The budget brand hotel aggregator brand, OYO rooms has very recently announced the launch of Townhouse which looks to create better value and caters mainly to the premium and mid-market segments. The founder and CEO of OYO rooms, Ritesh Agarwal has also put up a post across social media confirming the same along with a few pictures of townhouse properties.
As per the reports, there will be almost 250 categories and more than 10,000 rooms in cities which will be a part of the OYO townhouse project. The main idea behind launching this proposition is to create value for the customers.
OYO’s previous ventures
Earlier in 2016, OYO had launched the OYO Captain which was a personalised concierge service in budget hotels and had gained funding from Softbank for the same. However, OYO agreed that they needed to learn a lot which is why the brand introduced the “relationship mode” on the app.
“Over the course of time, as they analysed guest feedback, they found that couples were likely to face inconvenience at the last minute, on account of hotel policies not being communicated to them earlier.” -Kavikrut, Chief Growth Officer of OYO
Previously in May, OYO rooms had shared a statement which claimed that OYO had reached its unit-level profitability which means OYO rooms made profit on every room sold.
“Our team has delivered a fifteen fold year-on-year growth, with 2.3 million booked room-night transactions in the first quarter of 2016.” –Ritesh Agarwal, Founder and CEO of OYO Rooms
Competition faced by OYO rooms and how the Townhouse will benefit the brand
Thus, the launch of an entirely new segment, namely the Townhouse is an effort to improve OYO’s customer service experience. OYO realised the importance of customer services and experience and these two parameters are what make or breaks your mage in the hotel booking space which is why it is expanding its services.
OYO was one of the first players in the budget hotel category but in 2016, the brand faced very stiff competition from Airbnb, Zo rooms, Zip Rooms, Stayzilla and Paytm (which has started offering hotel rooms very recently).