Oyo – the Brand, the Standard, the Emotion & the Experience

Oyo – the Brand, the Standard, the Emotion & the Experience

 The Brew of the day is for Oyo
Type: Served Hot – Disrupt and Transform brew.

The Brew will analyze Oyo on the following points:
Business Model Analysis (& Improvisations)

a) Business Model Analysis:
Oyo – This definitely has been a long awaited of the brews, attributed to 2 definite reasons – Business Model of Oyo itself has seen numerous tinkering till this time, an aggregator of standardized budget hotels earlier to country’s largest branded network of hotels, and, at The Brew, our convictions to contribute at Fundamental level of Business Model improvisation have now matured to be penned to words.

In what follows, The Brew believes that it’s equally time now for it to mature from a Brand to a Standard, Emotion and ultimately Experience.

a) Strong Sense of Purpose: The beauty of Oyo’s current business model is it’s Purpose – India’s largest branded network of hotels is actually a byproduct of the fundamental grass-root problem of Standardisation, a huge challenge cos there is lack of predictability in hotel stay experiences. In the land which exhibits an exponential kaleidoscopic diversity in culture, lifestyles and experiences - the traveller’s woes of nightmarish encounters are not at all uncommon, where contrary to promises, guests arrive to unassuming decrepit buildings, missing signage, torn mattresses, cranky air-conditioning, non-acceptance of credit cards etc. On the other hand, when all these things are present, affordability goes for a toss. Oyo aims to solve the fundamental problem of assembling standardized experience matched with affordability at grass-root level.
By enabling these solutions of standardizations to service providers, Oyo unlocks humungous value for entire ecosystem which otherwise if not done, would have resulted in to addition of either/both, redundant capacities, increased pricing with higher skewedness. It’s a Value unlocking Solutions approach, which makes Oyo all the more successful. However the proof the pudding in terms of metrics will remain on 3 major aspects –
a) Consolidated Value that Oyo can create for the Service Providers for them to stick along.
b) Incremental Benefits (as against other discovery aggregators) that Oyo can derive, discretionary to it’s pass through to the consumers
c) Unit economics of Customer acquisition v/s. Economic Gains (either in surplus value or repetitive purchases) v/s. Lifetime value (elaborations in point c)

b) Core Competence: Post solving the problem of standardization, what remains to be known is the decision to select a particular option, and hence Oyo should ideally see itself as a Decision & Data Science company, putting it’s efforts to focus on the understanding the psyche of consumer and the predictability to decision. Oyo, predominantly operates at the intersections of Technology, Data and Innovation – where Standardisation plays out to be a Industry level Disruption. It should continue to operate on this trajectory on both, demand and supply sides.

Oyo should see itself as an Ecosystem company unlocking value in fragmented hospitality industry; standardizing (enhancing) the service expectations, and disrupting consumer decision-making process (Refer Point c)

Along with it, Oyo equally has a potential to establish an Enablement Competence (Refer point e).  

c) Moving from the Brand Oyo to Service Standard Oyo: Disrupting the Decision Making Process altogether.

Having established the expectation for Standardized experience with brand Oyo, folks at Oyo should equally be focused on taking it to the next level, transforming this to a Service Recognition Standard. The difference, that latter being Service recognition standard (similar to the Ratings or Stars concept practiced in the Industry but more dynamic, focused on Service-ability and mapped to Oyo audits, consumer ratings) is a perceptual conformance to accepted norm of an industry practice across the ecosystem. Resting completely on the psyche play of the consumers with focused themed efforts, the Oyo-fication of hospitality sector is ideally what Oyo should aim for next.

And this is where the magic actually happens - a chance to disrupt the Consumer Decision Making process by simply making a decision basis parameters of Price and Oyo Service Compliance, as against the existing practice today, where Consumer’s decision making process is still complex by checking out reviews, verifying and validating the pictures, it’s ratings etc.

With disruption in Consumer decision-making process limiting it to simply 2 parameters of Price and Oyo compliance, it works as a win-win for entire ecosystem, syncing well with Oyo’s competence - Technology, Data and Datascience approach. With it, Oyo has capability to normalize/impact the topline directly basis it’s Compliance ratings on which Service Provider should a Consumer get booked with and linking the Service Standard Compliance directly with Revenue generation. To say the least, it changes the dynamics of entire ecosystem at a design level with right parameters being accounted for.

d) Maturing from a Service Standard to an Emotion: If service standard meant the Oyo-fication in hospitality, establishing the differential standards, Moving from Service to an Emotion is a successful fulfillment of expectations amplified and savored by emotion, with value added services of Oyo, more on the lines of Consultant Concierge, creating the special moments over the entire experience value chain, requiring Oyo to be an End to End Solutions firms.

While making people happy is definitely an ambitious ask, but adding a personal touch to the competence can definitely get Oyo higher stickiness along with ability to understand & validate the decision making process of the consumer, strengthening the basic premise of Oyo competence.

Oyo, being a Value Unlocker, along seeing decent traction on points c and d, has potential to disrupt the fundamental equation of hospitality industry – a potential to introduce Subscription based (not limited to Corporate segments) – effectively meaning encouraging more of Oyo stays, introducing the behavioral change on the consumer side of driving higher Out of Home experience leading higher utilization paving way for inducing higher fidelity and loyalty to the service standard and emotion.

d) Enablement Competence: While playing with it’s Core competence of Tech, Oyo equally has a strong Enablement competence to fulfill the purpose of standardization – of mass procuring the needs of Hospitality sector over a scale realizing better economies to the service providers. Equally, with Tech competence, Oyo should explore getting in to Platform offerings, which can form a part of End-to-End Solutions offering for entire Ecosystem. If the inspirations are for being an Ecosystem offering, then it can equally explore affiliations with other business models of service standardization more aligned to human capital trainings.

e) Concept Extensions: With deep value realisations in Hospitality sector in core domain, Oyo can equally explore alternate monetization models for the sector with pilots on Food-Tech services, with Oyo extending the concept of Standardisation principle in these offerings. 

f) Building an Organisation: With Oyo on a High Impact – High Growth trajectory, equally with a potential to disrupt the ecosystem, it should equally focus now on transforming itself from a Startup to Organisation with increased focus on mechanisms of institutionalization, governance for Operational Excellence, People Strategy & Human Capital, Collaboration, Innovation, Culture & binding all of this to Oyo’s Purpose, Business Model and Organisational Strategy. 

From diagnosis perspective, The Brew would require your inputs on key Organizational Behavior to arrive at the road-map of Organisation Building – Click Here for further understanding on Org Effectiveness and to relate further to it's application at Oyo.

Please drop your comments, reach out on [email protected]

(Disclaimer: All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.)