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STRATEGIES OF OYO ROOMS - A CASE STUDY

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 ISSN - 2229-3620 SHODH SANCHAR BULLETIN
APPROVED UGC CARE Vol. 10, Issue 40, October-December, 2020
VVS Page Nos. 140-146
AN INTERNATIONAL BILINGUAL PEER REVIEWED REFEREED RESEARCH JOURNAL
Ms. Tanya Negi*
STRATEGIES OF OYO ROOMS – Mr. Ravish Kukreti**
Dr. Rakesh Dani***
A CASE STUDY Mr. Akash Rawat****
Mr. Manish Semwal*****

ABSTRACT
The research paper would be focusing on the essence of hospitality, as hospitality is the significant key use by
hotel industry to exhibit their goodwill and concern towards the guest. The component which we will be showcasing
through our research is the positive and the negative footprint branding image of OYO Rooms which they are
maintaining for their online and offline booking. The overview of the research will be based upon the relationship
between the guest and the staff of the OYO rooms which is also referred as known as OYO Hotels. Title of research
was chosen on OYO Rooms owing to the fact that OYO Hotels are surprisingly unordinary it provides the safe space
not only to the different categories of guest. They are known for their wonderful experience at a price it is impossible
especially when it comes to family stay. The research work of author would also be discussing OYO hotels branding
strategy and business models, they are offering for excellent customer service.
Keywords : Oyo Rooms, Hospitality, Branding, Customer Service.

INTRODUCTION cities in 80 countries. OYO Brand has initiated perfecting

“When you do a reservation for staying in a hotel the art of reviving old, worn down properties, and
after an ample research irrespective to online or offline injecting them with new OYO style.
you book an ABC Hotel according to your convince with OYO Rooms has been a crucial competitor in all
lot of compromises but when you plan to stay in OYO over the world; the lucrative hospitality of Oyo Rooms is
they make sure that your stay in make you feel like the biggest registered branded network of hotels which is
staying at home keeping in mind your comfort zone presently operating 4,50,000 listings in 5,000 cities in
which they can provide with their hospitality with less Indonesia, China, India, UAE, Nepal, China . The OYO
expenditure plus safety''. planned to strategies by developing its company business
OYO Hotels & Homes, is well known for its hotel replica around the different location of the world
start up, the company has world's leading hotel chains Oyo Rooms have become a synonymous name
wit. The image covers the hotels and homes along with with the hospitality sector in India. Its boom in the recent
fully operated hotels with more than 43,000 hotels with years has given a serious reason for traditional hospitality
more than over one million rooms along with holiday avenues to worry about their day-to-day business. A
homes business stay, the OYO group promises its reformative business idea where good hotel rooms are
customer to give access to city dwellers at over 130,000 made affordable has made Oyo Rooms jump up the ranks
homes around the world. OYO today operates in over 800 in India's start-up ecosystem.

*Student MHM II Semester, Graphic Era Deemed to be University, Dehradun

**Research Scholar - Department of Hospitality Management Graphic Era Deemed to be University, Dehradun
***Assistant Professor - Graphic Era Deemed to be University, Dehradun
****Research Scholar - Department of Hospitality Management Graphic Era Deemed to be University, Dehradun
*****Senior Lecturer - Institute of Hotel Management, Dehradun
Vol. 10 Issue 40 October to December 2020 140 BI-LINGUAL INTERNATIONAL RESEARCH JOURNAL
The Initial stage 250 million led by bigwigs in the capital business. Some
Oyo was founded under the original name of of them included Hero Enterprises and former backers
Oravel in 2012 by Ritesh Agarwal, a young boy of 18 like Sequoia Capital, Greenoaks Capital, and Lightspeed
years from Cuttack, Orissa. He was a college dropout Venture Partners.
who detested preparing for his IIT exams in Kota. Every Growth :
weekend, he got used to going to Delhi to network with Oyo started off with a small service that was
young entrepreneurs. launched for 5 cities in India. Today, it has grown into an
Oravel was initially made by Ritesh as a website to international service which has partnered up with 8500
aggregate, enlist, and book budget accommodations. He hotels in 230 cities, which include countries like
pursued three months of research by travelling and living Malaysia, Nepal, China, and Indonesia.
at bread and breakfasts (B&BS), small hotels, and guest Further Plans :
houses and then turned Oravel into Oyo in 2013. Oyo Hotels& Homes are ready to boom in the
After launching Oravel Stays brand , Ritesh future and getting enough funds to expand and soon going
Agarwal received a “20 under 20”Thiel fellowship of to be India's next unicorn. The future strategies they have
USD 100,000 from Peter Thiel. Peter Thiel is a US-based planned are quite popular and successful even though
entrepreneur who is also the founder of the online wallet – with two controversies already defaming the OYO,
PayPal.Having a set goal, dedication, and not being which is leading them to even lose their funds and
bogged down by being told what to do, is what has acquisition deals, the situation has become more
contributed to the young entrepreneur's multi-million complicated and we are not sure about how far in the
success today. Mr Ritesh Aggarwal was nominated as future the unicorn status will be fulfilled.
one of the 8 best young teenage start-up developers of the Formerly ,Oyo used to systematize the associate
world by renowned Business Insider in 2013. with hotels, lease some rooms, and use Oyo brand to sell
He also became the world's youngest CEO at the rooms. Oyo Even though the process is still the same,
age of 17. Agarwal till this date functions as the CEO for Oyo's business strategy has changed its route to a new
Oyo Rooms. He has also roped in IIT-Kharagpur and structure.
Harvard graduate Abhinav Sinha as his COO. Objectives
Funding · To study the positive and negative impact of
The initial capital of INR 30 lakh was given to Oyo hospitality service in OYO Rooms.
by Venture Nursery. In the year March 2015, Oyo Rooms · To examine the branding strategy used by OYO
ran their first round (Series A) of funding which ended up rooms for increasing their booking.
being a successful venture. A total collection of USD 24 · To focus on the safety measures taken by hotel staff
million was raised from 4 investors – Light speed Venture to provide safe space.
Partners, Sequoia Capital, Green oaks Capital, and DSG · To identify the factor in Online Hotel Booking
consumer partners. which are most liked by Customers.
August of the same year, the company ran another Review of Literature
round of funding and raised an additional USD 100 Review of literature is an important integral part of
million from the Softbank Group. Jumping forward a research so according to my stay in OYO villa, I am going
year – in 2016 – Softbank group, Innoven Capital, and the to give my personal review. Training is an essential part of
previous investors showed their trust in Oyo again by the hotel operation (Kukreti & Dani,2020) .the staff in
raising USD 90 million. The company's evaluation at this OYO Hotel are well trained
point was a stagnant USD 400 million. 2017 was the year I as of late remained at OYO estate with my
of Series D funding for the startup which was now scaling companions in Chandigarh, during my conference
up. In this series, the company locked in a whopping USD function. We were 20 individuals and wanting to remain
Vol. 10 Issue 40 October to December 2020 141 BI-LINGUAL INTERNATIONAL RESEARCH JOURNAL
at a similar lodging. We reached to a few of inns yet are same as they were earlier.
couldn't discover anything beneficial. Afterward, we Whereas now the OYO brand doesn't lease the
reached OYO and everything was arranged. Inside 60 hotel rooms anymore, but ask the property partners to
minutes, we had a rundown of inns that were most operate them as franchise.
appropriate for us – in the best spot, at the best cost. We It can be seen that they have good brand equity and
remained at OYO 9449 Shan shank estate, the rooms, boast a 100% increase in revenue for themselves as well
food and offices were according to the guidelines. We had as for the property partner.
a remarkable involvement in OYO. The loosening up Business model of OYO Rooms
bed, ideal room temperature and marvelous cordiality · Strategy of OYO tries to focus on quality service at
helped me to remember home. affordable price, various amenities and supplies
As I leave this property with crushing sadness, I'm are used as a marketing tactics in the room to
super siphoned about investigating another OYO in promote
another city today." I would propose everybody to think · These Rooms are sold under the brand name of
about OYO for all their movement appointments." – Miss OYO rooms through different Oyo application
Tanya Negi · Practice employee development through training
OYO Homes& Hotels Branding Strategy in various kind of software
Oyo has an arrangement made up to save a piece of 1. Partnership Model: Gives visitors quality lodgings
the inns' record, to maintain it according to the quality remaining at better places around India and
guidelines, and to hold it detained totally for OYO clients. different nations as well. OYO homes has joined
Past they used to rent a few rooms each month and give forces with inns and use their name to do work in
them to their own clientsat an incredible edge benefits. various operational function.
Presently they have arranged minor changes where the 2. Franchise Model: The inns that were the piece of
rooms are currently not rented however individuals know collection plan of action have now become the
them as Oyo Rooms property. piece of establishment plan of action, they have
While the Land owner serves the OYO go about as changed over to establishments working under
the franchisee, OYO has a legitimate agreement with OYO' s brand name to decrease operational cost
them where the land owner needs to work according to and improve usefulness.
the pre-decided guidelines. We can even observe OYO Research Methodology
directing offers intends to run the OYO Manor, Homes To understand the positive and negative impact of
and Visitor House without the impedance of the genuine hospitality services provided by the OYO to customer,
Land owner. research paper case study research methods ,formulated
Oyo Rooms branding strategy are : in a way that it help to reveal the perception of a the
· They lease a portion of Hotel's inventory before traveller.
signing the legal contract, · Customer satisfaction with OYO hospitality
· Strategizing by giving the hotel accommodation · Identifying the reasons for choosing OYO stay,
under their brand name – Oyo Rooms · Satisfaction with the Location booked Online
· The property owner has to work according to the · Providing safe space for bachelorhood.
OYO hotels provided standardized service for Research Locale
customers for those rooms as they have legal House no 531 known as OYO 9449 Shashank
contract with Oyo. Villa, behind DT mall, Panchkula, Chandigarh. They
· Reservations are done through the website and provide all the basic amenities for the customer happy
mobile application of Oyo room stay with heartfelt satisfaction.
Currently the strategies of OYO Homes & Hotels
Vol. 10 Issue 40 October to December 2020 142 BI-LINGUAL INTERNATIONAL RESEARCH JOURNAL
 Primary data are those which are gathered and for the
direct and consequently end up being unique in character,
which we gathered on the field examining with
respondents. We posed number of inquiries from them
and got reaction from their side. The principle wellspring
of Primary information was Focus bunch conversation
and contextual investigations.
Secondary data .these are the data which is prepared by
someone else and used by us such as books, magazines,
article etc
In this study both qualitative measures and quantative
Sources of Data measures have been used. In qualitative method field
Data were collected during my stay in OYO Villa observation, FGD, case study and photography have been
with my 19 friends. Researcher has used an common used. In quantitative analysis, I have self-prepared
technique of data collection including important questionnaire and done my survey .The descriptions of
interviews observations and reviewing literature related both the methods are as follows:-
to OYO room Qualitative Tools
Additionally, participant observation was a Observation
continuous method of collecting data throughout the Observation is a fundamental aspect of any
duration of the research. Interviewees were my with our discipline and has been playing pivotal role in the
friends as this our original research work. In addition to discipline. It deals with noting and recording of events
interviews, which provided a setting for formal and human behaviour without formal manipulation of
conversations, which was honest as professional as more variables operating in the events was undertaken in the
than 8 were studying the hospitality administration and. present research.
Research work conducted focused group Interview
discussion Focus group discussants were chosen based Interview is a formal or informal meeting between
on referred by my key informants. My groups included two people or among a group of people for the purpose of
the age group of 20 to 27 years old people, 2 friends were obtaining information about something in particular. It is
married and their wife were staying with us during that more appropriately a face to face conversation which is
stay and we have 1 couple with 2 twin kids in the group. always goal directed.
So in total 6 people were married and 14 were single.
Whereas 11 were male and 9 were female with two new
born babies.

A. Customer satisfaction while happing an pleasant stay at OYO 9449 Shashank Villa

Vol. 10 Issue 40 October to December 2020 143 BI-LINGUAL INTERNATIONAL RESEARCH JOURNAL
 According to my research work out of 20 people return again except the food needs to improve whereas
staying in the villa , 12 people have said that they were rest 3 people were just satisfied with the hospitality the
overjoyed with the villa services and specially enjoying main reason for their dissatisfaction was they were not
the Wi-Fi, Swimming Pool amenities , 5 people said that having a open balcony and going through Wi-Fi
they were happy with the services and would like to connectivity issue .

B. Identifying the reasons for choosing OYO for their stay.

According to this chart out of 20 customers 9 but in different city, 4 people said that it is pocket friendly,
people were staying in OYO because it gives online and 4 people cracked a joke that we wanted to stay with
reservation discount, 3 people said they were revisiting our friends and enjoy our bachelorhood

c. Satisfaction with the Location booked Online

According to the responses 12 people said that they check other rooms and rest 3 percent were not happy as
are happy with the online booking and satisfied with the they were facing problems related to Wi-Fi and not
location and photos shown of the rooms and amenities are having a balcony to see the beautiful view which was
true and they are satisfied, 5 people said that they will shared by their friends.
revisit and again try to gain the hospitality and would like
Vol. 10 Issue 40 October to December 2020 144 BI-LINGUAL INTERNATIONAL RESEARCH JOURNAL
D. Providing safe space for bachelorhood.

According to my research out of 20 people there Customers are getting attracted towards the fancy
were 14 single people so I have only recorded their lobbies, elegant lounges, superior spa, for there stay in
response for this question so out 14, 1 person was not OYO.
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