India's largest hotel network OYO has briskly expanded presence in Chennai since its launch in March 2015. The Chennai Hub currently enjoys a strong network of nearly 9000 rooms in 550 hotels providing standardized and affordable accommodation to travelers.
These hotels are located across major business and tourist-friendly locations in the city, including Egmore, T. Nagar, Pallavaram, Thiruvanmiyur and Anna Nagar. Chennai hotels such as Bell Hotel, Maaris Grand and Sai Bala Grand have witnessed a growth of over 75 percent in their average occupancy rate after partnering with OYO.
"We are very happy with the response to our offerings in Chennai. OYO's strong performance here is driven by our focus on delivering convenient access and superior guest experience. The hotel market here has the potential to expand further. We are exploring partnerships with hotels that are willing to be transformed to OYO standards and come onto our platform," said founder and CEO OYO, Ritesh Agarwal.
OYO aims to enable delightful stay-experience for the customers by empowering hotel owners giving them access to technology and facilitating better customer service thereby increasing their overall profitability.
"Instant gratification is the new norm for millennials. Last year, 61 percent of all the bookings made on OYO platform were made on the day of check-in. While travelers desire absolute flexibility when making plans, their expectations of service, facilities and experience are pre-determined and non-negotiable. As per guest feedback, Wi-Fi, Breakfast and Hygienic rooms clearly stand out as their three biggest concerns. So there is greater onus on us and our hotel partners to ensure consistent, high-quality service delivery," said Ritesh.
OYO is the global pioneer of a new business model that was developed in India, where-in the company partnered with hotels to standardize and transform their rooms to deliver a better experience to guests. It pioneered the use of technology in budget-hotel operations.
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In a little over three years since launch, OYO has become India's largest hotel network, spread across 7000 hotels in 200 cities. With its promise of standardized and predictable stays, it caters to the impulse-planning behavior displayed by millennial traveler.
Ritesh further highlighted that OYO has been at the forefront of modernizing the small and budget hotels category in Tamil Nadu. "Since our launch in 2015, our network in Chennai has witnessed a robust growth and we are targeting to add 500 more hotels to it.
"Our aim is to create a perfect balance between location, comfort and pricing by using technology and talent to deliver affordable hotel accommodation. We are also engaging with various stakeholders to create partnerships that help us make new experiences accessible to tourists," added Ritesh.
Chennai makes up for nearly seven percent of the total room-inventory in OYO's nation-wide network. It performs 10 percent better on average room-occupancy compared to the national average, and at Rs. 1600 its average room revenue (ARR) is also seven percent higher than the national average.
In 2016, Chennai along with Goa was the highest-growing city for same-day and overall hotel bookings for OYO. Both these cities were also the top-contributors to hotel-booking via app. Basis room-tariff in 2016, Vadapalani emerged as the most expensive location in Chennai (Rs. 3000 per night) while Egmore was the most affordable (Rs. 770 per night).
On the partner side, OYO utilizes technology and operational expertise to provide tech solutions that enable better revenues and profits, and uses customer feedback to ensure delightful service and experience. The company has generated new employment opportunities and nurtured micro entrepreneurs.
"There are many examples of people who have become successful after partnering with OYO. From rooms taken on lease to having their own property, we have helped them grow at a fast pace and become successful entrepreneurs," he added.
"Partnering with OYO has given a strong boost to my business. The occupancy level at the hotel has increased by over 30 percent. I initially contracted 1o rooms with OYO but seeing the progress I opened up 14 more rooms and will be getting into a long-term contract with them. My staff was also trained by OYO which helped in improving the customer experience. The feedback from guests is very positive. I am extremely happy and satisfied with this association," said Theyagarajan SM from Raaj Residency, a Chennai-based OYO partner.
Thus OYO has ushered a revolution, transforming the hospitality industry in India by standardizing hotel rooms, and making them available for booking via app, web, call centre and channel partners. OYO apps make both the consumer and hotelier experience faster, convenient and more delightful.
OYO's hotel-booking app is among the fastest in the world, enabling guests to search and book a room in less than five seconds with just three taps. The company also recently launched OYO Captains, to provide personalized on-ground local assistance to guests.
Disclaimer: No Business Standard Journalist was involved in creation of this content