2 Minute Summary
Oyo Rooms is the largest branded network of hotels. Currently, OYO rooms are operating with more than 450,000 listings in almost 5,000 cities across India, Malaysia, UAE, Nepal, China, and Indonesia. The man behind the great startup which is popular as OYO Rooms of Oyo rooms is Ritesh Agrawal. He was born in Bisham in Cuttack, Orissa in the year 1993 on 16th November. Oravel Stays Pvt.Ltd was Ritesh Agarwal’s first startup. Some Problem Faced by OYO were High Cash Burn, Standardization, Competition, Malpractices. It acquired Novascotia Boutique Homes on Sep 28, 2017, AblePlus Solutions Pvt. Ltd. On July 10, 2018, Weddingz on Aug 13, 2018, Innov8 Co-working on March 15, 2019, Qianyu Islands on March 26, 2019, Leisure Group on May 1, 2019OYO has got 12 funding rounds until now.In which it has raised for about $ 1.7B. Full Detail in Blog.
DO YOU KNOW?
Out of total rooms booked via OYO rooms,
28 per cent of people book Oyo rooms after they get into a new city.
36 per cent of people are business travellers.
Another 36 per cent is made up of couples.
Oyo Rooms is the largest branded network of hotels.
Currently, OYO rooms are operating with more than 450,000 listings in almost 5,000 cities across India, Malaysia, UAE, Nepal, China, and Indonesia.
WHATS IN IT FOR YOU?
FOUNDER – OYO ROOMS
The man behind the great startup which is popular as OYO Rooms of Oyo rooms is Ritesh Agrawal.
Ritesh Agarwal was born and brought up an in a middle-class Marwari family.
He was born in Bisham in Cuttack, Orissa in the year 1993 on 16th November.
Ritesh started his entrepreneurial journey at the age of 17. He dropped out of his college, in the year 2012, in the same year he launched Oravel Stays Pvt.Ltd.
Oravel Stays Pvt.Ltd was Ritesh Agarwal’s first startup. He designed this company for customers to enjoy the platform for enabling listing and booking of budget accommodation.
Being a passionate traveller, he soon realized that the budget accommodation sector lacked many things.
Therefore, in 2013 he transformed Oravel to OYO Rooms with the key vision of offering affordable and standardized accommodations.
Undoubtedly, he achieved so much in such a short span of time.
He is a great inspiration for the people who believe success is earned only after one has years and years of experience.
Hence, his achievements are worth knowing.
Achievements of Ritesh Agarwal
Ritesh Aggarwal, at the age of 24 was India’s biggest entrepreneur.
He has won many national as well as international awards.
I have mentioned a few awards that he has won :
- TiE-Lumis Entrepreneurial Excellence award in 2014
- Business World young entrepreneur award
- Forbes “30 under 30” in the consumer tech sector
- Top 50 entrepreneurs in 2013 by TATA First Dot powered by NEN awards
Earlier, OYO used aggregator business model same as of Uber and Ola Oyo resells it at Rs. 1800 to customer
Profit to customer= Rs. 1200
Profit to OYO is Rs. 200/room.
There were many challenges faced by OYO rooms based on their hotel aggregator business model.
The founder and CEO Ritesh Agarwal says – “Oyo now gets over 90% of revenue from hotels under franchise model”.
458,000 ROOMS GLOBALLY AND REALISED VALUE RUN RATE OF $1.8B Categories – Hospitality, Hotel, Leisure, Reservations, Travel
Founded Date – May 21, 2013
Founders – Ritesh Agarwal
Last Funding Type – Series E
Number of Employees – 1001-5000
Legal Name – Oravel Stays Private Limited
Digital links Till now OYO has 6 acquisition.
OYO has got 12 funding rounds until now. CEO – Ritesh Agarwal You might have thought about the strategies implemented by OYO that, made it so successful.
OPPORTUNITY
Focus on budget accommodation
Lucrative Opportunities in International Markets
THREATS
Competition
Growing Protectionism OYO with a new business model also came up with new verticals.
OYO has also started serving rooms and banquets for family functions like (weddings, parties, etc) as well as for the corporate which involves hotel rooms for their guests to stay for long.
Commercial Places
Oyo Wizard
The Brand also has started some subscription plans for customers where the subscribers can get exclusive deals and discounts.
Oyo Townhouse Yes, OYO allows unmarried couples into the hotel based on some ID proofs. Every room in the OYO is legal and is safe for the couples as they need an ID proof to get in the hotel and they can live without any issue. It was started on May 21, 2013, by Ritesh Agarwal and the business has been running from 2013 by connecting more and more hotels. OYO (ON YOUR OWN) was started by Ritesh Agarwal on May 21, 2013 and the headquarter is located at Gurugram. The full form of OYO is ON YOUR OWN which defines that you can choose your own room and live. It’s just the company doesn’t lease the hotel rooms anymore, but now it asks the hotel partners to operate them as a franchise. The New business model of Oyo Rooms is Fully stack and Franchise Business. UPDATESOYO BUSINESS MODEL (OLD)
Oyo’s earlier strategy was to book some of the rooms of the hotel’s inventory.
Then, they used to apply uniform standards and develop user’s friendly environment in the hotels to maintain it as per the quality standards exclusively for Oyo customers.
OYO gets a heavy discount from the hotel owners as they book rooms in advance for the whole year.
Then they allow customers to book the rooms from an online platform under the name of OYO rooms.
The benefit to hotel owners was that they got bulk bookings in advance.
The benefit to customers was that they got high discounts.
Let me explain to you by an example:-
Suppose,
If the cost of 1 room/night = Rs. 3000
Oyo rooms get a discount on the bulk reservation, let’s say 50%
Cost to OYO rooms = 3000*50/100= Rs. 1500
PROBLEM FACED BY OYO
Let us discuss some of the major challenges faced –
Hotel Aggregator business model involves a very high cash burn rate.
Advance booking of the hotel rooms for the whole year needs a lot of cash burn.
Also, since the company is in their expansion mode they are offering heavy discounts in order to acquire the customers.
One of the major issues was of standardization which was faced by OYO.
Since the company was dealing with non-branded hotels, the level of professionalism was low.
It soon became a challenge for OYO to delight their customers at every point of contact.
OYO is the market leader and it is true that leaders define the path.
Oyo has opened paths for many other competitors.
The partners who are the hotel owners used to book their own hotel rooms when they used to see lower prices on the Oyo’s platform and this became malpractice benefiting the hotel owners.
To stop this, and to expand the business, Oyo Rooms has started leasing of hotels and places where it has full control over the day-to-day operations of these hotels.PRESENT DAY BUSINESS MODEL (NEW)
The company started off its operations by building its business model around the aggregator business model but things have changed since 2018.
The New business model of Oyo Rooms is Fully stack and Franchise Business.
It’s just the company doesn’t lease the hotel rooms anymore, but now it asks the hotel partners to operate them as a franchise.
The founders of OYO decided to shift its business model to a pure franchise business model.
They have partnered with hotels and made them work with them under their name.FINANCIAL FACTS AND FIGURES
WITH A Y-O-Y GROWTH OF 4.3X AS AT
DECEMBER 2018
Website – www.oyorooms.com
Facebook- https://www.facebook.com/oyorooms
LinkedIn – https://www.linkedin.com/company/oyo-rooms
Twitter – https://twitter.com/oyorooms
Contact Email – [email protected]
Phone Number – +91-9313931393
It acquired –
FUNDING ROUND AND AMOUNT
In which it has raised for about $ 1.7B.
They got their latest funding on Apr 1, 2019, from a Series E round.
Airbnb Invested for about $ 75 Million in OYO.
Website and its monthly traffic
OYO is ranked 9,303 among websites globally.
And it has more than 6,129,043 monthly web visitors.MANAGEMENT AND THE CORE TEAM
CFO – Abhishek Gupta
GROUP CHIEF TECHNOLOGY AND PRODUCT OFFICER – Anil Goel
CHIEF OPERATING OFFICER – Abhinav Sinha
CHIEF HUMAN RESOURCES OFFICER – Dinesh Ramamurthi
CHIEF STRATEGY OFFICER – Maninder Gulati
PRESIDENT- CORPORATE AFFAIRS – Siddhartha Dasgupta
CBDO – Anuj TejpalThe strategy adopted by Oyo
Let’s discuss the strategical approach of the brand OYO ROOMS.
To maintain its ranking and perform above all its competitors, OYO focuses mainly upon mass retention and acquisition.
It is using Digital Marketing section very aggressively for customer acquisition and lead generation.
Oyo knows the power of Social media. Hence, it is very strategically using all the platforms available for social media coverage.
They target mass potential customer based on their behaviour, interest and many other factors which are readily available via Digital Marketing.
Social media presence of OYO includes more than 2.7 lakh fans on Facebook, more than 8000 followers on twitter.
The company claims to have over 1.5 million app downloads with a very good number of active users.
The brand actively participates into several social media campaigns such as –
SWOT ANALYSIS
STRENGTH
First Mover Advantage
Standardization
Young and highly spirited leader
WEAKNESS
Customer Dissatisfaction
Low Return on Investment
SERVICES PROVIDED BY OYO
The services included in the Oyo Rooms business model are –
OYO FLAGSHIP
Now, Oyo Rooms has started leasing or franchising of hotels and places where they have full control over all the operations and day to day activities of these places.
Events & Other Long Stays
OYO is also stepping into the renting of commercial places.
Now the customers can also book office spaces via OYO.
To stand out of the competition and retains its value proposition in terms of standardized
hospitality and quality,
The Brand has recently launched the Oyo Townhouse.
Each OYO Townhouse is designed to complement its neighbourhood. OYO has undertaken complete operations of these Townhouse units along with interior and exterior re-engineering.
The concept of Oyo Townhouse is based on the needs of the millennial traveller.
The company is claiming that this townhouse network is its fastest-moving network and will include more than 400 Townhouse properties by the end of 2019.FAQs
Sir Oyo ke New business model par video banao please am your Big fan sir???????????
hello sir, plz make one video on crowd funding w uebsite , can i use it for personal purpose and how these sites make money