Table of Content

1. About OYORooms

OYO - On Your Own

I have selected OYORooms. The rationale behind picking up this product is because of having prior experience with the functioning of OYORooms, commissions in the hotel industry, owners’ feedback, and customers.

2. The Product

OYO was declared the third-largest hospitality company in 2019 (source link). OYO has adopted a multi-brand approach like OYO townhouse, OYO home, Collection O, etc. Here we are considering OYO 360 (facilitating small hotels and home-owners for a fast-track onboarding process).

2.1. OYORooms solves for

OYORooms solves many customer pain points in travel industry, and two USPs we would like to focus on are:

Hassle-free budget hotel bookings via app or just a customer care phone call
World-class experience across OYO properties across different locations

2.2.3. Relevant Metrics

2.2. Elevator pitch

2.2.1. Core Value Proposition

Standardization of services to enrich the guest experience
Customer experience: Unlike competitors (like Airbnb) that only connect guests with hotel owners, OYO takes full responsibility for the services of the hotels listed on its platform
Speed, availability, and reliability in finding hotels
Simple and easy to book a room via a toll-free number or mobile/desktop app

2.2.2. Customer pain points

Untidy rooms
Dysfunctional ACs, coolers, door latch
Irregular cleaning of rooms, washrooms
Discoverability and contacting hotels for reservation
Unclean laundry (blankets, bedsheets, pillow covers)

Membership fees - OYO Wizard memberships have premium fees ranging from ₹500 to ₹3,000
Advertising - OYO also charges different companies to place their ads on OYO’s app and website. It also generates sizable revenue for OYO
Sponsors and Partnerships - OYO charges fees from its sponsors and partners by promoting their brand name through advertising on their app
Commission - The commission is more than local taxi drivers and auto walas. The example below depicts the commission calculation for a room that is booked for ₹1,000

OYO commission calculation

2.3. Users

-	ICP 1	ICP 2
ICP Name	Ram	Lakhan
Age	35	27
Goals	Family vacation	Frequent long weekend vacations
Income levels	80k/month	80k/month
Gender	Male	Male
Location	Tier 2 cities. E.g., Indore, Surat	Tier 1 cities. E.g., Bengaluru, Mumbai, Hyderabad
Companies	Factory	IT Company
Marital Status	Married	Unmarried
Where do they spend time?	Malls, Theatre, TV	Digital platforms (Youtube, Social media)
Where do they spend money?	Parents’ medical, kids’ fees, securities	Entertainment, Travel
Pain points	Find budget hotel rooms in nearby cities	Find budget hotels with similar experiences across cities
Current solution	Asking friends or relatives for recommendations, asking taxi drivers, staying in samaj dharamshalas (communities build premises)	Manual search near bus stand or railway station, ask auto walas, check on the Internet
How do they value time, money, and comfort?	Time > Money > Comfort	Comfort > Money > Time

2.4. The Market

Here will calculate TAM (Target Addressable Market), SAM (Serviceable Addressable Market), and SOM (Serviceable Obtainable Market).

Let’s look at the breakdown now.