The Gurugram based hospitality chain Startup- Oyo Hotels and Homes has announced that they will be launching a new experience-Oyo Near You. This new facility of Oyo Near you will offer comedy shows, house parties, workshops and much more at a reasonable price.
When the next time you think of going for some wine, you will not have to travel to the Sula Vineyard. Instead Oyo Near You will bring you the same experience at your desired location in your city. This new experience will be a break from the monotony of daily lives for the guests.
The Chief Operating officer of Oyo Hotels and Homes- Ankit Tandon, made a statement saying that the company is extremely proud to introduce new options and categories for the customers. According to him, in the recent few years, a shift has been seen in the travel sector and in how we experience our traveling expenditures. He also added that nowadays we do not want to simply see the mountains, but also wish to see the local cuisine, music and experience the local culture.
The experiences will be vast ranging from wine tasting, movie screenings to art jamborees with different varieties of food and beverages. This will be primarily a facility available in Oyo Townhouses. The first experience will be for the people staying in and around Delhi as Oyo will launch it first in Delhi-NCR, priced at Rs.299 each with a complimentary beverage and access to all food stalls. Following Delhi-NCR, this experience will be available next in Bengaluru, Goa, Kolkata, Mumbai, Chennai, Jaipur, Hyderabad and Pune.
In another statement by Ankit Tandon, he said that the Oyo Near You has been launched with an aim to strengthen the commitment towards providing comfortable, affordable experience. It aims not only for travellers but also for the locals who have a thirst for new experiences. This facility has been brought up to create an exciting and unique event for the neighborhood.
Oyo’s Work Towards Becoming the World’s Largest Hospitality Chain
Oyo has a grand plan to become the topmost hospitality chain through the best technologies and a perfect business model. During the first year of operation, Oyo received revenue of Rs.32.86 crore with a huge loss of Rs.496.31 crores. By the end of 2018, the topline of Oyo was seen to be at Rs.415 crore while incurring losses of Rs.360 crore. As years passed by, the revenues climbed 245 pecent whereas the losses ranged from Rs.355 crore to Rs.360 crore.
At present time, Oyo is considered India’s largest hotel chain offering 173,000 rooms under their management. Not only in India internationally Oyo stand at the third largest with more than half a million room spread across 18,000 properties. Oyo franchises these and leases them in 500 cities across 10 countries worldwide.
In a statement, the founder and CEO of Oyo- Ritesh Agarwal announced that Oyo is poised to become the top most globally by the year 2023.
Turning Point for OYO
The pivotal turning point can be seen back in 2016 when Oyo decided to become an inventory-exclusive franchise completely.
Ritesh Agarwal also added that during the year 2015-16, the company was stuck in a competitive battle and very little scope was present to start franchising and leasing of models, since it required a lot of time and effort. He is mainly talking about those times when Oyo had under it only few rooms for control and management instead of the entire property.
The boards outside the properties signified to the outsider that the building was one of Oyo properties, but the reality was that only a few rooms were managed by Oyo for which they offered Oyo referral code.
An owner of a budget hotel told Your Story in the year 2016, that Oyo’s business model makes it difficult for them to control the quality of experience the customer receives. A hotel stay not only is based around the room, but also on how the entire building looks, and how the staff behave and treat you.
After receiving this feedback, and conducting a thorough examination of the reviews made by customers, Oyo cancelled it’s partnership with many hundreds of properties. Since then Oyo began leasing complete properties in order to run them as franchises by managing every aspect from the hotel lobby, staff and rooms to even the kitchens, along with providing Oyo referral code to the customers.
Although Oyo received a funding of about $1billion in 2018, the journey has been nothing less than difficult. The hospitality company has received and faced innumerable challenges that every startup does such as complaints regarding quality of services, and messed up reservations among others.