Business Model Of OYO Rooms – How Does OYO Make Money?

This article is on the Business Model of OYO Rooms. We will discuss in OYO Rooms Business Model in this article and how it can offer so many benefits to people who need it.

First of all, it is important to determine that accommodation is one of the most important things people continue to talk about these days.

So, this is where OYO Rooms seem to be a great help for sure.

business model of oyo rooms

Well, these OYO Rooms are the ones that people tend to use most of the time to make their stay bookings and so much more.


Let us now look at the introduction to the OYO Rooms Business Model –

Introduction to the Business Model of OYO Rooms

Established in the year 2013, Oyo Rooms is one of the third largest hospitality chains. The Business Model of OYO Rooms revolves around leased and franchise hotels, living spaces, and houses.

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The full form of OYO Rooms is Your Own Rooms. The company was founded by Ritesh Agarwal and at the beginning; it consisted only of budget hotels, but now, in the next six years, the company enjoys a global expansion with multiple holiday homes, hotels, and rooms in different cities in countries such as-

  • India’s
  • Malaysia’s
  • UAE
  • Nepal
  • Philippine Islands
  • China’s
  • UK
  • Indonesia’s
  • Japan’s
  • Arabia of Saudi Arabia
  • Vietnam, Vietnam
  • The United States, and so on

Know More About OYO Rooms

When we speak about the branded networks that are currently offering services to people, there is no question that Oyo Rooms is one of the names that comes to mind for sure.

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There are more than 450000 listings in OYO App.

The site and also the company’s branches are located in a total of 5000 cities. It can be said, therefore, that the organization has been delivering much of the services to the people who need it, and so much more.

During the past, the organization was responsible for coordinating some of the people with the hotels and even providing certain rooms for those who made the bookings. However, for sure, the brand was their own.

The process remains the same at present, but the Business Model of OYO Rooms has changed a little. That’s why we’re going to have a little chat about it in the best way.

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This article will definitely help you understand the Business Model of OYO Rooms and how it provides the same quality of services to people.

You’ll also get to learn how the company can make the money while preserving the reputation of the brand that it has among the people. There are partners in the company who are helping to provide some services, and we’re going to know a lot about them, too.

Oyo Business Model ‘s customers are business travelers, family travelers, leisure travelers as well as adventure travelers.

Let us now look at the products and services of the OYO Rooms Business Model- 

OYO Rooms Business Model

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1) Townhouse of OYO:

This is advanced as a neighborhood hotel in the mid-scale segment that is used to target millennial travelers looking for premium economy accommodation.

2) Home OYO:

This is understood as India’s first home management system that provides OYO-managed private homes and is available in a wide variety of locations.

3) OYO Holiday Homes:

It is considered to be the 3rd largest holiday home brand, which is very close to the world’s top holiday rental management companies.

4) Silvery:

This one is useful in meeting the specific requirements of corporate travelers on business trips of a specific duration.

5) OYO capital:

This one deals with luxury hotels, which are also located in prime locations. Such hotels offer OYO quality-assured experience at the most reasonable prices.

6) Palette:

This one belongs to the category of top-of-the-line leisure resorts and is best suited to those who are looking for an intuitive experience at the right prices.

7) Collection O:

If business travelers are looking for accommodation tailored to their needs, this section of the Oyo Business Model is designed to cater to their needs.


It is designed to target millennials and young professionals looking for well-managed homes at affordable long-term rental rates.

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Working of the Business Model of OYO Rooms

Before you have any idea about the Business Model of OYO Rooms, it is important to know what it is in the first place. Here we’re going to talk a little bit about that, so you can appreciate it.

We need to know whether it’s a franchise or an aggregator, too. That’s why we’re having a gentle talk about it in the best way possible.

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It can be said that the Business Model of OYO Rooms is something that can be considered a proper hotel aggregator.

The identification of some of the investors, as well as hotels, is not really the primary focus of the business as a whole. There is absolutely no chance, therefore, that the Business Model of OYO Rooms is fundamentally a little different from the rest.

Customers are in a position to buy the facilities they have and they will definitely be the ones that contribute to the OYO Rooms Business Model.

So, when it comes to understanding the Business Model of OYO Rooms, it can be said that the concept is essentially a franchise model, along with the aggregator model.

The brand value of the company here at OYO Rooms is something that is developed with the franchise option and hence it can be said that the Business Model of OYO Rooms is a blend of both business models.

It is one of the most important things people really need to bear in mind so that they can get a clearer understanding of it.

A mix of Aggregator and Franchise Business Model of OYO Rooms

To describe the Business Model of OYO Rooms, we’re going to talk a little bit about it, so you can have an idea for sure. This is something that can be called an aggregator model as well as a franchise model. There are certain approaches that are definitely included in the business model.

Their people will be able to lease some of the inventory provided to the users by the hotel. There are also several organizations that would be able to deliver coordinating services to people in the best way to be sure of that. There are also other partner hotels where people can stay during their vacation.

When it comes to making bookings, they are essentially made with the official application or the website of the OYO Rooms, which is an important information to remember for the people.

Channels used for channeling OYO Rooms Business Model are both a company platform and a web application.

Partnership Model for OYO Rooms

As far as the relationship model of the OYO Rooms is concerned, it can be said that certain hotels and other franchises are included in the OYO Rooms lists. There are several hotel rooms that people can quickly book so they can live there.

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The business is able to make some money with the aid of the booking fees that people choose to pay when they stay in the OYO Rooms hotel listings.

This is one of the most important aspects of the OYO Rooms Business Model that people need to learn about. Some discounts and other offers are also given to the customers. With the support of a range of other facilities, such as OYO House stays, OYO Flagships, OYO Wizard and more, the company is in a position to earn revenue.

Let us now understand How does OYO Make Money?

How Does OYO Make Money?

The key revenue generation of OYO Rooms is based on the 22 percent commission it receives from its hotel partners.

In addition to the commission, the OYO Rooms are making money from-

1) Fee for Reservation  of Rooms:

Users pay the reservation fee to OYO Rooms, from which a fixed percentage of the total fee is paid to OYO Rooms as a commission to help them make good money.

2) Fees Membership:

OYO wizard subscribers are paying a fixed amount of money for premium services that also act as a revenue line for OYO Rooms.

3) Advertising:

The advertising fee is charged to OYO rooms for running ads from different companies and businesses on their platform.

4) Sponsors And Partnerships:

In order to support its sponsors and partners, OYO charges a fixed amount of money that plays a key role in generating revenue.

5) Consulting services: 

Specific clients of OYO rooms, such as companies, clubs, hotels, etc., take advantage of the business consulting and data analysis services of OYO rooms and pay OYO rooms in exchange.


So, these are some important information that you need to know about the OYO Rooms Business Model. We hope this article has been helpful to you.

OYO Rooms Business Model has certainly reformed the hotel industry in India by offering highly personalized, fast, mesh-free, affordable, and well-organized services to allow travelers to enjoy their stay away from home.

So, how successful are you finding the OYO Rooms Business Model? Have we skipped some main feature of the OYO Rooms Business Model? Share with us in your email.

Oyo Rooms are Well Santaized and cleaned to make it Virus Free and People can have safe stay with OYO Rooms. The business Models of OYO Rooms are ready to work best after the COVID Period.

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