Internship Report On “Ensuring Customer Delight in Katra”
Prepared By KUSHAL MAHAJAN Enrollment No. : 16MMB047
MBA School of Business
1
Acknowledgement
I must first take the opportunity to thank Oravels Stays Pvt. Ltd. Commonly known as OYO Rooms for giving me the opportunity to complete my internship in such a reputed organization.
I am very much grateful to my honorable mentor Dr. Hari Govind Mishra, Assistant Professor, School of Business, Shri Mata Vaishno Devi University, for assigning me to prepare this report. He guided me to prepare the whole report. I also express my special gratitude to Mr. Sahil Sharma (Demand Manager) and Mr. Rahul Guleria (Cluster Manager), who have taught me the key concepts and overall ov erall operational functionalities of OYO Rooms. And finally, I would like to express my gratitude to all the individuals who have helped me to prepare this report. As a human being, it is natural that few names may not be mentioned forgetfully. I would like to apologize for my forgetfulness.
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Certificate
This is to certify that Mr. KUSHAL Mahajan Enroll. No. 16MMB047 has completed the report titled ‘Ensure Customer Delight in Katra’ under my guidance for the partial fulfillment of the Course: Industry Internship Programme (IIP) in Semester III of the Masters of Business Administration.
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Executive Summary
OYO Rooms is a branded network of hotels in India. OYO Rooms Ro oms currently operates in more than 120 Indian cities including Delhi, Gurgaon, Jaipur, Mumbai, Bangalore, Hyderabad, Goa, Chennai, Kolkata and others. OYO is present in major metros, regional hubs, leisure destinations and pilgrimage towns. OYO Rooms provides standardized hotel rooms with features such as an air-conditioned room, complimentary breakfast and Wi-Fi with 24x7 customer service support. Guests can use the OYO Rooms App for booking rooms on the go. They can also order beverages and request room service through the app. Hotel owners who partner with OYO Rooms are connected via world’s first tablet based property management App and become part of the OYO brand. According to a research research carried out by CB Insights for The New York Times, OYO Rooms is among the companies that may be the next start-up unicorns. The company is backed by investors like the Softbank Group, Green oaks Capital, Sequoia Capital and Light speed India.
Vision and Values Vision:
To change the way people stay away from home. Standardized
OYO Rooms promises to provide the same amenities and the same awesome experience across all its rooms. Affordable
OYO offers rooms at prices that no other player in the budget segment offers today. Technology Driven
OYO uses technology to link all its functions and provide the customer a seamless awesome experience.
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List of Abbreviation Abbreviation
1. 2. 3. 4. 5. 6. 7. 8.
CeX: Customer Experience & : and % :Percentage CP : Continent Plan EP : European Plan MAP : Modified American Plan AP : American Plan PMI : Property Manager Incentive
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Table of Content
Page No. A. Acknowledgement
01
B. Certificate
02
C. Executive Summary
03
D. List of Abbreviations
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1. Introduction------------------------------------------------------------------------------------------------------07-14 Introduction------------------------------------------------------------------------------------------------------07-14 2. Literature Review---------------------------------------------------------------------------------------------- 16-18 3. S.W.O.T Analysis---------------------------------------------------------------------------------------------20-21 Analysis---------------------------------------------------------------------------------------------20-21 4.
Research Methodology--------------------------------------------------------------------------------------23-25 Methodology--------------------------------------------------------------------------------------23-25
5.
Project Profile------------------------------------------------------------------Profile---------------------------------------------------------------------------------------------------------------------------- 26-36 5.1.1 Operations-----------------Operations---------------------------------------------------------------------------------------------26-36 ---------------------------------------------------------------------------26-36 5.1.2 Business Development----------------------------------------------------------------------------- 37-39 5.1.3 Sales/ Demand----------------------------------------------Demand---------------------------------------------------------------------------------------40-42 ----------------------------------------40-42
6.
Data Analysis & Interpretation----- ---------------------------------------------------------------------- 44-46
7.
Findings-------------------------------------------------------------------------------------------------------47
8.
Observations & Analysis------------------------------------Analysis-----------------------------------------------------------------------------------49-56 ----------------------------------------------49-56
9.
Annexure-----------------------------------------------------------------------------------------------------58
10.
Learning Outcomes--------------------------------------------------Outcomes-----------------------------------------------------------------------------------------60 --------------------------------------60
11.
Recommendations------------------------------------------------------------------------------------------62
12.
Bibliography-------------------------------------------------------------------------------------------------64
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Chapter-1
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1. Introduction 1.1 Origin of the report
As a student of Business Administration, I had to complete a 90 days attachment with any organization. My attachment was with Oravels Stays Pvt. Ltd. Commonly known as OYO Rooms and worked as an intern from May 20, 2017 to July 31, 2017. And that period, all a ll information were collected regarding preparing a report on ensuring customer delight and reducing unhappy percentage of guests.
1.2 Objectives
The objective of this report is specific, comprising three objectives. Th ese are: To work on the core operations i.e. (Product Knowledge & Product Retainbility) of OYO Rooms. Secondly to work on Business Development i.e. (Introducing SMART PROPERTY) concept. Finally to increase the demand/sales of OYO Rooms. Roo ms.
1.3 Scope
To know about the Operations of OYO Rooms. To know what kind of activities are done in hotels sector. To know about the customer response and behavior towards the OYO Rooms. To expand network of contacts with various stakeholders, owners and vendors. To apply business concepts and theories to real-world decision-making.
1.4 Methodology Primary Data: Data is collected directly from customers’.
1.5 Limitations
To enrich and complete this report my level best attempt was dedicated although there are some limitations: Unfortunately it was not possible to acquire sufficient information due to the company’s limitations (business secrecy and confidentiality). As this is my first report about hotels sector so I had to face some difficulties to preparing the report. Time was also a limitation. Gathering information during working was a tough job.
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Chapter-2
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2. Organizational Organizational overview 2.1 ABOUT OYO Rooms
OYO Rooms is India’s fastest growing branded network of budget hotels fo unded by young entrepreneur Mr. Ritesh Agarwal on 2013. Within a short span of time, OYO Rooms currently operating in more than 100 Indian cities including Delhi, Gurgaon, Mumbai, Bangalore, Hyderabad, Goa, Chennai, Kolkata are few to name. Similarly, OYO has been trying to be present in major Metros, Regional hubs, leisure destinations and pilgrimage towns. OYO towns. OYO Rooms provides standardized hotel rooms with features such as an air-conditioned room, complimentary breakfast and Wi-Fi with 24x7 customer service support. Guests can use the OYO Rooms App for booking rooms on the go. They can also order beverages and request room service through the app. Hotel owners who partner with OYO Rooms are connected via world’s first tablet based property management App and become part of the OYO brand. OYO Rooms , commonly known as OYO, is an Indian hotel brand that owns and operates as well as aggregates standardized hotel rooms. It currently operates in more than 200 Indian cities Indian cities and in Malaysia.
2.2 Products and Services offered by OYO:
HOTEL BOOKING A traveler can book a room online at Oyorooms.com and can choose to opt for online payment or pay at the hotel.
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2.3 Evolution and Funding
The journey of OYO Rooms was started when Ritesh Agarwal dropped a col lege and launched his first start ‐up Oravel Stays Pvt. Ltd. in the year 2012. Oravel was designed as a platform to enable listing and booking of budget accommodation. Being an enthusiastic entrepreneur, he soon realized that the budget hospitality sector lacked predictability. Therefore, he converted Oravel to OYO Rooms in 2013 with an aim of offering affordable and standardized accommodation.
Ritesh Agarwal, Founder, OYO Rooms The company has raised multiples rounds of funding, the last one being an impressive USD 25 Million funding from Light speed Ventures, Sequoia Capital, Greenoaks Capital and DSG Consumer Partners in March 2015 and provides the same amenities and the same experience across all its rooms at prices that no other player offers across so many locations. Table-1: Funding of OYO Rooms Year Amount Funding Source 2012-December
$ 5 Million
Venture Nursery
2013
$0.1 Million
Thiel Fellowship
2014-Febreury
NA
Light speed Ventures
2015-March
$ 25 Million
Light speed, Sequoia and others
2015- July
$100
Softbank
2016-August
$90 Million
Softbank And Others
2017-April
$250 Million
Softbank and others
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2.4 Growth
OYO Rooms started with one city and one hotel (OYO Rooms Huda City Centre) in Gurgaon in May 2013 and has seen a tremendous growth. With whopping budget hotels under its branded network across the India, OYO Rooms ‘growth has been nothing short of phenomenal, and the rapid expansion has meant that the funded start-up now owns India’s largest branded network of hotels Strong customers’ feedback and loyalty encourages the company to redouble its growth efforts to bring the OYO experience to as many Indian travelers trave lers in as many different cities as possible and at the earliest.
As a leader, OYO Rooms has created a new paradigm in the hospitality sector through an assetlight managed marketplace model. This innovation coupled with sound execution has been recognized by several national and international accolades including TIE Lumis Business Excellence Awards, India International Travel Mart Award and Lufthansa ET Now Runway to Success Award. Now the company has more than 1000 employees including 10-20 people from IIMs, more than 200 people from IITs, HBS and Ivy.
Table-2: Detail Detail of OYO Rooms’ Properties
Year
Number of Property (Hotels)
2013 January
1 Property
2013 June
3 Properties
2014 July
13 Properties
2015 August
2000+ Properties
2016 June
5500 Properties
2017August
7000 Properties
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2.5 Revenue Model
Oyo rooms books a part of the hotels inventory by paying monthly rent in advance at discounts (Expenses) These hotels are put to match the standardized quality like free Wi-Fi, clean toilets etc. (expenses) These rooms are offers to the customers at OYO ro om’s website, application and various OTA platforms Users buy these from at a predetermined price (revenue) The expenses also includes the heavy expenses on promotional activities to increase the brand quality among the users as well as the remuneration of the employees. It provides provide s heavy discounts to the customers. These discounts often results in prices which are lesser than the cost price of these hotels and results in losses. Precisely Oyo Rooms is running in loss . Despite heavy losses Oyo rooms is able to expand in the market as it is backed by several investors like light speed India, Sequoia Capital, Green oaks Capital and Softbank Group. The price sensitivity in this case is high due to high competition and customers are also awarded about different services and can easily compare the quality qualit y and price with its substitutes. Oyo Oyo Rooms refer clients to hotels and get a percentage as cut for this transaction. They also have deals for minimum guaranteed gu aranteed customers and can offer its clients beneficial deals and discounted rates. All its transactions are swift-cash swift-cash variety and it works in favor of the company as they are able to realize their revenues at a faster pace. They provide different services at different but definite prices. Budget hotel room prices varies from rupees 999 to rupees 4,000 but bu t a floor price is kept and the competitor’s price according to their quality is also kept in mind. Leisure rooms are priced 15-20% higher than business rooms, and 20-30% lower than the nearest three-star hotels. It tries to meet the bud get of an individual and set up his accommodation accordingly. Price of the rooms are also set according to their geographical locations, categories and inclusions. Rooms at tourism spots are generally high p riced compared to a room in a general city.
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2.6 Organization Structure:
Figure: Organization structure
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2.7 BUSINESS MODEL of OYO Rooms:
OYO Rooms is an aggregator that provides a market place for online hotel booking similar to Uber, which provides a marketplace for online cab booking. Started in the year 2013, OYO is turning into India’s largest chain of hotels. It has a very simple business model where it adopts hotels, get them to follow certain basic standards of services, features, staff, pricing and security and then list them on its web portal and sells them under its brand, earning a part of the profit from the deal. Currently the company is following invest and expand mode. Till now it has received funding from the big firms like Sequoia and is estimated to be worth $400 million after its latest round of funding in August this year, where it received $100 million. OYO’s asset free business model has now challenged the capital heavy hotel industry. The company does not own any of the properties listed on its site. It only invests in marketing and quality improvements for the hotels under its banner. The model provides a win-win situation for both the small budget bu dget hotels ho tels and owners of spare properties, who do not have enough capacity, network and knowledge of smart marketing. OYO has helped them increase their bookings by more than 100% thereby improving their yields. 2.8 Unique Selling Proposition of OYO Rooms:
Finding hotels in India is not a big problem, the major issue is the trust factor and predictability of services. OYO founder, Ritesh Aggarwal, capitalized on o n this basic need by providing standardized hotel rooms across the country. The complete model of hotel industry is based on consumer experience, and with the beautiful amalgamation of technology and quality control mechanisms has improved customer experience even at economical rates. The complete model is designed keeping in view the consumer experience, right from booking to finding hotel to standardized services to high technology room service se rvice option. To further enhance the customer experience, company has Ked with Airtel to provide its customers a world class in-room internet and TV viewing experience at no additional cost. OYO rooms has also started two new sub-divisions to increase its hold on the market: Moving from the budget room segment, s egment, company has also started premium OYO Premium – Moving room service in metro cities to increase its customer base. OYO premium rooms will cater those business travelers or families who are looking looking for premium services and are ready to shell out few extra bucks for higher comfort. OYO SMART: Introducing this concept which includes fully ownership of reservations b y OYO whether it is by normal walk-in, any an y OTA like MMT, GOIBIBO, CLEARTRIP, and YATRA.COM.
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Chapter-3
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3.1 LITERATURE REVIEW:
The hotel industry involves high degree of interaction between employees & guests and so provides many opportunities for service failures to occur. Service quality issues have been of concern to researchers for close to twenty years & no. of projects focused on hospitality industry. For example, McColl-Kennedy & White (1997), Pizam & Ellis (1999) considered consumer satisfaction in hotels & mismatch between expectations & perceptions of Service Quality. In terms of measurement O’ Neill (1996), used SERVQUAL (Parasuraman et al., 1988) in hotels in no0rthern Ireland used it in hotels in Korea. Alternative measurement tools for the hospitality industry were developed by Wong et al. (1999) for hotels in Australia (HOLSERV) & by Knutson et al. (1991) (LODGSERV).
3.2 SERVICE FAILURE: Integral to the consideration of the provision of quality service is service failure & recovery. Service failures are inevitable and occur in both the process and the outcome of service delivery. They include situations when service fail to live up to the customers’ expectations (Michel, 2001). Service failures have been categorized by Bitner et al. (1990) according to the Employee behaviors when failures occurs, relating to: the core services; request for customized service; and unexpected employee actions. There are various consequences of service failures, namely:
Dissatisfaction (Kelley et al., 1993); A decline in customer confidence (Boshoff, 1997); Negative word-of-mouth Behavior (Bailey, 1994); Loss of revenue & increased costs (Armistead et al., 1995); and A decrease in in Employee morale & performance (Bitner et et al., 1994)
3.3 SERVICE RECOVERY: If service failures does occur, then what can service providers do to recover? “Service recovery involves those actions designed to resolve problems, alter negative attitudes of dissatisfied customers and to ultimately retain this customers.” (Miller et al., 2000, p.38), and “It includes situations in which a service failures occur but no complaint id lodged by customers.” (Smith et al., 1999, p.359).
Successful service recovery has significant benefits. It can:
Enhance Customers’ perception of the quality of the service & the organization; Lead to the positive word – of-mouth of-mouth communication; Enhance customers’ satisfaction; and Build customer relationships, loyalty & impact on profit. 17
Service recovery can also be poor and ineffective with the consequence that the customer is let down for the second time: This may lead to loss of confidence in the organization and possible defection, together with the spread of negative word-of-mouth communication.
3.4 SERVICE RECOVERY STRATEGIES: Actions that service providers take, in response to defects or failures, comprise a combination of psychological recoveries and tangible efforts, and have been researched by no. of academics. The strategies they identify may be classified as:
Apology Correction Compensation Follow-up Acknowledgement Explanation Exceptional treatment; and Managerial intervention
From the research evidence, it can be concluded that the type & magnitude of service failures depend on the industry and service (i.e. outcome or process-based). 3.5 Loyality: Loyality of a firm’s customer has been recognized as the dominant factor in the business organization’s success. This study helps us in extending our understanding of the relationship between customer loyalty, customer satisfaction, and image. This is is of considerable interest to both practitioners and academics in the field of hospitality management. One of the greatest challenges facing hotel organization today is ever-growing volume and pace of competition. Competition has a major implications for the customer, providing:
Increased choice; Greater value for money; and Augmented levels of service.
There are two strategies most commonly used by hotel managers in order to gain a competitive advantage; they are: 1. Low-cost leadership through price discounting , and 2. Developing customer loyalty by providing unique benefits to customers Loyal customer is a customer who repurchases from same service provider whenever possible and who continues to recommend or maintain a positive attitude towards the service-provider. 18
3.5.1 LOYALTY DIMENSIONS: There are two dimensions to customer loyalty: Behavioral & Attitudinal The behavioral dimensions refers to the customers’ behavior on repeat purchases, indicating a preference for a brand or a service overtime. Attitudinal dimensions, on the other hand, refer to a customer intention to repurchase and recommend, which are good indicators of loyal customers.
3.5.2 RELATIONSHIP BETWEEN CUSTOMER SATISFACTION AND LOYALTY: Customer satisfaction considers to be one of the most important outcomes of all marketing activities in a market- oriented firm. The obvious for satisfying the firm’s customer is to expand the business, to gain a higher market-share, and to acquire a repeat and referral business, all of which lead to improved profitability (Barsky, 1992).Studies conducted by Cronin & Taylor (1992) in service sectors such as hotels found that customer satisfaction has a significant effect on purchase intention. Hence, it can be concluded that there is a positive relationship between customer satisfaction & customer loyalty.
3.5.3 RELATIONSHIP BETWEEN IMAGE AND LOYALTY: An Organization’s Image is an important variable that positively or negatively influences marketing activities. Image is considered to have the ability to influence the customers’ perception of the goods and services offered (Zeithaml and Bitner, 1996). Thus, Image will have an impact on customers’ buying behavior. Image is considered to influence customers’ minds through the combined effect of advertising, public relations, physical image, word-of-mouth and their actual experiences with the goods and the services (Norman, 1991).
CUSTOMER SATISFACTION
CUSTOMER LOYALTY
HOTEL IMAGE
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Chapter-4
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DEMOGRAPHIC PROFILING: 4.1 DEMOGRAPHIC
Age-Wise PROFILING
Total Walk -In (in %) 7% 22%
25%
38%
5 to 15
16 to 26
27 to 37
More Than 48
Gender-Based PROFILING TOTAL WALK-IN No. of Mal es es
45%
No. of Females
55%
INCOME-Based PROFILING TOTAL WALK-IN 8% 22% 22% 48%
5000 - 20000
20001 - 35000
35001 - 50000
More th than 50 50001
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4.2 SWOT ANALYSIS:
STRENGHTS:
Excellent use of advertising for High Brand Recall. User-Friendly/Easy-To-Use Interface. Budget Hotels Constant Innovation
WEAKNESS:
Restricted to Budget Hotels/Lodges. Fast Expansion Leading to Compromise on Quality. Renovation of Run down Hotels Raises Questions of Trust and Credibility.
OPPORTUNITIES:
The Number of Budget Travelers in India is on a Rise. More and More People are Becoming Technology-Driven. Use of Social Media to Enhance Consumer Experience
THREATS:
Competitors like ZO Rooms and STAYZILLA. “Backpacker travel/tourism” In India is still very unpredictable. Fewer Repeat Customers.
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Chapter-5
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5.1 RESEARCH METHODOLOGY
5.1.1 RESEARCH PROCESS: Before embarking on the details of research methodology metho dology and techniques, it seems appropriate to present a brief overview of the research process. Research process consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. 1.
Formulating the research problem
2.
Extensive literature survey
3.
Development of working hypothesis
4.
Preparing the research design
5.
Determining the research design
1.
Collecting the data
By observation through personal interview By questionnaires 2.
Execution of the project
3.
Analysis of data
4.
Hypothesis-testing
5.
Generalization and interpretation
6.
Preparation of the report
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RESEARCH PROCESS:The research was carried carried out as per steps of consumer research process. The figure below depicts a model of consumer research process.
STEP1: DEFINE THE O
BJECTIVES OF G AND EVAL
Collecting and evaluating secondary data
Des Desi nin a rimar rese esearch stud
Collection of Primary data
Processing and Interpretation of Data
Therefore to achieve the objectives of my research I have used quantitative method for research.
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5.1.2 SAMPLING PLAN FOR THE PROJECT:
7.
Data source
: Primary Data
8.
Research approach
: Survey method
9.
Geographical area
: Katra Market
10.
Sampling unit
: Hotels , Katra
11.
Sample size
: 100 Customers.
12.
Research instrument
: Questionnaire.
13.
Contact method
: Personal contact
5.1.3 LIMITATIONS
The limitations are as follows:1. Some customers refuse to co-operate and do not disclose their Genuine opinion. 2. Customer information is highly confidential, so organization doesn’t disclose it properly. 3. Respondent’s answers might have influence or bias. 4. Information is collected from the customers and dealers only. 5. Meeting to the Guests is tough job, because they are very busy.
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5.2 Project Profile: 1. Operations 2. Business Development 3. Sales/Demand 5.2.1 Operations: Operations involves two Functions: 1. Product Knowledge: Here we are primarily concerned in obtaining the knowledge of the product i.e. OYO Rooms. OYO Rooms owns reservations along with, gives & Sells Standards as well as Services. These Services remains same in all PAN India whether it is North, South, East, and West. In order to maintain those standards, there are PROPERTY AUDITS every week .It makes Ensure that the property which is in collaboration with OYO are up to the standards. For each property, OYO use different property codes starting from KTR001 to KTR063, each property was assigned with a different property Code KTR
AREA CODE
034
PROPERTY CODE
This is Helpful when we get data on a daily basis from Cluster Manager and with that we need to go to respective properties for CeX & Ensuring Delight. Below is the sample how the data looked like in CRS
F i gur gure e C eX Da D ata 27
The standards are to be maintained at these respective areas:
Kitchen Hotel Facility Rooms Property Entrance Common Area For making Audits OYO has created an application called “KRYPTON”. By using this application we Audit the properties which is to be submiitted Online. Below are the samples of what the Audit work includes and efforts of OYO for enlighting the experiences of Customers.
Figure: AUDIT
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Figure: Audit of common area
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Figure: Rooms Audit
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Figure: Property entrance audit
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Figure: Hotel facility audit
Above areas of Standards consists of sub-standards which is to be checked every week at audit of Property so that standards are being met and guests are not feeling any kind of trouble. 32
Below are the few samples of OYO toiletries provided by b y the OYO to guests to increase their level of hygiene, so that their guests don’t do n’t suffer with any kind of infection after experiencing OYO?
Figure Toiletry Kit
2. Product Retainbility: Here we are primarily concerned about the retainbility of customers or Guests in order to increase the Customer Experience (CeX) along with increasing the delight of guests. Better the CeX of guests, more the retainbility and repetitive of Guests. Hence, this step play a pivotal role in operations department. In an Operations Department of OYO Rooms, CeX is quite important .Higher the CeX, more the Un-happy Guests and lesser the retainablity of guests. Parameters of CeX & Un-Happy% Guests are decided by feedbacks that guests give at the time of Check-out at the hotel. Feedbacks Feedb acks are in the form of Ratings of 1 – 5: 5:
1 star: very Bad Experience 2 star: Fair Experience 3 star: Average Experience 4 star: Good Experience Experience 5 star: Excellent Experience 1 star and 2 star are considered as negative feedbacks in Oyo operations. Un-Happy % is calculated as total number of negative feedbacks feedback s (1 star & 2 star) divided by Total number of feedbacks.
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Methodology for Retainbility:
Sharing Real Time Information : So on the daily basis we used to interact with each and every guest personally ensuring there is no such problem and if the problem arises try to solve the problem engaging with property manager manag er to ensure guests remains satisfied. Some of the concerns of the guests were:
I. II. III. IV. V. VI. VII. VIII. IX.
Room is not the same as shown in the OYO APP. Complimentary breakfast is not good or sufficient to the number of p ersons. Rude staff behavior. Delay in the order. OYO kits not available. Some of the Concerns of the Properties Manager were More number of guests entering on few guest booking. Early check-in was not possible because it is subject to availability. Guests checking out late from the mentioned time.
These were the some concerns that used to arise on day to day basis and by engaging with both customers and with property managers and sharing real time information with our cluster manager and property manager to find out what is convenient to both guest as well as property manager, guest remains satisfied & happy and the manager mana ger also don’t faces losses.
Feedback Call : Regular Feedback call from Centre team are made on daily basis to guests at the time of Check-Out in order to ask their respective feedback regarding the services at the OYO. Based on these attention, guests feels good that he is being cared. Public Relations : It Includes meeting the guests personally at specific timing and interacting with guests so that guests should feel the sense of caring. Secondly, Building Good Relationships with the Stake-Holders and Property Managers so that if in any case Guests need help, PMs are ready to provide them solutions. Property Manager Incentive (PMI) Scheme : Since, OYO executives are not always present at full time near guests but person who is every time near to guests are Property Managers (PMs). So, Keeping in consideration of increasing the delight of guests , PMI scheme was launched .Under this Scheme , for every 5 STAR rating in feedback call of guests, PMs are to be Rewarded by INR 100. This
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Cash was to be given at instant to PMs so that they could better work on experience of guests arriving at their property. “Get a 5 star and take away Rs 100”
Below this Picture of (OYO 034) Hotel Satya Shree who in total got INR 2600 in cash from OYO as they scored twenty six 5 star rating and hence increased the delight percentage.
Figure: PMI Scheme
Limitations of PMI Scheme:
I. II.
III.
This Scheme was only for Short Term i.e. only for 9 Days. Property Managers were giving services only for the sake of money only otherwise they don’t care.
After this scheme ends, situations will be same as earlier.
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Analytically it can be described as:
Nature Public Relations Antecedents
PMI Scheme
Dis-satisfaction
Timings of Interaction
Un-Happy Guests
Sharing Real time Information
INPUT
PROCESS
Outcomes Satisfaction Delighted Guests Happy guests
OUTPUT
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5.2.1 Business Development: Development: OYO in Katra came up with a new concept called “SMART”. Earlier there used to be Dynamic contracts along with that OYO also introduced a new contract called Smart Contracts.
What is Dynamic Contract? a) In dynamic contracts Property owner has an option to give limited number of inventories to the OYO or how much they want to give, with the freedom to block the OYO inventories anytime so that they can rent their room from any other platform and could generate more revenue. b) In dynamic contracts, OYO generally don’t make any investment c) There is mutually consent with the property owner that how much percentage of share OYO is going to take from each booking. This revenue sharing percentage is decided between the Demand manager and the property owner. d) Most of the bookings in dynamic properties are not confirmed so there are more chances that the owner is going to suffer loss as their room might remain vacant otherwise they could have rented their room from any an y other platform. What is SMART Contract? a) In Smart contracts OYO captures and take away all the inventories of the property with a contract of ensuring that it will provide the whole booking and whole demand to their property through their platform. b) OYO takes all the responsibility of the bookings and ensure property owner regarding the demand. c) Property Managers are provided by the OYO at company’s salary. d) OYO in smart properties also make investments for building up standards for their room as well as for the overall development of the property starting right from the entrance. e) In Smart, all the booking are confirmed bookings and there are less chances that the guest will not come and this also saves property owner from running into losses.
“SMART” Property instead of Dynamic or Basic Concept. This Smart Property concept has many advantages and it is a newly launched concept in katra. Till 30th June 2017, there are 6 Smart Properties.
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Name of the SMART properties in Katra 1. Hotel Satya Shree. 2. Hotel Royal Krishna. 3. Hotel The Etilier 4.
Hotel JMK.
5.
Hotel New Shradaa.
6. Hotel Kanta International
All these are working excellent and above 3 properties are giving a fruitful result to the OYO in terms of Delight Percentage and overall Profit P rofit i.e. GMV (Gross Market Value). Although it’s a win-win situation for the property but there are many challenges for BD Team to make ensure that Owners are convinced with that as Katra Market is UNPredictable such as Off Season , Peak season , Super Peak Season and on that seasons Both PM’s and owners don’t bother. There are some Questions that are asked by Owners to BD Team. How much Rooms will get sold out in a day or in a month? How will a SMART benefit me (owner)? Features of SMART Property:
After Property being live & Active, Hotel will be shown in web-portal as well as APP on top as a priority. On Every Booking, the Amount will be shared which will be decided mutually such as (80 – 20) 20) %, (85 – 15) 15) %. 80 % - ORR (Owners Rack Rate) 20 % - OYO Share If in any case, Bookings are made mad e by other OTA, then MIGRATIONS are done by OYO. Owns only Reservations Department nor food nor any other. It could be cancelled within 1 Year at any time. T& C A pply. ly. OYO provides “minimum revenue guarantee” to the property owner that OYO will generate a minimum revenue of the said amount from your property. Also proper branding as well as OYO dollops was put up in each Smart property with OYO logo present in front of each property. PM’S are given by OYO.
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Figure SMART Property
Figure KTR034
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5.2.2 SALES / DEMAND: Increasing the Inventory of Rooms requires Demand of rooms also. We sat for ten days at Katra Railway station and realized that approximately 30% of its business was from online bookings and remaining 70 % business was coming from direct bookings b ookings in Katra. OYO being an online aggregator working on B2B business model in Katra was focusing on its betterment of Online Platform as well as on how to gain advantage over its existing online Competitors and other online portals. But OYO soon realized Inspite of its direct competition from other platforms like Goibibo, yatra.com, make my trip.com etc. there was also an indirect competition which OYO was facing in Katra. This indirect competition was from local agents called Touts, and touts was indirectly eating the business of OYO in accommodations. OYO soon realized this was the untapped opportunity where OYO couldn’t be able to reach till now, OYO soon has to capture this because OYO was letting others to eat this major proportion of business revenue in Katra. OYO was getting direct bookings but the major business of that direct bookings was taken up by the Touts whom OYO named “PROMOTERS”. OYO needs to come up with some strategy in order to capture this untapped opportunity and business of Promoters from where OYO was facing major indirect loss in Katra. Capturing this indirect business Opportunity OYO in order to take up this business opportunity came up with a strategy that in order to take up Promoters market we need to tie up with Promoters itself. So OYO in Katra came up with a new scheme called “OYO BUDDY”. OYO BUDDY OYO created awareness through its OYO BUDDY campaign among the Promoters be a part of OYO and become an OYO buddy. OYO let Promoters to work under our company and enjoy various incentives and instant 30% of the commission of the booking amount will be immediately transferred to their bank accounts. This was the tactics that the OYO played in order to take up promoters because promoters earlier used to get commission after a week or even after a month from the property owner for giving them bookings and also the commission proportion was not that much what OYO was offering.
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With this Campaign OYO motivated Promoters and gave them various reasons to be a part of OYO because they were not only getting the Commission out of the bookings but also various incentive schemes such a
Instant 30% of commission directly to Bank accounts.
An amount of Rs 5000 after making the first 5 bookings.
If the booking amount reaches 5000 an incentive of Rs 500
If the booking amount reaches 15000 an incentive of Rs 2000
If the booking amount reaches 30000 an incentive of Rs 4000
If the booking amount reaches 50000 a Cooler
If the booking amount reaches 100000 a TV.
If the booking amount reaches 5, 00,000 a Bike.
Now for capturing the promoter’s network and to make it effective a planning needs to be
formed that how the promoters are going to work for us. For this purpose only onl y OYO organized an event in Katra on 12th July 2017, called “OYO BUDDY” the purpose of organizing this event was to make up proper count c ount of promoters who are going to work wo rk for OYO as well their induction and training will be done on the same side. Also it was also mentioned that first 100 people getting registered under OYO buddy will get a cash amount of Rs 500 plus and induction kit which included instructions as well as OYO T-shirt plus a refreshment. People registering after a count of 100 will get cash amount of Rs 200 and other mentioned refreshments.
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Figure Event venue
Figure Advertisement OYO Buddy
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Below are the samples of how the awareness was created amongst the promoters regarding an event, a detailed information regarding event benefit, requirements of the event, venue as well as date of the event was available on these pamphlet’s as well as on h oldings in their regional languages so that they could understand easily plus phone numbers was provided in order to make them more clear regarding the concept.
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Chapter-6
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Data Analysis & Interpretation
120 108 102 100
80
Total Feed Back Counts Unhappy count
60
Un-Happy % 51 47.22
48
47.05
Delight Count Delight %
40
20 12 11.11
11 10.…
0 WEEK-1
WEEK-2
Figure MID MAY DATA
INTERPRETATION : In the above chart, the Average UN-HAPPY % of Guest in the month of May was 10.93%.
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140 126 120
125 119
117
100
80
71 65 58
55
60
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56.8
54.62 46.03
40
20
15 12.82
16
12.69
13 10.92
13
10.4
0 WEEK-1
Total Feed back counts
WEEK-2
Un Happy Count
WEEK-3
Un Happy %
WEEK-4
Delight Counts
Delight %
Figure of JUNE Data
INTERPRETATION: In the above chart, the Average UN-HAPPY % of Guest in the month of June was 11.70%.
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120 103 98
100
92 88
80
60.8
59.9
58 56.31
60
56
53 54.08
52
40
20 10 9.7
10 9.8
9 9.78
8 9.09
0 WEEK-1 Total Feed Back Counts
WEEK-2 Un-Happy Counts
WEEK-3 Un-Happy%
WEEK-4
Delight Counts
Delight %
Figure of July Data
INTERPRETATION: In the above chart, the Average UN-HAPPY % of Guest in the month of July was 9.59%.
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