 5

STAR rating in feedback call of guests, PMs are to be Rewarded by INR 100.

This Cash was to be given at instant to PMs so that they could better work on

experience of guests arriving at their property.

“Get a 5 star and take away Rs 100”

Below this Picture of (OYO 034) Hotel Satya Shree who in total got INR 2600 in

cash from OYO as they scored twenty six 5 star rating and hence increased the

delight percentage.

Figure: PMI Scheme

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 Limitations of PMI Scheme:

I. This Scheme was only for Short Term i.e. only for 9 Days.

II. Property Managers were giving services only for the sake of money only

otherwise they don’t care.

III. After this scheme ends, situations will be same as earlier.

Analyticallyit can be described as:

Nature
Public Relations
PMI Scheme
Timings of Interaction Outcomes
Antecedents
Sharing Real time Satisfaction
Dis-satisfaction
Information Delighted Guests
Un-Happy Guests
Happy guests

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 INPUT PROCESS OUTPUT

5.2.1 Business Development:

OYO in Katra came up with a new concept called “SMART”. Earlier there used to be Dynamic

contracts along with that OYO also introduced a new contract called Smart Contracts.

What is Dynamic Contract?

a) In dynamic contracts Property owner has an option to give limited number of inventories

to the OYO or how much they want to give, with the freedom to block the OYO

inventories anytime so that they can rent their room from any other platform and could

generate more revenue.

b) In dynamic contracts, OYO generally don’t make any investment

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 c) There is mutually consent with the property owner that how much percentage of share

OYO is going to take from each booking. This revenue sharing percentage is decided

between the Demand manager and the property owner.

d) Most of the bookings in dynamic properties are not confirmed so there are more chances

that the owner is going to suffer loss as their room might remain vacant otherwise they

could have rented their room from any other platform.

What is SMART Contract?

a) In Smart contracts OYO captures and take away all the inventories of the property with a

contract of ensuring that it will provide the whole booking and whole demand to their

property through their platform.

b) OYO takes all the responsibility of the bookings and ensure property owner regarding the

demand.

c) Property Managers are provided by the OYO at company’s salary.

d) OYO in smart properties also make investments for building up standards for their room

as well as for the overall development of the property starting right from the entrance.

e) In Smart, all the booking are confirmed bookings and there are less chances that the guest

will not come and this also saves property owner from running into losses.

“SMART” Property instead of Dynamic or Basic Concept. This Smart Property concept

has many advantages and it is a newly launched concept in katra. Till 30th June 2017,

there are 6 Smart Properties.

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Name of the SMART properties in Katra

1. Hotel Satya Shree.

2. Hotel Royal Krishna.

3. Hotel The Etilier

4. Hotel JMK.

5. Hotel New Shradaa.

6. Hotel Kanta International

All these are working excellent and above 3 properties are giving a fruitful result to the

OYO in terms of Delight Percentage and overall Profit i.e. GMV (Gross Market Value).

Although it’s a win-win situation for the property but there are many challenges for BD

Team to make ensure that Owners are convinced with that as Katra Market is UN-

Predictable such as Off Season , Peak season , Super Peak Season and on that seasons

Both PM’s and owners don’t bother.

There are some Questions that are asked by Owners to BD Team.

 How much Rooms will get sold out in a day or in a month?

 How will a SMART benefit me (owner)?

Features of SMART Property:

 After Property being live & Active, Hotel will be shown in web-portal as well as APP on

top as a priority.

 On Every Booking, the Amount will be shared which will be decided mutually such as

(80 – 20) %, (85 – 15) %.

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  80 % - ORR (Owners Rack Rate)

 20 % - OYO Share

 If in any case, Bookings are made by other OTA, then MIGRATIONS are

done by OYO.

 Owns only Reservations Department nor food nor any other.

 It could be cancelled within 1 Year at any time. T&C Apply.

 OYO provides “minimum revenue guarantee” to the property owner that

OYO will generate a minimum revenue of the said amount from your

property.

 Also proper branding as well as OYO dollops was put up in each Smart

property with OYO logo present in front of each property.

 PM’S are given by OYO.

43
Figure SMART Property

Figure KTR034

44
5.2.2SALES / DEMAND:

Increasing the Inventory of Rooms requires Demand of rooms also. We sat for ten days at Katra

Railway station and realized thatapproximately 30% of its business was from online bookings

and remaining 70 % business was coming from direct bookings in Katra.

OYO being an online aggregator working on B2B business model in Katra was focusing on its

betterment of Online Platform as well as on how to gain advantage over its existing online

Competitors and other online portals.

But OYO soon realized Inspite of its direct competition from other platforms like Goibibo,

yatra.com, make my trip.com etc. there was also an indirect competition which OYO was facing

in Katra.

This indirect competition was from local agents called Touts, and touts was indirectly eating the

business of OYO in accommodations.

OYO soon realized this was the untapped opportunity where OYO couldn’t be able to reach till

now, OYO soon has to capture this because OYO was letting others to eat this major proportion

of business revenue in Katra.

OYO was getting direct bookings but the major business of that direct bookings was taken up by

the Touts whom OYO named “PROMOTERS”.

OYO needs to come up with some strategy in order to capture this untapped opportunity and

business of Promoters from where OYO was facing major indirect loss in Katra.

45
Capturing this indirect business Opportunity

OYO in order to take up this business opportunity came up with a strategy that in order to take

up Promoters market we need to tie up with Promoters itself.

So OYO in Katra came up with a new scheme called “OYO BUDDY”.

OYO BUDDY

OYO created awareness through its OYO BUDDY campaign among the Promoters be a part of

OYO and become an OYO buddy.OYO let Promoters to work under our company and enjoy

various incentives and instant 30% of the commission of the booking amount will be

immediately transferred to their bank accounts.This was the tactics that the OYO played in order

to take up promoters because promoters earlier used to get commission after a week or even after

a month from the property owner for giving them bookings and also the commission proportion

was not that much what OYO was offering.

With this Campaign OYO motivated Promoters and gave them various reasons to be a part of

OYO because they were not only getting the Commission out of the bookings but also various

incentive schemes such a

 Instant 30% of commission directly to Bank accounts.

 An amount of Rs 5000 after making the first 5 bookings.

 If the booking amount reaches 5000 an incentive of Rs 500

 If the booking amount reaches 15000 an incentive of Rs 2000

 If the booking amount reaches 30000 an incentive of Rs 4000

46
  If the booking amount reaches 50000 a Cooler

 If the booking amount reaches 100000 a TV.

 If the booking amount reaches 5, 00,000 a Bike.

Now for capturing the promoter’s network and to make it effective a planning needs to be

formed that how the promoters are going to work for us. For this purpose only OYO organized

an event in Katra on 12th July 2017, called “OYO BUDDY” the purpose of organizing this event

was to make up proper count of promoters who are going to work for OYO as well their

induction and training will be done on the same side.Also it was also mentioned that first 100

people getting registered under OYO buddy will get a cash amount of Rs 500 plus and induction

kit which included instructions as well as OYO T-shirt plus a refreshment. People registering

after a count of 100 will get cash amount of Rs 200 and other mentioned refreshments.

47
Figure Event venue

Figure Advertisement OYO Buddy

48
Below are the samples of how the awareness was created amongst the promoters regarding an

event, a detailed information regarding event benefit, requirements of the event, venue as well as

date of the event was available on these pamphlet’s as well as on holdings in their regional

languages so that they could understand easily plus phone numbers was provided in order to

make them more clear regarding the concept.

49
 Chapter-6

Data Analysis & Interpretation

120

108
102
100

80
Total Feed Back
Counts
Unhappy count

60 Un-Happy %
51
47.22 48 47.05 Delight Count

40 Delight %

20
12 11.11 11 10.76

0
WEEK-1 WEEK-2

Figure MID MAY DATA

INTERPRETATION: In the above chart, the Average UN-HAPPY % of Guest in the month of

May was 10.93%.

50
 140
126 125
117 119
120

100

80
71
65
58 56.8
60 55 54.62
47 46.03

40

20 15 12.82 16
12.69 13 10.92 13 10.4

0
WEEK-1 WEEK-2 WEEK-3 WEEK-4

Total Feed back counts Un Happy Count Un Happy % Delight Counts Delight %

Figure of JUNE Data

INTERPRETATION: In the above chart, the Average UN-HAPPY % of Guest in the month of

June was 11.70%.

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 120

103
98
100
92
88

80

59.9 60.8
58 56.31 56
60
53 54.08 52

40

20
10 9.7 10 9.8 8 9.09 9 9.78

0
WEEK-1 WEEK-2 WEEK-3 WEEK-4

Total Feed Back Counts Un-Happy Counts Un-Happy% Delight Counts Delight %

Figure of July Data

INTERPRETATION: In the above chart, the Average UN-HAPPY % of Guest in the month of

July was 9.59%.

52
 FINDINGS

1. We found that by regular interactions with stake-holders & PMs, we are able to manage

the inventory properly because of which we decrease the number of shifting to Zero

which in turn helped us in maintaining Un-Happy%.

2. We also found that by regular interactions with the guests, we are able to resolve the

issues in no time and ensured their stay.

3. We found that in Weekends Booking counts increased immensely, so we focused

accordingly and took preventive measures to improve guest experience.

4. We found that maintaining good relations with all internal & external stakeholders helps

in smooth conductions of Operations.

5. We found that the major concern for all guests were :

a) Variety in Breakfast

b) Services

6. We found that, Post PMI, we are able to increase the Delight%.

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 Chapter-7

Observations and Analysis

Analysis:

Q1. While Thinking of Reservation for HOTELS, Which OTA (online travel agent) comes in

your mind?

Response No's

OYO ROOMS 58

MMT 42

TOTAL 100

OYO ROOMS 58%

MMT 42%

TOTAL 100

Response

42%

58%

YES NO

54
 Interpretation: From the above graph it can be stated that 68% of customer’s think

of OYO Rooms while reservations for hotels.

Q2. Have you ever faced troubles with finding hotels?

Response No's

YES 78

NO 22

TOTAL 100

YES 78%

NO 22%

TOTAL 100

Response

22%

78%

YES NO

55
 Interpretation: From the above graph it can be stated that 78% of customers are

having troubles with finding a budget friendly hotel.

Q3.Have you ever heard of OYO rooms?

Response No’s

YES 85

NO 15

TOTAL 100

YES 85%

NO 15%

TOTAL 100

Response

15%

85%

YES NO

56
 Interpretation: The above graph depicts the opinion of the consumers, 85% of them

heard of OYO rooms and 15% of them have not heard.

Q4. How You Come to Know about OYO Rooms?

Response No’s

Digital Advertisement 18

Friends Told 82

TOTAL 100

Digital Advertisement 18%

Friends Told 82%

TOTAL 100

Response

18%

82%

Digital Adv Friends Told

57
 Interpretation: The above graph depicts the opinion of the consumers, 18% of them

heard of OYO rooms from Digital Advertisement and 82% of them heard from friends

or others.

Q5. What is your Mostly Purpose of Travel?

Response No’s

social relationships 16

Opportunities to learn 33

Discover New cultures 51

TOTAL 100

social relationships 16%

Opportunities to learn 33%

Discover New cultures 51%

TOTAL 100

Response

16%

51%
33%

Social Relationships Opportunities to Learn Discover new cultures

58
 Interpretation: The above graph depicts the opinion of the consumers, 51% of them

travel to discover new cultures and 33% of them travel to learn more opportunities.

Q6. Would you download an app for booking a room?

Response No’s

Yes 31

No 69

TOTAL 100

Yes 31%

No 69%

TOTAL 100

Response

31%

69%

YES NO

59
 Interpretation:From the above graph 69% people would not download an app 31% of

them would.

Q7. Would you prefer OYO Budget or OYO Premium?

Response No’s

OYO Budget 80

OYO Premium 20

TOTAL 100

OYO Budget 80%

OYO Premium 20%

TOTAL 100

Response

20%

80%

OYO Budget OYO Premium

60
 Interpretation: In the above graph only 20% opt for OYO Premium, while remaining of

them would prefer OYO Budget.Hence majority of people are looking for OYO Budget.

Q8. If you get a coupon that gives you flat 10% off on OYO Elite would you go for it?

Response No’s

YES 91

NO 9

TOTAL 100

YES% 91%

NO% 9%

TOTAL 100

Response

9%

91%

YES NO

61
Interpretation: From the above graph we can say from a sample of 100, 91% of them

would consider going for OYO Elite in future and 9% may not buy.

62
 Chapter-8

ANNEXURE

NAME:

AGE:

GENDER:

ADDRESS:

DESIGNATION:

INCOME:

Q-1 While Thinking of Reservation for HOTELS, Which OTA (online travel agent) comes in

your mind?

1) OYO ROOMS 2) Make MY TRIP

Q-2 Have you ever faced any Troubles in Finding Hotel?

1) YES 2) NO

Q-3 Have you ever heard of OYO ROOMS?

1) YES 2) NO

Q-4 How You Come to Know about OYO Rooms?

1) Digital Advertisement 2) Friend Told

Q-5 What is your Mostly Purpose of Travel?

63
 1) Building social relationships 2) Opportunities to learn 3) Discover New

cultures 4) Closer to ourselves and others

Q-6 Would You Download an App for booking a Room?

1) YES 2) NO

Q-7 Would You Prefer OYO Budget or OYO Premium?

1) OYO Budget 2) OYO Premium

Q-8 If you get a coupon that gives you 10% off on OYO Elite Would you go for it?

1) YES 2) NO

64
 Chapter-9

Recommendations & Suggestions

1. OYO should give more focus on Demographic Condition, Market & Geographic

Condition like Demand, Supply, Business, Locations, and Clients as they vary

from city to other city.

2. OYO should go for a short stay.

3. As a suggestion, OYO must go for collaboration with Shrine Board for YATRA

Parchi.

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 Chapter-10

BIBLOGRAPHY

BOOK REFERENCE

Referred Books:-

Principles of Marketing- Philips Kotler

WEBSITES:-

 https://www.oyorooms.com/blog/

 https://en.wikipedia.org/wiki/OYO_Rooms

 https://www.slideshare.net/

 https://www.scribd.com/

 http://crs.oyorooms.com/users/sign_in

 http://Unhappy_Dashboard_docs.google.com

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