OYO Presented to: Jakayla Michel Presented by:

Transcript:OYO Presented to: Jakayla Michel Presented by::
OYO Presented to: Jakayla Michel Presented by: Jason Cline, Will Richardson, Carly Seneca, Caroline Wright C Carolina Consulting January 7, 2020 Key Question Should you apply for a job with OYO in the US? What strategy should OYO take in the US in order to be successful, profitable, and sustainable by their 2023 target? Reality Check: US hotels (even budget hotels) already have many amenities that made OYO attractive. US franchise models are different than in India and China because of the emphasis on brand The US market is much less fragmented than in India and China. 3 years is ambitious… 5 years is a more realistic target Executive Summary Problem Goal Alternatives Hurdles What strategy will be successful in the US market? Expand and establish brand presence and customer trust in the US. Aggregate Hotels Buy/Renovate Blocks of Rooms in Hotels Franchise Fully US hotels already have many OYO amenities Franchises in the US have a heavy focus on branding US market is not as fragmented as India & China Agenda Qualifiers to compete in US budget hotel industry The Story Goals & Objectives Key Stakeholders Definition of Success Achieving top-of-mind awareness status with tech-savvy, budget-oriented US consumers while providing clean beds, efficient technology, and a safe environment to all. Timeframe Key Highlights 6 years  1 room listing  1,000,000 rooms 5-19  Days to transform a newly acquired property 2.8x return  Price decrease 10%, 3x occupancy Decision Tree Decision Tree Operating Landscape Operating Landscape: Competition Competition Overview High Quality Low Quality High Price Low Price OYO Tru by Hilton Holiday Inn Express Extended Stay America Choice Hotels Days Inn Competition Overview Operating Landscape: Customer Customer Description Tech Savvy Millennial Travelers 18-35 years old Budget conscious shopper Mobile first data user Focused on experiences and adventures Budget Conscious Families 25-50 years old +2 children in HH Lower middle class background Service and experiences focused Operating Landscape: Company Internal Perspective Why We Lose Why We Win Limited brand awareness Limited market penetration Strong branded competitive market place Extensive data availability Well developed apps to support all key stakeholders Priced below key competitors to drive occupancy Decision Tree Alternative #1: Franchise Mom & Pops Seek out independent mom & pop owned budget hotels to franchise Will give small hotels more business and drive awareness Allows people to find quality stays that benefits individuals Easy to find franchisees Will improve