Difference between working business model of OYO ROOMS and AirBnB.pptx

Difference between working business model of OYO ROOMS and AirBnB

1. Difference between working business model of OYO ROOMS and AirBnB By-Tushar Kumar BTECH/10218/20

2. Overview Founded Founder Valuation No. of accomodation 2013 Ritesh Agarwal $8 Billion (as of August 2020) 23,000 Hotels 46,000 Vacation Homes 2008 Brian Chesky, Nathan Blecharczyk and Joe Gebbia $18 Billion (as of April 2020) 2.9 millions Hosts

3. Value Proposition Host Guest Host Guest Hassle free hotel booking Affordable prices for shorter stay in hotels Standardized customer experience Enables travelers to rent private homes all over the world Affordable price for longer stay AirBnB is great for getting a taste of the local scene Channel management Revenue management Dedicated oyo partner to help improve guest experience Host protection program to support during incidents of property damage High guest standards

4. Customer Segments Oyo has served over 180 million customers in 2019. The customer segments of Oyo include: Adventure Travelers Leisure Travelers Family Travelers Business Travelers The customer segments at AirBnB are wide and categorized in the following: Hosts Guests And they are further categorized based on preferences such as: By Type By Location By Price By Space By Amenities By Experience

5. Operations Partnering with hotels Asking them to operate as a franchise Sell their rooms to customers at competitive prices OYO uses the Franchise Business Model AirBnB uses the Platform Business Model host list their property that the want to rent out Host sets the available dates and rent price Guest discover and book according to there requirement

6. Funding Total Funding Amount $3.4B Total Funding Amount $6B Incubator Venture Capitalist Debt Private Equity ------------- $2.75B* $206.7M* ------------- $20K* $1.55B* $2B* $1B* * Public ally Avaliable D ata

7. Revenue Stream Commission from hosts- Every Time someone chooses a host’s property and makes payment, Airbnb takes 10% of the payment amount as commission. This is one of the components of Airbnb fee structure. Transaction fee from travelers: When travelers make payment for stay they are charged a 3% fee for transaction. This amount adds to the Airbnb revenue. Commissions- 22% of commissions every month from hotels owner Room Reservation Fee- 10-20% commission from room price, and that is their actual revenue Membership fees-Users who subscribe to Oyo Wizard memberships are charged with premium fees ranging from Rs 500 to Rs 3000. Consulting Services-Oyo charges for its business consulting and data analysis services

8. Expenditure Stream Platform Partnership Customer Experience Sales & Marketing Recruitment Business Growth Communication  Platform development and maintenance cost Infrastructure Cost Sales and marketing cost Customer Acquisition Cost Employee salaries Cost of capital Development and maintenance Credit card processing fees Insurance cost Legal and administrative cost Regulatory cost

9. Channels The channels of Oyo are: Website and mobile application Blogs Social media networks like Twitter, Facebook, and Instagram Neighborhood hotels Student organizations The channels of AirBnB are: Airbnb platform (website and app) is the primary channel through which Airbnb delivers its services to its members. Platforms like content marketing, media coverage, digital ad campaigns all help to drive the force of interested hosts and travelers alike to Airbnb platform.

10. Bibliography https://www.oyorooms.com/officialoyoblog/2019/07/12/we-are-now-the-worlds-third-largest-hotel-chain https://www.stratosjets.com/blog/airbnb-statistics/ https://www.flaticon.com/free-icon/guest_185538 https://bmtoolbox.net/stories/airbnb/#:~:text=Value%20Proposition%20%26%20Customer%3A,access%20to%20renting%20private%20homes . http://expertworldtravel.com/hotel-hostel-airbnb-best-option/ https://partner.oyorooms.com/in?utm_source=Google_High&utm_medium=Brand_High&utm_campaign=Supply_2021&gclid=Cj0KCQjw4ImEBhDFARIsAGOTMj8ahFZFwBt60ng0vlRLYF0fVkPCj70DejJfTHYYK4ycReLqBlgkuwUaAjlMEALw_wcB https://www.airbnb.co.in/host/homes https://youtu.be/2Nb5o2G0-iI https://research-methodology.net/airbnb-business-strategy-a-brief-overview/#:~:text=Focus%20on%20community%20and%20trust,updates%20from%20the%20Airbnb%20team https://www.investopedia.com/articles/investing/112414/how-airbnb-makes-money.asp https://www.crunchbase.com/ https://www.wikipedia.org/ https://bstrategyhub.com/

11. Thank You….. :)