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OYO gives up it's brand name! Read on.

Updated: Jul 24, 2019

OYO Room is without doubt a unicorn in the accommodation industry in India. OYO has shown the world how solving a simple problem of standardising accommodation by means of effective management can be turned into a successful business model. But even the biggest of brands face friction from this everchanging, highly competitive domestic market!

Due credit to OYO's aggressive approach to capture the Indian market. But lapsing into being branded as the 'poor man's budget hotel' is something even the huge marketing/branding budgets haven't been able to refrain it from. Add to that the marketing around 'Couple Friendly' policy of all OYO properties have branded it the same amongst the conventional TIER 2 and TIER 3 markets. These 'tags' are aversive to the corporate and family clientele being interested in OYO.

As a result, OYO is able to generate high demand for rooms between INR 999 to 1999 while the premium clientele willing to pay higher for a room becomes less interested in the OYO brand. It's only obvious- in order to support OYO's hotel partners across the country and give them adequate business, more demand generation is needed (specifically for the premium client). An impact of the above analogy was first seen in February 2018 when OYO joined hands with now combined Goibibo-MakeMyTrip brand to list all OYO properties back on their websites. This was also supported with massive cash burn in form of heavy discounts.

A new move on this by the OYO brand has seen it relaunching it's properties without the word 'OYO' under the 'Capital O', 'Edition O' and 'Silver Key' brand name, which might solve some problems. Firstly, this is an attempt at change of offering of the OYO brandname to premium clientele willing to pay a higher price per room. Secondly, this allows OYO to cater to the already successful budget and couple friendly segment without making changes there.

It remains to be seen how this brand placing is going to fare for the brand. All we can say is- good move OYO!


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