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OYO Rooms: Sustainability Survey

Oyo Rooms is an online platform for budget hotel booking in India founded in 2013. It aims to provide affordable accommodations and a quality customer experience. The document examines whether Oyo's current business model is sustainable in the long run. It finds that rapid expansion has hurt consistency and customer satisfaction. Additionally, pricing policies that differ from initial bookings to check-out impact profitability. Deep discounting also prevents Oyo from covering costs compared to competitors. Some investments in unprofitable locations have further hurt sustainability.

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Meenakshi Agrawal
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312 views16 pages

OYO Rooms: Sustainability Survey

Oyo Rooms is an online platform for budget hotel booking in India founded in 2013. It aims to provide affordable accommodations and a quality customer experience. The document examines whether Oyo's current business model is sustainable in the long run. It finds that rapid expansion has hurt consistency and customer satisfaction. Additionally, pricing policies that differ from initial bookings to check-out impact profitability. Deep discounting also prevents Oyo from covering costs compared to competitors. Some investments in unprofitable locations have further hurt sustainability.

Uploaded by

Meenakshi Agrawal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SURVEY ON OYO ROOMS

SUBMITTED BY GROUP – 5

BHAVIK PARGHI 12
SNEHAL CHAUDHARY 21
MEENAKSHI AGARWAL 23
ASHISH SAHU 34
VAISHALI SUSHIL 46
VIKRAM THAKUR 47
SECTOR: HOSPITALITY SECTOR

 The hospitality industry is an industry that focuses on the group of businesses that


provide services to customers. The primary focus if this industry is customer
satisfaction and providing with the best of the experiences. The profitability of
hospitality industry relies heavily on the revenue earned and other factors for
sustainable growth
The hospitality industry is further segregated in three areas:
 Accommodations includes hotels, motels, bed and breakfasts, and other lodging
businesses.
 Food and beverage that includes restaurants, fast food chains, and other
establishments that provide food and beverages.
 Travel and tourism, which includes airlines, trains, and other travel businesses
 
 COMPANY: OYO Rooms

OYO Rooms (OYO), is an online platform for hotel booking in India that was
set to become the country’s largest budget hotel chain. It was founded in May
2013, by Ritesh Agarwal, a 19-year-old entrepreneur who had remodelled his
first venture, Oravel Stays Private Limited (Oravel Stays), to create the new
firm. The new venture was named OYO Rooms, which is a technology based
budget friendly hotel chain.

The objectives of OYO :-


1) To provide budget friendly room to the customer.
2) To provide various amenities and facilities as per customer requirements.

3) To provide high-quality customer experience at very affordable price.


4) To make hotel bookings very easy and hassle free.
PROBLEM STATEMENT

 Is the current business model of Oyo rooms sustainable


in the long run?
Among 75 repsonses , 72 visit other places that are
outside their hometown
72% of the respondents states the
have used Oyo property an the rest
28% states they don’t use Oyo
property

Large number people


expected Oyo in budget
segment
People who visits outside their hometown states the maximum
frequency of visits to other places outside their hometown is
1-3 times. Moreover the next majority of the frequency is 4-7
times.
Most people preferred mid market hotels as compared to
up scale and luxury hotels.
Some of the main reasons for lack of profitability include
 Due to its rapid expansion policy, the company isn’t able to maintain
consistency in delivering its high quality living experience because of
which there’s a decline in consumer satisfaction.
 Oyo has a problem with its pricing policy too under which the prices on the
website shown at the time of booking differ hugely from the prices charged
to customers at the time of check out.
 As Oyo is following deep discounting, it’s pricing point is much lower than
its major competitors who are Treebo and Fab Hotels. Due to this they
aren’t able to cover the costs.
 Many of investments made by Oyo have turned out to be unprofitable due
to faulty location.

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