Business Model Canvas for Oyo Rooms: Analysis and Recommendations

Running head: BUSINESS MODEL CANVAS
Business Model Canvas
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BUSINESS MODEL CANVAS1
Executive Summary
This paper has presented an analysis of the business model of Oyo Rooms that have the
biggest chain of hotels in its list. The various aspects of the company are examined in this
report in order to gain a clear insight of how the business is conducted and with what
resources. Furthermore, the diverse degrees of coordination among the different building
blocks of business model canvas are also discussed in this paper. The end of the paper has
listed out some recommendations for the part of the company after examining its case and
limitations.

BUSINESS MODEL CANVAS2
Table of Contents
1. Introduction...........................................................................................................................3
2. Business model.......................................................................................................................3
2.1. Building blocks...........................................................................................................3
2.2. Interrelationship..........................................................................................................6
2.3. Critical success factors................................................................................................6
2.4. Downside risks............................................................................................................7
2.5. Business model changes..............................................................................................7
3. Conclusion..............................................................................................................................7
4. Recommendations..................................................................................................................8
References:.................................................................................................................................9
Appendices...............................................................................................................................10
Appendix 1:..........................................................................................................................10

BUSINESS MODEL CANVAS3
1. Introduction
Oyo Rooms is considered to be the largest branded network of hotels, founded by
Ritesh Aggarwal in the year 2012 (Sharma et al. 2017). It is at present operating about 1200
hotels in 337 cities in Nepal, China, India, Indonesia, Malaysia and UAE. The term “Oyo”
stands for “On Your Own”. It started off its business operation by “building its business
model around the “aggregator business model” and it used to organise the partner with the
hotels, the lease rooms and then sell them under its own brand.” However, recently it changed
its business model from aggregation to franchise. Though the process is still same, the
company has changed its route to a whole new structure. This paper shall elaborate on
presenting a brief overview of the business model of the company.
2. Business model
The main objective of planning a business model is improving and enhancing the
experiences that are given to the customers and clients of the business. It is to mention that
Oyo rooms are online platform for hotel bookings (Milicevic, Sofronijevic and Milosavljevic
2016). It is claimed to be the biggest hotel chains. It books hotel rooms’ inventory, maintains
tem and then rents them to the end users at a take-up rate. As per the year 2014, the revenue
of the company was 76162.90 dollars.
2.1. Building blocks
a) Customer segments
The customer segments that Oyo Rooms target two types of market segment- a) the
host and b) the guests. The hosts are the people who own a house and want to earn extra
money from them or to meet new people. On the other hand, the guests are the millennial
who love to travel and want to stay comfortably at cheaper rates.