Marketing Mix Of OYO Rooms and 7Ps (Updated 2024)

The Marketing mix of OYO Rooms analyses the 7Ps of OYO Rooms, including Product Price, Place, Promotion, People, Physical Evidence, and Process of OYO Rooms. OYO Rooms is of Indian origins and was founded in 2012 by its founder, Ritesh Agarwal, as Oravel Stays Pvt Ltd, but later, in 2013, it was changed to OYO. It is associated with the Hospitality industry via its dealings in hotels. The company has redefined the concept of hotel bookings in India using technology. It offers a pleasant stay at a minimum budget while maintaining hygiene, cleanliness standards, and several essential services. Some of its competitors are as follows-

• Zo Rooms
• Stayzilla

About OYO Rooms

• Type: The hotel chain
• Industry: Hospitality
• Founded: 2012
• Founder: Ritesh Agarwal
• Headquarters: Gurugram, Haryana, India
• Area served: Worldwide
• Key people: Ritesh Agarwal (Chairman) and Manish Khaitan (CEO)
• Number of employees: 40,000

OYO Rooms Product Strategy

With its comprehensive marketing mix, Oyo Rooms strategically positions itself in the online room booking industry. The launch of OYO Rooms aimed to bring a positive change in the hospitality sector with technology usage. It is an online hotel aggregator and has become India’s largest chain.

It enters into a deal with hotels to offer standardized rooms by equipping them with complimentary breakfast, free Wi-Fi, air-conditioned hotel rooms, branded toiletries, spotless bed linen, flat-screen televisions, beverage trays, shower heads 6-inch, and so on. A special team has been appointed to travel and audit the services to maintain set standards regularly. OYO also offers service training and qualitative supplies. It just takes 5 to 6 days for the company to add a room price for a hotel to its network after sign-up and equip it with approved standards.

OYO Rooms offers diverse products and premium services tailored to different customer segments. Offering unmatched prices and all the fundamental services, Oyo attracts customers through a very sensible strategy. The company leverages different social media sites and executes various online campaigns, collaborating with online travel agents to ensure a lower room price. In the competitive landscape, Oyo provides quality services and fosters an amicable working environment, solidifying its overall presence in the market.

The new Product Mix of OYO Rooms in 2024 is as follows (Source).

1. OYO Townhouse: Aimed at millennial travelers, offering a unique, neighborhood-specific experience.
2. OYO SilverKey: Catering to the needs of corporate travelers.
3. OYO Vacation Homes: Targeting vacationers looking for beach homes or villas on exotic islands.
4. OYO Life: Providing residential spaces for long-term rentals.
5. OYO Home: Offering homestay options.
6. Capital O, Palette, Collection O: These sub-brands cater to various customer needs, from budget to premium accommodations.
7. YO! HELP: A service platform for customer assistance.

OYO Rooms Pricing Strategy

OYO Rooms is associated with budget hotels, and its range varies from rupees 999 to rupees 4,000. Several investors like Lightspeed India, Sequoia Capital, Greenoaks Capital, and Softbank Group back it. The primary objective of setting up this company is to offer a standard experience at an unmatched price. It tries to meet an individual’s budget and set up his accommodation accordingly. OYO Rooms refer clients to hotels and get a percentage as a cut for this transaction. It also has deals for minimum guaranteed customers and can offer its clients beneficial deals and discounted rates. All its transactions are of a swift-cash variety, and it works in favor of the company as it can realize its revenues faster. OYO Rooms has adopted a reasonable pricing policy that offers affordable rates and excellent quality services to meet customer satisfaction.

OYO Rooms’ pricing and marketing strategy can be described as follows:

1. Competitive Pricing: OYO Rooms primarily targets budget-conscious travelers, offering competitively priced accommodations. This approach allows them to attract a broad customer base.
2. Dynamic Pricing Model: The company uses a dynamic pricing strategy, adjusting room rates based on demand, location, season, and other market factors. This flexibility helps maximize occupancy rates and revenue.
3. Value-Based Pricing: OYO focuses on providing value for money, offering standardized amenities and services at affordable prices.
4. Customized Offers and Discounts: OYO often provides promotional offers and discounts to attract new customers and retain existing ones.
5. Differentiated Pricing for Diverse Products: The brand has a range of accommodation types, from budget to premium, each priced according to its category and target market segment.

OYO Rooms Place Strategy

OYO Rooms has become a most trusted and preferred brand that offers other online room booking sites at a set budget. Operations for OYO Rooms started from Gurgaon with its first hotel and later spread to several cities and towns in India. Its presence can be felt in more than two hundred and twenty cities and offers services via six thousand and five hundred hotels in places like Kolkata, Chennai, Goa, Bengaluru, Pune, Maneswar, Ghaziabad, Varanasi, Hyderabad, Mumbai, Jaipur, Gurgaon, Shillong, Panipat, Durg, Shirdi, Delhi, and Ahmedabad.

OYO Rooms’ place strategy can be summarized in these critical points:

1. Global Expansion: OYO Rooms has expanded globally, establishing a presence in various countries, which allows them to cater to a wide range of customer preferences and market demands.
2. Online Platform: The company primarily operates through an online platform, offering easy and convenient booking options via its website and mobile app.
3. Strategic Location Selection: OYO focuses on choosing strategic locations for its properties, ensuring accessibility and convenience for travelers.
4. Partnerships with Local Properties: The company partners with local hotels and properties, expanding its reach and providing standardized accommodations across different regions.
5. Diverse Accommodation Options: OYO offers a variety of accommodation types, from budget-friendly rooms to premium stays, catering to different customer segments across its operational locations.

OYO Rooms Promotion Strategy

OYO Rooms has focused on mass and digital marketing for further customer acquisition. It has a strong presence on social media sites as its Twitter following exceeds 8,000 and Facebook 2.7 lakh followers. Nearly 1.5 million apps have been downloaded, with a high percentage of active users. OYO has organized campaigns on social media platforms like #AurKyaChahiye videos, which can be viewed on YouTube, the Dubsmash Contest, and the Jai Hind campaign featuring actors Raveena Tandon and Manoj Bajpai.

Its latest campaign has targeted holidayers with the slogan OneForEveryone. It includes online campaigns and eight short films where customers express their satisfaction with the OYO brand. Films emphasize the diversified expectations of customers and how the company can meet every one of them successfully. It has entered into deals with major brands like Airtel to offer Wi-Fi support.

Some Recent Video ads and Print ads for OYO Rooms are:

OYO Rooms People Strategy

The “People” aspect of the Service Marketing Mix for OYO Rooms can be understood as the interaction between customers and employees that influences the customer’s perception and experience of the service. For OYO Rooms, a leading hospitality service and budget hotel network, this involves various stakeholders, including employees, customers, and partners. Here are key points regarding the “People” element in OYO Rooms’ service marketing mix:

1. Customer-Centric Staff: OYO focuses on training its staff to be customer-centric, ensuring that guests receive warm, friendly, and efficient service at every point of interaction, from online booking to check-out.
2. Professional Training: Employees at OYO Rooms undergo rigorous training programs that equip them with the necessary hospitality skills, including problem-solving, communication, and customer service excellence, to maintain high service standards.
3. Diverse Workforce: OYO Rooms employs a diverse workforce, including hotel managers, customer service representatives, and cleaning staff, who are pivotal in delivering the brand promise of standardized, quality accommodation at affordable prices.
4. Empowerment of Hotel Partners: OYO empowers its hotel partners through training and support, enabling them to deliver consistent service quality. This includes operational training, hospitality standards, and using OYO’s proprietary technology for hotel management.
5. Customer Support Team: A dedicated 24/7 customer support team is essential to OYO’s operational model. This team assists customers with bookings, complaints, and queries, ensuring a smooth customer experience.
6. Feedback Mechanism: OYO has implemented an effective feedback mechanism that allows guests to rate their stay and provide comments on their experience. This feedback is crucial for continuous improvement and staff training to meet and exceed customer expectations.
7. Technological Integration for Service Delivery: The people at OYO, including the front and back-office staff, are supported by technology for seamless service delivery. This includes the use of mobile apps and management systems for efficient operations.
8. Cultural Sensitivity Training: Given OYO’s global presence, employees receive training on cultural sensitivity to cater to the diverse needs of international travelers, ensuring that guests feel understood and valued regardless of their cultural background.
9. Performance Incentives: OYO employs a performance incentive program for its employees and partners, encouraging them to maintain high service standards and prioritize customer satisfaction.
10. Community Engagement: OYO engages with the local communities where it operates, which not only helps create a positive brand image and ensures that the staff understands and respects local customs and traditions.

OYO Rooms Process Strategy

The “Process” aspect of the Service Marketing Mix refers to the mechanisms, procedures, and flow of activities by which services are consumed. For OYO Rooms, which operates in the hospitality sector offering budget accommodations, the process is crucial for delivering a seamless customer experience. Here are the key points regarding the “Process” element in OYO Rooms’ service marketing mix:

1. Online Booking System: OYO Rooms offers a user-friendly online booking system through its website and mobile app, allowing customers to search, compare, and book accommodations quickly. This system includes filters for location, price, amenities, and more.
2. Standardized Check-in and Check-out: The check-in and check-out processes are standardized across all OYO properties to ensure efficiency and convenience for guests. This includes digital check-in options to reduce wait times.
3. Room Allocation System: OYO employs an automated room allocation system that optimizes room assignments based on guest preferences and operational efficiency, ensuring guests get rooms that meet their requirements and expectations.
4. Quality Assurance Process: OYO has a strict quality assurance process that includes regular audits and inspections of partner properties to ensure they meet OYO’s standards for cleanliness, safety, and amenities.
5. Customer Service and Support: OYO offers 24/7 customer support through various channels, including phone, email, and chat. This ensures guests can quickly get assistance with bookings, inquiries, or issues during their stay.
6. Feedback and Review Mechanism: Guests are encouraged to provide feedback and rate their experience after the stay. This process is crucial for OYO to gather insights and continuously improve service quality.
7. Training and Development: OYO invests in training and development programs for its staff and partner hotel owners. This includes operational training, customer service excellence, and using the OYO platform and tools.
8. Technology-Driven Operations: OYO leverages technology at every step of its service delivery process, from artificial intelligence for personalized recommendations to data analytics for operational efficiency and customer satisfaction.
9. Dynamic Pricing Strategy: The pricing at OYO Rooms is dynamic, adjusting based on demand, seasonality, and other factors. This process ensures competitive pricing and maximizes occupancy rates.
10. Cancellation and Refund Process: OYO has a clear and transparent cancellation and refund policy, making it easy for customers to understand and follow. This process is designed to be customer-friendly, reducing anxiety related to booking cancellations.
11. Partner Onboarding and Management: The process of onboarding new hotels and managing existing partnerships is streamlined to ensure that new properties quickly meet OYO’s standards and are ready to welcome guests.
12. Safety and Security Procedures: Given the importance of safety and security for travelers, OYO has established strict procedures for ensuring the safety of guests and their belongings, including security measures at properties and in the booking system.

OYO Rooms Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix refers to the environment in which the service is delivered, along with any tangible elements that facilitate the performance or communication of the service. For OYO Rooms, a brand known for transforming budget hotel room experiences, physical evidence shapes customer perceptions and experiences. Here are key points regarding the “Physical Evidence” element in OYO Rooms’ service marketing mix:

1. Branding and Visual Identity: Overall, OYO Rooms utilizes a distinct red and white color scheme across its branding materials, including signage, decor, and staff uniforms. This strong visual identity helps create a recognizable and consistent brand experience for customers.
2. Cleanliness and Hygiene: High standards of cleanliness and hygiene in OYO properties serve as critical physical evidence of the brand’s commitment to guest safety, which is especially important in the post-pandemic context.
3. Quality of Accommodations: OYO Rooms’ furnishings, bedding, and amenities reflect the brand’s promise of comfort and quality. Standardized quality across properties reassures guests of a reliable experience.
4. In-Room Amenities: Amenities such as free Wi-Fi, air conditioning, clean linen, and toiletries are tangible aspects that contribute to the guest’s comfort and satisfaction, embodying the service quality OYO aims to deliver.
5. Lobby and Common Areas: The design and maintenance of lobby and common areas in OYO properties are crucial for creating a positive first impression. These areas are designed to be welcoming and comfortable for guests.
6. Digital Presence: OYO’s website and mobile app serve as digital physical evidence, with user-friendly design and functionality that reflect the brand’s commitment to convenience and innovation.
7. Customer Reviews and Ratings: Online reviews and ratings on OYO’s website and other travel platforms are tangible evidence of past customer experiences, influencing the perception of potential guests.
8. Safety and Security Features: Visible security measures, such as surveillance cameras and secure access to guest areas, provide guests with a sense of safety and trust in the brand.
9. Marketing Materials: Brochures, advertisements, and promotional offers are tangible elements that communicate the brand’s value proposition and offerings to potential customers.
10. Uniforms of Staff: The professional attire of OYO staff, along with their identification badges, reinforces the brand’s professional image and aids in easy identification by guests.
11. Signage and Wayfinding: Clear signage and wayfinding tools within OYO properties help guests navigate the spaces easily, enhancing the overall guest experience.
12. Partnership and Co-branding Elements: Co-branded items or partnerships with other brands for in-room products or services (like toiletries or food services) can also be physical evidence of OYO’s quality and service standards.

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