–News Direct–
Global travel technology company, OYOs US operations reported that it has outpaced the budget hotel industrys per room revenue (RevPar) growth in 2023. While OYO's per room revenue witnessed a ~17% growth in 2023, the budget hotel segment in the USs per room revenue saw a 9% decline y-o-y in 2023, according to STR report.
OYO has also witnessed above average growth in certain markets like Pennsylvania and New Mexico, where per room revenue has improved by more than 25% in 2023. Other states such as Oregon and Washington have seen a jump in Used Room Nights by approximately 25%. Occupancy rates across OYO hotels in the US surged ~9% y-o-y in 2023, whereas Average Room Rate (ARR) recorded 7% growth in 2023 as compared to 2022.
Talking about the development, Gautam Swaroop, CEO-OYO International said, Despite broader market challenges, OYO demonstrated resilience in 2023. By focusing on our core markets, driving operational efficiency and leveraging on our tech and data, we have been able to show growth in revenue for hotels owners' part of the OYO network in the US.
Dilip Narendrabhai Patel, the owner of OYO Blue Jam Motel Salem, who has been part of OYO since April 2020 said, We have seen consistent, sustained growth in revenue for our hotel in Washington DC. Our hotels have been showing 28% growth in 2023 alone (vs 2022) and OYOs tech integrations and innovations have simplified the way we work and has brought efficiencies across board.
OYO offers hotels access to a large base of regular customers through its app and website, and lists hotels on multiple Online Travel Agents (OTAs) to boost booking demand and revenue. OYOs best-in-class Artificial Intelligence-enabled pricing software automatically drives the best booking prices across all channels, based on room type, seasonality and other factors, therefore, enabling such an increase in online revenues.
OYO has started offering hotels the flexibility of not having to invest heavily in redoing the hotel to join the OYO platform, something that other budget hotel chains insist on. Therefore, the initial investment to join OYO is minimal. It has been focusing instead on standardizing service led components such as customer support and booking experience.
OYO helps ensure great experience for customers, with ease of search and a quick booking experience, highly competitive room prices as per market demand patterns, automated tools such as Artificial Intelligence powered chatbots to quickly resolve customer queries, loyalty programs and easy refund, if needed.
OYO recently announced that it has partnered with Stripe to ease the payment experience for its customers and hotel owners in the US. The integration will provide hotel owners with a flexible and seamless solution for in-person payments with Stripe Terminal at their hotels. OYO hotels in the US will also be enabled with real-time payouts through Instant Payouts with Stripe, which will improve their cash flow.
OYO also announced the launch of a virtual front desk solution for its partner hotels in the US. The self check-in technology is integrated with smart lock systems, allowing guests to enjoy keyless entry and exit without the need for physical key cards. Round-the-clock virtual front desk powered by ChatGPT reduces front desk operations expenses by ~60%, saving an average OYO hotel ~$30,000 annually. The virtual front desk supports 80+ languages and promptly assists guests in their preferred language, addressing queries and concerns in real-time. Additionally, the system automates payment collection, streamlining the entire process for a hassle-free experience. ChatGPT4 also analyses guest preferences to provide tailored recommendations for activities, dining, and local attractions.
OYO has presence in over 35 countries globally. It owns a vacations home business in Europe called OVH (OYO Vacation Homes) which operates legacy brands such as DanCenter and Belvilla.
About OYO: OYO is a global platform that aims to empower entrepreneurs and small businesses with hotels and homes by providing full-stack technology products and services that aim to increase revenue and ease operations; bringing easy-to-book, affordable, and trusted accommodation to customers around the world. OYO offers 40+ integrated products and solutions to patrons who operate over 168,711 hotel and home storefronts in more than 35 countries including India, Europe and Southeast Asia, as of September 30, 2022. For more information, visit here
Disclaimer: Oravel Stays Limited is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its equity shares (the Equity Shares) and has filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
The DRHP is available on the website of SEBI at www.sebi.gov.in, websites of the Stock Exchanges, i.e., BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com, respectively, and is available on the websites of the Global Coordinators and Book Running Lead Managers, i.e., Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited and Citigroup Global Markets India Private Limited at www.investmentbank.kotak.com, www.jpmipl.com and www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm; the websites of the Book Running Lead Managers, i.e., ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited, JM Financial Limited and Deutsche Equities India Private Limited at www.icicisecurities.com, www.nomuraholdings.com/company/group/asia/india/index.html, www.jmfl.com and www.db.com/India, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, refer to the Red Herring Prospectus which may be filed with the Registrar of Companies in the future, including the section titled Risk Factors. Potential investors should not rely on the DRHP filed with SEBI for making any investment decision. The Equity Shares offered in the Fresh Issue (as defined in the DRHP) and the Offer for Sale (as defined in the DRHP) have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act) and, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are only being offered and sold (i) within the United States only to qualified institutional buyers (as defined in Rule 144A under the Securities Act) in transactions exempt from, or not subject to, the registration requirements under the Securities Act, and (ii) outside the United States in offshore transactions in reliance on Regulation S under the Securities Act and pursuant to the applicable laws of the jurisdictions where those offers and sales are made. There will be no public offering of the Equity Shares in the United States.
Contact Details
Anupriya
+91 97911 63065
Company Website
View source version on newsdirect.com: https://newsdirect.com/news/oyo-us-outpaces-industry-clocks-17-growth-in-per-room-revenue-in-2023-747509786
OYO
COMTEX_449552507/2655/2024-03-20T10:58:48
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Atlas Story journalist was involved in the writing and production of this article.