CHAPTER 1 1.1)HOTEL-DEFINITION AND DESCRIPTION:-
A hotel is an establishment that provides lodging paid on a short-term basis. Facilities provided may range from a basic bed and storage for clothing, to luxury features like en-suite bathrooms. Larger hotels may provide additional guest facilities such as a swimming pool, business center, childcare, conference facilities and social function services. Hotel rooms are usually numbered (or named in some smaller hotels and B&Bs) to allow guests to identify their room. Some hotels offer meals as part of a room and board arrangement. In the United Kingdom, a hotel is required by law to serve food and an d drinks to all guests within certain stated hours. In Japan, capsule hotels h otels provide a minimized amount of room space and shared facilities.
The precursor to the modern hotel was the inn of medieval Europe. For a period of about 200 years from the mid-17th century, coaching inns served as a place for lodging for coach travelers. Inns began to cater for richer clients in the mid-18th century. One of the first hotels in a modern sense was opened in Exeter in 1768. Hotels proliferated throughout Western Europe and North America in the 19th century, and luxury hotels began to spring up in the later part of the century.
Hotel operations vary in size, function, and cost. Most hotels and major hospitality companies have set industry standards to classify hotel types. An upscale full-service hotel facility offers luxury amenities, full service accommodations, on-site full service restaurant(s), and the highest level of personalized service. Full service hotels often contain upscale full-service facilities with a large volume of full service accommodations, on-site full service restaurant(s), and a variety of on-site amenities. Boutique hotels are smaller independent non-branded hotels that often contain upscale facilities. Small to medium-sized hotel establishments offer a limited amount of on-site amenities. Economy hotels are small to medium-sized hotel establishments that offer basic accommodations with little to no services. Extended stay hotels are small to medium-sized hotels that offer longer term full service accommodations compared to a traditional hotel. 1
Timeshare and Destination clubs are a form of property ownership involving ownership of an individual unit of accommodation for seasonal usage. A motel is a small-sized low-rise lodging with direct access to individual rooms from the car park. Boutique hotels are typically hotels with a unique environment or intimate setting. A number of hotels have entered the public consciousness through popular culture, such as the Ritz Hotel in London. Some hotels are built specifically as a destination in itself, for example at casinos and ho liday resorts.
Most hotel establishments consist of a General Manager who serves as the head executive (often referred to as the "Hotel Manager"), department heads who oversee various departments within a hotel, middle managers, administrative staff, and line-level supervisors. The organizational chart and volume of job positions and hierarchy varies by hotel size, function, and is often determined by hotel ownership and managing companies.
2
Timeshare and Destination clubs are a form of property ownership involving ownership of an individual unit of accommodation for seasonal usage. A motel is a small-sized low-rise lodging with direct access to individual rooms from the car park. Boutique hotels are typically hotels with a unique environment or intimate setting. A number of hotels have entered the public consciousness through popular culture, such as the Ritz Hotel in London. Some hotels are built specifically as a destination in itself, for example at casinos and ho liday resorts.
Most hotel establishments consist of a General Manager who serves as the head executive (often referred to as the "Hotel Manager"), department heads who oversee various departments within a hotel, middle managers, administrative staff, and line-level supervisors. The organizational chart and volume of job positions and hierarchy varies by hotel size, function, and is often determined by hotel ownership and managing companies.
2
1.2) GRAPH PRESENTATION(TOURISM AND HOSPITALITY)
3
1.3)HISTORY OF HOTELS:Facilities offering hospitality to travellers have been a feature of the earliest civilizations. In Greco-Roman culture hospitals for recuperation and rest were built at thermal baths. During the Middle Ages various religious orders at monasteries and abbeys would offer accommodation for travellers on the road. The precursor to the modern hotel was the inn of medieval Europe, possibly dating back to the rule of Ancient Rome. These would provide for the needs of travelers, including food and lodging, stabling and fodder for the traveler's horse(s) and fresh horses for the mail coach. Famous London examples of inns include the George and the Tabard. A typical layout of an inn had an inner court with bedrooms on the two sides, with the kitchen and parlour at the front and the stables at the back. For a period of about 200 years from the mid-17th century, coaching inns served as a place for lodging for coach travelers (in other words, a roadhouse). Coaching inns stabled teams of horses for stagecoaches and mail coaches and replaced tired teams with fresh teams. Traditionally they were seven miles apart but this depended very much on the terrain. Tremont House in Boston, USA, a luxury hotel, the first to provide indoor plumbing Some English towns had as many as ten such inns and rivalry between them was intense, not only for the income from the stagecoach operators but for the revenue for food and drink supplied to the wealthy passengers. By the end of the century, coaching inns were being run more professionally, with a regular timetable being followed and fixed menus for food.
Inns began to cater for richer clients in the mid-18th century, and consequently grew in grandeur and the level of service provided. One of the first hotels in a modern sense was opened in Exeter in 1768, although the idea only really caught on in the early 19th century. In 1812 Mivart's Hotel opened its doors in London, later changing its name to Claridge's. Hotels proliferated throughout Western Europe and North America in the 19th century, and luxury hotels, including Tremont House and Astor House in the United States,[4] Savoy Hotel in
4
the United Kingdom and the Ritz chain of hotels in London and Paris, began to spring up in the later part of the century, catering to an extremely wealth.
1.4)GROWTH OF HOTEL INDUSTRIES:-
The below mentioned graph shows the Growth of Number of Hotel in OPERATIONS and UNDER DEVELOPMENT.
It shows the number of Hotels divided into different categories:1. FRANCHISED HOTELS 2. MANAGED HOTELS 3. LEASED HOTELS 4. OWNED HOTELS
5
1.5) HOTELS IN INDIA:Over the last decade and half the mad rush to India for business opportunities has intensified and elevated room rates and occupancy levels in India. Even budget hotels are charging USD 250 per day. The successful growth story of 'Hotel Industry in India' seconds only to China in Asia Pacific.
'Hotels in India' have supply of 110,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2010 - to 6
accommodate 350 million domestic travelers. 'Hotels in India' has a shortage of 150,000 rooms fueling hotel room rates across India. With tremendous pull of opportunity, India is a destination for hotel chains looking for growth. The World Travel and Tourism Council, India, data says, India ranks 18th in business travel and will be among the top 5 in this decade. Sources estimate, demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost 24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity, 'Hotel India' room rates are most likely to rise 25% annually and occupancy to rise by 80%, over the next two years. 'Hotel Industry in India' is eroding its competitiveness as a cost effective destination. However, the rating on the 'Indian Hotels' is bullish.
'India Hotel Industry' is adding about 60,000 quality rooms, currently in different stages of planning and development and should be ready by 2012. MNC Hotel Industry giants are flocking India and forging Joint Ventures to earn their share of pie in the race. Government has approved 300 hotel projects, nearly half of which are in the luxury range. Sources said, the manpower requirements of the hotel industry will increase from 7 million in 2002 to 15 million by 2010.
With the USD 23 billion software services sector pushing the Indian economy skywards, more and more IT professionals are flocking to Indian metro cities. 'Hotel Industry in India' is set to grow at 15% a year. This figure will skyrocket in 2010, when Delhi hosts the Commonwealth Games. Already, more than 50 international budget hotel chains are moving into India to stake their turf. Therefore, with opportunities galore the future 'Scenario of Indian Hotel Industry' looks rosy.
1.6) PROFIT CRITERIA OF HOTELS:-
7
The Following PIE CHART shows the different ways by which a HOTEL makes MONEY which is divided into following divisions:1. ROOMS 2. FOOD AND BEVERAGE 3. BANQUET AND CONFERENCES 4. OTHERS
CHAPTER 2:LATEST TECHNOLOGIES USED IN HOTEL INDUSTRIES:-
8
Almost every industry is undergoing a technology-driven transformation, and the hospitality industry is no different. There are a number of solutions that have already begun to change the way that business is done, or the way that it will be done in the near future. The common attribute that they all share is the fact that they allow businesses to have a more convenient, informed and valuable relationship with their customers. Here are seven areas in which technological advances are transforming the hospitality industry and enabling a new level of customer service:
2.1) Online booking systems Online bookings are now extremely widespread in the hotel industry, with many restaurants also beginning to accept them as their popularity increases. There will always be some people who prefer to pick up the phone, but online booking systems mean that customers can reserve a room or a table outside the venue’s business hours, or any other time when calling is not convenient. This brings a new dimension to customer service and marketing, as many industry insiders now consider it essential to have an online booking service, which also requires a well-designed, mobile-friendly website with a simple interface.
An important decision for many hotels and restaurants is whether to use a third party online booking service, or to develop their own customised system. Both approaches have their own pros and cons, so businesses will need to choose based on their individual needs.
2.2.) EPOS Electronic point of sale (EPOS) systems are becoming more and more sophisticated, allowing hospitality venues to operate more efficiently and provide better customer service. By integrating 9
with CRM, inventory management and other tools, information on capacity, reservations, stock, loyalty programs and more is accessible at the touch of a button. In addition, cloud-based POS applications are becoming more common, which means that staff can process orders, bookings and payments directly from a tablet. This affords them greater mobility and adds another level of convenience for the customer.
2.3) CRM Customer relationship management (CRM) software allows contacts and information to be organised and managed in one place. An effective CRM makes it easier to build ongoing relationships with customers, as well as making important details easily accessible to all staff via a cloud-based application.
2.4) Marketing automation Marketing automation allows personalised emails to be sent to customers and prospects based on their activities and personal information. A basic example is to automatically send a discount email to customers on their birthdays. However, advanced marketing automation software allows much more complex tasks to be performed, such as emailing customers who have been visiting or clicking on certain areas of the website or social media pages. While this may be out of reach for restaurants and smaller venues, many larger hospitality businesses could benefit greatly from monitoring and nurturing their prospects to encourage repeat business.
2.5) Social media A social media presence is crucial in the hospitality industry, particularly given that Facebook is a popular platform for check-ins and reviews of restaurants and hotels. Attractive images are usually the most popular type of post, so restaurants and hotels should take the opportunity to
10
share beautiful and interesting photos of their food and their facilities. Businesses should also choose their social media platforms carefully based on their target audience, rather than simply joining all of them.
2.6) Smartphones The proliferation of smartphones is yet another opportunity for hospitality businesses to improve customer service. Hilton Worldwide has taken advantage of this by offering guests the ability to check in and out, select their room, check maps and make extra requests or purchases all from their smartphones. And an even more revolutionary service will soon be made available, using security technology that allows smartphones to function as room keys.
2.7) Smart appliances Advances in smart appliances and home automation are beginning to reach the hotel industry, and will no doubt have a greater influence in the future. Lighting, temperature, blinds, alarms, TV, radio and room service will all be controlled from a single tablet device, or from a single app that guests can download and login to from their own device.
Despite the many changes that are being brought on by these technologies, the truth is that they are there to enhance, not to replace, the core offerings of a hospitality business. Top quality food and customer service are still the fundamental pillars of the industry, but the technologies discussed above can make it easier for you to consistently deliver a memorable experience to your guests.
11
2.8.) GRAPH PRESENTATION ON HOTEL RESERVATIONS
12
2.9)GRAPH PRESENTATION ON WEB LEADS ON HOTEL RESERVATION
13
14
15
INTRODUCTION OF OYO ROOMS:OYO Rooms is a branded network of hotels in India. OYO Rooms currently operates in more than 120 Indian cities including Delhi, Gurgaon, Jaipur, Mumbai, Bangalore, Hyderabad, Goa, Chennai, Kolkata and others. OYO is present in major metros, regional hubs, leisure destinations and pilgrimage towns.
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 unicorns. The company is backed by investors like the Softbank Group, Green oaks Capital, Sequoia Capital and Lightspeed India.
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.
16
3.1)BUSINESS MODEL:-
OYO Rooms is an online aggregator of budget hotels. OYO Rooms partners with hotels with the aim of standardization on various measures in each room including free wifi and breakfast, flatscreen TVs, spotless white bed linen of a certain thread count, branded toiletries, 6-inch shower heads, a beverage tray and so on. The standards are audited every few days so that the customers are assured a quality experience. OYO’s budget stays range from 999 ($16) to 4,000 rupees ($66). OYO provides property owners with support such as quality standardized supplies and service training. OYO boasts of a 24x7 in-house customer service center.However recently OYO has changed its policy and allow you to spend only 25% of your hard earned referral money when you book a hotel, the rest must be paid by the guest from his pocket, a complete "U-turn" from their initial model.
Availability of good quality hotels is a priority for travellers. Concerns about hygiene and cleanliness are uppermost on one’s mind. Since a certain standard can be expected only in star hotels, travellers end up spending more or, resign themselves to compromising due to budget constraints.
17
“During my student days, I travelled across the country and stayed at more than 100 budget hotels, which made me realise how difficult it was to get a pleasant and reliable ‘consumer experience’ in this segment,” Ritesh Agarwal, Founder CEO, Gurgaon-based OYO Rooms. He founded Oravel Stays in 2012, to help budget travellers find affordable bed-and-breakfast accommodation in major cities across India and was incubated at Mumbai-based Venture Nursery. However, while this only made travellers know about budget hotels, there was no guarantee about the quality of the rooms – whether it would have a clean bed and linen, or hot water in the bathroom. “This was a huge contrast from the experience that expensive hotels provide – where guests always know that the basic amenities will be of a certain standard that they can rely on,” he points out. If the same standardised experience can be offered at a pocket-friendly price, travellers will never hesitate to book and stay in a budget room. And so, in 2013, he started Oyo Rooms, a technology-enabled network of branded hotels. “If Oravel was all about simply connecting travellers to budget accommodation, Oyo Rooms is about creating a network of budget hotels with standardised rooms and amenities – so the travellers always know what they are going to get,” he explains the nuanced difference between his two ventures.
Starting Young
18
During his entrepreneurial journey, Agarwal was bestowed with the Thiel Fellowship, a two-year program started by Peter Thiel - a Silicon Valley investor and who was behind the success of companies such as Facebook, Tesla and others. The fellowship is bestowed upon 20 people each year. Each fellow receives a grant of US $100,000 and mentorship from the foundation’s network of technology entrepreneurs, investors and scientists. “One of the biggest takeaways for me as a Thiel fellow was direct mentoring by Peter, who took a lot of interest in teaching us the value of solving a big customer problem creatively,” recalls Agarwal. This lesson played a big role in helping shape OYO Rooms – which aims to solve the problem of high-quality standardised rooms at budget prices. The company raised Rs. 150 crore from New Delhi based Lightspeed Venture Partners (LSVP), Bengaluru-based Sequoia Capital, San Francisco based Greenoaks Capital and DSG Consumer Partners. This has helped the company realise its ambition of becoming the largest technology-enabled network of hotels in the world. From three people in 2013, OYO has 500 plus members today and employs people from several leading universities including Harvard, IIT, ISB and the IIMs. “We have talent from across sectors like e-commerce, technology, consulting, hospitality, travel etc. which are segregated in various department like marketing, supply, transformation, sales, HR, product, IT, reservation, operations, finance,” he adds. Light on Feet OYO rooms are priced up to 35 per cent lower than similarly-spaced rooms by other hotels. This, combined with the assurance of a comfortable and predictable stay managed by a fast-growing network of branded hotels, is its USP. “We believe there is no other competitor offering similar value proposition,” says Agarwal with confidence. OYO has a strong referral network as well as high repeat customers. “We use various marketing channels online and offline both to promote our various product offerings,” says Agarwal. OYO Rooms has developed an asset-light business model. It partners with hotel owners on a revenue-share basis. The biggest challenge initially was to get hotels onboard since hotel owners
19
typically care about occupancy, pilferage and customer experience. “Once we were able to make them understand how Brand OYO caters to these needs, they came onboard,” he explains. OYO’s effort has been to ensure access to standardised budget hotel that offer predictable and high-quality stay with standardised amenities. “We have built a very high quality, compatibility playbook wherein by entering information about the hotel, the owner’s background and other such details, we can check our compatibility with these hotels,” explains he. This process helps OYO select only those hotels that are perceived to be best for consumers in terms of location, customer experience, and infrastructure among others. Highly optimised processes allow the company to scale very fast – for example, their proprietary on-boarding process allows them to add new hotels within five to six days of signing the agreement. All OYO hotels are equipped with a tablet, running a proprietary OYO ‘Property Manager’ app that ensures a superior, hassle-free experience for all guests. Using this app, a hotel manager can track the real time status of bookings and room availability, manage check-ins and checkouts etc. The app also helps a manager conveniently track payments as well as incidental expenses like F&B and laundry attributed to a guest. “If you book a five star hotel, you always expect a predictable way of check -in, amenities in the room etc. We are bringing the same predictable experience to afforda ble price points,” points out Agarwal. OYO Rooms start at Rs. 999 and universally offer clean and comfortable bed, airconditioning, a clean and attached bathroom, TV, WiFi, and a complimentary breakfast. A major share of hotel control is left to the management, though OYO manages and controls a few critical touch-points for the consumer. The team carries out audits of properties on a regular basis, to check on the condition of rooms, status of basic amenities etc. And if there are more than three negative customer feedbacks (reliable ones) about a hotel, OYO ends the partnership. Adding Rooms OYO Rooms currently has 250 hotels in more than 13 cities today and is adding about 20-30 new hotels every month. The hotels register 80 per cent to 90 per cent occupancy levels and are currently booking 50,000 room nights every month. The long-term goal is to create the world’s largest network of branded hotels. “By the end of 2015, we are aiming to expand to 1,000 hotels 20
in 25 cities. We are also looking to expand beyond the 13 cities we are in, and open new OYO Rooms in smaller cities and towns to truly revolutionize how Indians travel on budget,” Agarwal shares his vision. The greatest growth driver is an enormous demand for branded, predictable hotel experiences in the budget hospitality category. “Our growth is simply a reflection of our vision to meet this demand, and we believe we have barely scratched the surface so far,” he adds. The company is investing heavily in technology and people, and Agarwal realised that technology can play a transformational role even in a traditional brick and mortar industry like hospitality. “We have successfully used technology to create and provide a hassle-free and seamless experience to our customers. And we are going to continue using technology to reinvent the OYO customer experience,” says he.
3.2)FOUNDER:21-year-old, Ritesh Agarwal, is the founder & CEO of OYO Rooms. Ritesh started his entrepreneurial journey when he was 17 years old. He dropped out of college and launched his first start-up Oravel Stays Pvt. Ltd. in the year 2012.Oravel was designed as a platform to enable listing and booking of budget accommodation. Being an avid traveler, he soon realized that the budget hospitality sector lacked predictability. Therefore, he pivoted Oravel to OYO Rooms in 2013 with the key proposition of offering affordable and standardized accommodation. Ritesh was selected for the Thiel Fellowship, a two-year program. A program started by Paypal founder, Peter Thiel, in 2013. Through the fellowship Ritesh received a support grant of $100,000 to pursue his start-up idea. Ritesh's story has been widely covered by the Indian media. He has won Business World Young Entrepreneur Award[9] and the TiE-Lumis Entrepreneurial Excellence Award.
Just 21-years-old, Ritesh Agarwal says his life is nothing short of a film script, and it is h ard to disagree. 21
Ritesh is making headlines after his start-up, a technolog y driven network of hotel rooms got funding of USD 100 million (Rs. 636 crores) by SoftBank Japan.
But it's not just the money that's making news. What's also caught peoples' eye apart from his age, is his story.
A college dropout, who once wanted to sit for an engineering exam, Ritesh today heads among the most valuable start-up by a person who never studied beyond school.
He even sold sim cards to survive, afraid his well off family would end his entrepreneurial dreams and summon him back home to Odisha if they knew of his struggles.
In Kota, where he was ostensibly preparing for his IIT entrance exams, Ritesh says he couldn't wait every weekend to slip out to Delhi and meet those doing their own thing.
When we meet him, it's hard to not spot the quirks, he's barefoot because he says shoes are restricting, or the famous backpack which he carried around with all his possessions for years, not knowing where he would spend his night - stairwells being regular beds.
But the man making waves has also had his share of controversy, questions about his style of functioning, ouster of a cofounder and even non-payment of salaries. Ritesh, however, refuses to get into this, saying he doesn't want to fan the flames.
With industry body Assocham now saying innovators and entrepreneurs will form the next billionaires club in India by 2020, its people like this who will perhaps script the next chapter of India's entrepreneurial journey.
22
3.3)OYO ROOM AS A LARGEST BUDGET HOTEL:-
Continuing with its rapid expansion drive, OYO Rooms today crossed an important milestone as it became India’s largest budget hotel chain, with a network covering 4,500 rooms in 400 hotels across India. OYO Rooms is already India’s largest branded network of hotels, having grown its network to 400 hotels in 16 cities today, from one hotel in Gurgaon less than two years ago. Funded by Lightspeed, Sequoia, Greenoaks Capital and DSG Consumer Partners, OYO Rooms also said that the company has set itself a revised target to expand its network to 2,000 hotels in 45 cities by this year-end. Ritesh Agarwal, Founder and CEO of OYO Rooms said, “India’s budget hospitality market is ripe for disruption and as the market leader, we are best poised to lead this change. Our customers’ feedback and loyalty encourages us to redouble our growth efforts as we are keen to bring the OYO experience to as many Indian travelers in as many different cities as possible, and at the earliest.”
23
OYO Rooms had recently launched its mobile app that promised a hotel room booking in less than 10 seconds. The OYO Rooms mobile app is also the world’s first personal room service app that allows guests staying at an OYO to order room service directly from their smartphones. The app has already crossed more than 100,000 downloads within a month of its launch. Available on Android and iOS platforms, more than 15,000 bookings have been made through the OYO Rooms mobile app within a week. Abhinav Sinha, COO of OYO Rooms said, “OYO Rooms started this segment and is ahead of other players who have recently entered this space. We are the pioneers in bringing the comfort and experience of an expensive hotel at a really affordable price and use technology to enhance customer experience. That is why most of our branded hotels witness more than 80% occupancy and our customers love us. It is their trust in us that has given us the confidence to continue to grow at such a rapid pace.”
3.4)FREQUENTLY ASKED QUESTIONS ABOUT OYO ROOMS:Q.)What is OYO Rooms? A.)OYO Rooms is India's largest branded network of hotels offering standardized rooms in different locations across the country.
Q.)How is OYO Rooms different from an online travel agent or an online marketplace of hotel rooms?
24
A.)When you book OYO Rooms, you get a guaranteed amazing OYO experience across all hotels under the OYO Rooms network unlike an online marketplace where the end-user experience is not standardized. In short, when you book OYO Rooms, you get to stay in OYO Rooms and not any random XYZ hotel.
Q.)How big is the OYO Rooms network? A.)The network of branded hotels currently includes over 2500+ hotels spread across 126 cities with more cities and hotels planned to come up very soon.
Q.)What are the key features of 'standardized' OYO Rooms? A.)The key features include AC rooms with TV, spotless linen, complimentary breakfast, free Wi-Fi and hygienic washrooms. We also provide a toiletries kit in each room.
Q.)How much does an OYO cost? Are there any hidden charges to be paid? A.)Rooms start at Rs 999 only with no hidden charges.
Q.)How can one book an OYO? A.)OYO Rooms can be booked in various ways including through the OYO Rooms app, through the www.oyorooms.com website and on phone by calling 9313931393. In addition, one can book OYO Rooms through any of our partner online travel agents.
Q.)Does any payment need to be made at the time of booking? A.)Customers have the option to either make an advance payment or pay at the hotel during check-out. 25
Q.)How do I locate the OYO Rooms hotel I have booked? A.)There are many ways to locate your OYO – On the app, please tap on "Get Directions" on the "Upcoming Booking" card. After a booking is created, you will receive an e-mail with the address of the property. After a booking is created you will receive a confirmation SMS that has a map link of the OYO booked as well the address of the OYO property. You will also receive an SMS with directions to reach the hotel booked on the day of the checkin.
Q.)What are the standard check-in and check-out times? A.)The standard check-in time is 12 PM and the standard check-out time is 11 AM.
Q.)Can I get my booking revised? A.)Of course! Simply call us at 9313931393 and our customer care representative will assist you with the revised booking.
Q.)Can I get my booking cancelled? A.)OYO Rooms has a simple cancellation process. Call us on 9313931393 to cancel your booking.Bookings made through our app can be cancelled on the app itself. The applicable refund amount will becredited to you within 3 working days.
Q.)What documents do I need to carry to the hotel to ensure a quick check-in? 26
A.)You need to carry the confirmation e-mail/ booking ID sent to you at the time of booking and any of your ID proofs that should have your address and photograph. These include your passport, Aadhaar card, driving license and voter's ID card. Please note that PAN card does not qualify as an acceptable ID proof.
Q.)I intend to stay at OYO Rooms for a long period. Am I eligible for any special discounts? A.)You could be eligible for a special discount based on the duration of your stay. Please send an e-mail to
[email protected] or call 93 13 93 13 93 for details.
Q.)I am looking for corporate bookings with OYO Rooms. How should I go about it? A.)For corporate bookings, please send an e-mail to
[email protected] or call 7503 222 333.
Q.)I am a hotel owner. How can I partner with OYO Rooms? A.)To join our ever-expanding network of hotels, simply call us at 70530-70530 and we will get back to you with all the details.
27
Business Model of OYO Rooms OYO Rooms is an aggregator that provides a market place for online hotel booking similar to Uber, which provides a marketplace for online cab booking. Started in the year 2013, OYO is turning into India’s largest chain of hotels. It has a very simple business model where it adopts hotels, get them to follow certain basic standards of services, features, staff, pricing and security and then list them on its web portal and sells them under its brand, earning a part of the profit from the deal. Currently the company is following invest and expand mode. Till now it has received funding from the big firms like Sequoia and is estimated to be worth $400 million after its latest round of funding in August this year, where it received $100 million. OYO’s asset free business model has now challenged the capital heavy hotel industry. The company does not own any of the properties listed on its site. It only invests in marketing and quality improvements for the hotels under its banner. The model provides a win-win situation for both the small budget hotels and owners of spare properties, who do not have enough capacity, network and knowledge of smart marketing. OYO has helped them increase their bookings by more than 100% thereby improving their yields. Unique Selling Proposition Finding hotels in India is not a big problem, the major issue is the trust factor and predictability of services. OYO founder, Ritesh Aggarwal, capitalized on this basic need by providing standardized hotel rooms across the country. The complete model of hotel industry is based on consumer experience, and with the beautiful amalgamation of technology and quality control mechanisms has improved customer experience even at economical rates. The complete model is designed keeping in view the consumer experience, right from booking to finding hotel to standardized services to high technology room service option. To further enhance the customer experience, company has tied with Airtel to provide its customers a world class in-room internet and TV viewing experience at no additional cost. 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 rooms will cater those
28
business travelers or families who are looking for premium services and are ready to shell out few extra bucks for higher comfort. OYO WE – OYO WE a Women exclusive brand, started by OYO Rooms to cater for women travelers with all women staff and special amenities for women.Some o f the features particular to this category include automatic door locks, hair dryer, full length mirror in rooms, doctor and beauty services on call, apart from library with magazines for women and cab services outside the property.
Customer Segment The soul of any business lies in the customers it serves. No business model can survive without taking into consideration the customer segment it wants to cater its product or services. And then create the rest of the model based on needs and demands of your customer. Since OYO works as a platform that serves two interdependent customer segments, the visitors and the hosts: 1. Hosts In this section the company targets anyone who has a spare room or property that can be rented giving the owner extra income. The owner has to spend some initial amount on the room to make it as per the standard set by OYO. Currently it has tie-ups in 158 cities in the country and has around 5000 hotels.
2. Visitors The hotel industry in the country has been traditionally dependent on tourists both travelling across the country and the tourists from abroad who come to see the diverse culture, climate and historical places. Another growing segment of the customers are business travelers. This segment prefers comfort and normally have a long stay which may even extend to months in many cases depending on the project requirements.
29
Even for budget hotels of the category of OYO, these two customer segments stand valid as the trend of staying in luxury hotels has recently shifted to budget hotels where along with low costs, people feel more connected to the place. It also proves to be economical for business travelers who have to stay for prolonged durations and are looking for a more authentic staying experience than the one they get in a hotel.
Another consumer segment that has emerged lately is the students, families and entrepreneurs who are looking for short duration stays. Some of the entrepreneurs have been permanently staying in such rooms that cost around 1K, and proves to be cheaper than 3 BHK flat, where they also have to pay for brokerage, electricity and basic amenities. Also this gives them an option of shifting from one location to another on need basis and they do not have to bother about hunting for new places to stay. For students who come on weekends to metros to take coaching, this is a good option as they can rent rooms on sharing basis, thereby reducing there need to rent a place in metros. Oyo Rooms claims that its target audience is divided between customers and consumers. Its customer ages between 21 year to 35 year while its consumer is between the age of 16 year and 65 year. Value Proposition Value proposition basically defines the value being served to the customer segment that you have chosen. It defines the particular need of the customer that your product or service is satisfying. This can also be seen as the differentiating factor that makes your customer come to you rather than other competitors in the market. Different kind of value propositions can be newness, performance, customization, design and price.
1. Standardization The major problem faced by the consumers is the lack of predictability in the Indian hospitability industry. More than 50% of the bookings by travelers are now being done online, and the numbers are further increasing. In most of the cases, people feeldissatisfied with the services that are offered when they reach the hotels as compared to the services shown online. To tackle this
30
problem, the company has introduced an intensive standardization process. As a part of this process they send their sales representatives to partner hotels to collect data and take pictures based on which all the hotels are filtered. Only those hotels that meet the standards are included in the portfolio. The company has also came up with an application to make sure that the process of standardization remains same in all the hotels across 150+ cities. All the sales representatives that go for site visits follow the app on their tables. The app has defined parameters based on which any hotel will be evaluated. The representative checks down the complete checklist to make sure nothing is left as a part of the standardization process. Also the application takes into consideration the customer reviews which plays crucial role while ev aluating any hotel. Making use of the application and technology, the company has been able to come up with strict quality checks across all the locations where they exist.
2. Technology Success lies in taking the best use of available technology in a way that maximizes efficiency of your business thereby leading to higher customer acquisition and thereby profits. A lot of innovation these days is happening around making the consumer experience better with the help of latest technology.
31
1. Mobile Application for Hotel Booking The key factor where technology plays a major role is in making the transaction cycle smaller.In the hospitality industry where you are always in a touch -point with customer, the company focused on creating a highly efficient, easy to use mobile application for the customers. The company managed to develop an application where a customer can book the hotel within 2 steps. In first step, you search your query, based on which the application comes up with a number of suggestion in the locality. The second step will be just to click the book button to confirm your booking. This is an attempt of the company to provide a simple and seamless way to access and manage your booking. A major contributor to the two-step process developed is the standardization process which has made the used comfortable in booking without worrying about reviews of the place.
32
2. Tablets in Rooms This is another step taken by OYO Rooms, where the company has come up with a tablet application for hotel owners that allows them to keep a track of room status and room service requests. The tablets have been installed at all the hotel locations by the company. This helps both the hotel owners and the company. The app provides the owners logistics of their inventory whereas also provide better visibility and data about the hotel to the company. The company has now also come up with an idea to put up a tablet in each room in some of the hotel rooms. Customers can order room service directly via the tablet. The application designed for the tablet also includes other information like hotel directory along with the list of restaurants and other places to visit around the hotel. 3. Low cost Another major value proposition provided by OYO is the prices at which rooms are available. The prices are normally 35% below other hotels of similar standards. Also this is the first time in India that services like tablet and online booking are being provided in budget hotels. 4. Ties up with Airtel To further increase its value proposition, OYO rooms has recently mad e a strategic agreement with Bharti Airtel. As a part of this agreement Airtel will provide seamless internet connectivity and Direct-To-Home (DTH) services across more than 3,000 OYO Rooms pan India – enabling OYO Rooms’ customers to enjoy a world class in-room internet and TV viewing experience at no additional cost. Channels This section caters to the channels through with the chosen customer segment want to be reached. Either you reach them directly or indirectly, physically or digitally. OYO connects with its customers via a number of channels: 1. Mobile Application OYO Rooms launched the Mobile Application platform that allowed the customers to do last minute hotel bookings. With the help of the application, booking has been made extremely 33
simple. A room can be booked within a minutejust by following two simple steps of searching and clicking on book. Application also provides the option to order room service. 2. Web Portal A customer can book a room online through web portal as well where all the partners of OYO have been listed. A booking can be made free of cost and payment can be made at the hotel. The portal also provides information about the city you are planning to visit along with the details of places to eat and shop nearby. 3. Telephone In case a person is not able to connect to internet, there is also a provision to make the booking via the channel of Telephone. A customer can make a booking by calling 9313931393. Cancellations can also be done with this channel. 4. TV Commercials and Social Media OYO has also made its presence felt to customers via mass commercial and social media. OYO Rooms has 3 lakh fans on Facebook and 9000 followers on Twitter. The social media campaign of “JaiHind” that featured ManojBajpai and RaveenaTandon was the most successful campaign of OYO Rooms. The startup has also launched three commercial on Television with #AurKyaChahiye campaign. As per the company the reason for taking the mass media route is that although the brand has been a product of digital domain, but its consumer base includes even those who are not present on digital media. By providing there commercials on television the company is attempting to connect with those masses that live in small towns and are not tech savvy.
34
CHAPTER 4 :CASE STUDY:-
Startup Wars: Oyo Rooms vs Zostel case gets murkier in Courts
The Delhi High Court has issued a stay order against backpacker hostel startup Zostel Hospitality Private Limited on a complaint rival Oravel Stays Private Limited, which alleged theft of its copyright material.
Zostel recently launched Zo Rooms, which rival hotel room aggregation start-up Oyo Rooms alleges is based upon copied data. According to sources, Oyo Rooms produced evidences such as emails, CCTV footage and theft of its 'software' by few of its own employees who apparently left to join Zostel. The employees have been made a party in the case.
The High Court in its stay order dated April 21, 2015 barred Zostel which recently started budget hotel aggregation business 'Zo Rooms' from using 'confidential information and software' of Oyo Rooms.
"No illegality has been committed by us. We are in possession of the material that would demonstrate how a false and fabricated story has been created by OYO only out of business rivalry, just to kill any competition," said Paavan Nanda, cofounder at Zostel. Funded with Rs 5 crore from Malaysia-based angel investor Presha Paragash, Zostel was founded in 2013, six IIM Calcutta graduates. Funded with Rs 125 crore from San Francisco based Greenoaks Capital, Oravel Stays Private was founded in 2012 by college dropout Ritesh Agrawal. "Access to confidential information such as documents for operations and central reservation systems software by external parties especially Defendant (Zostel) can impact revenue of plaintiff (Oravel)," Justice Indermeet Kaur said in her order dated April 21, 2015. The High Court has set September 2, 2015 as the next hearing date of the case. 35
Besides Zo Rooms, since last 18 months, a number of branded budget hotel aggregation chains such as Zipotel and Awesome Stays have come up in the country. "We had tried to resolve the issue with Zostel amicably but failed to do so leaving us with no choice but to take matter to court," an Oyo Rooms official told ET on condition of anonymity.
However, media agency for Oyo Rooms sent out a statement saying that: "Hospitality start up Zostel has received a stay order to stop using confidential information."
"This is a reminder to the budding entrepreneurs that building a business around sound ethics is as important as great marketing," the statement said.
36
OYO Rooms goes International, launches in Malaysia.
Branded budget-hotel marketplace OYO Rooms has marked its entry in the Southeast Asian market with the launch in Malaysia.
Speaking on the development, Ritesh Agarwal, founder & CEO at OYO Rooms said, “Malaysia is our first port-of-call given the attractive characteristics of the market such as higher-thanaverage mobile penetration and a large internet population. Unbranded hotel room supply accounts for a majority share of hotel supply worldwide. OYO’s model is suitable for markets with large share of unbranded budget supply such as South-east Asia, Africa and South America.”
Online hotel aggregator OYO has entered Nepal in its second foray overseas with the launch of a hotel in Kathmandu. The company had earlier ventured in to Malaysia in January 2016.
OYO expands international presence with hotel launch in Nepal Commenting on the development, OYO Founder and CEO Ritesh Agarwal said: "After our successful overseas foray in Malaysia, we are now thrilled to o ffer OYO's hassle-free and standardised stay experience to travellers visiting Nepal."
The company has been at the forefront of the small and budget hotels revolution in India, he added.
"We are excited with the opportunity to co-create another successful travel-and-hospitality ecosystem in Nepal," Agarwal said.
Founded in 2013, OYO currently has 7,000 hotels and 70,000 rooms in more than 200 Indian cities.
CHAPTER 5 :37
OYO ROOMS QUESTIONNAIRE
Name: _____________________________________
E-mail Address: _____________________________
Date of Birth: ________________________
Dear Guest,
We are delighted that you choose The Brooks Hotel as your preferred hotel for your travel needs in the Bakken area. We strive to make each and every one of our valued guests have an unforgettable experience. Please complete our guest satisfaction survey to help us better serve you!
1.)Overall, how would you rate our staff's hospitality? (Friendliness, courtesy, responsiveness.)
Excellent Good Average Below Average Poor
38
2.)Overall, how would you rate our décor, condition of rooms and public areas?
Excellent Good Average Below Average Poor
3.)Overall, how would you rate our cleanliness (Room, common areas, lobby?)
Excellent Good Average Below Average Poor
4.)Overall, how would you rate our room service, food quality and bar service?
Excellent Good Average Below Average Poor
5.)Overall, how would you rate the value for the price paid? 39
Excellent Good Average Below Average Poor
CHAPTER 6:CONCLUSION :Based on the information stated in the INTRODUCTION OF OYO ROOMS is in need of a reservation system upgrade and have come up with the appropriate solution. The proponents have devised a system that will streamline the procedure of processing reservations with an online reservation system with the following modules:
1.) Increasing the security and confidentiality of each files and report by providing a security module, a log-in form that will have;
(2) levels of access. The first will be the administrator of the s ystem and the customer for the second level of access. Each will have a unique username and password thus making the system more secured not only for the company but also to other users of the system. In addition only those who are registered members of the system will have the privileged of reserving and booking of rooms and events, thus restricting unregistered members from reserving/booking a room or event, making their system more organized and efficient.
40
3.) The system will provide a monitoring module that will display an overview of the system which is accessible only to the admin. With this the admin can easily view which dates are available or unavailable for any event reservation, this will also indicate which room/function halls are available for reservation; furthermore the system will also provide an organized view of confirmed reservation, pending reservations, not completed reservation and user’s overview and since it is computerized and done in real time, every reservation done will automatically be counted and will display the remaining available dates and room/function halls.
Recommendation:-
In this generation there is an increasing demand for a faster and more high tech way of processing or doing any kind of transactions. Most of the Hotels provide goods and services using web-based system. It helps to perform task in an easy way with less time consumed. Some companies are become fully automated while others strive for the manual procedure on making reservations. Femar hotel and garden resorts manual reservation and booking system old, outdated, worn down, and cannot be expected to be applied to the increasing demand for a higher and much better services. The proponents recommend to the next developer or future researcher to 1.Include the company’s other additional services as part of the booking/reservation system. 2.
Upgrade the system to online inquiry, so that the client can easily get a feedback or answer once they send an inquiry or message.
3.
Upgrade the system by including online payment through PayPal, thus giving their client the ease of easily and immediately paying their reservation fee without leaving their own home. 41
4.
Include an audit trail, to track the time of log-in and log-out of the user.
5.
Enable editing of content for other modules.
BIBLIOGRAPHY :-
http://www.searchandgo.com/travel/hotels-history.php
Google.com
http://tech.economictimes.indiatimes.com/news/startups/startup-wars-oyo-roomsvs-zostel-case-gets-murkier-in-courts/47063307
http://www.thesmartceo.in/starting-up/a-business-model-for-budget-hotels.html
Visit to a nearby hotel which carries OYO ROOMS facility (EXECUTIVE ENCLAVE , Pali Hill , Bandra )
42
Our vision is to become the most preferred and trusted hotel brand for both customers as well as partner owners and is backed by the world’s leading investors including the SoftBank Group, Greenoaks Capital, Sequoia Capital and Lightspeed India. OYO Rooms has received several accolades including Business World Young Entrepreneur Award, TiE Lumis Business Excellence Awards, India International Travel Mart Award, Startup of the Year- Express IT Award and Lufthansa ET Now Runway to Success Award. Mission:
FAMILY FUNCTIONS AT OYO
Family Functions are fun, except for those who have to arrange everything perfectly. Making sure that all the guests are comfortable and enjoy the get-together can be a bigger challenge than the occasion itself! That’s why we came up with a collection of some of our best hotels customised to suit your needs. As part of our branded network of budget, premium and elite hotels, our hotels offer great rooms that will delight your guests in every way, without burning a hole in your pocket. With hotels in over 170 cities including Delhi, Gurgaon, Bangalore, Mumbai, Pune, Hyderabad, Chennai, Chandigarh, Kolkata, Goa, Ahmedabad and more, your search for the best hotels for your gathering ends here.
43
