Elevator Pitch

Finding a place to stay in a new city can be a daunting task, especially when balancing quality with affordability. OYO offer a solution that you can trust. Provide you a comfortable, well-reviewed rooms at prices that won't break the bank. With OYO, you can enjoy a reliable stay experience across multiple cities, without the hefty price tag of luxury hotel chains.

Product Understanding

About Oravel Stays

Oravel Stays (OYO) is a global platform that empowers entrepreneurs and small businesses with hotels and homes by providing full-stack technology that increases earnings and eases operations. Bringing affordable and trusted accommodation that guests can book instantly.

What is Oravel Stay's Business Model?

Here are the revenue streams of OYO

• Acquiring Hotels (hotels run by OYO)
• Partnering with hotel owners (profit sharing) running on an OYO brand name
• Platform fees from hotel owners
• Promotional Ads of partner hotels on the app and website
• End solutions to onboarded hotels (Consulting service)

Available Products:

• Oyo Flagship
• Oyo Townhouse (Standardised Hospitality)
• Studio Stays (Long-term stays)
• B Direct (Business stays simplified GST reimbursement invoices)
• Oyo Homes (private homes for holidays)
• Oyo Flagship
• Oyo Silver Key (provides executives and corporate clients executive apartments)
• Weddingz.in (banquet halls)
• Oyo Wizard (subscription model)

Value Proposition

Core Values:

• Integrity,
• customer-centric,
• excellence,
• ownership

Mission Statement:

• To provide affordable and standardized accommodation to travellers worldwide
• To empower entrepreneurs and small businesses with hotels and homes by providing full-stack technology that increases earnings and eases operations.

User Journey Map

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User Pain points

1. Customers

• No brand caters to the majority of the mid-range population who cannot afford the services of 3-star or 5-star hotels.
• Also, in the event of any issues, there is a lack of customer support.
• As a user, not knowing the hotel name in a new city makes it difficult to trust the facilities based solely on pictures.

2. Hotel Owners

• Before 2014, small hotel owners faced numerous challenges due to changing consumer needs. It was not very profitable for them to provide good facilities given the amount they were charging.
• There were no standard operating procedures (SOPs) in place to run the hotel.
• Hotels need to purchase various software to manage their data.

Understanding ICPs

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ICP Prioritization

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To Finalise ICPs a detailed TAM is addressed in the next steps.

Understand Market

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Target Market Segmentation: India's Diverse Consumer Base

India, with a population of 1.417 billion people as of 2022, presents a vast and diverse market. However, OYO's ability to cater to this entire population is limited due to significant variations in per capita income across different segments. To better target our efforts, the Indian market can be broadly segmented into three key groups: India 1, India 2, and India 3.

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Market Segments Overview

• India 1:
• • Population: Approximately 120 million people (30 million households)
  • Per Capita Income: ~1 million INR
  • Description: This segment represents the wealthiest and most urbanized portion of the population, with significant disposable income. It is the primary target for OYO, as it aligns closely with our Ideal Customer Profiles (ICPs).
• India 2:
• • Population: Approximately 100 million people
  • Per Capita Income: ~ 0.25 million INR
  • Description: This segment is the emerging middle class, with moderate income levels and growing aspirations. While not the primary focus, it offers substantial growth potential as income levels rise.
• India 3:
• • Population: Approximately 1.2 billion people
  • Per Capita Income: ~ 0.125 million INR
  • Description: This segment constitutes the majority of the population, characterized by lower income levels. Due to economic constraints, this group is currently less relevant to OYO's core business model.

Detailed Breakdown of India 1

To further refine our targeting within India 1, we can break it down into three sub-segments based on income:

• India 1A:
• • Population: 6 million people (1.5 million households)
  • Annual Household Income: 6 million INR
  • Description: The ultra-wealthy elite, with significant purchasing power and a preference for premium services. This segment is highly attractive for high-end offerings and luxury experiences.
• India 1B:
• • Population: 25-30 million people (6.25-7.5 million households)
  • Annual Household Income: 2 million INR
  • Description: The affluent middle class, with a solid income base and a strong propensity to spend on travel and accommodation. This segment is a key target for OYO’s standard and premium offerings.
• India 1C:
• • Population: 70-80 million people (17.5-20 million households)
  • Annual Household Income: 1.2 million INR
  • Description: The middle class, making up the largest portion of India 1. They have sufficient disposable income for regular travel and represent a significant portion of OYO’s customer base.

Focus on India 1
For strategic simplicity and due to the availability of data, this project's primary focus remains on India 1 as a whole. This segment aligns most closely with OYO's Ideal Customer Profiles (ICPs) and offers the greatest potential for growth and revenue generation.

Total Addressable Market (TAM)

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Service Addressable Market (SAM)

People who come under India 1C mostly can easily afford to stay in large hotel groups like the Taj, ITC, Marriot etc. so the target groups who usually go for a hotel up to 4000 INR/night will be India 1B and India 1C. So as per this, we have a SAM of 114 million or 28 Million households with sector revenue of 510-1000 billion INR

Service Obtainable Market (SOM)

In year 2018 Oravel Stays had a market share of 8.7%. Considering the same market share percentage at the current stage too in the year 2024.

SOM = (510 - 1000 billion) x 0.087 = 44.37 - 87 billion INR

Designing Acquisition Channel​

Understanding current performance

For the project and to understand the available data easily only July data is considered.

Website Performance:

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Mobile App performance:

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Insights

• The top 5 countries from which traffic on the website is coming are India (75.92%), United States (5.78%), Indonesia (4.88%), United Kingdom (2.33%) and Malaysia (1.36%)
• Age distribution of the website users supports the chosen ICP prioritisation. 73% of the website visitors are in the range of 18-44.

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• Cross-browsing behaviour shows that 47% of visitors also visit/refer to other sites and the highest cross-browsing is for MakeMyTrip with 22.6%. On the other hand, Oyo is one of the biggest crossreferencing for the FabHotels

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• Oyo is currently ranked 5th in the Accommodation and Hotels category in the Indian region, holding a mere 2.53% share of the total traffic. Leading the category is booking.com with 24.59%, followed by Agoda.com (12.53%), Airbnb (6.25%), and Tatadigital (6.24%). There is still room for improvement in the acquisition channels, as there are significant portions of traffic share in this category. It will be interesting to see how this data compares in different categories.

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Channel Selection Framework

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Detailing Acquisition Channel

Organic Channel

Overview

Organic search brings 55.45% of the website traffic which is one of the biggest Acquisition channels for OYO. On a further distribution branded share is around 49% and non-branded shares 51% of the organic search

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Top Organic-Branded search terms are

1. Oyo
2. Oyo rooms
3. Oyo hotel
4. Collection o Orchard resort
5. Oyo hotels

Top Non-Branded search terms

1. hotels/hotel/hotel booking/booking
2. travel
3. accommodation
4. hotel review
5. europe/amsterdam/holiday expedia

New Strategy

Over the past few years, Oyo has adjusted its strategy to include a focus on international acquisitions. The company has achieved a high organic search percentage (55% of total website visits) and has strong Search Engine Optimization (SEO) for domestic stay searches. However, Oyo still lags behind its competitors when it comes to international accommodation/stay search queries. Although Oyo operates in other countries, this aspect of its business is not heavily promoted. While the total addressable market (TAM) for this segment is currently small, it is showing growth. As per Forbes report Indian going for international trips are increasing year by year. According to the report, Amsterdam, followed by Singapore, London, Frankfurt and Melbourne are the top five trending destinations that Indian travellers are visiting. Notably, there has been a rise of Indian passenger arrivals by 53 per cent in Japan, 248 per cent in Vietnam and 59 per cent in the US compared to 2019, despite a stronger US dollar.

Content Loop

Overview

• OYO uses Facebook to share location-based posts, promotional posts, and posts related to the detailed progress of the organization. These posts helped people to browse destinations to travel, and regular promotional posts provided customers with offers and discounts, encouraging them to book OYO
• OYO reposts pictures taken by travellers and users of OYO on their Instagram handle. Along with this strategy they implemented Facebook marketing strategies to Instagram. This strategy leads to an engagement rate and encourages people to tag OYO in their posts.

New Strategy

Oyo's current content loop strategy is effective, but it lacks a strong motivation for users to participate. Offering a reward in the form of platform money can incentivize users to post a picture on social media, tag Oyo, and add the property location. As a reward, users will receive platform money that they can use for their next booking.

• Objective: Boost social media engagement by leveraging social media engagement- using it as marketing and rewarding users with platform money.
• Expected Outcome: Increased user-generated content, higher engagement rates on social media, and an increase in repeat bookings through the incentive of platform money rewards.

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Let's see how it will look

1. Create a Property Segment by tagging them for internal purposes: Identify and categorize properties that are located in prime areas, offer premium services, or provide scenic views. This segment will act as a special category for OYO to send custom notifications and emails for the new strategy
2. Monitor Bookings in This Segment: Track users who book a room in this special property segment. These guests are likely to appreciate the extra value these properties offer, making them ideal candidates for encouraging social media engagement.
3. Send Reminder Notifications: Once a user has booked a room in this premium segment, send them a reminder email and app notification. This notification should encourage them to share their experience on social media, emphasizing the value of tagging OYO and mentioning the property location.
4. Encourage Social Media Posting: Incentivize guests to post pictures of their stay on Instagram or Facebook. The post should include a tag on OYO's official handle and the location of the property. Highlight the benefits of participating, such as increasing their visibility and being featured on OYO’s social media.
5. Upload Screenshot on the App: Allow users to upload a screenshot of their social media post directly through the OYO app. This makes it easy for users to claim their reward and ensures that the engagement is recorded.
6. Reward with Platform Money: Once the post is verified, reward the user with platform money. This credit can be used for future bookings, providing a tangible benefit and encouraging repeat engagement.

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Paid Ads

Overview

• OYO prefers to promote via various social media sites such as Facebook, Twitter, Instagram, Pinterest, etc. With its exclusive offerings and reduced costs, OYO uses the digital platform to draw new customers.
• OYO organizes several online campaigns such as #AurKyaChahiye on YouTube, #OneForEveryone contest, #OYOnauts, Father's Day Celebration campaign, etc.
• Many of the promotions feature Bollywood artists to make them more appealing.
• OYO uses all forms of digital and traditional media to reach its customers. Traditional media includes both print and television whereas digital media include Google search ads and social media ads campaigns.
• Also, with the recent campaign #KyaBaatKarRaheHo, they are trying to change their image that they are for families stay too (Ad Link)

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Traffic From Social media marketing (2.30%)

Product Integration

Overview

OYO is already working with some domestic airlines to provide their customers with available hotels at their destinations. This integration can be expanded further. The first integration will be with Air India and Vistara, allowing customers to choose a hotel option at international destinations. This will introduce international properties to local consumers.

Strategy

1. Expand Existing Integration:

• Objective: Build upon the current partnerships with domestic airlines by extending the integration to include international destinations.
• Approach: Collaborate with Air India and Vistara to offer OYO hotel booking options directly through their platforms when customers book international flights.

2. Implement Seamless Booking Experience:

• Integrated Hotel Selection: Allow customers to choose OYO hotels/Oravel Stays at their international destinations directly during the flight booking process. This can be done by displaying available OYO properties after selecting flight details.
• Cross-Promotion: Utilize both airline and OYO platforms to promote this integrated service, encouraging customers to book hotels as part of their travel planning process.

3. Introduce Special Offers and Discounts:

• Exclusive Deals: Offer special discounts or packages to Air India and Vistara passengers who book OYO properties at international destinations. These deals could include bundle offers like discounted rates for longer stays or additional services (e.g., airport transfers).
• Loyalty Program Integration: Collaborate with the airlines’ loyalty programs (e.g., Air India's Flying Returns or Vistara's Club Vistara) to provide additional rewards or points for booking OYO stays.

4. Promote International Properties to Local Consumers:

• Localized Marketing Campaigns: Create marketing campaigns targeting Indian travelers that highlight OYO’s international properties. Use email marketing, social media, and in-app notifications to showcase these properties.
• Content Personalization: Tailor content based on the customer’s travel destination, presenting OYO properties in that region with appealing visuals and descriptions.

5. Develop a Dedicated Section for International Stays:

• App and Website Features: Add a dedicated section on the OYO app and website for international stays, where users can explore properties in various countries. This section could also feature recommendations based on trending destinations or ongoing airline promotions.

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Referral Program

OYO can introduce a collaborative trip planning feature that allows users to add properties to a shared list, invite others to participate, and communicate directly through the platform. Here's a step-by-step outline:

1. Create a "Plan with Friends/Family" Feature:

• Collaborative Lists: Allow users to create a shared list of potential properties where they want to stay. Users can browse through OYO properties, add their favourite options to a list, and invite friends or family members to join the list.
• Easy Sharing: Provide easy sharing options via link, email, or social media so users can quickly invite others to join their trip planning.

2. Invite and Add Participants:

• Add People to the List: Users can invite friends or family to the list by entering their email addresses or sharing an invitation link. Once invited, participants can view, add, or remove properties from the list.
• Integration with Contacts: Allow users to connect their contact list for easier invitations and to see who else is using OYO for trip planning.

3. In-App Chat and Discussion:

• Group Chat Feature: Introduce an in-app chat option within the shared list where all invited participants can discuss the options. This chat could include features like tagging specific properties in the conversation, sharing additional details, and voting on options.
• Notification System: Notify participants of any new messages, updates, or changes made to the list, ensuring everyone stays in the loop.

4. Rating and Voting System:

• Rate and Vote on Properties: Allow participants to rate and vote on the properties in the shared list. This makes it easier for the group to decide on a final option based on collective preferences.
• Aggregate Ratings: Display an average rating from all participants to help the group see which properties are favoured.

5. Referral Incentives:

• Earn Rewards Together: Each time a user invites someone to join a planning group, both the inviter and invitee can earn referral rewards (e.g., OYO platform money, and discounts on bookings).
• Group Booking Discounts: Offer special discounts or rewards for group bookings made through this feature. For example, if the group books a certain number of rooms or nights, they all receive a discount or additional rewards.

6. Social Sharing and Broader Reach:

• Share Your Trip: After the booking is confirmed, allow users to share their planned trip on social media, encouraging others to use the "Plan with Friends" feature. This will help spread awareness and attract more users to the platform.
• Incentivize Sharing: Provide additional rewards or discounts for users who successfully refer new groups to OYO through social media sharing.

7. Feedback Loop and Continuous Improvement:

• Post-Trip Feedback: After the trip, encourage users to leave feedback on both the property and the planning experience. Use this feedback to continuously improve the "Plan with Friends" feature.
• Analyze Engagement: Track how many users engage with the feature, the average group size, and the referral success rate to optimize the program and identify potential improvements.

The "Plan with Friends" referral program not only enhances the user experience by making group trip planning easier and more interactive but also amplifies OYO’s reach through social sharing and referrals. By allowing users to collaboratively select and discuss properties, OYO can increase customer satisfaction and booking conversions. The added referral rewards and group discounts further incentivize users to share OYO with more people, helping to drive growth through word-of-mouth and social proof.

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Partner Program

Strategy 1

Partnering with companies, especially MNCs and medium-scale enterprises, to offer their employees better accommodations for business trips can significantly enhance OYO’s presence in the corporate travel market. Here are the steps to implement it :

1. Identify Target Companies:

• Research and Targeting: Identify companies and MNCs that frequently require business travel accommodations for their employees. Focus on industries like IT, consulting, finance, and manufacturing where travel is common.
• Segmenting: Segment these companies based on size, industry, and travel frequency to tailor approach effectively. Prioritize MNCs and medium-scale companies with significant travel budgets.

2. Develop a Corporate Partnership Program:

• Corporate Rates and Discounts: Offer special corporate rates or discounts for partner companies. These could include negotiated flat rates, last-minute booking flexibility, or exclusive deals during peak travel times.
• Corporate Account Management: Assign dedicated account managers to each corporate client to handle bookings, manage special requests, and ensure seamless service.

3. Create a Corporate Booking Platform:

• Dedicated Booking Portal: Develop a specialized booking portal for corporate clients where they can manage all their employees' travel needs. This platform should include features like centralized billing, travel policy compliance, and detailed reporting.
• Integration with Existing Tools: Integrate this portal with existing corporate travel management tools like SAP Concur, TravelPerk, or others commonly used by these companies.

4. Offer Added Benefits for Employees:

• Loyalty Program for Employees: Introduce a loyalty program where employees earn points or rewards for every business stay booked through their company’s corporate account. These points can be redeemed for personal travel or upgrades.
• Value-Added Services: Provide additional services like complimentary breakfast, airport transfers, free Wi-Fi, or early check-ins and late check-outs specifically for corporate travellers.

5. Provide Ongoing Support and Engagement:

• Regular Check-Ins: Maintain regular communication with partner companies to ensure satisfaction and address any issues promptly.
• Feedback and Improvement Loop: Continuously seek feedback from both the companies and their employees to improve the program. Introduce new features or services based on this feedback.
• Exclusive Corporate Events: Host exclusive events or webinars for corporate clients, offering insights into the latest travel trends, business travel tips, and networking opportunities.

6. Promote Sustainability and Wellness:

• Sustainable Options: Offer eco-friendly accommodation options for companies focusing on sustainability. Highlight OYO’s commitment to sustainability to align with the CSR goals of partner companies.
• Wellness Packages: Include wellness packages in the corporate offering, such as access to gyms, spas, or wellness programs at partner hotels, catering to the well-being of business travelers.

Partnering with MNCs and medium-scale companies allows OYO to tap into the lucrative business travel market. By offering tailored corporate rates, a dedicated booking platform, and value-added services, OYO can become the go-to accommodation provider for business travellers. The approach focuses on creating a seamless and beneficial experience for both companies and their employees, driving loyalty, repeat bookings, and long-term partnerships.

Strategy 2

To streamline the user experience and provide a unified platform, OYO (Oravel Stays) can pursue bilateral partnerships with newly acquired international brands. By integrating these acquisitions under one application and webpage, OYO can offer a seamless and hassle-free solution for users.

By integrating newly acquired international brands under one unified OYO platform, users will enjoy a hassle-free experience with seamless access to a broader range of properties. This strategy not only enhances user satisfaction but also strengthens OYO’s brand presence globally. The unified platform will simplify the booking process, boost cross-brand loyalty, and ultimately drive growth through a more cohesive and efficient user experience.

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All these strategies will help Oravel Stays to improve its customer acquisition channel and acquire a larger percentage of the market share.

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