Stays get Affordable

A startup by a 19-year-old boy made him the youngest billionaire in India.

once upon a time a young guy used to travel a lot, he travelled a lot of cities and use the local hotel rooms for stays, where he notices the price for all the rooms varied and the services were not up to the mark. His entrepreneurial mindset made him do the thing which was something extraordinary. Yes, it’s ovaral stays aka Oyo rooms. Here is a detailed overview, analysis, and various details for the same. 

This is India’s first virtual hospitality service brand that doesn’t own any property itself it’s just a portal between the supplier and consumer. The brand tends towards providing a better facility at economic rates. Starting with only one hotel in Gurgaon in the year 2013, today Oyo has expanded its business in more than 800 cities, more than 23000 hotels, 850000 above rooms, 46000 vacation homes, worldwide.[data; www.Oyorooms.com]. Other than rooms Oyo also.

provides services like the commercial place, long stays, event space, studio stays, cafe, and a special service for women travellers. This was made happen due to funds provided by Softbank, Sequoia, light speed, hero enterprise, and china lodging group. 

Oyo is now the 3rd largest hotel chain in the world. Oyo earns by charging a 22% commission by their hotel partners. 

SWOT analysis

STRENGTH

• Standard organization.
• Fast-growing network.
• Spirit of innovation.
• Economy rates of the rooms.
• Young and ambitious leader.

WEAKNESS

• Just a portal.
• Tight margins.
• Varied services.

OPPORTUNITIES

• Budget hotel demands.
• Aggregators business.
• More travellers.

THREATS

• Competitors 
• Safety and privacy concerns.

Partnership

Oyo has experienced partnership with 5000+ brands including zoom car, maytra, Ola, Paytm, PayPal, IDBI bank, and many more.

Other than this partnership the company also has 43% market capitalization in India.

Awards

• Entrepreneurial excellence in 2014.
• Business young entrepreneur award in 2015.

Key of success 

The owner started the business with a motto of “create great living space for a common man.”

Due to including technology in the business the company was benefited from higher revenue, repeat customer efficient operation, and a high class of customer relationships. The owner saw the unbranded hotels and captured them as an asset-light strategy, with this he converted the unbranded hotels to an ecosystem. He maintained the equilibrium of great quality, best location, and low price together with ease for the mid-segment customers. He focused on small hotels rather than big ones. He maintained end to end responsibility for the customer experience. Ease of hotel search, ease of booking, easy check-in, easy check-out, and world-class experience. The Oyo will make little bit changes in the hotel according to their standards. He used the repeatability concept the thing that is going well repeat that was the concept of Oyo. the appointed a cluster manager on every 6 hotels for the quality check of more than 150 points every week. Due to this consistent checking, the quality standards of services are never been an issue. The customers always want the hotels they see on the website and Oyo have been proved to satisfy that. The customers started predicting the quality and also expected some common service which Oyo just repeated. Very fast Oyo became affordable, predictable and available. Oyo builds technology for speed and scale for which they developed 3 clicks 5 seconds booking, through which they controlled customer experience, operational capability and efficiency. For which they created a separate team of data science. Oyo believes technology brings speed to the business. they use technology, the internet, machine learnings, artificial intelligence for growth. Oyo has a separate team for acquisitions and expansion they decide the price point for the room. The reduced the time for the partnership, it takes just 8 days for joining Oyo and they upgrade the rooms as per the standard quality in 15 days. For the first time, Oyo started taking feedbacks from their customers as they can easily identify their mistakes and rapidly correct them easily. Before this, no one hotel managers used to listen to the problems of the customers. Oyo started a system where customers can directly complain to the managers and that particular manager can take rapid action against them. Oyo has 25 skilling institute for training their employees and their human elements this is the continuous process where they keep inspiring their employees for innovation and systematic work. If any employee is not working up to the mark he is brought to the skill institute and trained accordingly. This report of employees is also received to them by a mobile application. They never fire any employee for not being up to the mark. Skill, will, hard work, management skills and, leadership skills redeveloped for their employees which becomes easy for them. Oyo tries their best to give the same experience as they see the picture on the website. Verified rooms, no cancellation, trained manpower, and high technology are the key takeaways of the successful business model.