Published Online:December 2024
Product Name:The IUP Journal of Case Folio
Product Type:Article
Product Code:IJCF031224
Author Name:Arnaz Kaizad Wadia
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:39-48
OYO Hotels & Homes (OYO), founded in April 2013 by Ritesh Agarwal, quickly expanded to become the world’s third-largest and fastest-growing chain of leased and franchised hotels, homes, and living spaces.1 This case examines OYO’s journey towards developing a scalable business model which assured its presence as a global hospitality giant in more than 35 countries. The case traces OYO’s journey towards profitability, with a focus on factors that contributed to its financial success such as technological innovations like dynamic pricing and proprietary platforms, streamlined operations, and optimized pricing strategies. It studies OYO’s diverse product portfolio, strategic partnerships, and market expansion, which had further enhanced its revenue streams. Additionally, it also studies OYO’s innovative asset-light model focused on leasing and franchising existing hotels to assure affordable accommodation. Finally, it highlights the roadblocks in the path of successful and profitable business development by OYO. Overall, the case explores the distinctive strategies that enabled OYO’s transformation into a profitable and successful venture.
In 2020, OYO Hotels & Homes (OYO), the global budget hospitality leader, faced a significant crisis that would test its resilience across its widespread network. With the onset of Covid-19, the travel sector came to a near standstill, leaving Ritesh Agarwal (Ritesh), the company’s founder, grappling with serious operational and strategic challenges. The pandemic not only brought the industry to its knees but also revealed long-standing issues within OYO’s rapid expansion model, such as inconsistencies in service quality, strained relations with hotel partners, and operational inefficiencies. These issues, amplified by the pandemic’s economic impacts, put OYO’s future growth and stability in jeopardy.