Oyo Room Marketing Strategy and Case Study

Oyo Room Marketing strategy and case study- Oyo Room was started in 2012 with the aim to disrupt the Indian hospitality business just like ola did. Oyo Rooms is India’s fastest growing branded network of budget hotels founded by young Entrepreneur Mr. Ritesh Agarwal. Mr. Ritesh Agrawal a 24-year-old college dropout, founded Oyo in 2013 after traveling around India on a shoestring budget. Oyo, which began with 11 rooms with one hotel in Gurgaon. But in March 2015 it has more than 250 hotels with 2500+ rooms.  And in February 2016 it has 50000 rooms across India. Within a short period of time. Currently, it has operated more than 180 cities with 1, 43,000 rooms across India including Delhi, Gurgaon, Mumbai, Banglore. Hyderabad, Goa, Chennai, Kolkata and many more cities.

And latest update Oyo has grown to over 3,30,000 rooms in 500 cities globally.

Nationwide Oyo has covered 6 countries such as India, Malaysia, Nepal, Britain, China, Uk.  Among these countries in China, it has 180000 rooms in 265 cities.  And in Malaysia, it has 150 properties and in the UK it has properties in London and Oyo planning to Launch in 10 cities over the next 18 months.

In and a PTI Interview Mr. Ritesh Agrawal said: “Our belief is that if we just keep opening 50,000 keys a month, then by 2023 we would have opened roughly 0.5 million more rooms, which will be at least 2 times of what the world’s largest hotel chain in today”.  He also said by 2023 as it expands into newer countries in the Middle East, South East Asia, and Europe.

Vision and Values of the Oyo Rooms- To change the way people stay away from home. Standardized Oyo Rooms promises to provide the same amenities and the same awesome experiences across all its rooms.

As it provides standardized rooms at budget hotels with features such as an AC, complimentary breakfast and W-Fi with 24 hours customer service support number of guests using Oyo Rooms App for booking hotels has been increasing exponentially. The rooms fully IT enabled guests can also order beverages and request room service through Oyo Rooms App.

The growth of Oyo For future prospects

Approximately 60,000 branded hotel rooms in India. The largest inventory is held by the Taj Group with 9000 – 10000 rooms. Pointing out that there are 350 million budget travelers in the country who are looking for high quality, standardized rooms are 1.5 million unbranded budget rooms in the country which are priced between Rs.2500 to Rs.4000.

However, very few of them offer the budget traveler a standardized, predictable experience with assured facilities, services, and amenities.

Oyo Rooms are priced between Rs.850 and Rs. 1499 inclusive of taxes and are equipped with comfortable beds, AC, TV, Wi-Fi, and a complimentary breakfast service.

Evolution and Funding:

The journey of Oyo Rooms was started when Ritesh Agrawal dropped a college and launched his start-up Orvel Stay Pvt. Ltd. in the year 2012, Travel was designed as a platform to enable listing and booking of budget accommodation. But he soon realized that the budget hospitality sector lacked predictability. Therefore, he converted Oravel to Oyo Rooms in 2013.

Ritesh was selected for the Thiel Fellowship a two-year program started by PayPal founder who granted the support of USD 100,000 to pursue his start-up idea.

Following are the list of investors who invest in Oyo rooms:

• Oyo raised it first-ever funding in December 2012, $5 million from Venture Nursery
• In 2013 it raised $0.1 million from Thiel Fellowship
• In March 2015 it has received $25 million from Lightspeed Ventures, Sequoia and others.
•   Later Softbank a well known Japanese company took a lead by investing $100 million.

Competitors:

• Goibibo
•   Yatra.com
• Make my trip
• Stayzilla