Oyo Brand Case Study: Reflection

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Oyo Brand Case Study
India’s Oyo Brand has specialized in upgrading rooms in underutilized properties like corporate units and houses to modern hotels. The spaces are transformed into well-furnished rooms that deliver high-quality hospitality services to customers. Initially, Oyo was a technological partner for hotels and acted as a link to connect travellers to competitive hotel brands. However, soon it discovered the huge demand for budget rooms in India. Due to this, it ventured into leasing underutilized properties from owners and overseeing the management and operations of these units (Narayandas). It has since expanded to other developed markets such as the US, UK, and Japan.
Oyo’s venture into the US market targets underperforming budget hotel chains in the country which it leases and rebrands and incorporates them as part of the Oyo Franchise. The chain is using its mobile app to increase bookings in the US market. After launching in the US market in February 2019, OYO has since expanded to more than 100 OYO branded hotel rooms some spread in major US metropolises. I think this shows how the hospitality chain is rapidly expanding in the US with the founder and CEO Ritesh Agarwal planning to inject more funds to expand its footprint in the American hospitality industry. However, OYO faces greater competition from other economic hotel chains in the US. Two major rivals include Choice Hotels and Wyndham hotels and the brand has been performing favorably despite competition from these established chains. It aims to use its dynamic pricing strategy to outcompete its rivals in this large market. The brand has hired executives familiar with the American market to help the firm further penetrate its hospitality industry (Forbes). I feel this move is crucial as it enables OYO to provide services that suit the needs of its American customers.
A look at customer reviews from travel agencies like Trip advisors shows how a few of OYO’s properties in the US continue to receive many negative comments from clients. In OYO’s Hotel and Casino Las Vegas, customers complain of poor-quality rooms with some saying the rooms are insecure and not worth the money. One client in particular criticized this property for its filthy bathrooms and discouraged families from using this hotel. Another client commended the staff for their good customer service. At OYO Times square many customers acknowledged the hotel for its good service delivery. They also noted its great location which makes it an ideal place for travelers to seek accommodation. However, many customers complained that the rooms have malfunctioning air conditioning systems which affected their sleep due to the excessive heat. They also complained of the poor state of rooms with many saying they aren’t worth the amount the hotel charges. At OYO inn Dallas South, clients complained of filthy rooms with broken fixtures and they don’t recommend others to book a space in the property. Another customer describes the rooms as unsafe and unhealthy. Clients also expressed discontent at how the staff treated them with some being accused of being insensitive to customer needs. A notabl...