May 5, 2020

OYO Business Model | OYO Case Study | Business model of OYO rooms

In this post, I have explained the Oyo Business model and Oyo case study. how the business model of Oyo rooms works.

OYO Business Model | Oyo Case Study

Oyo rooms business model
Oyo rooms business model
OYO rooms or Oyo hotels and homes started in 2013 in India, the founder of Oyo is Ritesh Agarwal. He is 26 years old with a net worth of $1.5 billion. He has studied at the Indian School of Business Finance.

OYO Rooms is the largest hotel management network in India, they have around 17000 employees globally and 8000 employees in India and particularly in South Asia. Headquarter is in Gurugram India established in 2013.

OYO introduced themselves as the budget accommodation service. Oyo operates in 80+ countries. They have entered in China in 2017 and becomes second-largest hotel management company in just 18 months.

How OYO Rooms Started?

How Oyo expands
How Oyo expands Source-Freepik
Ritesh Agarwal a college dropout with an entrepreneurship dreams. Back in 2011, he has started a budget hotel accommodation service called Oravel, which later becomes Oyo Rooms. Then in 2013 he was selected for Thiel fellowship, which gave him funding of $100,000 to transforms his idea into reality. by using these funds he has launched Oyo Rooms.

In 2015 Oyo received funding of $25 Milion from Sequoia, Lightspeed India, and others. In April 2015 Oyo app was launched. This app is the reason for the amazing success of Oyo rooms. Oyo app plays a crucial role in the success of the hotel chain management startup.

What is the Business Model of Oyo Room

Oyo business model focused on increasing the number of rooms and the appropriate utilization of digital platforms such as mobile app.

Oyo room business model
Oyo room business model Source-Freepik

"Main objective of the company was to provide the quality to its customers"

Oyo rooms are different from Airbnb, because not only they want to show the listing of rooms online, but also their goal is to provide the same quality of service, in its all accommodation facilities.s

Oyo rooms presently works as a franchise business model. the company gets revenue of around 90% of the franchise business model strategy. this is the most important point for the Oyo case study.

How Oyo works

The business model of Oyo rooms is similar to that of Uber where the company gives the platform to its customers via a mobile app or a website.

  • Some of the hotel rooms are under the brand Oyo.
  • Oyo gives its terms and condition to the owner of the hotel and he prepared the rooms as per the guideline.

Partnering with hotels

Oyo allows the hotels to link with them and use their brand name for accommodation in hotels. by doing this the owners of the hotels to maintain in the hotel as per the standards given by the Oyo team.

Oyo flagship

Oyo flagship is Oyo owned property, the staff is also from Oyo itself, when you visit the Oyo flagship you will find the whole hotel is acquired by Oyo and they provide a great facility to the customer.

Oyo Townhouse

This Townhouse specially made as per the need of millennials and hence they provide amazing facilities in this Townhouses and hence this townhouse is specially designed for millennials. these townhouses have smarter rooms which consist of TV with Netflix Installed, Showers, Wifi and etc.

Smarter space for printing, stationery, etc.

Studio Stays

Oyo Rooms also provides fully furnished rooms and flats for long stays like internships, corporate stays, etc.

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