Oyo Rooms Case Study- marketing strategy, revenue model,Funding, Expansion

Today we will talk about Oyo Rooms Case Study and also about its marketing strategy with which it is the largest hotel room chain in India.

So for detail and minor information and incident about the journey of OYO rooms chain. Just read out our article Oyo Rooms Case Study.

Oyo Rooms Case Study.

Oyo Rooms Case Study

The main motive of this case study article is to all so that everybody can understand its key steps very easily on Oyo Rooms Case Study.

Government is in new action nowadays which is also concentrated on “Make in India” which helps entrepreneurs like Ritesh Aggarwal so that they can execute their startup ideas easily.


Our Prime Minister Narendra Modi new program launched named ” Make In India”  which boost up the industries and the main effect that industry was affected was manufacturing Industry.

Oyo is a with new idea online platform company for hotel booking in India.

Oyo network is into more than 200 cities in India and also in Nepal and Malaysia with more than 6500. 

Oyo claims to be the biggest chain of hotels in the world.

Ritesh Agarwal is an Indian entrepreneur, the founder and CEO of OYO Rooms.  He also authored a bestselling book ‘Encyclopedia of Indian Engineering college’ at the age of 17.

Oyo Rooms Case Study

Abhinav COO of OYO room is essentially a concoction design from IIT Kharagpur with an MBA from Harvard with multi-year encounter crosswise over item and Service Organization.

My main motive to write on Oyo Rooms Case Study is just I want to aware young youth with new possibility to become a successful business.

He was at first intrigued even in governmental issues which made him attempt his possibilities in crusade administration for a political gathering amid 2009 decisions in India.

Somewhat higher ranking than Ritesh, he isn’t just a work accomplice yet additionally incredible buddy.

OYO Rooms is the fastest growing Branded network of hotels offline & online.

Idea Of OYO Rooms-

Ritesh Agarwal gets an idea of OYO rooms from travelling when he was staying in Delhi he has to travel a lot in Rajasthan, Himachal Pradesh, Jammu and Kashmir.

He uses various beds and restaurant while his travelling time.

It was during this phase Ritesh now 18. He launched Orawel Stays in 2011.

Basically, if we describe was an Indian version website Airbnb.

However, Ritesh’s search for one time online ‘product-market fit’ solution for bed and breakfast travel segment was still on.

At 19 he was decided for the Theil Fellowship begun by Peter Theil – a financial speculator likewise Paypal fellow benefactor.

Furthermore, a Facebook financial specialist offering $1,00,000 over multi-year together with direction and different assets pointed at making a start-up by 20 under 20 school dropouts.

After seeing Facebook financial specialist start-up help for under 20 age enterpneaur Ritesh felt “This was stunning, that you get paid for no to attend a university”.

Then he back to the business at 19 with the association subsidize, what’s more, realizing Ritesh who had just had a hands-on experience of having remained at 100 little live in rooms while running Orawel found that ‘ Discoverability isn’t the issue rather it is consistency and institutionalization of encounters that the client.

OYO Business Model-

So after getting deep knowledge of Oyo Rooms Case Study now, we should also see how this business model works its expenses and revenue generation.

OYO Rooms professes to be a marked system of spending lodgings and in this way unique in relation to other in aggregators and OTAs (Online Travel Agents, for example, Cleartrip, Goibibo, Yatra, Makemytrip, and so on.

The plan of action of lodging aggregators is basic as they basically associate the visitor (client) with the inn by posting inns on their site and accept a commission as their income.

Numerous a times they work out on an arrangement with the inns with a base request ensure every month and thus can give marked down rates and arrangements on the room rates contrasted with the rates given by the inns specifically to an ordinary visitor.

Don’t worry today we will talk about deeply on Oyo Rooms Case Study.

This makes them lucrative for visitors. OYO plan of action is extraordinary. It neither claims any lodgings nor is an inn aggregator.

What is OYO plan of action at that point? You may inquire. This part is fascinating.

Think about OYO as Uber for inn collection. OYO accomplices with non-institutionalized inns and squares rooms by getting them out for a specific time span.

It at that point exchanges the room inventories with OYO marking to visitors. This plan of action of OYO Rooms normally includes a great deal of operational expense and requires tremendous working funding to initially obstruct those rooms.

Must Read:-Modicare Business Plan

Presently, you know where the Softbank cash is going!

OYO Expansion-

OYO Expansion is also an important topic in Oyo Rooms Case Study article. So now we will deeply understand how it expanded in such a large amount.

‘OYO– rooms experience’ to every human, pilgrim
traveller, Leisure across 100 cities with a network of 10000
hotels. The OYO was started in 2013.

OYO rooms were among the first to identify the
opportunity to initiate the process of branding the domestic
budget hotel segment. He is serving you in the price range of Rs 1000 to Rs 3000.

OYO – is a stock light reserving site offers clean, wi-fi, air adapter, empowered spots to remain with breakfast.

Today chain of this marked lodging that begins with a cost tag of Rs. 999/ – just has its quality in crosswise over 70 Indian urban areas with a stock of 12000 or more rooms.

OYO does not own any property It just rent over internet enabled hotels and serves for them.

Ritesh is clear about his objective clients as he puts it briefly “our vision is to give a standard encounter – The OYO experience to anybody, anyplace searching for a place to remain when not at home.”

His mind works differently from other startup founders he belief is that he is building a mobile-first for a company using more than 10 business enabling apps such as standardization audit, hotel verification, quality and property performance tracers,
audit reconciliation etc.

OYO isn’t an independent organization in the market. It is a confronting rivalry from Zo rooms and Treebo.

Other companies like goibibo, Cleartrip, MakeMyTrip etc. work on commission basis for booking of rooms and hotel but OYO rooms are working on the different business model on reselling basis.

The portion needs to solidify in future however advertise is going to get greater, remembering the current financial development rate also, ascend in buying intensity of the clients.

Ritesh and Abhinav continued their night by sharing their much-adored dream about in what capacity will they take

OYO to 250 urban communities over the nation with 5,00,000 rooms broadening their predominance in a market spearheaded by a huge $ 100 million interest sought after and supply, mechanical and client encounter activities.

The OYO room application on today’s dates running on the app with more than 6,00,000 downloads just within 3 months since launch.

The apps are successfully running across 12,000 plus

OYO Marketing-

OYO has been before connecting the general population through short recordings and movies, as Jai Hind, Father’s day festivity and IPL last virtual challenge.

Anyway all together to connect with level three urban communities and to promote the brand with elderly individuals for whom the inn appointments are finished by youngsters.

OYO currently burst on the broad communications with their battle title ” Aur kya chahiye ? “. The battle is bolstered by computerized radio and print medium.

OYO Funding-

Till now, he got the funding if $188 million (1300 crore) by SoftBank (maximum funding).

Like some days ago fund from Softbank is the largest fund raised by OYO rooms which will help them to expand their business worldwide all over the world.

Must Read:- Imagesbazaar case study | How Imagesbazaar earns money

Revenue model-

Oyo works in a business model where hotel management, as well as the customer, is satisfied. Let me explain to you how it works Oyo book hotels in advance and pay to hotel management advance and so they get the high discount by hotel owners.

 Hotel owners satisfied because they get bulk bookings in advance. The benefit to the customer is high discount he gets from OYO. Let we take an example:-

If the cost of 1 room/night=1800 rs

Oyo rooms get 50% discount=1800*50/100= 900rs.

Oyo resell at 1200 rs

Profit to customer=600 rs.

Profit to Oyo is 300 rs/room.

In this way, they generate huge revenue because they are having a huge chain of hotel rooms.

Now let’s also talk about expenses-

OYO Expenses- 
  1. Approx 1000 people are working in Oyo rooms. So, Salary is part of expenses.
  2. On Oyo rooms site 4000 hotels are listed on  OYO website. So, advance payment to 4000 hotels.
  3. Expenses of the marketing team, marketing on television and marketing on social media and website is also a part of expenses.

OYO Team-

OYO Team

OYO Acquisition- 

OYO also acquired some new startup that can help them to expand their own business and provide more facility to their customers.

OYO Acquisition

You can see in the pic that startup acquired by OYO.

OYO suitable for India?

Now we will also talk about is OYO business model is suitable for India I think you have now point now on Oyo Rooms Case Study.

India is different from the USA or Europe. Indian market is extraordinary and Indian customer mind is exceptional.

The customer is a normal cash keen one, they will quit coming to you and purchasing from you the day you quit giving those rebates. Indian market doesn’t care for a categorize.

In a categorize advertise, there is just a single place for a brand/item or organization for a given class.

Indian market is fairly similar to a major banyan tree wherein there are numerous branches accessible for a similar section – everybody gets a pie.

This is certainly not the last man standing amusement and this is the thing that most Indian new businesses come up short understanding.

OYO isn’t the just a single in inn industry despite the fact that they guarantee that their model is imaginative. A client couldn’t care less much as long as the stock and accessibility are there.

Dependability isn’t there with inn accomplices too. A few different lodgings where I asked I specified that I discovered this inn on OYO Rooms too and they are putting less expensive rate than the ones said on that hotels or as passed on the telephone.

I think now you get all information about Oyo Rooms Case Study. You will not regret that you only wasted your time.

They were right on the money to the rebate here and said we will give you the room at an indistinguishable cost from which OYO is pitching it to you. The 999 Rs. the room sticker price is a piece of the promoting methodology of OYO Rooms.


So in this our Business model series we today deeply understand about Oyo Rooms Case Study. In this our series we also covered topics like

After reading all this information I think now you have all the information on Oyo Rooms Case Study.

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