Get a Free Consultation

Ready to start your brand journey?

Begin with a free consultation.

Full Name

Enter full name

Contact Number

Enter contact number

Enter valid contact number

Email Address

Enter email address

Enter valid email address

Thank you for your request. We will get back to you within 24 working hours

Book Now!
  • 14 Nov 2022

  • 14 Nov 2022

Oyo Rooms Business Model: Bringing Affordable and Trusted Accommodation

OYO Rooms was founded in 2012 by Ritesh Agarwal and is known as OYO Hotels & Homes. It is an Indian multinational hospitality chain of leased and franchised hotels, homes, and living spaces. It was initially associated mainly with budget hotels. It has around 1 million rooms across 800 cities in 80 countries, including India, Malaysia, UAE, Nepal, China, Brazil, Mexico, UK, Philippines, Japan, Saudi Arabia, Sri Lanka, Indonesia, Vietnam, and the United States.


Bringing affordable and trusted accommodation that guests can book instantly.

Founder - Ritesh Agarwal

Founder, Ritesh Agarwal,

Ritesh Agarwal always had the intention to start something of his own. Age does not matters if the person has the will to do something. Ritesh Agarwal started the company at the age of 18 years and took OYO Hotels & Homes to the peak of success.

Mr. Agarwal was born on 16th November 1993 in the town of Odisha. He completed his study at the Scared Heart School and went to Kota to prepare for the IIT entrance exam. He is the author of the book - A Complete Encyclopedia of Top 100 Engineering Collages. He has a deep interest in learning about different startups and businesses.

He was inspired by the business model of Airbnb, which is a San Francisco-based online marketplace and hospitality service brokerage company. In 2012, he started a private startup Oravel Stays, which was started with the motive to provide rooms to people at low prices. It was done online as well.

He has made very good planning to run his startup. The company used to book hotel rooms for the people but sometimes they did not use to get good services there. This brought great loss to it. Mr. Agrawal relaunched it as OYO Rooms by bringing some changes to it, which focused properly on the luxuries of the people along with the low booking prices of homes. The efforts of Ritesh Agrawal made it the largest hospitality company in India.

Products and Services

Oyo, Products and Services

Capital OYO

It is associated with premium hotels that provide premium services.

Vacation Homes

It shows its importance in being the 3rd largest vacation home brand.

Collection OYO

It is a category made for business travelers.


This helps to serve the specific requirements of corporate travelers.

OYO Townhouse

This is an advanced option as it targets millennial travelers who look for premium economy accommodations.


It lies with the upper-end leisure resorts category, where the people get the best experience.


It provides homes at an affordable price to millennials and young professionals.

OYO Home

It marks its attribute in being the first Home Management System of India which provides private homes, which are available in a wide locations.

Business Model

The company used to purchase some rooms from 1 hotel for 1 year, which has a low occupancy rate, because of this it used to get these rooms for less price. It then used to invest in these rooms and make them better, more comfortable, and luxurious and rent them out in the market for the customers.

It takes care of all the services of the customers. Its business was initially running at some limited places, due to which it was easy to give quality experience to the customers. But when the company started extending its hands to different places and cities, then it was unable to deliver proper quality services to the clients.

It used to deliver quality services in some places and very low services. The increase in the size and network of the company affected its quality. The business was not running in an asset light and was facing many other issues. Due to this, the business model was changed to a franchise model. Now it gives its brand to the hotel owners and trains its employees, and takes 15% to 20% commission, and sometimes even more than that. This business model proved to be better than the previous one.

Revenue Model

Oyo, Revenue Model

Mainly it earns revenue from a commission of 22% which it gets from the hotel partners. It also gets the revenue from the following ways -

Room Reservation Fee

The company takes this fee from the users, and from this, a percentage of the total fee is taken by it as the commission.

Membership Fees

It is paid by the OYO wizard subscribers who pay a fixed amount of money for premium services which is a good revenue source.


It charges fees for running ads for various companies and businesses on its platform.

Sponsors and Partnerships

For the promotion of its sponsors and partners, a good amount is charged by the company which brings a good source of revenue for the company.

Consulting Services

The organizations, clubs, hotels, and other clients of the company take help from the business consulting and data analysis services of OYO rooms and pay them in return.