OYO was turned down twice by investors
It is hard to imagine that Oyo, one of the hospitality giants in the country was once turned down twice by investors. It wasn’t much of a market leader back then and was merely the ambitious idea of Ritesh Aggarwal, a 19-year-old entrepreneur. Fast forward a couple of years and now the simple concept has evolved into a startup leader worth over $5 billion. The company has raised so much capital that it accounts for more than 92 per cent of the market’s total funding in hotel startups.
75000 Rooms added every month!
Oyo hosts guests from all over the world in over 20,000 franchised and leased hotels and over 700,000 rooms. 75,000 rooms are added every month and this can only be attributed to the company’s innovative technology which has made it the behemoth it is. The company has further widened its horizons by diverting its focus on working spaces as well. The company’s major unique selling proposition is that it offers a variety of rooms coupled with user-friendly facilities such as free wifi, clean linen and an app-based concierge. However, the company’s takeover of the market doesn’t mean that investors are solely focused on it and are ignoring other startups.
Oyo’s distinctive features set them apart from the existing companies.
Investors have been identifying other startups focused on hospitality ever since 2007 because of a number of problems that arose within the space due to distribution concerns and inefficient resource management. This has created the availability of new substitutes within the existing market space, which are drawing in tourists craving unique and experimental travel experiences. There are plenty of examples of up and coming startups that are challenging the practices established startups like Oyo have codified and popularised. These smaller startups have their own distinctive features that set them apart from the existing companies in the space and are slowly making their way up the market ladder.
PickYourTrail has declared itself an Oyo rival.
Chennai-based PickYourTrail has declared itself an Oyo rival from the consumer’s perspective. It mainly concentrates on helping customers customize their vacations based on individual preferences. Unlike other industries such as food and travel agencies, the vacation market does not prioritize winning and places the utmost importance on the ultimate customer experience. The CEO of the company, Hari Ganapathy believes that the presence of the company in the industry can quickly shift consumer behaviour due to the range of choices offered to them.
Source – Google Search
There are many lingering issues prevalent in the market mainly due to the huge disparity between demand and supply of quality accommodation. This is forcing tourists and travellers to compromise on vital factors such as location, quality and price. On the more positive side of things, these problems could be a sign of hope for budding companies that are looking to catch their break in the industry and translate into golden opportunities for them to succeed.