OYO ROOMS-CASE STUDY

Presented by- Raj-13

Chaitya-17
Pranav P-5
Shamik-23
Govind-10
INTRODUCTION…
 OYO Rooms, commonly known as OYO, is an
Indian hotel brand that aggregates standardized
hotel rooms. “OYO Rooms” is a hotel
aggregation based model that helps customers
book a room with good facilities at low fares
starting at 999 INR using an app on tap of a
button to the customers especially travelers.
 OYO was founded in 2013 by Ritesh Agarwal,
who is its CEO. The company started with a
single hotel in Gurgaon January 2013. The
company as of December 2016 has around 7500
hotels in more than 220 cities of India, and has
been named India's largest budget hotel
chain.[4] It has also launched in Malaysia.
GROWTH HISTORY AND FACTS….
 From a single hotel in May 2013 to over 4500+ hotels at present, it has been an
inspiring journey from a smart idea to India’s largest branded network of hotels
with the dream of becoming the world’s largest branded network of hotels.
 GOAL: Our goal is to change the way people stay away from home.
 RANGE: OYO’s budget stays range from 999 to 1500 rupees while its mid scale
rooms are priced at 1600 to 4000 rupees.
 MEDIA: OYO rooms has appointed Madinson Media Plus as its media agency. The
size of the business is estimated to be Rs 100 crore.
 Listing of hotels: OYO Rooms reaches out to prospective hotels to partner with
them. A hotel owner can also reach out to OYO through their webpage. The OYO
team then contacts the hotel and audits the hotel to understand the changes
needed to standardize the property as per OYO standards, and shares details of
the partnership agreement.
5 REASONS WHY OYO ROOMS BRANDED
BUDGET HOTELS ARE A HIT?
 1. AFFORDABLE: With Budget Hotels you choose to SAVE! Yes save smart on room
rates & Spend more to explore your Holiday destination, sightseeing, buying
souvenirs, experimenting with their taste buds.
 2. BED & BREAKFAST: Excellent Bedding & Interiors is the pre-requisite of a
pleasurable trip. At OYO Rooms , they standardize every property of our budget
hotels chain to create state-of-the-art bedrooms with super comfy beds & lavish
interiors.
 3. STAY CONNECTED: Yes, stay connected to your friends, family & your favorite
movies, not to miss news; even when you travel with FREE WI-FI & FLAT LCD TVs.
 4. STRATEGIC LOCATIONS: Whenever you may want to stay, you’d find an OYO!
Strategically located near Air Ports, Railway Stations, Bus Terminals, Business
Hubs, Metro Stations etc……..
 5. SECURITY: With a 24 hour reception and secured premises we ensure that your
safety is not jeopardized at any given moment while you stay at OYO Rooms.
MARKETING STRATEGIES…
 In order to achieve this goal, the brand has released its debut mass media
campaign titled '#AurKyaChahiye' on Television. The campaign is supported by
digital, OOH, Radio and Print mediums. The tagline '#AurKyaChahiye' encapsulates
the notion that Oyo Rooms provides users with everything they need for a
comfortable stay.
 Among the big cities, it is getting major traffic from Delhi NCR, Bengaluru, Pune,
Mumbai and Hyderabad.
 Traditionally, Oyo has been spending its advertising dollars on the digital domain
and has been yielding good results from it. It has a Facebook presence of over 2.7
lakh fans and a Twitter following of over 8,000 followers. The brand claims to have
over 5 million app downloads with a good number of active users. Prior to this
campaign, Oyo Rooms devised a strategy of reaching out to people via short videos
and films. It created several campaigns such as Jai Hind, Father’s Day celebration,
and IPL Final Verbal Combat.
MAJOR PROBLEM FACED BY OYO ROOMS…
 Just like Ola and Uber faced a storm of opposition from taxi and autorickshaw
unions, all through last year OYO had to contend with protests from
traditional hoteliers. OYO came at a particularly difficult time for them: it
was a bad downcycle and, with demand in upscale segments slack, the big
boys of the hotel industry were championing their mid-market or budget
brands, the only growth avenue. Taj had Ginger, ITC had Fortune, Lemon Tree
had Red Fox, and brands like Premier Inn, Keys had all entered the category,
most of them with big investments.
SUGGESTIONS TO OVERCOME THE
PROBLEM…
 Oyo should also provide overnight laundry and iron services as many a times
customer books a room for the night and has to wash and iron his clothes for
tomorrow’s meeting
 They can also work on providing 24 hour room service.
 As Oyo doesn’t buy all the rooms in the property but the hotel is
standardized. So most of the times when a customer comes in directly hotel
owners sell their unsold rooms to the customers and not the oyo ones as those
rooms also have the same standards. Oyo can work in this regard and maybe
can only standardize that part of the property bought by them.
 Along with expanding its business and numbers, Oyo needs to really pay
attention to customer feedback and reviews as it’s the service offering
industry. Also it needs to bring in more stringent offline quality control
mechanisms on-board to manage customer experience and keep the brand
growing.
FUTURE PLANS…
 The company is planning to expand to other businesses such as providing loans to hotel
partners for their financial support for which it is in talks with financial services providers.
 To strengthen its services Oyo is introducing a concierge service called OYO Captains. Oyo
Captains will be like concierge service who will ensure smooth travelling experience and build
personal relationship with customers. Each Oyo Captain will be responsible for 30-40
properties in his locality constituting an average of 300-400 rooms. People initially employed
to do quality audit will be turned into OYO Captains with additional responsibility of
smoothening consumer experience. Customers can directly reach out to OYO Captains for any
complaints and guidance of the area.
 The company is finding ways to ease the tedious processes of check-ins and check-outs. They
are planning for easy walk-ins and walk-outs without manual formalities to provide home
feel. The integration of Oyo with Mobikwik is a positive step in this direction that facilitates
one tap online payment and no need of stopping to pay. This will maximise the customer
experince and will make services better.
 Oyo is planning to introduce early morning check-ins at 6a.m.
CONCLUSION…
 Oyo through its unmatched services has become a brand in the hospitality
sector in India with its sight on the foreign markets. With its rapid growth and
positve respone from the customers Oyo is giving its competitors a hard time
forcing them to think out of the box and do something new , all efforts in the
favour of the customers leading to better and wide services to the customers.
 Oyo through its various services is also dealing with the societal problems
bringing up the companies image in a positive way. The introduction of Oyo
WE and Oyo for Couples were the steps towards the same. Oyo WE reduces
the worries of women travellers of stay making them more secure. Oyo for
couples provides rooms to unmarried couples too preventing them from the
embarassment of being asked for marraige certificates even if they are
married. So, Oyo has a positive impact on our society if these facilites are
used in a proper by the customers.
 BIBLIOGRAPHY..
The information was taken from the following sources-
https://www.whizsky.com/2018/09/case-study-oyo-rooms-full-growth-story/
https://www.ciim.in/oyo-room-marketing-strategy-case-study
http://www.etcases.com/oyo-rooms-start-up-to-branded-budget-hotels.html
https://onering.in/case-studies/case-study-oyo-rooms/
https://www.slideshare.net/AshishKumar872/oyo-case-study
google images
THANK YOU!