To apply or not to apply? To Jakayla Michel From

Transcript:To apply or not to apply? To Jakayla Michel From:
To apply or not to apply? To Jakayla Michel From Aalto HR Consulting Aalto University School of Business Executive summary Executive summary Key challenge: To apply for OYO or not? Market trends Company situation and prospects Your values and criteria Apply for a Business Development Manager position at OYO Agenda Trends in hotel business globally Middle-class expansion Increasing taste for business and vacation travel Millennials spending more money on experiences like travel than on goods and products Executive summary Analysis Alternatives Recommendation Conclusion Main outcome: Trends are in the favour of OYO Business model of OYO Hotels Transforming unbranded hotels through property renovations Up-fitting rooms and reselling Relying on software Using AI for dynamic pricing Currently the largest branded network of budget hotels Expanding aggressively: Asia, Middle-East and now the US Executive summary Analysis Alternatives Recommendation Conclusion Main outcome: Bringing transparency and a standard experience to budget travelers by utilizing AI Main outcome: Bringing transparency and a standard experience to budget travelers by utilizing AI Franchise model Started as partnering on a block of rooms Currently franchising fully with local hotel owners Upfront payment and commission Offers extensive training and support Better in managing inventory Fast to sign agreements with new partners using software Executive summary Analysis Alternatives Recommendation Conclusion Main outcome: Unique franchise model allows for fast growth and better inventory management Fast growth Efficiency by the use of its advanced technology Easy-to-use app interface Great word-to-mouth reputation Proved to rise occupancy remarkably Valued partner with hotels Scale allows for great partnerships within hotel industry Main outcome: Valued technology and expertise Strengths of OYO Executive summary Analysis Alternatives Recommendation Conclusion Main outcome: Business model hasn’t resulted in profits Challenges of OYO Criticism towards the founder Is not profitable Price differentiation within other rooms at the same hotel has created conflicts Executive summary Analysis Alternatives Recommendation Conclusion The US hotel market and competitors Growing for the past 10 years Currently the fifth straight record year for hotel occupancy (66 %) Branded hotels control over 71% of the hotel market Different existing approach to franchising Executive summary Analysis Alternatives Recommendation Conclusion Main outcome: US market and competition differ greatly from established business Agenda Alternatives Executive summary Analysis Alternatives Recommendation Conclusion Apply for a job Don’t apply for a job 1 2 Pros and Cons from you + Company success + Dynamic environment + High level of responsibility + Access to international