2. EXECUTIVE SUMMARY
OYO Rooms is a branded network of hotels in India, OYO Rooms currently operates in more than 500 cities in India, China, Malaysia, Nepal, the United
Kingdom, Saudi Arabia, the Philippines, Indonesia and japan, and operates 450.000 rooms globally as of January 2019. OYO Rooms provides standardized hotel
rooms with features such as an air-conditioned room, complimentary breakfast and Wi-Fi with 24x7 customer service support. Guests can use the OYO Rooms
App for booking rooms on the go. They can also order beverages and request room service through the app. Hotel. owners who partner with OYO Rooms are
connected via world's first tablet based property management App and become part of the OYO brand. According to a research carried out by CB Insights for
The New York Times, OYO Rooms is among the companies that may be the next start-up unicoms. The company is backed by investors like the Softbank
Group, Green oaks Capital, Sequoia Capital and Light speed India. The launch of its Townhouse brand in January 2017 played a key part in improving Oyo's
image with customers. Townhouse properties are owned by Oyo and fully managed by the company's staff-they work like any other branded budget hotel.
Townhouse has helped Oyo improve customer service and address the problems of fake bookings and high cancellation rates that it faced under the
marketplace model.
Vision and mission
Vision:-
To change the way people stay away from home.
Mission:-
"OYO's mission is to create and offer good quality living-spaces at the right price and location. To enable this, we intend to tap existing supply and
repair/upgrade to add to the overall inventory pool.
Standardized:-
OYO Rooms promises to provide the same amenities and the same awesome experience across all its rooms.
Affordable:-
OYO offers rooms at prices that no other player in the budget segment offers today
Technology Driven:-
OYO uses technology to link all its functions and provide the customer a seamless
4. Introduction
1.1 Origin of the report:-
I am a student of B.Com (Hons) . I had to complete a summer internship of 60 days or more under any company. It all started when I gave interview for my
summer internship and gets a chance to be a part of the organisation. I joined as an intern from where with the help of our mentors we decided a topic i.e. a
study on customer satisfaction on the service provided by OYO rooms. This internship period is used to understand and analyse the situations that why customers
are unsatisfied with the oyo, what are the main reasons because of which the unhappy of the properties increases.
1.2 Objectives:-
Our main goal during this internship is to reduce the unhappy of the properties that are assigned to us. Apart from this we also make sure that property owner
issues are being resolved on time. Work on the operations and to help our respective ABMs.Main objective behind this report is to see what are the various factors
because of which guest is not happy.
1.3 Scope:-
Here is the opportunity to learn about the operations of OYO.Opportunity to know about what kind of activities has been done in hotels sector. To know about
the customer response and behaviour towards the OYO Rooms Face to face interaction with the customers and solving real life problems. Opportunity for expand
our network of contacts with various stakeholders, owners and vendors.
1.4 Methodology:-
Primary data: Data is collected through customers through personal interview.
1.5 Limitations:-
To enrich and complete this report my level best attempt was dedicated although there are some limitations:
Unfortunately it was not possible to acquire sufficient information due to the company's limitations (business secrecy and confidentiality). As this is my first
report about hotels sector so I had to face some difficulties to preparing the report. Time was also a limitation. Gathering information during working was a tough
job. In personal interview it is always said that there is always a chance of biasedness either by interviewer or either by interviewee.
6. 2.1 Organizational overview
OYO Rooms is India's fastest growing branded network of budget botels founded by young entrepreneur Mr. Ritesh Agarwal on
2013 OYO operates 5500 rooms under its full-inventory model in Karnataka. The platform is grown to over 500 cities in
India, China, Malaysia, Nepal, the United Kingdom, the United Arab Emirates, Saudi Arabia, the Philippines, Indonesia and
Japan, and operates 450,000 rooms globally an of January 2019 OYO Rooms provides standardized hotel rooms with features
such as an air-conditioned room, complimentary breakfast and Wi-Fi with 24x7 customer service support. Customer can
book oyo rooms through oyo app. They can also order beverages and request room service through the app. Hotel owners
who partner with OYO Rooms are connected via world's first tablet based property management App and become part of the
OYO brand. OYO Rooms, commonly known as OYO, is an Indian hotel brand that owns and operates as well as aggregates
standardized hotel rooms. The funding makes OYO India's latest unicorn-private startups valued at over $1 billion-and the
second-most valuable after One97 Communications, digital payments app Paytm's parent company that in August sold a $356
million stake to Warren Buffett's Berkshire Hathaway (E-commerce marketplace Flipkart used to top the unicorns
leaderboard, until it was sold to US retailer Walmart for $16 billion in May this year.) Diversifying from its humble beginnings
as a budget hotel chain, Oravel Stays-the entity that owns and operates the OYO brand-now also houses other brands like
Oyo Home, Oyo Townhouse and Palette Resorts that cater to the higher-end segments of the market. The brand has clearly
gone the distance in the last five years.
7. 2.2 Products and services offered by
OYO:
Hotel Booking:-
A traveller can book a room online at Oyorooms.com and can choose to opt for online
payment or pay at the hotel. Oyo joined hands with several others also nowadays bookings in
oyo rooms are coming from different platform which includes gommt, goibibo, Booking.com,
Axis agoda and several other travel agents and to take care of these bookings from different
platforms OYO have mainly two departments i.e. SIG and OTA department under which there
are several sub departments are there.
2.3 Evolution and funding
OYO'S beginning
With the launch of OYO in May 2013, Agarwal aimed to disrupt India's hotels sector. a market
less than $7 billion back then. (By 2020, it is poised to reach $13 billion.)
8. 2.5 Business model
Earlier, the company used to organize the partner with hotels, lease some rooms, and sell them
under its own brand. Even though the process is still the same, Oyo's business model has changed
its route to a new structure. This model was a mix of aggregator business model and franchise
business model. But as the time passed, the company built its brand equity and the founders
decided to shift its business model to a pure franchise business model. The company now gets
90% of its revenue from hotels under the franchise model.
2.6 Revenue model
The revenue model has also transformed as the business model changed from aggregator to
franchise. Earlier the brand used to lease hotels at a predetermined price and offered them to
the users at a take-up rate. This has been changed to a commission based revenue model. Price
of the rooms are also set according to their geographical locations, categories and inclusions.
Rooms at tourism spots are generally high priced compared to a room in a general city. In hill
stations prices are also modified according to seasons. During peak seasons the price of the hotel
rooms are kept high as the classic category of room even charged at the price of 1800+ and
deluxe room 2800+ and for Suite rooms 4000+. Whereas off the seasons these prices are just
came to half.
9. 2.7 Services provided by Oyo rooms:
Oyo Rooms, started and famous as branded hotel rooms aggregator, provides many more services than just hotel rooms to visitors, OYO rooms has also started
two new sub-divisions to increase its hold on the market: OYO Premium - Moving from the budget room segment, company has also started premium room
service in metro cities to increase its customer base, OYO premium i rooms will cater those business travelers or families who are looking for premium
services and are ready to shell out few extra bucks for higher comfort. OYO SMART: Introducing this concept which includes fully ownership of reservations by
OYO whether it is by normal walk-in, any OTA like MMT, GOIBIBO, CLEARTRIP, and YATRA.COM
The services included in the Oyo Rooms business model are:-
Hotel Rooms
Oye's carlier strategy was to book a part of the hotel's inventory, to maintain it as per the quality standards, and to hold it captive exclusively for Oyo
customers. That is they used to lease some rooms every month and provide them to their own customers at profits.The only thing that has changed is that the
rooms are now not leased but operated as Oyo Rooms franchise. Since the hotels and place owners act as the franchisee, they are bound to operate as per
the pre-determined standards. The company even offers plans where it runs the place instead of the hotel staff or owner.
Oyo Flagship
The partners used to book their own hotels when they used to see low prices on the Oyo's platform and this became malpractice benefiting the partners while
burning holes in Oyo's pockets. To curb this, and to expand the business, Oyo Rooms has started leasing hotels and places where it has the full control over
the day-to-day operations of these establishments.
Oyo Townhouse
The company has recently launched the Oyo Townhouse to hone its value proposition and stand out of the competition when it comes to standardised
hospitality. Oyo Townhouse is based on the needs of the millennial traveller. These hotels are planned and built based on the needs and wants of the
millennials. They have
Smarter Rooms- With specially designed beds, showers, sockets, and internet.infrastructure. Even the TVs have Netflix installed.
Smarter Spaces - common spaces designed to have meetings Free printer, business services, magazines, coffee and tea in the common area.
10. Smarter Menus-24x7 Kitchen which lets you order from the monu and many more smart services.
Studio Stays:-
Apart from providing hotel rooms, Oyo Rooms also provides fully furnished rooms and flats for long
stays like internships, corporate stays, etc. The rooms/flals can be rented on single occupancy as
well as on twin sharing basis as well (other provisions are also applicable). Rents are paid monthly,
Commission (take-up rate) is charged from the owners if the customer comes through Oyo rooms.
Events & Other Long Stays:-
Just like studio stays. There are many family functions(weddings, partics) as well as corporate
functions (seminars, meetings, parties) which involve hotel rooms for their guests to stay for long.
This service is also provided by Oyo.
Commercial Places:-
Oyo has expanded its branches in the commercial places domain as well. Now the customers can
even book office spaces on Oyo as well.
Oyo Wizard:-
The company has also launched a subscription model where the subscribers get exclusive discounts,
deals, and cashback offers.
11. Swot Analysis
Strengths:-
1. Excellent use of advertising for High Brand Recall
2. User-Friendly / Easy-To-Use Interface
3. Budget Hotels
4. Continuous Innovation
5. Easy to reach hotels
Weakness
1.Fast Expansion Leading to Compromise on Quality
2. Overbooking of hotels leads to guest inconvenience
3. Communication gap between property owner and their respective ABMicar business manager), HDMbusiness development manager)
4.Lack of knowledge of property owns
Opportunities:
1.More and More People are Becoming Technology Driven
2. Use of Social Media to Enhance Consumer Experience
3. No of budget travellers increases nowadays
4. No of travellers using Oyo.
5 Nowadays people are ready to spent more
Threats;
1.Customer inconvenience
2. Mo .of competition that arises nowdays
13. 3.1 LITERATURE REVIEW:
Choi, T. Y., & Chu, R. (2001)
This study examined the relative importance of hotel factors in relation to travelers" overall satisfaction levels with their hotel stays in Hong Kong and the
likelihood of returning to the same hotels in their subsequent trips. Using a factor analysis technique. the study identified seven hotel factors that were
likely to influence customers' choice intentions: Staff Service Quality. Room Qualities'. General Amenities", "Business Services, "Value". "Security and IDD
Facilities. Multiple regression analysis technique was then applied to examine the relative importance of each of these hotel factors in determining
travelers' overall satisfaction levels and their likelihood of returning to the same hotels. In order of importance. 'Staff Service Quality', 'Room Qualities and
'Value' were the three most influential factors in determining travelers overall satisfaction levels and their likelihood of returning to the same hotels.
Mey et al, (2003)
The findings indicated, as a whole, that the hotel iniests perceptions of service under provided by the hotel industry were lower than their expectations. The
Sw expectations and perceptions were given by Malaysian hotel guests towards the hotels in Malaysia. Between Malaysian hotel guests and hotel guests from other
Asian countries. there was no significam difference in the overall satisfaction levels for the sample as a whole. However, between Malaysian hotel guests and non-
Asian hotel guests, the results showed that the overall customer satisfaction levels towards the hotel stay was significantly different for the sample as a whole.
Sim et. al. (2006):-
A survey among hotel customers in the San Francisco Bay Area was conducted. A LISREL structural equation model with confirmatory factor analysis was
developed to analyze the data. Results indicated that the latent construct customer retention was dependent on the latent construct of customer satisfaction.
Added value was found to have positive effects on customer satisfaction and customer retention
. Abbasi et. al, (2010)
The aftermaths of the study showed that improved and superior service quality and service features will augment the customer satisfaction and the future
intentions of satisfied customers will be magnified. The domino effect of the study discovered that the ervice quality and service features play a significant part
in customer satisfaction. It ates the argument that satisfied customers will be having future intentions Satisfaction in Hotel Industry of Pakistan 104 for visiting
that ed from the outcome that the service features were hair satisfaction
14. Li et. al. (2013)
This study illustrates that determinants of customer satisfaction in hospitality venues can identified through an
analysis of online reviews. Using text mining and content analysis of 42,668 online traveler reviews covering 774
star-rated hotels, the study found that transportation convenience, food and beverage management, convenience
to tourist destinations and value for money are identified as excellent factors that customers booking both luxury
and budget hotels consider important and for which the performance is much satisfactory to them. Customers paid
more attention to, but were less satisfied with, bed. reception services and room size and decoration. Most
determinants of customer satisfaction also showed a consensus over luxury versus budget hotels, except for factors
referring to lobby and sound insulation. As per its findings, the article concludes by presenting theoretical and
managerial implications.
Accourding to Xu, X.. & Li, Y. (2016).
Customers online reviews play an important role in generating electronic word of mouth these reviews serve as an
online communication tool that highly influences consumers demand for hotels. Using latent semantic analysis,
which is a text mining approach, we analyze online customer reviews of hotels. We find that the determinants that
create either customer satisfaction or dissatisfaction toward hotels are different and are specific to particular types
of hotels, including full-service hotels, limited-service hotels, suite hotels with food and beverage, and suite hotels
without food and beverage. Our study provides a clue for hoteliers to enhance customer satisfaction and alleviate
customer dissatisfaction by improving service and satisfying the customers' needs for the different types of hotels
the hoteliers own.
The hotel industry involves high degree of interaction between employees & guests and provides many
opportunities for service failures to occur. Service quality issues have cern to researchers for close to twenty years
& no: of projects focused on For example, McColl-Kennedy & White (1997), Pizam & Ellis satisfaction in hotels &
mismatch between expectations terms of measurement O' Neill (1996), used hotels in northern Ireland used it in
hotels in itality industry were developed by by Knutson et al. (1991)
15. Loyality
Loyality of a firm's customer has been recognized as the dominant factor in the organization's success. This study witps inxtending our updontanding of the relationship between customer yalty,
customer action, and mass. This is of considerable interest to both practitioners and academics in the field if picality management. One of the greatest challenges facing hotel orgetization today even
growing volume and pace of competition, Competition has a major implications for thecustomer, providing:
Increased choice.
Greiser value for money.
Augmented levels of service
There are two strategies most commonly used by hotel managers in order to gain a Strateg competitive advantage: dury are
1. Low-cost leadership through price disunting and
2. Developing customer loyalty by providing unique benefits to customers
Loyal customer is a customer who repurchases from same service provider whenver possible and who continues to recommend or maintain a positive attitude towards the service provider.
3.5.1 LOYALTY DIMENSIONS:There are two dimensions to customer loyalty: Behavioral & Atudinal The behavioral dimensions refers to the customers behavior on repeat purifities indicating a
preference for a brand or a service overtime Attitudinal dimensions on the other hand, refer to a customer intention to repurchase and recommend, which are good indicators of loyal customers.
3.5.2 RELATIONSHIP BETWEEN CUSTOMER SATISFACTION AND LOYALITY
Customer satisfaction considers to be ine of the most important tons of all marketing activities in a market-oriented firm. The obvious for satisyong the firm's mer is to expand the business, to gain a
higher market share, and to acquire a repeat winess, all of which lead to improved profitability (farsky, 1992) Stadity Tastor (1993) in service section such as honeis tand that ticant effect on purchase
intention.
3.5.3 RELATIONSHIP BETWEEN IMAGE AND LOVALTY:
An Organization's Insage is an important variable that positively or negatively influences marketing activities, Imags is considered to have the ability to influence the customers' perception of the
goods and services offered Zeithaml and titner, 1996). Thus, Image will have an impact on cassumers hoying behavior. Image is considered to influence customers minds through the combined effect of
advertising, public stations physical image, sord-of-mouth and their actual experiences with the goods and the services Norman, 1991)
17. 4.1 DEMOGRAPHIC PROFILING
Age – wise profiling Total walk in
1st Qtr 16-26yrs 27-37yrs 38-48 yrs 48 above
18. 4.2 SWOT ANALYSIS
STRENGHTS:
1.Excellent use of advertising for High Brand Recall.
2.User-Friendly/Easy-To-Use Interface.
3.Budget Hotels
4.Constant Innovation.
5.Presence almost everywhere.
WEAKNESS:
1.Fast Expansion Leading to Compromise on Quality.
2.Renovation of Run down Hotels Raises Questions of Trust and Credibility.
3.Lack of proper deductions of charges to property owners.
OPPORTUNITIES:
1.The Number of Budget Travelers in India is on a Rise.
2.More and More People are Becoming Technology-Driven.
3.Use of Social Media to Enhance Consumer Experience
THREATS:
1.Competitors like ZO Rooms and STAYZILLA.
2. "Backpacker travel/tourism" In India is still very unpredictable.
3.Fewer Repeat Customers
4.Social media escalations.
20. 5.1. RESEARCH METHAODOLOGY
RESEARCH PROCESS:
Before embarking on the details of research methodology and techniques, it seems appropriate to present a brief overview of the research process. Research process consists of series of actions or steps necessary to effectively carry out research and the desiredsequencing of these
steps.
1. Formulating the research problem
2. Extensive literature survey
3. Development of working hypothesis
4. Preparing the research design
5. Determining the research design
1. Collecting the dataBy observation through personal interview By questionnaires
2. Execution of the project
3. Analysis of data
4. Hypothesis-testing
5. Generalization and interpretation
6. Preparation of the report
Therefore to achieve the objectives of my research I have used quantitative method for research.
5.1.2 SAMPLING PLAN FOR THE PROJECT
:1. Data source : Primary Data
2. Research approach: Survey method
3. Geographical area: Dalhousie and Banikhet
. 4. Sampling unit: Hotels. Dalhousie.
5. Sample size: 100 Customers.
6. Research instrument: Questionnaire and personal interview
7. Contact method : Personal contact
21. 5.1.3 LIMITATIONS
The limitations are as follows:
1. Some customers refuse to co-operate and do not disclose their Genuine opinion.
2. Customer information is highly confidential, so organization doesn't disclose it properly.
3. Respondent's answers might have influence or bias.
4. Information is collected from the customers and dealers only.
5. Meeting to the Guests is tough job, because they are very busy and don't wants to givetime to anyone.
6. Sometimes customers are angry because of the staff behaviour.
5.2 Project Profile: Operations
Operations: Operations involves two Functions:
1. Product Knowledge: Here we are primarily concerned in obtaining the knowledge of the product i.e. OYO Rooms. OYO Rooms owns
reservations along with. gives & Sells Standards as well as Services. These Services remains same in all PAN India whether it is North, South,
East, and West.
In order to maintain those standards, there are PROPERTY AUDITS every week It makes Ensure that the property which is in collaboration
with OYO are up to the standards. For each property, OYO use different property codes starting from DLS064 to DLS063, each property was
assigned with a different property Code DLS 034 in DLS034 DLS is the area code and 034 is the property code this is very helpful in
figuringout the customer related enquiry or issues.
This is Helpful when we get data on a daily basis from Cluster Manager and with that we need to go to respective properties for Cex &
Ensuring Delight. Below is the sample how the data looked like in CRS.
23. Findings:-
1. It is found that by regular interactions with stake-holders & PMs, we are able to manage the
inventory properly because of which we decrease the number of shifting to Zero which in turn helped
us in maintaining Un-Happy%
2. During peak season overbookings are done from the back end at negative inventory because of
which unhappy % increases. To overcome such situation we requested to make a buffer for the extra
bookings.
3. During weekends bookings increased enormously so in order to maintain that we mnaged inventory
accordingly.
4. It has been seen that maintaining good relations with all internal & external stakeholders helps in
smooth conductions of Operations.
5. It has been seen that the major reasons for the customer dissatisfaction are:
a) Shifting from one hotel to another.
b) It's difficult to connect to customer care and if someone connected than call cutted down many
times without giving the resolution.
c) Main problem arises for those customers who make their bookings some other aps like gommt or
goibibo.
d) Variety and quantity in the breakfast is also the major concern for the people.
e) cleanliness is also one concern for the people.
6. It's also been seen that incentives on delight ratings motivates owners and managers totake delight
feedbacks.
7. it is seen that property owners and managers are also disappointed with the respective ABMs
because of which also they didn't treat sometimes customer in a better manner.
24. Learning outcomes:-
This internship has been an excellent and rewarding experience. I have been able to meet and
network with so many people that I am sure will be able to help me with opportunities in the
future. One main thing that I have learned through this internship is time management skills as
well Team work.In this internship I learn to work under extreme pressure conditions, handling
extremely hyper customers. It's firstly a lot of challenging but after few weeks its seems to be
familiar. It feels like I am the part of the organisation and that because of my mentor they are
like big brother and hard working. They teach me almost everything they know.Always try to
improve yourself is one thing I learn there. Hard working sometime till 3. in the morning. I able
to learn about their way of working how they work.
25. Recommendations and suggestions:-
1. Property owners and managers should be taken into consideration because
there are several property's who leave OYO because of this issue that they are not
listen by anyone. There losses are not taken into account their prices are
automatically brings down so low that they will not be able to generate their
workers salary on bookings
2. Respective managers are needed to be guided in a better way. There is a
communication gap between property owners or property managers.
3. Most of the property owners and managers don't know where they have been
penalised. What is not good for them according to the policy. They are not aware
about the charges so they must be telling a little bit about the charges.
4. Buffers should be maintained on time so that customer inconvenience should
not be happen.
5. Property prices are needed to be updated regularly y their respective ABMS.
6. Trying to prevent as many as escalations they can. Try to reduce check-in denies
by proactively doing or resolving the problem.
