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Progress and Performance of OYO Rooms- A Research Based Case Study

Author: 
Guruprasad, M., Vijay Tandon, Chahat Mishra, Harshit Khandelwal, Ditrilla Borana, Bedant Kumar and Abhishek Arya
Subject Area: 
Social Sciences and Humanities
Abstract: 

OYO Hotels & Homes is one of the most exceptional hotel industry growth stories of recent years. OYO has raised massive funding from major players, namely Japanese conglomerate Soft Bank Group and the American company, Airbnb. The hotel chain now has over 1,70,000 rooms in India and claims it is witnessing a 3X growth in transactions year-on-year in the country. OYO rooms start at very affordable rates and the company earns a significant commission from hotel owners for the bookings done on its platform. By the end of FY 2018, its top line had scaled to Rs 415 crore. Year on year, OYO saw its revenues climb almost thrice year-on-year. OYO has an ambition of becoming a full-scale hospitality company, and today it leases or franchises over 18,000 buildings across 22 countries. The research study focuses on understanding the exponential growth of OYO rooms globally and its correlation with the investment made by the company. A key facet of this study is to analyse the increasing demand for affordable hotel services across the globe and understand the gap in the market.

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