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How OYO Uses Technology for a seamless customer experience

  • Neelam Tyagi
  • Mar 25, 2021
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Started in 2013, OYO was founded by Ritesh Agarwal and has its headquarter in Gurugram, Haryana. It has become the third largest growing-hotel network chain in terms of  leased and franchised hotels, homes & living spaces. 


It owns businesses- Oyo Townhouse, OYO Silver key, OYO We, OYO Take, OYO Life are among the different brands owned by OYO in around 10 nations.





In the hyper connected-era, OYO has touched the lives of people with a tech-driven hospitality business model. It is extensively adopting- evolving technology and expertise in order to render predictable, affordable and 24*7 stay experiences for anyone.


On the other side, in recent years, evolved technologies have brought revolutionary modification in the conventional mode of businesses across the globe. Consequently, these modifications have become the core factors to raise novel business models thoroughly counted on technologies.  


With the flow of trend, OYO has become an online corporator in the frontline that provides accommodation services via digital platforms such as websites and smart mobile applications.


Being on the same objective, today we will learn the tech-driven business approach adopted by OYO and the role of technology in business models.


Digital Strategy of OYO


OYO has threefold digital strategy


  1. Customer Experience

  2. On Ground Team/Employee Operational Efficiency, and

  3. Asset Owner Support. 


Being innovative with technology, OYO has the objective to upgrade an entire form of real estates and thereby present an excellent variety of living space for travellers around the world.


In order to make an efficient tech-empowered ecosystem, OYO has an in-house stack of proprietary technology powering applications for all stakeholders, assets owners and employees and customers.


In the current circumstances, the company uses various applications to enhance customer experience, for example, 


  • An app allows users to book a stay in OYO Hotels & Homes under five seconds,

  • OYO OS, that helps property managers to manage all aspects of the property,

  • KRYPTON, another app lets the company instruct auditors to conduct targeted audits.


Such audit based applications enables teams to understand the transformation necessity of a property and gives cost estimation, budget to assign tasks, and track the tempo of motion at which the progress is taking place. 


  • Co-OYO app that enables property owners to govern progress and access payment-related information in one place. 


By implementing Co-OYO app, property  owners can have whole transparency on cash flows, business performance, pricing, customer reviews and recommendations. 


The company has revolutionized the fragmented and legacy-driven budget hospitality space by empowering small and independent asset owners with the operational capabilities and technology that enables them to compete with big hotel chains and achieve higher occupancies.


The diagram below illustrates the Amazon Web Services (AWS) infrastructure at Oyo Rooms:


AWS infrastructure at OYO, source

These examples show how OYO is empowering the ground team via technology, and thus, by this way OYO is able to provide a standardized experience for travellers.


How OYO is Using Data Analytics, ML and AI


OYO has largely invested in technology for sustaining the pace with rivalries. It has an enthusiastic workforce who leverages technology to disrupt the hospitality sector. 


  1. Providing better customer experience


The company is using ML for managing dynamic price fluctuations and AI and NLP for helping customers and improving their experience. .


For instance, ML and AI are deploying to look at various metrics such as time of day, weather, location, local event to learn extensively about customer preference, what are their search results, etc. 


IoT is used for smart switches and smart lighting to significantly improve the guest experience, it also helps in determining ways to save electricity, enable unassisted check-ins with smart, maintain guest’s room temperature and lighting preferences that can be stimulated before check in.



  1. Ensuring data security


Each company emphasizes on customer’s data security and privacy and is committed to shield it, the same OYO does. 


The data is solely collected and implemented for improving guest experience and examining operational and business performance. All users data is protected using end-to-end encryption during transmission and at rest..


The security team of OYO incorporates in-house and external expertises who are using security techniques such as virtual private cloud-networks, firewalls, detection machine, interruption prevention. 


Besides it, security training is provided for all data experts, static and dynamic code analysis, constant vulnerability assessment, and network security tests are also practised for ceaseless functionality. 



  1. Benefits in pricing 


With the ML-enabled pricing and revenue management, customers can book their vacation at the pocket-friendly budget. OYO’s pricing, inventory allocation and revenue control, all are driven through machine learning based algorithms for the eventual prediction and dynamic pricing.


These algorithms analyze huge data points every hour and make pricing-decision everyday globally with high accuracy. For example, each asset owner can drive max RevPAR, relying on its micro-location that lets pricing adjust dynamically to supply and demand. 


Moreover, in peak timing, pricing adjusts for providing high RevPAR (revenue per available room), and in low timing, it went down but still allowing most of the customers to experience the product while expanding the overall yield (the combination of price and occupancy must be maximized) for owners.



  1. Payment facility


For instance, cash is the most preferred mode of payment in India while in other nations, customers do payment through some payment-mode applications, even using credit and debit card for the same according to localized mode of payment.


OYO has introduced a new geography feature that can easily integrate with local payment instruments with a minimum amount of effort. The technical based infrastructure is authorized to operate complete localized payments while providing optimum security and least transaction costs. 


Via providing a 24x7 customer-facing environment, OYO has swiftly adapted the new age technologies at its entirety. Barcodes, mobile payment and cloud-based technologies are replacing traditional modes of payment. 


They are removing cash deposit boxes or cash registers and any kind of physical payment option, and thus simply ensure secure payment, efficiency and transparency.



  1. Supply for quality space


A deep disruption is there amid demand and supply of good living space, travellers and city-tenants to compromise over location, quality and price. They choose the correct technology and talent to deliver predictable, affordable and anytime available stay for travellers.


In short, technology grants hotel management to add a linen, easy checking in of a guest, ordering food and anything else during the time of stay. 



  1. Explicit check-in and check-out


Oyo has its own proprietary hotel management system, OYO OS as it is known to provide hassle-free check-in and check-out. 


With OYO OS, each underlying hotel in OYO’s network works on OYO operating system, providing them forefront advantages with sophisticated features that covers express check-in, check-out and allows online acquisition and inventory management.




“The technology is at heart of OYO’s growth”


Technology remains the essence driver for growth and competitive advantage for OYO, it is constantly investing and experimenting with the newest technologies. It has used the technology in its every aspect of hotel business just to make it highly efficient. 


“Your brand reflects your culture, purpose, and identity. It’s never too early to start thinking about it.”- Ritesh Agarwal


In addition to that, OYO has also observed the tech-potential at the business development front. By understanding demand patterns and customers preferences, technology leverages the company to shape its future direction.

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