Saturday, February 2, 2019

Business Model of OYO rooms

Business Model of OYO rooms

Business Model of OYO rooms


 We are going to discuss the business model of  OYO rooms. India's largest hotel room booking system, but how your room earns money??? first of all, I like to tell you about the company which was started by Ritesh Agarwal. When he was only 21 years old in the year 2013  Ritesh Agarwal created his first company at the age of 19 Oravel stays Private Limited which has been later converted into OYO rooms near 2013. Till now OYO rooms has been funded of about $1.5 billion which is about 1,07,06,25,00,000.00  Indian rupees and the biggest investor of the rooms is none other than Softbank.

Business Model

So, the question arises "What your rooms basically do?"  OYO rooms are hotel aggregator which is different from other hotel aggregators let me explain you.  You already have been heard about hotel aggregators like GOIBIBO.COM, MAKEMYTRIP.COM  in these companies hotels name listed but, OYO rooms resales and Co brands that is OYO rooms Hotel by the name of its phone first of all your rooms at us about the basic facilities customer then or rooms list the property by the name of its own sir dubbing directly lifting the hotel by the name of the hotel remember. The hotel by the name of its own room so that it will not work on the commission basis YATRA.COM, MAKEMYTRIP.COM, and GOIBIBO.COM were on the commission basis. OYO rooms did not use the commission model but the reselling system. What is the reselling system? for that, you need to visit the website of OYO rooms.  After you visit the website, you can see the website is attractive not the number of photos available for the rooms there is the map also available from your location to the order the way you are going to be rented. So let's go to the revenue model of the OYO rooms, I had already mentioned that OYO won't work on the commission basis but on the resale process. OYO rooms work by the hotel rooms in advance on the monthly basis booking. OYO rooms contact the hotel owner and visit the hotel and book 5 or 3 room of a hotel as rent per Oyo rooms for a month so what the benefit to the hotel owner is that if there's the room is rented. For that advance, if given to the hotel so that they also get the profit to the hotel. As their number of rooms to be rented for a month the hotel owners provide a huge amount of discount video to OYO for example if a room has been cost of 2000 rupees so as the owner has been rented rooms for a month and the multiple rooms are book for a month so, the hotel owner provide the percent discount to the room such that it will be cost about 1000 rupees to a room for a month under OYO rooms. The rooms for the thousand rupees and provide the same room for 1200 rupees to the customer and the customers also happy because they are getting the same room for 2000 rupees on the other side but they get offered by the OYO rooms the same room for 1200 rupees example this will lead to the profit of 200 rupees per rooms of the room but the biggest barrier behind at it is essential to send a 100% room from the OYO in order to maximize the profit or gain the profit that is maximum customer outcome .


If we should talk about the expenses of the OYO rooms, they are owning total around 6500 hotels then the inventory cost of a rooms of monthly is about 60 crore rupees marketing courses about 10 crore and the basic have you completed profit is about 3 Crore showing the total monthly expenses of Oyo rooms is about 73 crore. Approximately OYO rooms have been booked and over 40,00,000 loss is about 12 crore rupees and still, OYO Rooms made around 61 crores.