How to Start a OYO Rooms Franchise,
OYO Rooms is a rapidly growing hospitality chain that has disrupted the Indian hotel industry. Founded in 2013, the company started as a small startup with a few properties in Gurgaon, India. But, with its innovative approach and aggressive expansion strategy, OYO Rooms quickly expanded its presence across India and the world. Today, OYO Rooms has more than 43,000 hotels and 1.2 million rooms in over 800 cities in 80 countries.
Business Model
The OYO Rooms franchise business model is based on a partnership between the company and independent hotel owners. OYO Rooms partners with hotel owners, provide them with branding, technology, and operational support, and help them increase their occupancy rates and revenue. In return, the hotel owners pay OYO Rooms a percentage of their revenue.
The franchise business model allows OYO Rooms to rapidly expand its presence across the world without the need for heavy capital investment. The company partners with existing hotels, rather than building new properties from scratch, and leverages its technology platform and brand recognition to increase the occupancy rates and revenue of the partner hotels. OYO has own application to book the rooms. Main target is to be urban peoples and upcoming generation lodge users. In 2017 OYO has established township model to the customers. Traveler looking for budget friendly hotels for few days’ accommodation or monthly accommodation they can prefer OYO hotels. It’s is also a similar model like market existing players, providing services to direct customers by the way of third party hotel members. Always providing approvals for High quality hotels.
Investment needed to start OYO franchise
To open up an OYO hotels by own, need to build a own hotel it will cost around 2 crore to 3 crore. Else there is a better option available to lease a hotel for few years and apply for OYO franchise. Company provides return of investment of 40%+ per year
Profit Margin
By providing rooms to rental with WIFI, clean rooms, restrooms, and luggage pickup from front gate and drop at same point, soaps, shampoos, and other items etc., OYO rooms charge respective amount to the customers as a fixed price. OYO will take commissions and brokerages from hotels and pay the remaining balance to the hotel owners. Meantime OYO will provide various types of discount and promotional offers to their customers.
Step by Step Guide to start the OYO franchise
Registration – Go to OYO website and fill the respective form and provide the location and your details. Tab Become an OYO button and submit the form. OYO franchise contact number: +91 70530 70530 or use email partner [at] oyorooms [dot] com
OYO Team discussion – After submitting the form respective representative will connect with you or provide an email response for further discussion. As per the terms and conditions and OYO protocols they will make to adopt your hotels as per their requirements. And finally you need to sign a OYO rooms partnership document.
Listing in OYO Application – Post the agreement your hotel will be listed in OYO booking application. Once customer has been booked your hotel for a stay you need to welcome the customer and provide all the assistance until checkout. All the trainings will be provided by OYO experts. All the documents and other assistance will be provided from OYO head office. OYO will provide 5 year agreement term. Property owner should be always responsible for clean, secure, odor-free and safe. Always OYO polices need to be adhered. OYO will provide full co-operation and support in all the aspects. OYO will collect customer feedback about stay
The success of OYO Rooms has been driven by its unique franchise business model, which has allowed the company to rapidly expand its presence while minimizing capital investment. OYO Rooms offers a franchise model that is attractive to investors because of its low cost of entry, strong brand recognition, and easy-to-use technology platform. In this article, we will explore the OYO Rooms franchise business model, the benefits and drawbacks of the model, and how to become an OYO Rooms franchisee.
Benefits of OYO Rooms Franchise Business Model
Low cost of entry: The OYO Rooms franchise business model has a low cost of entry, making it attractive to investors who want to enter the hospitality industry without making a large capital investment.
Strong brand recognition: OYO Rooms is a well-known brand in the hospitality industry, which means that franchisees benefit from the company’s brand recognition and marketing efforts.
Operational support: OYO Rooms provides franchisees with operational support, including training, marketing, and technology support, which can help improve the performance of the partner hotels.
Access to technology: OYO Rooms’ proprietary technology platform helps franchisees manage their properties, including inventory management, pricing, and customer service. This technology platform is easy to use and helps franchisees streamline their operations.
Revenue sharing model: The revenue-sharing model is an attractive feature of the OYO Rooms franchise business model, as it allows franchisees to pay a percentage of their revenue to OYO Rooms, rather than paying a fixed fee. This model means that the franchisees only pay for the services that they use, which can help reduce costs and increase profitability.
Drawbacks of OYO Rooms Franchise Business Model
Limited control: The franchise business model means that the franchisee has limited control over their property. OYO Rooms sets the standards and guidelines for the partner hotels, which means that franchisees have to comply with the company’s policies and procedures.
Revenue sharing: While the revenue-sharing model can be an advantage, it can also be a disadvantage, as franchisees have to pay a percentage of their revenue to OYO Rooms. This revenue-sharing model can eat into profits, especially during periods of low occupancy.
Competition: The hospitality industry is highly competitive, and franchisees may find it difficult to compete against other hotels and hospitality chains.
Legal requirements: Becoming an OYO Rooms franchisee requires meeting certain legal requirements, such as obtaining the necessary licenses and permits. These requirements can be time-consuming and costly.
How to Become an OYO Rooms Franchisee
To become an OYO Rooms franchisee, potential investors must meet certain requirements. He first step is to visit the OYO Rooms website and fill out an application form. The application form requires basic information about the investor and their property, such as location, number of rooms, and amenities. Once the application is submitted, the OYO Rooms team will review it and contact the applicant for further discussions.
The OYO Rooms team will conduct a site visit to assess the property’s suitability for the franchise program. They will evaluate factors such as the location, infrastructure, facilities, and staff. If the property meets the company’s standards and guidelines, the OYO Rooms team will provide the applicant with a franchise agreement.
The franchise agreement outlines the terms and conditions of the partnership between OYO Rooms and the franchisee. It includes details such as the percentage of revenue to be paid to OYO Rooms, the obligations and responsibilities of both parties, and the term of the agreement. Once the franchise agreement is signed, the franchisee becomes a part of the OYO Rooms network.
After the agreement is signed, OYO Rooms provides the franchisee with the necessary training, support, and technology tools to manage their property. The franchisee is responsible for maintaining the property and ensuring that it meets OYO Rooms’ quality standards. The franchisee also has access to OYO Rooms’ customer support and marketing services, which can help them, attract more guests and increase revenue.
Conclusion
The OYO Rooms franchise business model has revolutionized the hospitality industry by providing a low-cost entry point for investors who want to enter the industry. The company’s unique franchise model has enabled it to rapidly expand its presence across the world, while providing operational support, technology tools, and brand recognition to its franchisees. While there are certain drawbacks to the franchise model, such as limited control and revenue-sharing, the benefits of becoming an OYO Rooms franchisee far outweigh the disadvantages. If you are interested in investing in the hospitality industry, becoming an OYO Rooms franchisee could be a great option to consider.