How OYO Marketed Itself: Marketing Strategy of OYO

Simran Shahid Simran Shahid
Jan 28, 2021 5 min read
How OYO Marketed Itself: Marketing Strategy of OYO

Ritesh Agarwal is an Indian entrepreneur, the founder and CEO of OYO Rooms-the fastest growing Branded network of hotels offline and online. He started his journey at the age of 17 and is considered to be one of the youngest CEOs in India. In 2011, Ritesh moved to Delhi with intentions of starting his own business. Soon, he started travelling extensively across India at the age of 17 and stayed in PG’s, budget hotel due to his stay experiences he felt to launch Oravel stays in 2012.

Oyo rooms need for the change of hotel rooms are booked

Oravel to OYO Room
Marketing Strategies of OYO rooms
Conclusion

Oravel to OYO Room

Oravel Stays Pvt.Ltd was the first startup in the year 2012. Oravel was designed as platform to enable listing and booking of budget and premium accommodations.

It was meant to be destination for short and midterm rentals for bed and breakfast joints, private rooms and serviced apartments.

Oravel was then transformed to OYO rooms in 2013 when Agrawal realized that combination of bed and dinner is not sufficient. He proposed to make it affordable and standardized accommodation.

OYO rooms are India’s largest branded network of budget hotel chain. It currently operates in more than 160 Indian cities and including major metros, regional hubs, leisure destinations and pilgrimage towns with value of nearly 360Cr.

They offer the hotels to their clients and retain a proportion of the profits.

OYO Rooms is a budget hotel aggregator in India. In order to standardize different measures in each room, OYO Rooms partners up with hotels, including free WIFI and breakfast, flat-screen televisions, spotless white bed linens, toiletries with brand name, 6-inch shower head, drinking cup, etc.

Oyo Rooms Working Model, How Does It Work? Everything You Need To Know: Insights
Oyo Rooms is the largest branded community of lodges presently running 450,000listings in 5,000 towns in India, Malaysia, UAE, Nepal, China and Indonesia. Theorganization commenced its operations by constructing its enterprise versionaround the aggregator enterprise version. Oyo rooms working mo…
OYO Room Working Model

Marketing Strategies of OYO rooms

As they concentrate on co-branding, OYO rooms operate differently to OTAs. They state that they are working with zero-to-2-star hotels and guest houses, 'standardizing' them and getting them customers through their website and apps. Usually, other hotel aggregators simply connect the customer with the hotel by listing hotels on their website and take commission as their revenue. They would work out a deal with the hotels with minimum order guarantee per month and are able to provide discounted rates and deals on the room rates compared to the rates provided by the hotels directly to a normal guest.

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> β€œThe World Is A Book And Those Who Do Not Travel Read Only One Page.” - St. Augustine of Hippo, PhilosopherTravel and tourism industry is one of the largest industries in India. Accordingto government statistics in 2017, the annual growth rate of domestic travelersin India stood at 17.2%. It …

OYO’s market coverage is been swiftly increased because of being listed in websites like MakeMyTrip, clear trip and hotels.com. Their aim is to target small business travelers and budget tourists to eminently swift-cash and that works in favor of OYO because revenues get realized quicker too.

Video Explaining OYO Marketing Strategy

Product Strategy of OYO

The technique of working for Oyo Rooms is simple: they organize the hotels available to customers at various locations and pay a commission fee as their income while booking. Many times, they even book a few rooms per month on demand and also rent these rooms to customers at a cheaper rate, which is what they have taken from the hotel themselves.

  • This offer draws customers and makes their travel at a low cost more convenient. Youth are also drawn to their service of giving rooms to unmarried couples without having difficulty. After review of all its facilities, Oyo only takes 5-6 days to enter into a contract with a hotel.
  • As a comfortable service, Oyo Rooms has also formed a special team which continues to make sure all the services are offered as mentioned, visiting the hotels over a fixed period. This provides insight into its marketing mix in the product and service bid.

Promotion & Advertising Strategy of OYO

  • Oyo prefers to fully promote through various social media sites such as Facebook, Twitter, etc. With its exclusive offerings and reduced costs, Oyo uses the digital platform to draw new customers.
  • Oyo also led many online campaigns including #Aurkyachaiye on various other websites in the social media.
  • Many of those promotions have featured artists from Bollywood to make them more appealing.
Oyo Rooms Target Audience falls on the category of age group 20-30
Oyo Rooms Target Audience falls on the category of age group 20-30

Price/Pricing Strategy of OYO

  • The policy of Oyo Room is to draw customers with a lower price than the hotel base price.
  • The primary objective is to provide for an unequalled price that suits the user's budget. The room price varies depending on the location and luxury of the hotel, between Rs. 999 and Rs. 4000.
  • Overall Oyo Rooms follow a very sensitive approach, aimed at providing rooms with outstanding facilities at a moderate rate and generating customer loyalty.

Place & Distribution Strategy

  • Oyo rooms works fully online. Where we will be able to access the available hotels at an approximate cost either via an app or through online platforms.
  • We will reserve it online with a confirmation and use the facilities on the day you booked.
  • Oyo works fully online and relies on their app for their bookings.

Conclusion

The main focus of this plan is to provide quality services to the guests. They show on their website or app to customers, all fundamental services, along with the hotel's premium services. It achieves the purpose of providing all visitors with a clean place and basic facilities. Results achieved by OYO are:

  • The traction and consumer coverage of OYO has rapidly increased as travel aggregators like Make MyTrip, Simple trip, and com are identified.
  • OYO CafΓ©, OYO We for women travellers and OYO premium for high end consumers
  • Links with essential brands, such as wireless internet service Airtel, ZO-Rooms, Thomas Cook and Air Pegasus.

FAQS of OYO Rooms

1. When did OYO Rooms start?

Oyo Rooms started at 2013 when it transformed from Oravel to OYO.

2. Who are OYO Rooms target audience?

Oyo's target audience is the youth.

3. What are Oyo's selling proposition?

Oyo's unique selling proposition is to provide good hotel facilities with good deal.

4. What are OYO Rooms strategies to bring in customers?

Oyo organize the hotels available to customers at various locations at budget friendly cost.

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