Everybody has heard of Oyo rooms. The hotel booking industry took a sudden turn when the young CEO Ritesh Agarwal noticed that there was a profusion of good quality hotel rooms left unoccupied as he was traveling and touring the Indian Subcontinent.
This sparked an idea that has now led to a string of hotel rooms and resorts in over 60 countries around the world. Oyo (On your own) has registered a booming revenue of over $951 for the fiscal year of 2019. This number has marginally increased over the past year.
- By 2023, 700 million people will be booking their rooms online
- Guests do their research on traveling 70% of the time on their phones.
- Google data reveals that travel-related keywords like ‘today’ and ‘tonight’ have grown 519% over the past 5 years.
- 72% of online room bookings happen within 48 hours of last-minute Google searches.
As an entrepreneur, business owner, or hotel business owner, you might be thinking about investing in an Oyo clone yourself. That just might be the best decision you ever make. With the widespread reliance on the internet for most services, online hotel booking has taken dominance. Have a look at these user statistics.
The Oyo clone offers a steady flow of revenue that is hard to beat. Once you’ve established your app in the market, this foolproof revenue model will keep you going. Let’s briefly look at the different types of business models and the various flows of revenue that can be generated with the Oyo Clone.
The Merchant Model
The Aggregator Model
Oyo began its business using this model but now has shifted to the franchise model. This too requires very little investment but the ROI is rewarding. Companies running on the aggregator model include Treebo Hotels, FabHotels, and RedDoorz.
This model is most useful for those who already run a hotel business or have a fleet of rooms and services under their wing. There is no need to rely on a middleman or another app. This model increases efficiency and meets the needs of your customers promptly. You can develop your own Oyo Clone exclusively for your hotel and resort. This is sure to boost brand visibility and loyalty.
The Stand-Alone Model
Moving on to the types of revenue streams that Oyo Clone apps offer. They are of four different streams of revenue(Ka-ching). The first one is
- The registration fee
One of the most reliable sources of finances, third party companies can pay you, the Oyo Clone owner, a considerable amount of money to display their advertisements on the app. Hotels already utilizing your app can also advertise their services on your platform. Advertisements can be displayed in the form of pop-ups or banners, placed strategically on the app for visibility. As your Oyo Clone develops and as traffic increases, you can hike up the prices of placing advertisements.
- Priority listing
Priority listings of hotel rooms are preferred by users. Therefore, hotels can pay you to push their services up to the priority list since it increases the chance of guests picking their hotel. And for this to happen, they’ll be paying you a small sum. It’s a win-win situation for both.
In conclusion, with all this knowledge, I’m sure you have a clear idea of how you will make money with your Oyo Clone. The hotel booking app industry is a remunerative one. Online travel bookings have scored over $817 billion in 2020. That’s why there’s a surplus amount of these in the app store. Make sure you find the niche in the industry and stand out among the crowd for a successful venture.