Founded in 2013, by Ritesh Agarwal, Oyo Rooms (stylized as OYO), also known as Oyo Homes & Hotels, is an Indian hotel chain and is the world’s third-largest and fastest-growing hospitality chain of leased and franchised hotels, homes and living spaces.
In a span of 7 years, the start-up has grown exponentially and expanded its services globally with thousands of hotels, vacation homes and millions of rooms in hundreds of cities in India, Malaysia, UAE, China, Brazil, Mexico, UK, Philippines, Saudi Arabia, Sri Lanka, Indonesia, Vietnam, the United States and more.
FUN FACT: Launched in 2018 in China, OYO has become the 3rd largest hotel brand in China with over 271K+ rooms
Great success comes with a huge number of competitors waiting to eat into your market share. In this article, we will talk about some of the top competitors of OYO Rooms in India as well as outside.
TOP OYO COMPETITORS
Here is a list of some of the top OYO competitors present in India
The first in the list of OYO competitors is Yatra.com
Based out of Gurugram, Yatra.com, founded in 2006 is an Indian online travel agency and travel search engine.
In the last 5 years, Oyo, a relatively young startup managed to eat up a significant amount of market share of Yatra and that has prompted Yatra to try different business strategies to ward off this competition and regain its lost market share.
As of Feb 2, 2020, Ebix, an Atlanta-based software firm has expressed interest in acquiring Yatra.com, through a merger deal at about $337 million.
With this deal, Yatra.com would become part of Ebix’s travel portfolio, which also includes the likes of Via.com, however, it would continue to serve the customers under the Yatra brand.
This acquisition is expected to make the competition stiffer for the online Indian travel companies, especially MakeMyTrip, a local player that currently leads the market.
With an aim to foster its presence in South Asia’s hotel and flight ticketing market, the deal would allow Ebix to leverage Yatra’s large and loyal existing customer base in India.
The second in the list of top Oyo competitors is Treebo Hotels, an Indian budget hotel that operated on franchising.
With a vision to provide high-quality hospitality in the unorganized and fragmented budget segment of the Indian hospitality industry, IIT Roorkee graduates Sidharth Gupta, Rahul Chaudhary, and Kadam Jeet Jain founded Treebo Hotels in June 2015.
As of January 2020, Treebo Hotels has over 600 hotels in 113 cities in India.
Since its inception, the company has raised around $57 million from different investors. The startup just like OYO follows a full-stack model, where it ties up with hotel owners and runs their properties.
In the recent past, apart from running from behind growth and expansion, the company has made significant changes to its business strategies to be profitable by 2021.
Adding another source of income – Hotel Management CMS SuperHero to cater to hotels that are not Treebo branded, and removing minimum guarantee for hotel owners are few steps taken by Treebo hotels to attain profitability.
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Third, in the list of competitors of OYO is Cleartrip.
Cleartrip, India’s second-largest online travel aggregator, is also a global online travel company, headquartered in Mumbai that operates as an online travel aggregator website for booking flights and train tickets, hotel reservations, and activities in India and the Middle East countries.
With a vision to make travel simple, the founders decided to enter the online travel space and bring in some order in the already fragmented Indian travel and hospitality sector.
With a market share of 17-19 percent market share, Cleartrip’s business model focuses on taking a margin of 15-20% from hotels and activities business and 5-6% from flights and train bookings.
Fourth in the list of competitors of OYO is MakeMyTrip
MakeMyTrip Limited, India’s largest online travel agency was founded in 2000 by Deep Kalra. The company provides online travel services including flight tickets, domestic and international holiday packages, hotel reservations, and rail and bus tickets.
Listed on NASDAQ after its IPO, MakeMyTrip launched its service in the US market in 2000 to cater to the overseas Indian community for their US to India travel needs.
Apart from its offices in New York, Singapore, Bangkok, and Dubai, MakeMyTrip has 14 company-owned travel stores in 14 cities, over 30 franchisee-owned travel stores in 28 cities, and counters in four major airports in India.
MakeMyTrip follows the same business model as other leading travel aggregators and charges a margin on Hotel bookings as well as Airtravel and train bookings.
In order to compete with OYO, in recent years, MakeMyTrip has made several moves to expand its offerings – adding ground transportation, loyalty programs, business travel services, and experiences.
The last but not the least in the list of competitors of OYO is Fab hotels
Currently operating in more than 50 cities of India with 450+ Hotels, FabHotels is a network of 3-star budget hotels in India, having its headquarters in Gurugram.
Started operating in 2014, Fab Hotels, just like Treebo Hotels have been chasing sustainable growth over the last few years.
As of Feb 2nd, 2020, Fab Hotels is set to close its next round of funding for Rs. 40 Crore from its existing and new investors.
This funding will surely add fresh firepower to the company’s war chest that would help them fight with OYO.
After covering the domestic competitors, let’s check out the international competitors of OYO.
One of the main OYO competitors in the international market is Airbnb.
Airbnb, Inc. is an online marketplace for arranging or offering lodging, primarily homestays, or tourism experiences. The company does not own any of the real estate listings, nor does it host events; it acts as a broker, receiving commissions from each booking.