OYO Hotels & Homes, South Asia’s largest, China’s second largest, the world’s third largest and fastest-growing chain of leased and franchised hotels, homes & living spaces, announced that it has already dispensed over INR 45 crore under its recent Cash in Bank initiative for supporting hotel owner success and customer satisfaction through quality upgrades and renovations. In a related move, about 1,000 building owners in its chain have been penalized for not adhering to required quality norms for an elevated customer experience and over 9,000 have been awarded under its incentive program. OYO sees the industry’s leading service quality in segments and brands it operates.
The penalty imposed on building owners is a result of a comprehensive 3C evaluation programme for all the 10,000+ hotels that are part of the company’s growing India & South Asia network. The 3C score of a building is a strong determinant of the building owner’s and OYO’s commitment to meeting standards and thereby delivering great occupancy and positive recommendations. With utmost conviction towards delivering high-quality accommodation to our customers, any building which does not maintain the necessary 3C level is churned out of OYO’s system. The company’s focus on ensuring a consistent service delivery across its hotels will be relentless in the coming months.
Overall, OYO’s annual retention is as high as 99.5% across the chain in India & South Asia. On an average, over 75% of hotel owners associated with OYO have seen an increase of almost 3X+ in occupancy, a 2.5X jump in RevPar and a significant jump in profit. Partnering with OYO significantly improves the quality of the standalone hotel and improves occupancy from 25% to 75% on an average within just 3 months, increasing the yield on underutilized assets. It is important to note that OYO hotels is focused on delivering consistent quality of service in South Asia and the world and hence takes certain tough decisions from time to time to aid building owner growth and customer experience success which includes willingness to churn out certain assets.
Commenting on the development, Ayush Mathur, Chief Supply Officer, OYO Hotels & Homes said, “We have undertaken a series of measures to enable building owner success and have already invested over thousands of crores in capex, appointed hundreds of GMs to oversee operations and customer experience. The best building owners that work proactively with OYO on improving customer experience enter a ‘virtuous cycle’ that ensures that growth fuels growth. It is our sincere effort to ensure that all our building owners enter such a growth cycle wherein performance leads to good customer feedback which in turn leads to better rankings which fuels more occupancy leading to better returns which in turn leads to investing back into performance with CapEx and expansion.”
With the launch of OYO Partner Engagement Network (OPEN) in April, the company had committed to elevate engagement and support the Indian building owner community in every possible way. The launch of Cash in Bank (CiB) facility in May was the second big initiative under the year-long OPEN programme and an industry-first initiative through which OYO provides business advances for renovation and upgradation to building owners in the form of easy to avail, hassle-free and collateral-free trade advances within 48 hours. This further helps building owners to create a never-seen-before “Chic, Pop, Energetic” look and feel that can further help them improve the guest experience and enhance the business from customers.
Durga Prasad Pattanaik, OYO Hotel owner in Bhubaneswar said, “I started my first hotel Railview in May 2017. Initially, the occupancy at my hotel was low due to lack of marketing and operations support on-ground. Then I partnered with OYO in September 2017. The entire OYO team helped Railview in all aspects – operations, guest service, laundry set up etc. The occupancy level gradually picked up to 100% by December 2017. Then the Average Room Rate (ARR) slowly increased from INR 1300 to INR 1700 along with consistent occupancy. Currently, I am happy to share that 30 out of the 40 rooms are occupied by repeat customers.”
Notably, over 90% of business at OYO hotels in India are being generated by the repeat, direct or word of mouth customers. What makes this possible is the continued joint commitment between OYO and its building owners to uphold the high-quality service levels and benchmark customer experience and focus on delivering the best quality of experience. As the biggest hotel chain in the country, the focus on customer experience and investments on capex and service will be at the heart of OYO’s enduring promise to its 20 million+ customers in South Asia.
";
.jpg)