Creating Effective Spaces
Content
• Background- Indian Hotel Industry
• Journey from Oravel to OYO
• OYO’s disruption strategy.
• Pain sheet
• Solution sheet
• Business Model
• Facilities provided by OYO rooms
• STP Model
• Recommendations
Background- Indian Hotel Industry
• The evolution in hotel industry.
• Dormant & unorganized hotels got active.
• “Disruption” in the hotel industry.
• Hotels for all.
• Standardized hotel for mid- scale segment.
• Promotion of hotels by keeping customer service in focus.
JOURNEY FROM ORAVEL TO OYO
• Oravel stays pvt ltd was his first startup in 2012.
• Oravel was designed to enable listing and booking of budget and
premium accommodations.
• It was meant to be destination for short and midterm rentals for bed
and breakfast joints, private rooms and serviced apartments.
• Transformed ORAVEL STAYS to OYO ROOMS in 2013 with the
key proposition of offering affordable and standardized
accommodation.
• OYO ROOMS is India’s largest branded network of budget hotel
chain.
Cont…
• Operates more than 174 cities with 4500+ hotels in India.
• First class app based hotel booking.
• Headquartered and operated by Gurugram Haryana.
OYO's Disruption Strategy
ISSUES
PAIN OF CUSTOMERS
• Lack of standardization
• Lack of predictability
• Lack of trained staff
• Unreliable rooms
• High Price
PAIN OF HOTLIERS
• They don’t know the hidden needs of customers.
• Poor management
• Untrained staff
• Lack of Technical inputs
SOLUTION
• Standardization Hotel Services
– Oyo rooms promises to provide the same amenities and the same
experience across all its rooms.
• Trained Staff
– Adequate staff training and accommodation to ensure great customer
satisfaction.
• Technology driven/ ordering ease
– They use pioneering technology to deliver to more efficient operation,
management and services.
• Affordable
– Low price aimed at budget conscious traveler.
• Customer satisfaction and loyalty
– By audit properties ensured the enhanced service quality maintained.
• Key Partners • Key Activities • Key resources
– OTA’s – Standardization – Technology
– Hotel Owners – Facilitation
– Government – Quality customer – Developers
– Online Grocery Service – Staff
Chains – Built Chain
• Value Proposition • Customer Relationship
– Personal assistance
– Increase hotel visibility
– Communities
– Payment flexibility – Unbiased services
– Ease of booking
• Customer Segment
– Unsurpassable distribution
– Accommodation • Channels
– Competitive hotel price
provider – Websites
– Extended customer base
– Travelers – Mobile apps
– 1.5% of budget room market
in 200 cities.
• Revenue Streams
• Cost structure
– marketing and management – 15% net earning on every booking
– quality improvement – 10-15 % of overall from OTA
– Inventory – 20% from MITR app
– Staffing
– 15 %Website - 60% from app
STP Model
• Segmentation-
– Travelers
• Destination holidays hotels, focusing on quality
services.
– Mid-scales
• Focusing on services with pocket friendly
accommodation.
• Targeting-
– It targeted the frequent bag packers & price
conscious travelers.
Cont…..
• Positioning-
– Brand which cares about customer
– Value for money
– No compromise on quality
– Standardized budget hotel to spread across country.
Comparisons between OYO Brands
OYO OYO
OYO Rooms
Flagship Townhouse
Affordable range ,
Mid-range High quality interiors
Minimal infrastructure infrastructure with high trained staff
as per requirement
“Hyper-localized” in
Busy, convenient
Busy locales with high non commercial
locales with high
footfall residential
footfall
$23-30 neighbourhoods
$30-50
$30-60
Recommendations
• Tie-up with more premium hotels also.
• Can introduce Oravel concept again.
• Must focus on offline quality control
mechanism to manage customer experience.
