Difference between working business model of OYO ROOMS and AirBnB

1. Difference between working
business model of OYO ROOMS
and AirBnB
By-Tushar Kumar
BTECH/10218/20

2. Overview
Founded
Founder
Valuation
No. of accomodation
2013
Ritesh Agarwal
$8 Billion (as of August 2020)
23,000 Hotels
46,000 Vacation Homes
2008
Brian Chesky, Nathan Blecharczyk
and Joe Gebbia
$18 Billion (as of April 2020)
2.9 millions Hosts

3. Value Proposition
Host
Guest
Host
Guest
• Hassle free hotel booking
• Affordable prices for shorter
stay in hotels
• Standardized customer
experience
● Enables travelers to rent private
homes all over the world
● Affordable price for longer stay
● AirBnB is great for getting a taste of
the local scene
● Channel management
● Revenue management
● Dedicated oyo partner to help improve guest
experience
● Host protection program to support during
incidents of property damage
● High guest standards

4. Customer Segments
Oyo has served over 180 million customers in
2019. The customer segments of Oyo include:
• Adventure Travelers
• Leisure Travelers
• Family Travelers
• Business Travelers
The customer segments at AirBnB are wide and
categorized in the following:
• Hosts
• Guests
And they are further categorized based on
preferences such as:
• By Type
• By Location
• By Price
• By Space
• By Amenities
• By Experience

5. Operations
● Partnering with hotels
● Asking them to operate as a
franchise
● Sell their rooms to customers
at competitive prices
OYO uses the Franchise Business
Model
AirBnB uses the Platform Business
Model
● host list their property that
the want to rent out
● Host sets the available dates
and rent price
● Guest discover and book
according to there requirement

6. Funding
Total Funding Amount
$3.4B
Total Funding Amount
$6B
Incubator
Venture Capitalist
Debt
Private Equity
-------------
$2.75B*
$206.7M*
-------------
$20K*
$1.55B*
$2B*
$1B* * Publically Avaliable Data

7. Revenue Stream
● Commission from hosts- Every Time someone chooses
a host’s property and makes payment, Airbnb takes
10% of the payment amount as commission. This is
one of the components of Airbnb fee structure.
● Transaction fee from travelers: When travelers
make payment for stay they are charged a 3% fee
for transaction. This amount adds to the Airbnb
revenue.
● Commissions- 22% of commissions every month from
hotels owner
● Room Reservation Fee- 10-20% commission from room
price, and that is their actual revenue
● Membership fees-Users who subscribe to Oyo Wizard
memberships are charged with premium fees ranging from
Rs 500 to Rs 3000.
● Consulting Services-Oyo charges for its business
consulting and data analysis services

8. Expenditure Stream
● Platform
● Partnership
● Customer Experience
● Sales & Marketing
● Recruitment
● Business Growth
● Communication
• Platform development and maintenance
cost
• Infrastructure Cost Sales and
marketing cost
• Customer Acquisition Cost
• Employee salaries
• Cost of capital
• Development and maintenance
• Credit card processing fees
• Insurance cost
• Legal and administrative cost
• Regulatory cost

9. Channels
The channels of Oyo are:
• Website and mobile application
• Blogs
• Social media networks like Twitter, Facebook,
and Instagram
• Neighborhood hotels
• Student organizations
The channels of AirBnB are:
• Airbnb platform (website and app) is the primary
channel through which Airbnb delivers its services to its
members.
• Platforms like content marketing, media coverage, digital
ad campaigns all help to drive the force of interested
hosts and travelers alike to Airbnb platform.

10. Bibliography
https://www.oyorooms.com/officialoyoblog/2019/07/12/we-are-now-the-worlds-third-largest-hotel-chain
https://www.stratosjets.com/blog/airbnb-statistics/
https://www.flaticon.com/free-icon/guest_185538
https://bmtoolbox.net/stories/airbnb/#:~:text=Value%20Proposition%20%26%20Customer%3A,access%20to%20renting%
20private%20homes.
http://expertworldtravel.com/hotel-hostel-airbnb-best-option/
https://partner.oyorooms.com/in?utm_source=Google_High&utm_medium=Brand_High&utm_campaign=Supply_2021&gclid
=Cj0KCQjw4ImEBhDFARIsAGOTMj8ahFZFwBt60ng0vlRLYF0fVkPCj70DejJfTHYYK4ycReLqBlgkuwUaAjlMEALw_wcB
https://www.airbnb.co.in/host/homes
https://youtu.be/2Nb5o2G0-iI
https://research-methodology.net/airbnb-business-strategy-a-brief-
overview/#:~:text=Focus%20on%20community%20and%20trust,updates%20from%20the%20Airbnb%20team
https://www.investopedia.com/articles/investing/112414/how-airbnb-makes-money.asp
https://www.crunchbase.com/
https://www.wikipedia.org/
https://bstrategyhub.com/

11. Thank You….. :)