The Business Model Of OYO

OYO, also known as Oravel Stays Private Limited, is one of the world's leading hotel and hospitality companies, with a strong focus on providing affordable and comfortable accommodation options for travelers around the world. The company was founded in 2013 by Ritesh Agarwal and has since grown to become one of the most successful and innovative players in the industry.

Business Model:

OYO's business model is based on the concept of "standardization and aggregation" of budget hotels. OYO partners with individual hotel owners, who are looking to increase occupancy and revenue, and helps them to standardize their properties and improve their operations. This includes everything from providing new furniture and bedding to implementing new technology and training staff. OYO then aggregates these standardized properties under the OYO brand and offers them to customers through online travel agencies (OTAs) and its own website. OYO also offers various technological tools, such as OYO Wizard and OYO Captain, to the hotel partners to improve their operational efficiencies and guest experiences.

Marketing and Distribution:

OYO's marketing strategy is based on a strong online presence, which includes a user-friendly website and a strong presence on social media platforms. The company also uses targeted online advertising and search engine optimization (SEO) to reach potential customers. In addition, OYO has a partnership with various online travel agencies (OTAs) like Booking.com, Expedia, and MakeMyTrip, which allows it to reach a wider audience.

In terms of distribution, OYO has a strong presence in India and has expanded to several other countries such as China, Nepal, Indonesia, Malaysia, Philippines, UAE, Saudi Arabia, and the United Kingdom. The company has also entered the vacation rental market and the co-working space market with OYO Living and OYO Workspace respectively.

Revenue Streams:

OYO generates revenue from multiple streams, including room rental, commissions from online travel agencies, and various value-added services such as in-room dining, laundry and housekeeping. Additionally, OYO also generates revenue from its vacation rental and co-working space business.

Growth and Expansion:

OYO has experienced rapid growth since its inception and has become one of the fastest-growing companies in the hotel and hospitality industry. The company has raised over $1.5 billion in funding and has a current valuation of around $10 billion. In order to sustain its growth and expansion, OYO continues to focus on improving its operations, expanding its partnerships, and expanding into new markets.

OYO's business plan is to continue to grow its platform and make it the most preferred choice of accommodations for travelers around the world. The company aims to be present in over 80 countries, with a total of 1 million rooms under its management, by the year 2023. OYO also plans to continue to expand its vacation rental and co-working space offerings and to develop new revenue streams through strategic partnerships and acquisitions.

In conclusion, OYO's business plan is a comprehensive approach that focuses on standardization and aggregation of budget hotels, strong online presence and distribution, multiple revenue streams and constant innovation and expansion. With its current growth and expansion, OYO is poised to become a major player in the global hotel and hospitality industry.