Popular chain of hotels and homes OYO’s foray into homestay segment in 2016, which allowed travellers to stay at homes listed by property owners, is a space that made Airbnb, present in over 1,000 cities across more than 191 countries, worth around $31 billion.
Being in the same market of homestays, it seemed that OYO is trying to have a piece of the pie by connecting homeowners and travellers. However, OYO’s chief growth officer Kavikrut says that Airbnb could actually be a potential partner, since OYO manages other two dimensions of the homestay market that Airbnb doesn’t — managing day-to-day operations & guest check in/checkout fulfillment, and home infrastructure.
“There are three main components to the OYO home business model… Airbnb is only the first of these three — a successful platform that lets hosts lists their homes and guests discover and book them,” Kavikrut told Financial Express Online.
“In this regard, they are a potential partner to us,” Kavikrut said, adding that OYO is building and will own all the three layers of the business, which is necessary to unlock homes in a market like India.
OYO Home currently operates more than 6,000 fully-managed residential accommodations in India and Dubai. The company expanded to Dubai in January this year.
“In India, we are focused on top travel destinations including Goa, Shimla, Pondicherry, Coorg, Manali, Dehradun, Wayanad, Coorg, Udaipur and Jaipur among others. In UAE, we have 40 homes and plan to expand to 200 in the next 6 months,” said Kavikrut.
OYO earlier this month said that its hotel sales globally went up by 4.3x from $0.4 billion in 2017 to $1.8 billion in 2018, PTI reported. “Globally, we have reached over 4,58,000 fully controlled leased and franchised keys (rooms) with a realised value run rate of $1.8 billion,” said CFO Abhishek Gupta.
Realised value run rate is referred to realised value net of cancellations, discounts and forward bookings annualised on the basis of December of the respective year.
The company claimed of soon turning into the world’s largest hotel chain with the number of rooms it continues to add and the realised value run-rate, it said in a statement.
“OYO continues to add more rooms than the top 3 hotel chains combined. The global stayed room nights increase from 6 million in December 2016 to a whopping 75 million in December 2018, with the growth of 5.7x on Y-o-Y basis,” the company said.
- This story was updated to correct a quote attributed to OYO’s chief growth officer Kavikrut.