OYO Business Model: We are heard about OYO but most people don’t know about OYO and how it works? and how it can help us? Today we going to tell you in detail. Some time ago, an online facility was launched in India, which allows you to book a hotel in any other city from your home, which is named as OYO, and in a short time, it has become a big brand of online hotel booking industry.

OYO Business Model

And in today’s time, it is reaching the benefit of its hotel booking service in 230 cities and with the help of the OYO app and OYO website, you can see the price of the hotel and all its photos then Choose the hotel of according to your plan and fix the check-in check out date.

You can easily book their hotel rooms, the facility is also found more in facilities, that is why today they are partnered with more than 44 thousand hotels.

OYO Business Model
OYO Business Model – Explained By DigitalAkki

How OYO started the Business?

Oyo started its business as an aggregator, OYO tying it up with a hotel, renting some rooms, and sticking its brand value or brand name on those rooms, then slowly when it started growing.

OYO converted their aggregator plan into a franchisee and partnered with hotels to include those hotels in their online list, then went on the run to give customers room at the cheapest price, which led to Oyo rising to a higher level.

OYO Franchise 

This franchise model leaves OYO with no need to buy the property of the hotel, tying it to the OYO Hotel and giving it the name of the company and some such facilities along with the rooms that the customer would book the hotel with the OYO app.

So, some OYO products are also provided to the customer with a room that makes them feel that OYO’S service is excellent and this is what makes OYO’S business model different from the rest of the business model.

Because it helps the customer but they are more focused because if he/she is happy then next time he/she will come back to them again.

How to be a partner of the OYO Program?

In order to connect with Oyo, the hotel has to provide some tests of Oyo or set something after which only you can connect your hotel with Oyo. What are the things that need to be done to connect a hotel to Oyo It is described below –

  • What services does your hotel have?
  • A fixed price that you will determine how much of the money you will receive from OYO?
  • How are the employees in your hotel taking care of the convenience of Oyo customers and their living?
  • What facilities are available in your hotel room?

How is your hotel security?

So OYO makes you your partner only after passing all these tests, so take care from next time and try all these tests before yourself so that when you do the OYO test, you can easily pass that test to become OYO’s Partner.

Customer Relations With OYO 

  • Platform

OYO created a platform through which customers can book hotels according to their requirements and that’s why OYO create such a website and application to get all the information of the hotel they are booking in one place so that the customer was easier to book the hotel according to your needs and according to your pocket, due to which online hotel booking increased in your India country.

  • Customer service support

OYO’S customer service is excellent. It is available 24 * 7 to solve the problems and difficulties of its customers, due to which the customers also believe in their service and it is based on the rating meter to build trust in the hotel and the customer.

They are also used on their application and website so that after checkout, the customer can reach the hotel review so that the customer does not have the same problem the next time.

How OYO Make Money?

  • Commission

The first method of OYO is that they account for about 22% commission from hotels. Above every booking, this percentage has also been shown to increase in many places as commissions are also fixed according to the service and facility in different places.

  • Room Reservation Fee’s

The other way of Oyo which Oyo earns is called Room Reservation Fee This room reservation also generates good profit. Room Reservation is required when the surrounding hotel or all the hotels in that area are overcrowded.

And if the booking is not possible easily, then whatever hotel booking is done on Oyo, then Oyo charged 10% – 20% of the price of that hotel so that the booking of that customer is confirmed and also the hoteliers there is no loss, but this happens only when the hotel booking is approaching 100% full.

  • OYO Membership

Wizard Membership This is a membership of Oyo. If you are in this membership then with this help you get some extra discount. And also different promo codes to use a few percent more Oyo money on your hotel booking and this wizard Membership can range from ₹ 500 to ₹ 3000, and via thus OYO generates fairly good profit.

  • Advertisement

If you have seen the promotion of different companies on the app of the Commission and on its website, then through the same publicity, Oyo generates income in a very large amount.

Oyo also charges a percentage of their brand partners and sponsors for advertising and only after taking that fee, they promote those brands on their website and application.

  • OYO Business Consulting

Oyo prepares a data analysis and report based on his business and through that report he tells his client about the mistakes he is making, in fewer words, he does business consulting you can see the price of the hotel and all its photos then Choose a hotel of according to your plan and fix the check-in check out date.

You can easily book their hotel rooms and the location services of his database due to which online hotel booking increased in your Indian country and share the needs of the users in business consulting and also generate income from this consulting.

Conclusion: OYO Business Model

Oyo is a great company, with the help of which you can book a hotel for yourself in any other city sitting at your home and due to this facility.

Oyo quickly became famous among the people, due to which he stands in such a big place today. He took the experience of the people and his comfort to the next level, with the help of which he provided convenience to his customer but also continued to generate his own profit as well, through this quick booking service.

His growth became unstoppable and Due to their applications and website, people started booking hotels easily and the most benefit from this facility was for the businessmen to the business city who used to go from one city to another business all the time and for booking the hotel he had to face a lot of trouble.

But since Oyo came, Oyo removed his problem because of all these things, people also liked Oyo and Oyo converted his name to a big brand, which is why From today, it is partnering with 44000 hotels in 230 cities with a team of over 25,000 people and maybe it will provide more new service in the future. You may also interested to read our UBER Business model case study.


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