From a humble beginning in 2013, OYO is today the world's second-largest hospitality chain of franchised and leased hotels, living spaces, and homes. OYO has a global presence with large-scale operations in many countries. This case outlines OYO's complicated growth journey from a rapidly growing startup to an ethically maligned business venture. It also underscores OYO's business and revenue model, work culture, and growth strategies. It also provides a sneak peek about the major problems faced by OYO and how OYO should cope with these challenges.
TopIntroduction
About OYO
OYO - “Own Your Own” is an Indian hotel chain. It is also known as OYO Rooms, Homes and Hotels. Initially known as “Oravel Stays Private Limited”, OYO is today the world’s second largest hospitality chain of franchised and leased hotels, living spaces and homes. OYO has a global presence with large-scale operations in India, Malaysia, UK, Japan, Mexico, Sri Lanka, Indonesia, United States, UAE, Nepal, China, Philippines, Saudi Arabia, Vietnam and many more countries.
Ritesh Aggrawal founded OYO in 2013. OYO is headquartered at Gurugram, India. Aggarwal had an interesting philosophy behind starting this venture. It was his desire to change the way people stayed away from home that led him to start this venture.
To start with, Aggarwal first took charge of one small budget hotel in Gurugram and decided to clean it and redecorate it. He then decided to provide all the necessary amenities in the rooms such as towels, new beddings, Wi-Fi, Geysers, ACs etc. As time passed he was able to sell all the rooms. This small success encouraged him and he further leased numerous budget hotels and started selling rooms under the brand name.
Products
OYO offers a range of interesting products listed below.
OYO Townhouse: It is a product customizable to the millennial traveler’s need. Every townhouse is designed to complement its neighborhood. Each feature of the townhouse, right from the booking process to the breakfast, is engineered for convenience, comfort, affordability and efficiency.
OYO Home: OYO homes are unique, completely private beautiful homes stocked with high-quality amenities and located in serene local neighborhoods. OYO teams service OYO homes. Their USP is that they are a home away from home.
OYO Vacation Home: They are rental homes available for vacations. Their main aim is to create happiness and bright unforgettable memories for their guests, partners and homeowners.
SilverKey: It is the most suitable choice for business travelers. It has spacious rooms, professional staff and the accommodation is powered by technology. Silverkey units are located near corporate clusters. They are a home away from home, without the rules, formalities and rates of a hotel. These accommodations offer the following unique features: self-cooking counters, in-house laundry services, 24X7 caretakers, physical security, CCTV surveillance and in-house photocopying and printing.
Capital O: These are premium hotels located in the prime locations. They deliver quality experience at an affordable price.
Palette: These are OYO Resorts designed in French style. They have lush gardens and elegant social areas. They have designer rooms, private villas, beaches, spas and other recreational provisions. They deliver world-class hotel experience to the customers at competitive prices.
Collection O: These are premium hotels for stay, so that the guests enjoy a luxurious experience. These hotels are designed for guests travelling for business and leisure.
OYO LIFE: It is designed on the lines of a paying guest experience, where people can hire a room without restrictions. People can share the hired room with their friends too. OYO Life targets young professionals in search of fully managed homes with long-term rentals at affordable prices.