SUMMER TRAINNING REPORT ON

ENHANCING CUSTOMER EXPERIENCE

FOR

OYO ROOMS

MCLEODGANJ
By
MODASSIR ALAM
Roll Number- 429

In Partial Fulfillment for the award of the degree

Post Graduate Diploma in Management
Batch (2017-19)

Specialization: Marketing and International Marketing

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 SUMMER TRAINING REPORT ON

ENHANCING CUSTOMER EXPERIENCE

FOR

OYO ROOMS

Under the supervision

of
Mr. VirenderVerma

Submitted By-Modassir Alam Submitted to- Prof. Praveen Malik

Roll number- 429

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Certificate from the Company

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 ACKNOWEDGEMENT

It would be a vague attempt to acknowledgement all the persons who helped me directly or
indirectly in connection with my project work and during my training period. However I
express my sense of gratitude to a few of them

Without the encouragement, novel supervision & suggestion of my faculty-in-charge Prof.

Praveen Malik and industry mentor Mr. VirenderVerma task faced by me would have been
difficult. It is my pleasant duty to express deep gratitude to him.

Finally I can never forget the help and guidance given to me by every single individuals and
friends I approached.

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 DECLARATION

I MODASSIR ALAM student of New Delhi Institute of Management 2017-2019 Batch

declare that every part of the Project Report ”Enhancing Customer Experience” submitted by
me is original.

I was in regular contact with my faculty guide and contacted him several times for discussing
the project.

Date of project submission:______________

<<Signature of the Student>>

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 CERTIFICATE OF AUTHENTICITY

Faculty Mentor’s Comments:

_______________________________________________________________________________________________
_______________________________________________________________________________________________
_________________________________________________________________

Signature of Faculty guide

External Examiner’s Feedback

Date of project submission:_____________

Signature of the Student

External Examiner’s Comments:

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
______________________________

Signature of External Examiner

Name:

Organization:

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 TABLE OF CONTENT
S.No TOPIC Unit No. Page No.

1 Executive summary 1.0 1-2

2 Introduction of company 1.1 2-5
3 Company profiles 1.2 5-7
4 Executive of Oyo rooms 1.3 7
5 Organization structure 1.4 8
6 Products & services 1.5 8-9
7 Geographical spread 1.6 9-10
8 Customer segment 1.7 10
9 Turn over 1.8 10
10 Market share 1.9 10-11
11 Merger and acquisition 1.10 11-12
12 Future of expansion 1.11 12-13
13 Revenue model 1.12 13-14
14 Initiative for customer satisfaction 1.13 14-15
15 Impact of initiative 1.14 15-16
16 Funding 1.15 17-18
17 Strategy 1.16 18-19
18 Csr activities 1.17 19-20
19 Attrition rate 1.18 20
20 Talent management practice 1.19 21
21 Objectives of the Training 1.20 21
22 Findings 1.21 27
23 Major learning 1.22 27
24 Limitations 1.23 28
25 Conclusion 1.24 28

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 Executive Summary
The hospitality industry is a broad category of fields withinservice industry that
includeslodging,event planning, theme parks,transportation, cruise line, andadditional fields
within thetourism industry.The hospitality industry is a multibillion-dollar industry that
depends on theavailability of leisure time anddisposable income. A hospitality unit such as
arestaurant, hotel, or an amusement park consists of multiple groups such as
facilitymaintenance and direct operations (servers,housekeepers, porters,
kitchenworkers,bartenders, management, marketing, and human resources etc.).ORAVEL
STAYS PRIVATE LIMITED commonly known as OYO Rooms is alsoone of the startups
started by a young man Mr.RiteshAgarwal who had a vision tobuild budget hotels with lots of
comfort so that the people who visit the propertiesfeel the same way as they are in their
homes. He started OYO rooms in 2013 bydeveloping an app making easier for the people to
book hotels in 3 clicks. Hechanged the entire face of the industry and soon become youngest
CEO. He staredwith 5 properties in Delhi and now he 1300+ properties across India. He has
alsomoved the OYO Rooms outside India also.I was appointed as an intern in the company
and was given the position of CaptainSmart in the company. I was given the area where I
have to work. I was allottedwith Mcleodganj location under Oyo Captain, Mr.
VirenderVerma. I was told aboutthe project title which was “Enhancing Customer
Experience.” I was also told about the target which needs to be achieved at the end ofthe June
month. The target was the reduction of unhappy percentage of thecustomer’s upto 7%. To
achieve this target my Captain guided me how we canachieve this target. We had a team of
members which includes our Captain, and 1Interns.We had around 23 properties in
Mcleodganj and we have to makesure that we reduce their unhappy percentage and increase
their delight percentage. The properties given to me was Hotel Akashdeep, Hotel Castle,Hotel
Anuj Regency,Hotel Morainic.I was giventhe responsibility of that respective property.We
started with doing employee training at the hotels. We trained them how tobehave with
customers which will help them to get maximum delight feedbacksand automatically their
unhappy percentage will get reduce. It will also them toreduce their 3C Level. We were also
trained how to do Audits in the Hotels andcheck whether the hotel rooms are according to the
OYO standards.I frequently conducted the Audits in various hotels and help the hotels in
reductionin their unhappy percentage and increase their delight percentage. I have been
alsotrained how to manage the staff of the hotels. I along with my team membersconducted
Breakfast Audits of the hotels which has maximum issues with theirbreakfasts and as a result
the issues got reduce and the hotels achieved goodfeedbacks.We were also given the
knowledge of operating the tab given by the OYO whereall the bookings of the hotel are

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recorded. We also operated the CRS a portal of theOYO. At the end the target which was
given was achieved and the unhappypercentage got reduced.

Introduction to the Company

1.1 Industry Profile

The Indian hospitality industry has emerged as one of the key industries driving the growth of
the services sector and, thereby, the Indian economy. The tourism & hospitality sector’s
direct contribution to GDP in 2016 was US$ 47 billion. Also, tourism in India accounts for
7.5% of the GDP & is the 3rd largest foreign exchange earner for the country.At the close of
FY16, the country saw macroeconomic stability owing to a decline in inflation, fiscal deficit
and current account deficit. Going forward, the Union Budget FY18 has identified some
major pillars that will support economic growth for the country that includes tax reforms,
fiscal discipline, investment in infrastructure, ease of doing business, agriculture and farmer
welfare, rural sector, social sector, education and job creation. This is said to have translated
into an overall pick up in the economic activities, thereby having a positive impact on the
demand for hotels industry in the country.

Classification of Hotels-

The Indian Hotel Industry can be broadly classified under 3 major heads:
Star Hotels:- The Ministry of Tourism classifies the hotels into 5-D, 5 star 4 star, 3 star, 2,
star and 1 star and Heritage hotels. Heritage hotels include old palaces and havelis which
have been converted into hotels. Heritage Basic, Heritage Grand and Heritage classic hotels
also include haveli, posh residences, hunting lodges, forts and palaces built prior to 1950 and
1935 respectively. The ministry re-classifies hotels every 5 years.

Approved Hotels:- Approved hotels are the ones that have received approval from the
Ministry of Tourism, but have not been classified into any star category.

Licensed Hotels:- This comprises of hotel that have acquired license from local municipal
authorities to provide boarding and lodging facilities.

The industry offers various purchase options to meet consumers’ requirements for
vacation variety and flexibility-

1. Fixed-week: The most common type of timeshare where units are sold for use during a
fixed week of the year.
2. Floating week: This could be any week during a certain season of the year.

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3. Rotating or flex-week: Under this, in an attempt to give all owners a chance for best weeks,
the weeks are rotated forwards or backwards through the calendar, so in year 1 the owner has
week 25, then in year 2 the owner has week 26 and week 27 in the week after that.
4. Points Program: Annually, the program gives the owner the points equal to the level of
ownership and the owner has the flexibility to use these points as currency to make their
travel arrangements.

Timeshare owners have the option to holiday in different resorts if the memberships are
affiliated to an exchange company. Resort Condominiums International (RCI) and Interval
International are the major players amongst the existing exchange companies.

Service Apartments:-

- Service apartments are fully furnished apartments available for short-term or long-term stay
providing all the luxuries of a premium hotel such as room service, laundry service, fitness
Centre, etc. and have larger rooms and more space at a far more competitive rate. The
apartments are usually equipped with full kitchens, Wi-Fi and other in-house amenities.
- These apartments are ideal for people who do not have to stay for long durations to set up a
home but also long enough to want to live a normal life while experiencing luxuries of a 5-
star hotel. Also, no rental deposits are required in this case unlike ordinary residential leases
which typically binds people for a year or and involve an 11 month rental deposit.
- Business professionals, executives who may be on local or international work assignments
(project related) are frequent users of this facility. However, they are available to general
public as well.

Although this concept is picking up in some business destinations, we at CARE Ratings do

not see it becoming a threat to the demand for existing premium segment hotels, as the
average length of stay (ALOS) in hotels is still lower at 2-3 days and are preferred over
service apartments.

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OPERATING MODEL:-

1. Owned hotels - Under this structure, the hotel owner builds, owns and manages the
property. It involves a huge capital outlay and liability. It gives the owner the complete
control over pricing and operating expenses. All the profit earned is retained by the company.
2. Lease/License - Under the lease structure, the hotel group (lessee) takes the property on
lease from a real estate developer or the owner (lesser) for a specified duration and the lessee
renovates and operates it. In return, the lessee (hotel group) pays lease rental, which is usually
a proportion of revenue to the developer/owner (lesser).
3. Joint Ventures - Under this arrangement, two hotels groups or one hotel and one
developer enter into a joint venture to own and operate a property. They share the profits in a
certain pre-decided ratio.
4. Franchisee Agreements - Under the franchising practice, a renowned hotel group
(Franchisor) allows the hotel owner (franchisee) to use its successful business model or brand
name. The franchisor does not require to build chain properties to render services. It helps the
franchisor spread its presence without capital outlay and liability, thereby improving the
operating leverage. The franchisor is paid an initial amount at the time of giving franchisee
and an on-going amount as royalty for using the business model or brand name. The
franchisees are subject to inspection and have to adhere to the brand standards.
5. Management Contracts
- Management companies are organizations that operate properties owned by others. These
other hotels may be owned by individual, partnership or private limited companies. These
contracts are normally on a long term basis. Now-a-days many hotel owners are using this
concept so that they can focus on their core areas and outsource the management work to
professionally equipped organizations in this field. After paying the management fees, other
hotel expenses and taxes, whatever revenue remains is the profit of the owner.

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Major Competitors of Oyo Rooms

 Fab Hotels
 Treebo Hotels

The hospitality sector encompasses accommodation, food, and drink in external venues, that
aren’t a person’s home.

As per Oyo rooms specifies that there are different types of impact the hospitality sector can
have on the economy, like creating employment in the economy , encourage foreigners or
tourist to stay safe and secure in India ,guiding the new tourist to the new place as he would
not know much about the new place showing him good restaurant nearby to visit and the
sight he can that would be guided by the Oyo assistant through Oyo room applications it’s
veryeasy for anyone to book rooms as compare to any online sites .The rooms that has being
booked by individual will be guided by Oyo assistant to show him way and make him
comfortable and secure any problem face by the customer he would directly contact the
assistant for any query or problem. The impact is also seen that the staff that work in Oyo
rooms that has been trained to act as professional and serve professional to the customers
tracking down and following up the customers is the part of Oyo rooms like whether the
customer is coming to the booked hotel or not. Through booking from app and websites had
made customer much more effective and comfortable for booking.

1.2 Company profiles

a) Background of the company:
OYO Rooms, commonly known as OYO, is an Indian hospitality service and budget hotel
network. It was founded in 2013 by RiteshAgarwal and has since grown to over 8,500 hotels
in 230 cities in India. Oyo Rooms uses the aggregator business model which is the same
model used by Uber.While other competitors list the hotel names, Oyo Rooms list the rooms
under their own branded network of hotels. One of the biggest names in hospitality section
worldwide is AirBnB and their business model focus mainly on discovering partners to
provide space for staying. But Oyo Rooms has a better business model that not only focuses
on finding partners and co-branding but also on providing a certain standard of services for
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the users. The exponential rise of Oyo Rooms as a hospitality company can be solely
attributed to its unique business model. While its competitors list hotels and get commissions
based on booking, Oyo rooms partners with different organized and unorganized hotels and
split the income. Therefore, its revenue generation is multiple times higher than its
competitors on per booking. Its aggregator business model is so impressive that it managed to
attract over $250 million funds from Softbank which is one of the leading investors in the
world. With the aggregator business model, what Oyo Rooms does is they partner with
different hotels across the country to provide rooms to the customers under their own brand.
For hotels to qualify as its partners, their rooms and services have to meet certain guidelines
such as the standardization of certain essential services, features of rooms, staff quality,
security availability, pricing and other such important. While other business models in
hospitality industry solely focus on the standard of hotels and their pricing, Oyo’s business
model focus more on user experience which in turn takes care of hotel standardization. Due
to the presence of strict standardizing guidelines, it is very easy for Oyo Rooms to expand
their branding with various organized and unorganized hotels across the country
exponentially. Furthermore, due to the ensuring standard of rooms, the users ditch other hotel
booking platforms and blindly trust on Oyo Rooms. They stopped caring about the hotels and
paid more attention to the rooms provided. This, in reality, led to the disruption in the
hospitality sector and Oyo Rooms came out as a winner. Oyo rooms mainly focused on
customer based that try to provide budgeted room in the city wherever they go.

b) Vision and Values

Vision:To change the way people stay away from home.
StandardizedOYO Rooms promises to provide the same amenities and the same
awesome
Experience across all its rooms

AffordableOYO offers rooms at prices that no other player in the budget segment offers
today.
Technology Driven OYO uses technology to link all its functions and provide the
customer a seamless awesome experience

C) Funding of OYO Rooms

Year Amount Funding Source:-
2012-December $ 5 million Venture Nursery
2013- $0.1 Million Thiel Fellowship
2014-Febreury NA Light speed Ventures
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2015-March $ 25 Million Light speed, Sequoia and others
2015- July $100 Softbank

1.3 Executive of OYO rooms

a) CEO:Riteshagarwal
b) COO:Abhinavsinha
C) CTO: Anilgoel
d) CFO:Abhishekgupta
e) CPO: Dinesh Ramakrishna
f) CGO:kavikrut

g) CSO:Manindergulati

REGIONAL HEADS:-

North Head:GauravAjmera
South Head :BurhauddinPithawala
East Head: PrasunChaudhary
West Head: ShreerangGodbole

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1.4 Organization Structure:

1.5 Products & Services

Oyo rooms mainly have five products there are:-

Oyo rooms:- Oyo rooms provide standardized rooms to customer who want to avail room in
budget in their journey, the rooms are usually provide for 2 to 3 days and hotels are
categorized on couple friendly or non-couple friendly , basic amenities are provide in Oyo
rooms hotels like morning complimentary breakfast, AC room, free Wi-Fi, Led TV and clean
washroom ,most customer goes for this for their in one place to another ,and give customer
best experiences in their journey of hospitality by Oyo rooms.

A) Oyo Flagship:-The hotel which is completely own by Oyo rooms are considered to
be Flagship hotels, Flagship hotel is the brand's premier property. These are usually
located in high traffic and tourist areas e.g. Agar, Delhi, Jaipur, Varanasi. It's the best

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 the Oyo rooms have to offer. It sets a model for the brand and often times a test site
or concept before rolling it out to the other hotels, The Oyo rooms flagship concept
was to allow the company to have a larger control over day-to-day operations of the
properties, it takes full control of the hotel through taking it on lease or Oyo rooms
buy the properties.
B) OYO Townhouse:-OYO Townhouse is based on the needs of the millennial traveler.
Every single element of the hotel – from the breakfast menu to the booking process
has been re-engineered for comfort, efficiency, convenience and affordability. Each
Townhouse is designed to complement its neighborhood;OYO Townhouses use a
mix of tech and talent to create a smooth, comfortable and secure stay. Original
infrastructure has been remodeled to make these buildings more efficient and
comfortable in every possible way. Digital infrastructure makes booking, check
in/out, room features and add-on services super-easyto use e.g. OYO’s famous
Sunrise early check in feature -Free, seamless, high speed internet - users just log in
once and stay connected throughout the buildingEnvironment: LEDs, green-rated
Acs Security: 24/7 with OYO teams in constant touch – Security guards, fire safety
C) Oyo Home:-OYO Homes the company is tapping into the growing number of
travelers who prefer home stays that offer a local flavor of the destination in terms of
cuisine, experiences and location, OYO also launched OYO Studio Stays alongside
to target the Paying Guest market, With Studio Stays, the company is looking to tap
into another growing segment of students who travel for internships, college
admissions and entrance tests; as well as first jobbers who need a decent place to stay
while they look for homes to rent or buy in a new city
D) Oyo Silver:-Silver Key is a access to a private, spacious oasis. An executive
apartment with stylish interiors and comfortable living spaces, But without the
formality, rules and rates of a hotel. The concept is mostly started in Chennai; it’s a
great choice for corporate travelers due its close proximity to the airport and business
Centre’s. Tucked away in a leafy lane, the property is a quiet, calm sanctuary at the
heart of the action. It is mainly known for its appealing decor and home like
ambiance, the property boasts an unbeatable combination of privacy, space and well
equipped common hangout areas. All set within the building’s extensive yet highly
secure compound, there’s also a large outdoor lounge and a dining room where you
can enjoy the home cooked menu, freshly prepared by our experienced chef.
E) 1.6Geographical Spread: Froma single hotel in May 2013 to over 8500+ hotels at
present. Oyo rooms currently in more than 250 cities across India, Oyo rooms
specially target the tourist place in India like Himachal Pradesh, Rajasthan, Northeast

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 and south India etc. Internationally Oyo rooms is available in Bangkok, Singapore,
Malaysia, Dubai ,Indonesia ,Nepal and china and within 2 to 3 years Oyo rooms
targeting to be present in more than 50 countries.
F) 1.7Customer Segment
 Holiday travelers ( Include married and unmarried couples) : 60%
 Business travelers :25%
 Conference attendees or corporate officials: 10%
 VFR travelers :5%
 Others : nil

1.8Turn Over:Oyo rooms revenue has grown exponentially for the

following years:
 2015 > 36.1 cr.
 2016 >1,067.4 cr.
 2017 > 1598.7 cr.
Losses of Oyo rooms have being mounted
2015 > 20.8 cr.
2016 > 496.3 cr.
2017 > 325.3 cr.
1.9 Market share: With just 12% app-download share, OYO contributes nearly 45% hotel
bookings.

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In a period when the aggregators and OTAs were spending more to acquire more customers,
OYO was able to sustain market share against high discount offering players. This is because
we focused on generating more value for the consumer – by offering them a desirable
experience at the right value.

OYO entered the market when there was a pressing need for a hotel brand that could offer
predictable experiences, operate at scale and master the whole gamut of on-ground
operations, online distribution and Omni-channel customer service. Its young and dynamic
team rose to the challenge to deliver against all odds. The response of customers and
feedback on service and experience highlights the trust and preference enjoyed by OYO.
Continuing to live up to this trust by delivering exceptional stay-experiences in affordable
and beautiful living-spaces is OYO’s guiding mantra.

1.10Merger and acquisition: OYO Rooms has acquired service apartment operator
Novascotia Boutique Homes, in its first major purchase. Negotiations for the deal began in
October 2017 and concluded last month; the buyout was worth nearly US $1 million or about
Rs 6.71 crore. The Chennai-based Novascotia has a presence in Chennai, Coimbatore,
Hyderabad, Kochi and Trivandrum. And OYO will expand the offering post-acquisition. It
caters to the corporate sector and reportedly has an EBITDA of 14%.OYO plans to expand
rapidly, and the company’s chief executive had earlier said it was looking for acquisitions.
The startup is backed by Softbank and secured a funding of $250 million (Rs 1600 crore) in a
Series D round led by the Softbank Vision Fund. Other investors in the brand include Sequoia
India, Light speed Venture Partners, Green oaks Capital and Hero Enterprise.

Acquistion Clash WithZo Rooms:Zostel Hospitality Private Limited, Zo Room’s

parent company, was founded in August 2013 by DharamveerChouhan, Akhil Malik,
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PaavanNanda, TarunTiwari, Chetan Singh Chauhan, AbhishekBhutra and SiddharthJanghu
with an initial corpus of $30K (INR 20 Lakh). The startup has two brands i.e. ZO Rooms and
Zostel.It was in December 2014, when Zostel entered the budget hotel space with Zo Rooms,
a chain of premium budget hotels which grew to 750+ properties across 51 cities in India
within 10 months of its launch.OYO was looking to acquire Zo Rooms first surfaced in
December 2015. It was reported that the budget aggregator OYO was to acquire the smaller
rival ZO Rooms in an all-stock deal. But due to some problem ZO Rooms alleged, that OYO
stole ZO Rooms’ data about employees, assets, hotel properties, etc. while conducting due
diligence in a process of acquisition. The said acquisition did not eventually take place. ZO
Rooms alleged in its petition that OYO obtained certain confidential information, and “in fact
acquired the entire business of the petitioner (ZO Rooms) and is now refusing to pay the dues
owed to the petitioner”. In 2015, OYO was exploring the acquisition of ZO Rooms, and this
was even confirmed by Softbank. However, the deal was later called off by OYO. On the
matter, OYO said that ZO was “blackmailing the company” and had filed the legal case as
part of their ‘counterblast strategy’. And on February 16, OYO filed a criminal complaint
against the founders of Zostel pertaining to Criminal Breach of Trust, Cheating and
Misrepresentation of data OYO struck a deal with MakeMyTrip to list OYO’s inventory of
hotels across India, Malaysia and Nepal will be listed on MakeMyTrip and its brand Goibibo.
A similar deal was signed between Yatra and OYO in 2017. The three online travel agents
had delisted OYO from their platforms in 2015.

1.11 FUTURE OF EXPANSION

The company is also looking at entering more verticals in the hospitality industry. As the
CEO said: “The focus is to become stronger in the food and beverages, and banquet
segments. In future, you might see places which we acquire and revamp just for the purpose
of banqueting.”To soon enter luxury sector OYO Townhouse, the mid-market segment of
budget hospitality chain OYO Rooms, will not be entering any new cities for now. Under the
category, the company is planning to expand its business vertically -in cities it already
exists.“Right now, the plan for OYO Townhouse is to go deeper than to go broader. The
company is focusing on coming up with more projects in the cities where alreadyhave a
presence rather than announcing projects in new cities. Oyo Rooms has delivered a 15x
annual growth with 2.3 million booked room-night transactions in first quarter of calendar
year 2016 while its GMV continues to grow substantially every month. This shows the
increasing brand equity and demand of Oyo. Oyo has set its name as the high quality budget
hotel network. Which will change in near future as the prices might increase. But since Oyo
has come up with a new model of Flagship, there are chances that the prices might be kept as

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they are now. How this will affect the demand is not known as there are many emerging
competitors (like treebo, quikstay, etc.)ofoyo. Oyo has placed its foot in other domains than
just hotel rooms which will help them stay in the market for long. Softbank has been a keen
observer and has done a great job in funding them twice.

1.12 REVENUE MODEL

The revenue model of Oyo Rooms is simple. Oyo Rooms books a part of the hotels’
inventory (expense) These rooms are put to match the standardized quality like free Wi-Fi,
cleantoilets,etc.(Expense)TheseRoomsareofferedtothecustomersatOyoRoomsWebsite/Applic
ationUsers buy these from Oyo Rooms at a predetermined price. (revenue)Oyo is
currentlyinitsintroduction stage in many cities (and in growth stage in others) and it has to
provide(andhasbeingproviding) heavy discounts to the customers.OYO Rooms declared in
February ’16 that it has hit1millionth night bookings. It has been in operation for about 2 and
a half years now and claims to have 4,500 hotels in their partner network with 45,000 sell-
able rooms. Now, that’s 10 rooms per hotel which I think is highly unlikely given the obvious
reasons and not forgetting the founder’s history of lying and faking numbers for the sake of
publicity and fundraising.

But, let’s take their own revealed numbers and try to analyze the business economics. Let’s
consider their per room purchase cost is 1,000 and they are selling it at 1,200, giving them a
handsome about 20% margin per room per night here; which again is way too higher than the
industry average but let’s assume that everybody just loves OYO and customers want to pay
that much premium for that awesome stay! Now, although they got 1 million room nights
booked in over 2 years, let’s be generous and assume that they got it all in the current year
itself. This will make their current year GMV at 120 crore so far and actual revenues at 24
crore with 20% margin. Now, that’s 2 crore in actual revenues per month

OYO Revenues
Room nights/year – 1,000,000

GMV @ 1,200 Rs. per room per night – 120 cr.Rs. Per year (10 cr per month)

Margin @ a handsome 20% – 24 cr.Rs. per year

Margin per month @ 20% – 2 cr.Rs. p.m. – Revenues

Now, let’s talk about expenses.

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As per a recent claim by the founder, OYO Rooms boasts of having about 1,200 employees.
At an average of 25,000 Rs. per month per employee, that will make it about 3 crore per
month, which is itself more than they are making from the business! Not to forget that the
average salary per head would be higher than our assumption here since most of their
employees are based in Gurgaon.OYO is also spending huge amount of VC raised money on
advertising (online, TV, Radio and other mass media channels) and on other marketing
campaigns as well. People close to the advertising industry are telling me that their TV ads
could cost anywhere between 30 lakhs to 3 crore per ad creative to make and the kind of slots
they were running on prime time, the total ad run budget could have been anywhere between
20 to 100 crore. Not to mention the radio, print media and online advertising budget. OYO is
spending big bucks on online advertising especially on Google as well, estimated around 1-2
crore per month. But, due to non availability of reliable public sources here, let us not count
marketing budget for the sake of convenience. And, that’s not where the majority of the
money is going. The main expense is the inventory. Remember given the business model of
OYO Rooms; have to ‘buy out’ the rooms in order to block them for their customers only.
OYO is claiming to have 4,500 hotels and 45,000 rooms which seem to be an exaggeration
again. But, let’s be generous and assume they at least have half of that, 22,500, rooms under
their belly. As mentioned above, assuming their buy out cost per room is 1,000 Rs. total
inventory cost per month would be 67.5 crores. And thus bringing the total expenses,
excluding marketing and other operating costs, to 70.5 crore per month .

OYO Rooms Expenses

Employees – 1,200

Salaries @ 25,000 per employee per month – 3 crore per month

Hotels – 4,500

Rooms (considering an average of 5 per hotel, half of OYO’s claim) – 22,500

Inventory Cost – 67.5 crore per month

Total Expense – 70.5 crore per month (excluding advertising, marketing and other OPEX)

It is a no brainer that with the given statistics, the business is operating at a loss of 60.5 crores
per month. This still does not include the big bucks spent on advertising, marketing and other
operating costs otherwise the number will shoot up like a rocket.

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1.13 INITATIVE FOR CUSTOMER SATISFACTION

At OYO, every decision we take is to drive a stellar end-to-end customer experience. We do

this by leveraging technology to drive efficiency, reduce friction, and even predict customer
behavior. This is where data science plays a critical role Oyo rooms are on the way to
announce token sale of OYO SMART COIN- a crypto currency that will revolutionize the
travel and hospitality industry. This will mark the beginning of the block chain revolution in
India.OYO has led the technology upgrade of the travel and hospitality industry. And it only
be-fits that OYO leads the adoption of block chain technology as well. Introducing OYO
SMART Coin (ticker: OSC). OSC will benefit the hotel partners, the consumers and the
entire ecosystem at large. Using OSC, consumers will be able to transact on the OYO
platform with reduced prices. OSC will enable partners to directly offer benefits to the
consumers and market to them. OSC will be the fuel of the brave new world of block
chaintechnology.OSC will benefit from the network effect and scale of OYO. With every 100
hotels added to the OYO network, the value of OSC will likely to go up by 4%. So one can
expect OSC to appreciate by 20%, mom. Similarly, with every transaction the consumer
makes, the value of OSC will increase, in turn creating a larger discount pool and % for
future transactions. The token creation, sale and distribution are being managed by the same
team that has built pricing and data sciences at OYO. The distribution is intended for the
masses, staying true to the brand ethos of OYO. In addition, OYO stands for affordability.
15
Hence, the initial coin offering price of OSC will be priced at a mere INR 999, which is also
the price at which you can get an OYO room in any city

1.14 IMPACT OF INITIATIVE

OYO has created a strong Omni-channel customer experience to ensure an end-to-end service
for customers using different mediums to book hotels, share feedback or seek information.
This ensures that the brand’s presence across channels – Mobile App, Web, Mobile Web, E-
Mail, Live 24/7 Chat, 24/7 Customer Support Desk, Local Booking Centers, Ground Teams,
Online and Offline Travel Agents and Social Media – is seamlessly integrated, ensuring
customers receive the same OYO experience irrespective of their channel of choice.

36% Business travel continues to be a top driver for hotel demand

36% over 1/3rd booking are driven by couples

28% travelers book a hotel after arriving in the city

On-demand has arrived 1 OYO booked every3 sec

OYO is increasingly being used for long –stays

16
1.15 FUNDING

Shortly after launching Oravel Stays, RiteshAgarwal received a grant of $100,000 as part of
the Thiel Fellowship from Peter Thiel.

In March 2015, OYO raised Series a round of funding $24 million from Light speed Venture
Partners, Sequoia Capital, Green oaks Capital and DSG Consumer Partners. In August 2015,
OYO raised another $100 million from Softbank Group, a existing investor. A year later, in
August 2016, OYO raised $90 million from Softbank Group, Innoven Capital and existing
investors. In September 2017, OYO announced it had closed a $250 million series D round of
funding led by Softbank Group, new investor Hero Enterprises led by Sunil Kant Munjal,
Sequoia Capital, Green oaks Capital and Light speed Venture Partners. China Lodging made
a strategic investment of $10 million in OYO in September 2017.

Only a handful of budget hotel aggregators had managed to raise funding in 2016, while a
few had to shut shop.Bengaluru-based Rup tub Solutions Pvt. Ltd, which operates Treebo
Hotels, had raised Rs 112 crore in a Series B round led by Bertelsmann India
Investments.Gurgaon-based Casa2 Stays Pvt. Ltd, which runs FabHotels, had raised $8
million in its Series A round from a group of investors, including existing investors Accel
Partners and Qualcomm Ventures. Matrix Partners and Nexus Ventures had invested an
additional $13.5 million in Stayzilla, the Chennai-based budget hotels and home stays
aggregator. In March 2016, Room on Call had raised $2 million funding round led by on-
vehicle advertising company CASHurDRIVE Marketing Pvt. Ltd.

However, Wudstay Travels Pvt. Ltd, which had started as a rival to OYO Rooms, had to exit
the budget hotel aggregation space in December, most likely because of a funding crunch.

Softbank’s investments

Recent investments by Softbank include cab-hailing firm Ola, which raised $330 million in
fresh funding in February.

In March, e-commerce firm Snap deal was in talks to raise funds from Softbank, which saw
its valuation fall under $3 billion.

However, 2016 was a relatively quiet year for the Softbank Group, following an aggressive
2015 when it had put copious amounts in Snap deal, OYO Rooms and Grofers.

17
Softbank’s investments in India might be a handful, but the bouquet of investee firms is big
enough to make its peers wary. In fact, out of its seven portfolio firms, four – Hike, Ola, Snap
deal and InMobi – are unicorns, with a $1 billion-plus valuation

Deal Type Date

10. Later Stage VC 03-March -2018

9. Later Stage VC (Series D) 13-Sep-2017

8. Early Stage VC 16-Aug-2016

7. Share Repurchase 08-Jul-2016

6. Early Stage VC (Series B)03-Aug-2015

5. Early Stage VC (Series A)25-Mar-2015

4. Early Stage VC 10-Oct-2014

3. Early Stage VC 14-May-2014

2. Grant 01-Oct-2013

1. Seed Round 15-Oct-2012

1.16STRATEGY
OYO Rooms has one objective to offer standardized stay experiences at an unmatched price.
Oyo provides standardized hotel rooms with features such as an air-conditioner, TV,
complimentary breakfast and Wi-Fi with 24×7 customer service support. OYO rooms can be
booked online using Mobile app. Also they have their presence in all the travel/booking
websites.

OYO’s model is simple: it adopts hotels to get them in its fold; gets them to follow certain
standards of services, features, staff, pricing, security etc. and then sells their rooms under its
own brand, for a certain cut. This new segment operates on the asset-light business model,
and is a sure a change element for the traditional capital-weighed-down hospitality.
According to a research carried out by CB Insights for The New York Times, OYO Rooms
has been deemed as one of the upcoming start-up unicorns.

OYO doesn’t own any of these properties, and instead, invests in marketing and management
quality improvement for the hotels under its fold. It’s a win-win for OYO and the hotels,
18
many of whom just don’t have the network, knowledge or the budget for smart marketing,
and they run empty. OYO helps them improve their yields

To retain its ranking and perform way above the competitors OYO is focusing on the mass as
well as on digital marketing section aggressively for lead generation and customer
acquisition. It is strategizing to use all means of social media by targeting potential customers
based on their interest, behavior and other parameters which are readily available via digital
marketing.

It has strong social media presence on Face book with over 2.7 lakh fans and a Twitter
following of over 8,000 followers. The brand claims to have over 1.5 million app downloads
with a good number of active users. To fast track its growth, OYO Rooms is organizing
several campaigns on social media platforms such as:

Dubsmash Contest

#AurKyaChahiye videos on YouTube.

Father’s Day Celebration campaign and IPL Final Verbal Combat.

Jai Hind was the most successful one that featured Bollywood actor ManojBajpai and
RaveenaTandon.

The video fetched over 1 million views to the brand. Some of their recent endeavors area
Salute to the heroes of 1965 war and Oyo Explorer – Pune.

Results Achieved by Oyo Rooms:

OYO’s traction and market coverage has swiftly increased because of being listed with travel
aggregators like Make My Trip, Clear trip and com.

Launch of OYO café, OYO We for Women travelers and OYO Premium for high-end
customers

Tie-ups with major brands such as Airtel for Wi-Fi support, Thomas Cook, Air Pegasus and
Tourism and Hospitality Skill councils

19
1.17CSR activities
OYO Rooms has been selected by the Tourism and Hospitality Skill Council (THSC) to train
and certify hospitality staff across the country. The two partners will sign anMoU to this
effect on November 26th at the National Conference on Skill Development, in the presence of
Rajiv Pratap Rudy, Union Minister of State Skill Development and Entrepreneurship.

THSC is a sector-specific council under National Skill Development Corporation (NSDC). It

operates under the aegis of Ministry of Skill Development and Entrepreneurship (MSDE), to
ensure that people employed in unorganized segments can access growth opportunities
through up-skilling / re-skilling and recognition of prior learning.

Tourism and hospitality is one of the 29 skill sectors identified by the government of India as
a priority area for skill development.

The Hospitality sector is grappling with manpower and talent crunch to meet the surge of
upcoming demand, and faces a huge training vacuum. THSC encourages a progression path
which is supported by tenure, caliber and on-the-job skilling, besides just formal education.
Their(OYO Rooms) scale of network and depth of partner engagements will encourage more
people working in the unorganized sector to participate in this exercise .

1.18 ATTRITION RATE

Attrition rate in Oyo rooms is 5% throughoutIndia; As the Hr. team is hiring the talented
employees and the potential to work for Oyo room’s .it being seen that the attrition rate of
Oyo room is less then compare to the other IT company.

20
1.19TALENT MANAGAMENT PRACTICE

1.21Objectives of the Training:-

Primary Objective:-
1. The main purpose of this project was to enhance customer experience and
reduction of unhappy percentage.
Secondary Objective:-
1. To get an idea about the working of OYO at ground level of the smart
properties owned by the OYO.
2. To enhance leadership and management skills by leading the members of the
properties to work properly and doing full management of the properties.
3. To get the work done from the members of the properties and making assure
that the properties are according to the OYO standards.
21
1.26Weekly report activity description:

Date – 1st May 2018

Daywise learning for Summerinternship
Tuesday1stMay
The day I ModassirAlam Roll No. 429 MC Section joined OYO rooms at sharp 9:30 am.Here I
met the head of the operations department Mr. PankajJonwal.At 10 am sharp.He started
with the induction of the OYO rooms and told us about the vision and
missionofthecompany.He told us about the seven pillars of the companystarting from:

•Thechiefexecutiveofficer–Mr.RiteshAgarwal
•Thechiefoperatingofficer- Mr.AbhinavSinha
•Thechieffinancialofficer–Mr.AbhishekGupta
•Thehumanresourceofficer-Mr.Dinesh
•Thechiefstrategyofficer–Mr.Maninder
•Thechiefgrowthofficer-Mr.Kavi
• The chief business development officer – Mr. AnujTejpal.

In the induction he told us that the country is divided in 4 regions i.e.

•North
•South
•East
•West
And 22 hubs, and one of the hub is Himachal Pradesh having Shimla as its main office
andfromhere wedealin JammuandShimlaregion.

Inthishubthereare12regionsandtheyare:-

•Shimla
•Kullumanali
•Dharamshala
•Mcleodganj
•Kasauli
•Chail
•Jammu
•Katra
•Srinagar
•Gulmarg
• Pehalgam

22
He made us familiar with all the members of the department of Himachal hub
Thereare4departmentstheydealwith:
•Thebusiness developmentdepartment
•Thetransformationdepartment
•Theoperationsdepartment
•Thesalesdepartment

These departments comprises of the heads and the members and they are as follows :-

Theregionhead
Mr.Gauravajmer

Thebusinessdevelopmentdepartmenthead
Mr. TarunSachdeva

Thesalesdepartmenthead
Mr.AkhilKrishna

Theoperationsdepartmenthead
Mr.PankajJonwal

Thetransformationdepartmenthead
Mr.SaifRehman

The hub heads

Mr. Gagandeep
The functions of different departments are :-
The Business Development Department :-
• They help in tie ups with hotel
• Manage all the legal formalities and the percentage of sharing between the hotel and oyo
company.

In himachal hub the team is as follows:-

The Transformation Department:-

After the hotel is tied up with the company the transformation team builds the inventories
according to the standards of oyorooms .
oyo rooms work on simple 6 promises and these promises are:-
23
• Complimentary breakfast.
• Free Wi-Fi.
• Hygiene washrooms.
• AC, geyser.
• TV
• Clean linen.

In himachal hub the team is as follows:-

The Operations Department :-

• After the working of the TR Department comes the work of operations department.

• Mr. Pankaj told us that this is the field of work that we have to do for our training .

• In operations we manage all the inventories transformed by the tr team and make sure that
the guest in our properties does not have any problem.

• This department is completely based on customer experience.

• Building of good relations with the guest and maintaining it throughout his/her stay in our
properties.

• The stay of the guest is made comfortable and made sure that all the promises offered by
oyo rooms are fulfilled.

• This is checked through certain criteria’s and Audits done by the cluster managers.

TheSales department:

• This department goes parallel with the operations department.

• They generate offline sales.
• They generate revenue for the company by selling the inventories.

In himachal hub the team is as follows:-

The day got over with all the knowledge of the company and we left at 7pm in the evening

Day 2:- 2nd May, Wednesday

I reached the office at 9:30 Am at 10 we started with our tool recognition and learning .

24
Oyo rooms work on 4 basic tools

• CRS: - CUSTOMER RELATION SYSTEM

• KRYPTON (AUDIT APP)
• PROPERTY MANAGER APP
• LIFELINE

After this session I went to see the properties. I was told that I will manage the Mcleodganj
region clusters and should be familiar with all the properties and inventories in the
Mcleodganj region.

The major area that would be assigned to me would be the Bhagsu road region.
Virender and I visited the properties like

• The Ganga regency

• Hotel Rosewood
• Hotel Akashdeep
• Hotel Castle

• There he taught me how to audit and how to manage the guests and the employees.

Day 3- Thursday

I started my day at 9:30 am and today Mr. Virender told me my task for the month of May i.e.
the seasonal month for oyorooms.The task that I have to perform is as under.
The guest has the right to rate the oyo company and the hotel they stay in.
They can rate us on any of the following parameters and promises that oyo offers them and
the ratings are between
0 to 5
0, 1, 2 are unhappy guests
3, 4 are happy guests
5 are the delighted guests
My task for May is to reduce the percentage of unhappy guests and convert them into
delighted guest .
The modules that I have to work on consists of the following
• Training of staff
• Audit of hotels
• Cold calling to the guests to ask their experience
• Personal meeting with the unhappy guests.

25
Day 4:-Friday

• The day started at 8.30 am

Today I learnt how to train employees; Mr. Virender showed the module on which employees
are trained and the incentives gained by the employees.
The day ended at 7 pm.

Day 5:- Saturday

The day started at 9:30 am. After one hour meeting with Mr. VirenderVerma. We started our
daily routine of visiting the properties .Today I learnt about the difference between dynamic
and smart Properties.

Day 6:-Sunday
The day started at 9:30 am. After one hour meeting with Mr. Virender, we had to go to the
meeting with Mrs. SarlaChauhan, General Manager of Himachal Tourism, for Maps for the
hotels .We learned how the hotels are mapped according to the 3C score given by the
customers .The 3C Score comprises of three C’s consisting of Comparability, customer
experience , customization. The day ended at 7pm.

26
1.20 Findings:-

 Owners don’t want to spend on the maintenance of the property.

 About 8% of the ratings given by guests are either by mistake or given unknowingly.

 Some guests give negative feedback to harass the manager or get refunds.

 40% of customer feedbacks doesn’t show the ground reality because the ratings are
begged by the property managers or owners.

 Customer care cell sometimes doesn’t take ops team requests on priority thus creating
D-day issues such as shifting.

 “BD team doesn’t follow closely after tie ups”, is the most heard words from the
owners.

 Owners are not satisfied with the hike of 2.5% revenue sharing in the form of platform
charges.

 Staffs in smart properties needs to trained occasionally w.r.t behavior, attitude towards
guests and nature of their job.

1.23Major learning
This training proved to be highly beneficial for me as it trained me for future.

 It increased my practical knowledge and well equipped me with all

the methods and knowledge.

 I learned to deal with people and control my patience level which is a

very important ingredient in the dish of life. I faced all kinds of people
and learned to adopt myself in different situation.

 The training was very useful in studying the services, client’s

satisfaction, consumer behavior, company culture which is vital for us
as we are the future managers who will lead the world.

27
1.24Limitations: -
 Revenue leakages
 Absence of OYO employee at ground from 6:00 PM to 10:00 AM
 Outsourced employees does not have proper access
 No employee motivation
 Less availability of HM’s
 Undertrained hotel staff

1.25Conclusion:
 We should make the CX process more appropriate.

 Check out function should be introduced in the guest APP.

 BD team should follow up regularly withthe property owners.

 Teams at office and teams on ground should be more communicative and more
interlinked.

 Customer care cell should work more efficiently and understand the priority of a
request made by the ops team.

28
 Faculty
Weekly Report 3rd Remarks
Summer Internship Programme (On the Job Training as an Operation head)
Name: ModassirAlam
Company:Oyo Rooms
Location: Mcleodganj
Industry Mentor Details: Mr.Virenderverma
Faculty Mentor:Praveenmalik
Project Title:Enhancing Customer Experience
Tasks

Status
Weekly of
Activity Activitie Learning from the
Assigned s activity/activities
(Give Assigne assigned / Work
Details) d accomplished Tools Used Source of Information
My serious learning
I have to
under this was that I
check the
learn management
inventory of
of things that in a
the hotel and
rush how to manage
fill that in Complet Senior’s, Hotel staff,
the things and I MS Excel
online excel ed Property manager’s
learned from here
sheet so that
that if we plan in
no over
advance then we can
booking can
manage the things
be made.
easily.

Visited each
My learning by this
and every
activities to
hotel in
Understand the
Mcleodganj
guest and how can I
assigned by
satisfied the guest
my mentor Complet
and make them MS Excel Senior’s, Hotel staff,
and ed
happy and make the Property manager’s
interacted
wonderful stay for
with guest at
them by providing
check in and
the best services &
check out
facilities
time.

29
Called the
guest after
they check in
I learned how to
asked them
behave in a different
whether they
situation and how to
are facing
think critical to
any problem
Complet solve the different Senior’s, Hotel staff,
or not and if MS Excel
ed kind of problem. Property manager’s
they have
Best way to handle
any issues
the customer’s by
then I have
analyzing them their
to solve that
behavior.
issue and
make the
guest happy

Weekly Report 5th Faculty Remarks

Summer Internship Programme (On the Job Training as an Operation head)
Name: ModassirAlam
Company:Oyo Rooms
Location: Mcleodganj
Industry Mentor Details: Mr. VirenderVerma
Faculty Mentor: Praveen Malik
Project Title:Enhancing Customer Experience
Tasks

Statu
Weekly s of
Activity Activ Learning from the
Assigned ities activity/activities
(Give Assig assigned / Work
Details) ned accomplished Tools Used Source of Information
Visited
every
Leaned how to
property
communicate with
assigned by
the guest and
the cluster Comp Senior’s, Hotel staff,
resolved different MS Excel
manager leted Property manager’s
types of issues and
and trained
problems of the
all the
guest.
property
manager

30
Checked all
the check
ins for the
next day
and call the
guest
Learned to solve the
accordingly
different types of
and asked
Comp problems of guests
them that if MS Excel Senior’s, Hotel staff,
leted by convincing
they face Property manager’s
them.Communicatio
any kind of
n skill is increasing.
problem
and in case
than they
can reach
out to me
anytime.

Visited
each and
every hotel
in
Last phase of my
mcleodganj
fifth week Ilearn
on the daily
how to approach the
basis at the
customer’s and
time of
solve their problems.
check out
Comp Best way to handle Senior’s, Hotel staff,
and request MS Excel
leted the customer’s by Property manager’s
the guest to
analyzing them their
summit
behavior and ask for
there
their stay and take
feedback as
feedback hand to
per the stay
hand
And
increase the
review of
the hotel

Weekly Report 7th Faculty Remarks

Summer Internship Programme (On the Job Training as an Operation head)
Name: ModassirAlam
Company:Oyo Rooms
Location: Mcleodganj

31
Industry Mentor Details: Mr.Virenderverma
Faculty Mentor:Praveenmalik
Project Title:Enhancing Customer Experience
Tasks

Statu
Weekly s of
Activity ActivLearning from the
Assigned itiesactivity/activities
(Give Assigassigned / Work
Details) ned accomplished Tools Used Source of Information
I have to
My serious learning
check the
under this was that I
inventory
learn management
of the hotel
of things that in a
and fill that
rush how to manage
in online Comp Senior’s, Hotel staff,
the things and I MS Excel
excel sheet leted Property manager’s
learned from here
so that no
that if we plan in
over
advance then we can
booking
manage the things
can be
easily.
made.

Visited
each and My learning by this
every hotel activities to
in Understand the
Mcleodganj guest and how can I
assigned by satisfied the guest
Comp
my mentor and make them MS Excel Senior’s, Hotel staff,
leted
and happy and make the Property manager’s
interacted wonderful stay for
with guest them by providing
at check in the best services &
and check facilities
out time.

32
Called the
guest after
they check
in asked
them I learned how to
whether behave in a different
they are situation and how to
facing any think critical to
problem or Comp solve the different Senior’s, Hotel staff,
MS Excel
not and if leted kind of problem. Property manager’s
they have Best way to handle
any issues the customer’s by
then I have analyzing them their
to solve behavior.
that issue
and make
the guest
happy

33