Oyo Rooms Case Study: “How Oyo Rooms experienced big lift in hiring metrics”

Oyo rooms case study

Oyo Rooms Case Study:

OYO is the world’s 3rd largest hotel chain. OYO operates an asset light chain of predictable, easy to book, low cost accommodations globally while enabling its 50,000+ hotel and home owners get improved quality and revenue.

Started with only one hotel in Gurgaon in 2013, to 13000+ hotels, over 450,000 rooms, adding over 64,000 rooms monthly , globally.

“Ritesh Agarwal”, the founder of Oyo Rooms is not just an entrepreneur but also a bestselling Author who wrote “A complete Encyclopedia of top 100 engineering colleges”.

He was a college drop out that never went to college after the 3rd day of its starting.

OYO means “On your own”

But how did such an empire happen?

Let’s dive into Oyo Rooms Case Study and also learn about its marketing strategy with which it is the largest hotel room chain in India.

Also, we will dig a little deeper into the minor information and the journey of OYO rooms chain.

Oyo Rooms Case Study- Marketing Strategy, Revenue Model, Funding, Expansion

Oyo rooms case study

What is Oyo?

Oyo is a web platform for hotel booking in India. Oyo claims to be the most important chain of hotels in the world.

It was founded in 2012 by Ritesh Aggarwal. Oyo’s objective is to change the way people stand back from home and it aims to disrupt the Indian hospitality business just like the way Ola did in hire car industry with the assistance of technology. It can be compared with Ola because it does something similar with hotels. They refer customers to the hotels and keep a percentage of profits with them.

OYO Rooms is a web aggregator of budget hotels in India. Oyo is into approx. 200 cities in India and also in Nepal and Malaysia with quite 6500 hotels offering hassle-free stay experience at a reasonable price.
Also, OYO Rooms partners with hotels with the aim of standardization on various measures in each room including free Wifi and breakfast, flat screen TVs, spotless white bed linen of a certain thread count, branded toiletries, 6-inch shower heads, a beverage tray and so on.
The standards are audited every few days in order that the purchasers are assured a top quality experience. OYO’s budget stays range from 999 to 4,000 rupees. OYO provides property owners with support like quality standardized supplies and repair training and hotels are often added to their network within 5-6 days after signing of agreement.

Abhinav Sinha, Global Chief Operating Officer, OYO Hotels & Homes and Partner, OYO USA, said: “At OYO, every OYOpreneur has worked passionately and with utmost dedication towards the company’s mission. It makes us immensely happy and proud that OYO’s journey and mission-driven approach to business has led to it being included as a case study at the prestigious Harvard Business School.”

Founder of Oyo:

Oyo rooms case study

The founder Ritesh Aggarwal a university dropout aged 17 when he started OYO is an idea for several youngsters today.
To pursue his dream of becoming an entrepreneur he Indian School of Business & Finance, Delhi but left his studies mid way to becoming an entrepreneur.

Oyo rooms case study

Oyo Rooms Case Study: Oyo Business Model:

After getting deep knowledge of Oyo Rooms Case Study. Time has now come to jump over to their business model, we should also see how this business model works its expenses and revenue generation.
OYO Rooms professes to be a marked system of spending lodgings and in this way unique in relation to other in aggregators and OTAs (Online Travel Agents, for example, Cleartrip, Goibibo, Yatra, Makemytrip, and so on.)
Let us go step by step to understand the business model of Oyo rooms.
  • Oyo books a part of hotel inventory beforehand.
  • It organizes the booked rooms under their brand name.
  • Oyo signs a contract with the hotels to provide standardized services to their customers.
  • The bookings are made through the website and mobile application.
  • Then customer books rooms at predetermined prices by Oyo.
Oyo does quite 15 million booking in last year and has an annual growth run rate of roughly 400 billion per annum .
From late 2017 Oyo changed its business model from being a hotel aggregator into franchises. The shift was mainly to reduce operational costs and improve serviceability, the company said.

OYO Rooms Digital Marketing Strategy:

Oyo rooms case study

OYO has been connecting the overall population through short recordings and films, as Jai Hind, Father’s day festivity and IPL virtual challenge.

Anyway all at once to attach with level three urban communities and to market the brand with elderly individuals for whom the inn appointments are finished by youngsters, OYO currently burst on the broad communications with their battle title ” Aur kya chahiye ? “. The battle is bolstered by computerized radio and print medium.

OYO made use of a 360-degree marketing strategy where every medium is utilized – television, mobile, digital and social – in an integrated, consistent marketing and branding strategy.

In the world of digital media, it’s necessary to retain and attract customers. The OYO Rooms leveraged the facility of social media well to retain its ranking and perform well and stay before the competitors.

Search Engine Optimization For OYO Rooms

OYO optimized their program to make sure maximum traffic on their website. They used targeted keywords that have the very best searches from their target customers. The most popular and suggested keywords were online hotel booking, hotel booking online, hotel booking offers, book hotels, best hotel deals, book hotels online, hotel deals, hotel rooms, best hotels, best hotel prices and hotels nearby and many more keywords like these. This ensured that whenever someone searches for the above terms, they will be sure to encounter OYO’s website in their search result hence increasing their overall visibility.

Social Media Marketing Case Study On OYO Rooms

The brand organized various campaigns on social media:

Case study of oyo

It has strong social media presence on Facebook with over 2.7 lakh fans and a Twitter following of over 8,000 followers. The brand claims to have over 1.5 million app downloads with a good number of active users. To fast track its growth, OYO Rooms is organizing several campaigns on social media platforms such as:

  • Dubsmash Contest
  • #AurKyaChahiye videos on Youtube.
  • Father’s Day Celebration campaign, and IPL Final Verbal Combat.
  • Jai Hind was the most successful one that featured Bollywood actor Manoj Bajpai and Raveena Tandon.
  • The video fetched over 1 million views to the brand. Some of their recent endeavors are A Salute to the heroes of 1965 war and Oyo Explorer – Pune.

#AurKyaChahiye videos on YouTube

#OneForEveryone Campaign

#OYOnauts Campaign

Father’s Day celebration campaign

Jai Hind campaign 

As it was the time for being digital for each and every company, Oyo utilized the whole potential of digital marketing. They organized various brand campaigns:

#AurKyaChahiye campaign

Oyo started the campaign “Aur kya chaiye” in which a guy finds no place for a comfortable sleep in his own home and is suggested to use the Oyo app for booking budget hotels in 5 seconds. In the second video, the sick father is admitted to a hospital but the family is more worried about arranging their stay near the hospital. The funny twist is that the father gets up from bed and suggests OYO rooms to his family. These comic situations resulted in to create some impact because of which app downloads reflected an increase in number.

 #OneForEveryone Campaign

This campaign consisted of 8 short films showcasing their different behavior of people behave once they check-in at a hotel. The campaign commercials delivered a wide range of expectations that Indian travelers can have from their hotel experience. The main goal of this campaign was to trigger the preference of the audience for Oyo rooms while traveling or planning the vacation.

 #OYOnauts Campaign

 The campaign consisted of a contest in which social media followers can submit their story and if selected, the winner will get a sponsored trip by the OYO. They wanted the winner to use Instagram for their promotion by putting 15 stories, 4 posts and 1 video with hash tags #OYONAUTS and #OYOTotalHolidays added to their content of the posts.

Influencer Campaigns

Oyo conducted several influencer campaigns in which it provided all-expenses-paid trips to different kinds of influencers. Example: A female influencer could visit the Oyo rooms alone and share her experience on social media. It can showcase that it is safer for women to travel alone with OYO.

Father’s Day Campaign

On Father’s Day, Oyo focused on the special bond between dads and sons. They showcased that they both were shy from sharing their love verbally. Starring actors Piyush Mishra and Zeeshan Ayyub, the 3-minute long video tells you how to express your love and value the relationship. The emotional digital films and short funny commercials have been a mass trend which is followed by many brands.

Jai Hind Campaign

On Independence Day, the OYO rooms delivered a different picture in their independence video. The 6-minute video featured actors Manoj Bajpai and Raveena Tandon. The video paid tribute to Independent India and the freedom fighters of the country in a different way that it incited shock and then relief and a lingering respect for freedom fighters. The video fetched over 1 million views.

Revenue model:

Oyo works in a business model where hotel management, as well as the customer, is satisfied. Let me inform you ways it works. Oyo pre-books hotels and pay to hotel management, an advance after which they get the high discount by hotel owners.

Hotel owners are satisfied because they get bulk pre- bookings. The benefit to the customer is high discount he gets from OYO. Let we take an example:-

If the value of 1 room/night=1800 rs

Oyo rooms get 50% discount=1800*50/100= 900rs.

Oyo resell at 1200 rs

Profit to customer=600 rs.

Profit to Oyo is 300 rs/room.

In this way, they generate huge revenue because they’re having an enormous chain of hotel rooms.


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