Strategies Adopted By OYO

 At the Age of 18, Ritesh Agarwal launched oravel stays. Firstly, he launched a website for the process of booking & Listing budget accommodation.

This all started from 100 beds with complimentary Breakfast in guest houses and small hotels for the starting 3 Months, then he converted Oravel to OYO in 2013. OYO is quickly turning in to India’s largest hotel chain. OYO itself has raised over $364 Million Dollars in the past 5 Years. In 2017, OYO launched a new service “OYO HOMES”. The main target at the moment is to ensure that they have 180,000 OYO rooms listed by the end of the year.

They have used many Strategies to create such a big-name OYO,

They started with the market segmentation on the basis of demographics. So, they plan to go with the strategy of the Target Audience, OYO Targeted with in the Age group of 20 to 30, these people generally are from urban background and belongs to middle income of society so that they will easily afford the OYO facility. In this age group hobby of most of them is to travel many places so OYO will provide the accommodation to them at the cheap cost from the other traditional hotels.

The second Strategy is Digital Marketing Strategy, in today’s Digitally connected world, it is important to stay ahead in the competition of online hotel booking which is increasing day by day. OYO made use of a 360⁰ marketing strategy which included online and traditional media. Through the digital media to uploads videos on YouTube and providing discount to website and app users.

The campaigns are also the one of its strategy plan, in this strategy the OYO has influence the market through collaborating with the social media. The brand organized various campaigns on social media.

#InfluencerCampaigns #Aurkyachahiye Videos on YouTube #oneforeveryonecampaign #Father’sDayCelebrationCampaign

Electronic point of sale (EPOS) systems also proved as one of the Point of Difference strategy for OYO in compared to the traditional hotels. This system allows hospitality venues to operate more efficiently and provide better customer service. OYO is using cloud-based POS applications through which staff can process orders, bookings and payments directly from a tablet. This affords them greater mobility and adds another level of convenience for the customer. EPOS system also helps in generating sales report which can analyze the demand for a particular product.

Online Booking System is also a major Strategy of OYO, they are providing the online booking system. It also proved a major strategy to its growth. OYO came up with the mobile application through which the customer will be able to book hotels at any time and for the maximum Tier 1 & 2 cities. It is easy & reliable for the customer in compare with the traditional way through phones, sometimes the phone is not pick so that time the customer will be disappointed. They are also giving the payment option at the Check-out time which will be effective for the customer to attract towards the OYO.

These are the strategies which helped OYO to became a brand name and now its business also increased to overseas. Starting with just 1 hotel in 2013 in Gurgaon, today, they are in more than 800 cities, with more than 23,000 hotels, 850,000 rooms, and 46,000 vacation homes worldwide.