How OYO company genius marketing strategy made it market leader in detail

How a 17 year old boy from a middle class family running a small grocery store in Odisha managed to establish Oyo company the third largest hotel chain business in the world within just five years of starting his business. How did they invest what is the logic behind this oyo company which was valued at 10 billion dollars in 2019 has fallen to 2.7 billion in 2022 what is the reason for reducing it to only 30 percentage I am going to say today that we all know that he started the company but at the age of 17 he has deep knowledge in hotel business but creative ideology but most of us do not know that he was born in a small middle class family in Odisha after completing his intermediate he wanted to go to America to study but due to finances it was not possible. Nitish is very fond of computer coding since his childhood. Ritesh Agarwal who was disappointed as his desire to study in the US was not fulfilled traveled to many places in India and found out about the model. It is very difficult to travel on a budget in India.

The reason is that there are many hotels that offer rooms at a low price but no one knows where they are and how to book them no so this is the problem already with this idea those who were very attracted to the business model of Air B and B company which is running successfully in America wanted to start the same system in India as well and this resulted in Oravel stay travels Station is an online hotel booking and information website. Agarwal has already provided rooms and booking details in every city in India. An airline company in America started it and ran it successfully so now Ritesh Agarwal has implemented the same idea in India. Since this is already a proven business he has come forward to invest so now his company valuation has increased and responsibility will also automatically increase. At the same time Ritesh Agarwal said that his business should not be limited to just an online website. Finally in 2013 Ritesh Agarwal changed the States to Oyo company. The business model is that most of the hotels in India are running at a loss. The reason for this is that some hotels are not making profits.

And they are not doing maintenance basic features like interior TV and WiFi are installed
Online booking options have been introduced and for providing this service the company takes 20 percent commission from the hotel owners on the room booking revenue. Just a few years after oyo started more than a few thousand hotels in India have contracted and done business with oyo so much so that in 2015 more than one crore rooms were booked on the website in just one month with thousands of hotels in Malaysia has expanded to more than 80 countries like Japan America and has grown to become the largest hotel in the old world who would have imagined that a 17 year old boy born in a remote area of Odisha would grow to the level of establishing one of the largest hotel businesses not only in India but also in the world when he was 20 years old. The story we have seen so far is very inspiring but all this is only on one side of the oyo company and now let us see what is happening on the other side.

Before the arrival of the oyo company in India no hotel would give a room to unmarried people. It started giving rooms to everyone without any restrictions many people in India are using oyo rooms for fraud and illegal activities including gang rape and drug deals. If you want to understand more the police department conducted an operation to catch the drug in oyo rooms in the state of Kerala and arrested 12 people who were doing truck deals in oyo rooms in a single day. In a city called Ludhiana in the state of Punjab a person named Kulwansingh booked 4 rooms in OU by paying 42000 and booked four rooms in oyo with his family. When he went to Oyo the hotel management threw the family out saying that no booking was done there they had no relation with oyo. When he called OYO customer care and asked for a refund only 14000 was refunded out of 42,000. It has decided to pay fine and immediately refund the amount due to the customer. This issue is not only in Punjab but in India more than a few lakh people are facing this problem they are booking rooms but when they go to the hotel.

They are not giving rooms not only customers even Hotels also filed a cheating case against the CEO Ritesh Agarwal and six board members of the company in 2019 after a Bangalore based hotel owner company did not respond to the payment of more than 35 lakhs. In fact many hoteliers in India canceled the companys contract saying that the oyo company is cheating by putting a high price in the hotel bookings and taking more than the 20 percent that it should take according to the agreement. If any hotel breaks the contract and comes out the contract will be broken but the oyo company will not remove the details of the hotel that broke the contract from their website and app, but will put it as sold out so due to this when I saw the profile of the investor in company I saw that many hotels are on hold and they are really struggling to invest in booking. Due to this secret strategy implemented by Oyo company on one hand the investors who are investing in the company are losing