OYO

 Ritesh Agarwal is the founder & CEO of OYO.

 Started with One hotel in Gurugram
 Currently OYO valuation is $10 billion.
 Currently, OYO is active in 800+ cities over 18 countries with more
than 23,000 hotels in its portfolio.
History

 Oyo was started as Oravel in 2011.

 Indian Version of Airbnb.
 Destination for rentals for bed, private rooms and serviced
apartments.

 In 2013, Oravel changed his business to Oyo Stays, a

marketplace for branded budget hotels.
Aggregator Model Franchiser Model

Before 2018 After 2018

Partner with Hotels Partners With Hotel

Lease Rooms Standardization

Sell as OYO Rooms Sell as OYO Rooms

 Future Expansion Plans

 To invest $300 million for Expansion in United States.

 To invest $335 million in its vacation rental business in Europe.
 Planning to expand to at least 15 Asian countries.
 Acquisition of 5000+ Four star Hotel Rooms
 Overtaking Marriot by 2023
Business Model Evaluation
 Value proposition

 Affordability
 Strategic locations – Bus Stops, Railway Stations, Airports
 Standardization
 Use of Technology
 Good Quality Hotels - A Priority (Hygiene and cleanliness)
 Experience.
OYO Customer Segments

 Tech Savvy
 Target Age : 22-35
 Primarily Middle Class Customers at large
 90% market : Price Sensitive
 Businessmen – Pocket friendly as well as luxury
Revenue Stream

Commission Application Ads

•Commission •Usage of •Hotel

Charged Applications Sponsored
from Partner Ads in the
hotels up to Application
22%
 Customer Relationship

 Backbone of OYO Rooms and one of the main reason behind their
success.
 Priority of OYO Rooms.
 End to end responsibility for customers.
 Cluster Manager : Auditor
 Same room to be provided as shown on website/application.
 Lack of time.
 Feedback to Feed-Forward
 Registration of complaints
End to End responsibility for
customers:

 Ease of hotel search

 Ease of Booking
 Easy Check-in
 Easy Check-out
 World Class Experience.
 Cluster Manager : Auditor

 Cross checks the facilities to be used by customers, like:

 Electricity
 Water Supply/Quality
 Wi-Fi Availability/ Speed
 Fan/ AC
 Food
 Room Cleaning/ Maintenance
and 155 more checks.
• Financial Solution • Book from Phonepe
• EMI’s • Reserve room at Token
• No Credit Card price

ZEST
PHONEPE
MONEY

ACKO
HOTELBEDS GENERAL
INSURANCE
• Distribute Beds • Secured Stay with
effectively • Accidental death,
• Global access Baggage loss , OPD
treatment Insurance etc.
Key Resources

 Skilled OYO employees

 A powerful mobile application
 User Friendly Website for seamless Experience
 Large database of users and clients.
 OYO’S Cost Structure

 Fixed Costs:  Variable Costs:

 IT Development& Maintenance  Transportation

 Marketing  Production

 Office Expenses  Customer Service

 Employee’s salaries
 Conclusion

 The objective of Oyo’s inception was to provide standard rooms at very affordable
price and this has become the mantra of their success.
 Standardization: Oyo room promises to provide the same facilities and amenities
which are shown on the app or website while booking and Oyo make sure that their
hotel partners are providing the same to the customers what they promised.
 Affordability: Oyo rooms provide high-quality customer experience at very
affordable price.
 Technology: Oyo has made hotel booking very easy and hassles free. With the help
of Oyo app, a user can book a room in just 3 clicks and within 5 seconds.
 CONCLUSION

 The company has set a target of 2.5 million rooms by 2023

 OYO has active presence in seven countries, and is planning to expand to at least 15
countries with focus on Asian nations.
 Over the next few weeks, it is expected to announce a fresh corporate growth plan
focused on Asia and Japan, where it aims to become the largest player by the 2020
Summer Olympics.