OYO Hotels Dominating the US market Goodman School

Transcript:OYO Hotels Dominating the US market Goodman School:
OYO Hotels Dominating the US market Goodman School of Business – GSB Consulting Jason Wagner Presented to: OYO Hotels Anna Puneet Piash Saha Problem Jakayla Michel How could OYO Hotels make money charging these rates? What if OYO Hotels was just burning through its venture money? Was this business model sustainable? Would it translate to the American market? Does OYO’s Hotel strategy make sense? What challenges does OYO Hotels face, how could it overcome them? Was this business model sustainable? Would the business model translate to the American market? Problem OYO Hotels Recommendation Aggressively target the 18,000 unbranded hotels Develop UVP to facilitate adoption. Loyalty program and experience. Analysis Key Takeaway: Different customers and different needs; UVP of Asia and Pacific is not enough Analysis Key Takeaway: Segment of 29% in the US market that needs your UVP Analysis – competitive environment Chain Hotels: Marriot lower end brands Virgin Hotels Citizen M Hotels Non chain: Air BnB BnB Expedia and Booking promoted Analysis – Strategic map Analysis – target market Analysis – key success factors Revenue $ Occupancy % of hotels RevPAR of hotels Consumer Perception of the Brand Number of Franchisees Quality control Analysis take away Lucrative US market Must target 29% of non chain hotels UVP worked in India, but will it work in the US Must develop UVP How? We will tell you Alternatives Alternatives – OYO Rooms Model Decision Alternatives – Work with large chain Alternatives Alternatives – Franchise model with unique Value proposition – Small Unbranded Hotels Alternatives Decision Financials Assumptions Financials Assumptions Financials Implementation What: Partner with WestJet Why: Low cost Market Millennials Brand Association Implementation - timeline Q1 Build team Open lines of communication with WestJet Q2 Role out vouchers and online coupons APP Q3-Q4 Analyze results Short Term – Year 1 Implementation What: Franchise deal with 1800 hotels (5 each day) in 35 USA cities Why: -Exponential growth - Create Value and business for hotels Implementation - timeline Q1 Build Team Short down hotels Training Q2 Conduct Hotels Pitch value propostion Q3-Q4 Get Franchise Quality control Short Term – Year 1 Risk and Mitigation Key Take-Aways