Success journey of Oyo Rooms
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Ritesh Agarwal, a 21-year-old Indian entrepreneur, founded Oyo Rooms, initially starting as Oravel Stays in 2012, to meet the demand for budget accommodations in India. Oyo has rapidly grown to become India's largest hotel network, with plans to expand into international markets, aiming to become the world's largest hotel chain by 2023. The company operates on a unique business model offering standardized hotel rooms at competitive prices, supported by a customer membership program and partnerships with payment platforms.
Success journey of Oyo Rooms
- 2. Ritesh Agarwal The 21-year-old millionaire Indian Entrepreneur, founder and youngest CEO at the age of 17. Born and raised in Orissa, he started coding when he was just 8 years old and by 10th grade he had keen interest in software. At the age of 16, he was a part of Asian science camp at Tata Institute of fundamental research. In 2011 when he moved to Delhi for further studies but left after three days of joining University of London's Indian campus and started travelling across India at the age of 17. That’s where he felt an extensive need for budget accommodations in India !
- 3. Transformation Oravel stays Pvt. Limited was his first startup in 2012 designed to be destination for short and mid term rental for bed and breakfast joints. Soon he realized that the combination of bed and breakfast will not fulfill the need of customer therefore Oravel stays transformed to OYO rooms in 2013 with key proposition of affordable and standardized accommodation.
- 4. TRENDING
- 5. OYO Hotels To Invest Rs 500 cr In Uttarakhand To Build Hospitality Ecosystem Oyo said it will be expanding its chain in the region by adding over 35,000 rooms in cities, including Dehradun, Mussoorie, Rishikesh, Haridwar, Haldwani, Kashipur, Nainital, Mukteshwar, Bhawali, Bhimtal, Roorkee, Almora, Lansdowne, Binsar and Ranikhet. Oyo Will Be The World's Largest Hotel Chain By 2023 Oyo Hotels, the five-year-old startup for booking hotel rooms, is aiming to become the world's largest hotel chain by 2023 as it expands into newer countries in the Middle East, South East Asia and Europe, its founder Ritesh Agarwal said.
- 6. OYO Makes Room For Business Travellers OYO operates the Townhouse brand on the leasing and management contract models with 60% management contracts and 40% leased arrangements. The brand, priced higher than the more pocket-friendly OYO Rooms, is targeted at millennial business travellers and offers amenities like a café, 24/7 kitchen, printer, white boards and other business services. OYO Partners With Payments Platform PhonePe OYO announced its partnership with payments platform PhonePe . OYO said the tie up will make it easier for OYO users to book a room through the PhonePe app.
- 7. OYO Launches Customer Membership Programme Wizard Hotel chain OYO announced the launch of OYO Wizard, a new membership programme designed to recognise and reward frequent customers. OYO said Wizard is a benefit membership programme that aims to deepen and strengthen customer relationships by providing highly-rated and curated hotels to our loyal guests at the best price.
- 8. Company Booked hotels in bulk quantity Give 1 month advance payment. Receive bulk discount Margin difference is Company’s Profit. Customer get Hotels at lower price. Resell the Hotel under Oyo Brand
- 9. Unique Features of Oyo Room Services. (Why this Business Model get successful) • 1. Quality Hotel Rooms at Low Prices. • 2. Advance Payment to Hotel Owners. • 3. Brand Selling & Standardized Services.
- 10. Why oyo rooms branded budget hotel are hit Why rooms branded budget hotel are a hits?
- 12. 0 1 2 3 4 5 6 Category 1 Category 2 Category 3 Category 4 Series 1 Series 2 Series 3
- 13. Class Group A Group B Class 1 82 85 Class 2 76 88 Class 3 84 90 First bullet point here Second bullet point here Third bullet point here
- 14. Group A • Task 1 • Task 2 Group B • Task 1 • Task 2 Group C • Task 1 • Task 2
- 22. Marketing and branding and Approach strategy approached by OYO OYO is the india’s lasgest hotel network spread across 230 cities with 8500+ hotel. It was founded in the year 2012 by its founder Ritish Agrawal as orvarl stays Pvt ltd but later in the year 2013 was changed to OYO. It is an online aggregator of hotel and has become largest chain in india. Operations for OYO rooms started from Gurgaon with its first hotel and later spread to several cities and town in india. OYO rooms is the largest branded network of hotels currently operating in india and Malaysia. OYO rooms started and famous as branded hotel rooms aggregator provides many more services than just hotel rooms to visitors.
- 23. This is a shift from the existing aggregator model but will prove benefical for the brand as it how already has a brand equity and a set of loyal customers these leased properties come under OYO flagship. OYO is currently in its introduction stage in many cities and it has to provide heavy discounts to the customers. According to a source OYO rooms has delivered a 15x annual growth with 2.3 million booked room night transactions in first quarter of calendar year 2016. OYO has set its name as the high quality budget hotel network which will change in near future as the price might increase. OYO’s strategy includes booking a part of the hotel’s inventory and holding it captive for OYO customers. I am pretty sure that OYO rooms would have started with the first of hotels.
- 24. REVENUE MODEL OF OYO ROOMS
- 25. Revenue Oyo Rooms rents these rooms on its name at a predetermined price. Expense Oyo Rooms books a part of the hotels’ inventory Rented rooms are standardized with facilities like free Wi-Fi, clean toilets. Offered to the customers at Oyo Rooms Website/Application.
- 26. Growth Phase Introduction stage. Heavy discounts to the customers. Discount cause rent price to be less then cost price to OYO. Heavy expenses on promotional activities
- 27. Been raising funding from big shot investors to continue running of its operations. It has raised a total of $187.65M from investors like Softbank, Sequoia Capital, etc. HOW OYO IS RUNNING OPERATIONS AFTER THESE MUCH LOSSES?
- 29. Vast Consumer market of OYO Rooms and its expectations. 350 million budget travelers in the country who want: High quality Standardised Rooms Low Prices.
- 30. What OYO provides? OYO Rooms are priced between Rs.999 and Rs.1499 comfortable beds, air-conditioning, TV, free unlimited Wi-Fi complimentary breakfast service
- 31. OYO Rooms growth and future potential Oyo Rooms has delivered a 15x annual growth 2.3 million booked room-night transactions in first quarter
- 32. The OYO brand will offer 50000 rooms in 200 cities by the year-end and grow to 500,000 in the next two to three years. -Ritesh Aggarwal (OYO Rooms Founder)