OYO goes best in search of profits

The online aggregator of hotel rooms OYO is staring at the market share of three- and four-star properties, a segment where competition is intense.

The USP of Oyo Rooms has been its low tariff.

That however was a hurdle for the company.

Analysts comment that Oyo must raise the tariff to become profitable.

The company is now trying to strike a balance.

It is keen to tap high-value travellers for its premium services, a category which is expected to fetch higher returns than the regular rooms.

It has brought on board boutique hotels and service apartments, a segment that is growing at a fast pace in India.

The new category is called Oyo Flagship and will be targeted at those who are willing to stretch their budget for more than just the basic comforts.

Oyo plans to take some of these properties on lease and some on a revenue-share model.

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