Do you have a wish to know about the business model of OYO Rooms? In case the answer to that question is a yes, then you have come to the right place.
Here we are going to have a discussion about the OYO Rooms business model and how it is able to provide so many services to the people who are in the need for it.
First of all, it is important to establish the fact that accommodation is one of the most important things that people tend to think about these days.
So, this is where OYO Rooms tend to be a great help for sure.
Well, these OYO Rooms are the ones that people tend to use most of the time in order to make their bookings for their stays and so much more.
Let us now have a look upon the introduction to the business model of Oyo rooms –
Table of Contents
Introduction to the Business Model of Oyo Rooms
Founded in the year 2013, Oyo Rooms is one of the third largest hospitality chains. The business model of Oyo Rooms revolves around leased and franchise hotels, living spaces, and homes.
The full form of OYO Rooms is On Your Own Rooms. The company was founded by Ritesh Agarwal and at the beginning; it only consisted of budget hotels, but now, in next 6 years, the company is enjoying the global expansion with multiple vacation homes, hotels, and rooms in different cities in countries like-
- India
- UAE
- Malaysia
- Nepal
- China
- Philippines
- UK
- Japan
- Indonesia
- Saudi Arabia
- United States
- Vietnam and so forth.
Know A Bit More About OYO Rooms
When we are talking about the branded networks which are currently providing the services to the people, there is no doubt that Oyo Rooms is one of the names that come to mind for sure.
There are about more than 450000 listings which are provided on
The site and also the branches of the company are in 5000 cities in total. Hence, it can be said that the company has been providing most of the services to the people who are in the need for it and so much more.
In earlier times, the company was the one to organize some of the people with the hotels and also provide some rooms to those who made the bookings as well. However, the brand was their own for sure.
In the present times, the process does remain the same one but the business model of OYO Rooms has changed a little bit. This is exactly why we are going to have a little chat about it in the best way.
This article here is definitely going to help you understand the business model of OYO Rooms and how it is providing the same quality of services to the people.
You will also get to know how the company is able to make the money while maintaining the brand image that it has among the people as well. There are partners of the company that help in providing some services and we are going to know a lot about them too.
Customers that Oyo Business Model target are business travellers, family travellers, leisure as well as adventure travelers.
Let us now have a look upon the products and services of the business model of Oyo Rooms-
Products and Services of Oyo Rooms Business Model
1) OYO Townhouse
This one is advanced as the neighbourhood hotel that comes in the midscale segment which is used for targeting millennial travellers that are looking for the premium economy accommodations
2) OYO Home
This one is understood as India’s first Home Management System that provides private homes managed by OYO and available in a wide variety of locations
3) OYO Vacation Homes
It is considered as 3rd largest vacation home brand which is quite similar to the world’s top vacation rental management brands
4) silvery
This one is useful in serving the specific requirements of the corporate travelers that are on business trips of specific durations
5) Capital OYO
This one deals with the premium hotels that are also located in the prime locations. Such hotels offer OYO’s quality-assured experience at the most reasonable prices
6) Palette
This one belongs to the upper-end leisure resorts category and it is the best to fit for those who are looking for an intuitive experience at the right prices
7) Collection O
If business travellers are looking for accommodation tailored for their needs, this segment of Oyo Business Model is designed to cater them
8) OYO LIFE
It is designed to target millennials and young professionals who are looking for well-managed homes at affordable rates on rentals for long term
Working of Business Model of OYO Rooms
Before having an idea about the business model of OYO Rooms, it is important to know what it is in the first place. Here we are going to talk about that a little bit so that you can understand.
We need to know whether it is a franchise or an aggregator too. This is why we are having a gentle talk about it in the best way.
It can be said that the business model of OYO Rooms is something that can be considered as a proper hotel aggregator on. But then it is not the same as the one that Airbnb is using.
The discoverability of some of the partners, as well as the hotels, is not really the primary priority of the company as a whole. Hence, there is simply not a single speck of doubt when we say that the business model of OYO Rooms is basically a bit different from the rest.
The customers are able to buy the services that they have and they will be the ones who are contributing to the business model of OYO Rooms for sure.
So, when it comes to understanding the business model of OYO Rooms, it can be said that the model is basically the franchise along with the aggregator model too.
The brand equity of the model here at OYO Rooms is something that is built with the franchise option and hence it can be said that the business model of OYO Rooms is a mix of both the business models for sure.
This is one of the most important things that people definitely need to keep in mind so that they can have a better understanding.
A mix of Aggregator and Franchise Business Model of OYO Rooms
To define the business model of OYO Rooms, we are going to talk about it a little bit so that you can have an idea for sure. This is something that can be called an aggregator model as well as a franchise model too. There are some strategies that are used in the business model for sure.
Their people will be able to lease some of the inventory that is provided by the hotel to the users. Also, there are some services which will be able to provide the organizing services to the people in the best way for sure. There are also some other partner hotels where people can stay during their time.
When it comes to the making of the bookings, these are basically made with the official application or the site of OYO Rooms which is an important detail to remember for the people.
Channels used for channelizing Oyo Rooms Business Model are the company site as well as the mobile application.
The Partnership Model of OYO Rooms
When it comes to the partnership model of the OYO Rooms, it can be said that there are some hotels and other franchises that are provided in the listings of the OYO Rooms. There are some hotel rooms which the people can easily book so that they can stay there.
The company is able to make some money with the help of the booking fees that the people tend to make when they are staying in the hotel listings of the OYO Rooms.
This is one of the most important parts of the business model of OYO Rooms that people need to know. There are also some commissions and other rewards that are provided to the company as well. With the help of some other services such as OYO House stays, OYO Flagships, OYO Wizard and so much more, the company is able to earn the revenue.
Let us now understand how OYO-Rooms make money-
How Does OYO Rooms Make Money?
Primarily revenue generation of OYO Rooms is based upon the commission of 22% that it takes from its hotel partners.
In addition to the commission, OYO Rooms make money from-
1) Room Reservation Fee
Users pay the reservation fee to OYO Rooms from which a fixed percentage of the total fee is taken by OYO Rooms as the commission that help it to make good money.
2) Membership Fees
OYO wizard subscribers pay a fixed amount of money for premium services that also act as a revenue line for OYO Rooms.
3) Advertising
For running ads of different companies and businesses on its platform, OYO rooms charge the advertising fee.
4) Sponsors and Partnerships
For promoting its sponsors and partners, OYO charges a fixed amount of money that plays key role in its revenue generation.
5) Consulting Services
Different clients of OYO rooms such as organizations, clubs, hotels, etc take help from the business consulting and data analysis services of OYO rooms and in exchange, they pay OYO rooms.
Conclusion
So, these are some important details that you need to know about the business model of OYO Rooms. We hope this article was helpful to you.
OYO Rooms Business Model has for sure reformed the hotel industry in India by offering highly personalized, quick, mesh-free, affordable and well-organized services to let travelers enjoy their stays away from their homes.
So, how effective do you find the business model of OYO Rooms? Did we miss any key aspect of the OYO Rooms business model? Share with us in the comments.
Liked this post? Check out the complete series on Business Models
