Oyo is an Indian hotel chain known for affordable accommodations standardized across properties. It has strengths in low prices, consistent quality, and an optimized website/app. However, it faces weaknesses such as high competition reducing profits, some customer complaints about poor service, and tight margins to secure business from hotels. Opportunities for Oyo include growing demand for affordable stays as incomes rise and hotels preferring aggregators to find customers. But it faces threats such as saturation in some urban areas and risk of declining customer service driving customers to competitors.

1. -PRESENTED BY
BISWADEEP GHOSH HAZRA
UM19148

2. SWOT ANALYSIS OF OYO
Strengths-
1. Budget friendly- The first and foremost strength of OYO lies in its affordability.
2. Delivering what is promised- OYO popularized the concept of standardization thereby earning the trust of its
customers.
3. Website and app- With an extremely optimized website, OYO ensures its customers can find the best hotel as
per their requirements. Their app on Google Play has 10 Million plus downloads.
Weaknesses-
1. 1. Industry competitiveness- OYO operates in a highly competitive market thereby reducing its profit margins.
MakeMyTrip, Treebo, Yatro, Goibibo are some of its competitors.
2. 2. Poor service- There has been several complaints about the degrading service of OYO for the past couple of
years.
3. Margins- Hotels can also look for tie-ups other than OYO. This means OYO has to tighten its margins to secure a
clear cut victory.

3. Contd...
Opportunities-
1. Demand for affordable stay- As the purchasing power of people increases, so will the demand for affordable
hotels and living spaces.
2. Aggregator demand- Hotels find it easy to tie up with aggregators as they don’t have to worry about securing
customers and advertising.
3. Budget accommodation- Luxury and boutique accommodations are not the trend anymore. Budget
accommodation is on the rise as people mostly want a decent stay at not so exorbitant prices.
Threats-
1. Saturation- In urban areas, OYO is visibly saturated. Tying up with more hotels do not guarantee an inflow of
customers, especially in urban areas with little to no tourist attraction.
2. Competitors and Services- The declining services pose a grave threat for OYO as there are many other options
for a customer to look forward to other than OYO.

4. PESTELANALYSIS OF OYO
Political-
OYO Rooms have to take into account the political stability in the market before going on with any kind of
investment. In addition, other non governmental organizations and pressure groups play an important role in
creating and formulating new policies to which OYO might have to abide to.
Economic-
The performance of OYO is closely related to the economic performance of the country. The availability of
good hotels to tie up to is another issue that OYO must constantly look and address. With increase in
purchasing power of the average customer, OYO will be able to get a steady stream of customers that
generate revenue for the company.
Social-
OYO must take into account the social factors that affect it; for example people sharing and reviewing OYO
rooms positively on Social Media boosts its credibility higher. Incorporating a review platform where people
can review the hotels and share their experiences can also go a long way.

5. PESTELANALYSIS OF OYO
Technological-
Mobile and internet have been developing at a rapid pace and OYO has to leverage the same if it wants to be
ahead in the game. Building optimized websites with less inventory is crucial as a faster website has more
conversions that one that lags.
Environmental-
Consumers are getting knowledgeable by the day and they prefer products and services which show that
they care for the environment. OYO can harness this sentiment and collaborate with recycling and
renewable energy companies to attract further customers and retain existing ones.
Legal-
There many legal aspects of running a business like OYO; there are employee and employer laws, business
laws, data protection laws, laws regarding protection of intellectual properties and various codes of conduct
that OYO needs to adhere to while running its day to day operations.

6. NEW MARKETING CAMPAIGNS
Some new marketing campaigns that OYO can focus on are-
• Catering to single travellers and hikers who have a passion for touring and interacting with the local area.
• Single mothers who have to travel to other states for work can take their children with them into a specialized
OYO hotel that has child care facilities in it.
• Students or individuals travelling to various other states looking for a job or admission into a college or
university.
• Budget hotels for those who just started earning and are looking to experience a level of luxury and service
which is not associated with hotels in that range.
• Themed hotels can draw in significant crowd if properly advertised and marketed.

7. PLANS FOR EXPANSION
Tier Three Cities-
1. OYO can tie up with travel companies to get a detailed knowledge about possible tourist locations in the tier
three cities. That way, it can get a detailed know how of which hotels to tie up to in those cities.
2. OYO can tie up with suitable homes to provide hospitality services that can boast of a homely feeling coupled
with delicious home made food.
3. Keeping in mind the purchasing power of the people in the tier three cities, OYO can customize a mid tier range of
hotels costing less than its urban counterparts.
Elderly travellers-
1. Elderly travellers need extra care and assistance, OYO can create a chain of hotels/rooms which will be equipped
with additional facilities and services to attend only the elderly.
2. Here too, OYO can tie up with tours and travel companies to provide a complete package of touring, resting and
eating for the elderly. Special packages can be designed for sons/daughters sending their parents on a tour with
OYO.

8. SOCIAL MEDIA MARKETING SUCCESS OF OYO
OYO has a strong social media following with-
oAlmost 779K likes on Facebook
o44.5K Twitter Followers
o81.1K Instagram Followers
OYO regularly updates its social media handles with relevant posts and information that the common tourist finds
useful. This increases engagement with relevant customers.
OYO also hosts several competitions with gifts ranging from the latest gadgets to cash rewards, this keeps its target
audience hooked and also helps OYO get a marketing boost.
OYO also leverages Social Media as a place to get its complaints resolved. People who comment on OYO’s posts with
their complaints and grievances gets contacted by a customer service agent for a quick fix on the issue.

9. OYO vs Foreign Competitors
oOYO is a through and through Indian company, it can put this sentiment into its marketing campaigns in the future
while battling the foreign competitors.
oOYO has been lagging in providing quality service to its customers; it should take action in that regards. OYO should
not tie up with hotels that behave rudely to their customers and cancel their guests’ reservations without any proper
reason.
oOYO’s international expansions would also act as a testament to its quality and commitment thereby attracting many
customers both national and international.
oOYO should give special discounts and offers to its customers on religious occasions, this way it can appeal to its
customer’s sentiments thereby giving them a significant advantage against their foreign counterparts. OYO’s
competitors giving similar or better discounts would be less effective than a homegrown company’s offers.

10. THANK YOU!