OYO rooms success story

Why OYO Rooms become a Company worth $10 billion? Lesson from Ritesh Agarwal

OYO RoomsA successful story of Ritesh Agarwal, Founder, and CEO of OYO Rooms. No, I am not here to describe his biography, I am want to make my point clear what he did to become successful.

## Starting with the word Entrepreneurship:

Think different

When in School Ritesh Agarwal was very much fascinated by the word entrepreneurship, without knowing the actual meaning. After that when he was in university the excitement around the word, is the same as when he heard it. Remember Ritesh Agarwal was a college dropout.

Mark my word he was average in school and same in University also, he is not a genius in studies but his actions, his thoughts are like that. He loves traveling, so travels around the world with passion and explore his knowledge, explored exactly what he loves. 

## Recognizing the problem in the market:

recognise the problem
Photo by Lukas from Pexels

While traveling around the world, he used to stay in hotels, and he found that the cheaper ones are very bad at providing basic facilities like a clean washroom, good mattress, good reception, hygiene, etc. 

And to afford good facilities and great living space people have to pay a decent amount which is not possible for every common man. There is a huge gap in the amount and the thought also. And also there are many hotels all over the world which are unbranded, to make a presence in the market, to make a noticeable simple change in the market it is necessary to keep all of them under one roof.

He revolutionary wants to connect two different thingsmediocre people and great living facility. India’s 80% population is counted in Mediocre standard and also in most of the countries except some of them, this is the same. He targets this Audience to make a change in the usual system.

## Set Up the Goal and First Try:

goals of OYO

Ritesh Agarwal then started dreaming about his goal to make the quality-living affordable for regular normal people. He had gone to Gurgaon for practical implementation. There he told one Hotel owner that can you rent me your hotel rooms?

The owner refused at first then he told if there is any profit then it will be divided into half and if loss then it will be only mine. This straight proposal is accepted by the owner. 

Then he started with fundamental improvements in that room and started making a profit out of all this but these investments seemed very costly to him. so then he thought of his own company, he started his business named “ON YOUR OWN” aka OYO Rooms.

## While Growing up Focus of quality:

He started OYO rooms and started developing the hotels in Gurgaon, Haryana, and many more locations in India. 

He noticed that there are big companies with 100+ rooms on their own, but those hotels are already growing, so he started focusing on the budget hotels which are neglected but possible to grow more and more with assets. he looked around his surroundings and started finding locations, most locations which are abundant with people like metro citiesrailway stationcollegestourist destinations, etc.

He never thought of building hotels, that will cost him more, he thought he grow his business in another property. He makes all the properties up to his mark of Uniformity, Quality, in pricestandardizationgood staff training, etc. Ritesh Agarwal’s most effective strategy is “End to End responsibility for customer experience”. He told to his every property owner, that I will satisfy my customers, all is my responsibility.

## Good things have to repeat:

He is growing in his business more and more properties are included day by day. There are problems regarding growing OYO, but he used everything in the flow of making good habits.

He made an Audit team, one manager who is taking care of 6 different hotels. The Cluster managers used to go to the hotels and check the hotel in every aspect there is 160 aspects list. ( bed, breakfast, water, internet, room service, cleaning, etc. )

All this made a belief in every customer that OYO Hotel homes is good at its price and they provide the exact thing mentioned on the website. That is more important in any business, to earn the customer’s belief. And OYO rooms, OYO hotels are good at this. The customer next will prefer the same OYO facilities because their predictions are full filled by OYO rooms.

## Simplicity in every action:

technology driven

Ritesh is a technology-driven person, he knows that if he wants to become bigger, wants bigger scalability then technology is the only thing that can help him grow fast and in a broadway.

Ritesh designed OYO rooms application, where within 3 clicks and 5 seconds anyone can book the hotel room. The customer needs attention and the OYO rooms app give him or her in a short span of time. This increases customer experienceoperational capability, and efficiency on a broad scale.

He believes always in making innovative things like his idea. He funded a lot of money in the development team, the research team.

This is the OYO rooms app you can download from Play Store and Appstore.

## Expansion is the key Never settle:

expansion

Photo by Kelly Lacy from Pexels

He already made OYO rooms available in 500 cities encompassing 28 states and 9 UT’s with 18000+ hotels and 270,000+ rooms in India. Already he is an owner of hotels worth $1.5 billion, If he wanted to stop then it was easy for him but he didn’t stop.

As of 2019 reports OYO rooms, is the world’s third-largest hotel chain. It is now expanded to many cities of the world, and constantly growing because the revolution is key.

OYO has 8 board members and advisors, including Ritesh Agarwal. They are

Bejul SomaiaBetsy AtkinsMunish VarmaGerardo I. LopezAditya GhoshMohit Bhatnagar, Troy Alstead

** What the main 10 things we have learned from His success:

I will define by only quotes:

  1. “The Way Get Started Is To Quit Talking And Begin Doing.” – Walt Disney
  2. “The Pessimist Sees Difficulty In Every Opportunity. The Optimist Sees Opportunity In Every Difficulty.” – Winston Churchill
  3. “You Learn More From Failure Than From Success. Don’t Let It Stop You. Failure Builds Character.” – Unknown
  4. “People Who Are Crazy Enough To Think They Can Change The World, Are The Ones Who Do.” – Rob Siltanen
  5. “Knowing Is Not Enough; We Must Apply. Wishing Is Not Enough; We Must Do.” – Johann Wolfgang Von Goethe
  6. “Creativity Is Intelligence Having Fun.” – Albert Einstein
  7. “Do What You Can With All You Have, Wherever You Are.” – Theodore Roosevelt
  8. “One Of The Lessons That I Grew Up With Was To Always Stay True To Yourself And Never Let What Somebody Else Says Distract You From Your Goals.” – Michelle Obama
  9. “The Only Way To Do Great Work Is To Love What You Do. If You Haven’t Found It Yet, Keep Looking. Don’t Settle.” – Steve Jobs
  10. “Have Patience” – Unknown

Conclusion:

In the situation of Lockdown and the economic crisis OYO rooms partners with Apollo Hospital to make quarantine centers. Founder Ritesh Agarwal and group CEO said —

“We want to work with state governments and private institutions to problem solve and assist in the fight against COVID-19. Our partnership with Apollo Hospitals has been developed to ensure we utilize capacity where possible to create highly sanitized pay per use quarantine facilities under the guidance and supervision of medical professionals. 

This is an unprecedented situation which requires all of us to find new ways to work together and rise to the occasion. We are thankful for the support of SBI, HUL, our asset owners and frontline teams that are making this possible” 

Here is a link you can donate a room from the OYO Rooms website.

Hope you understand Why OYO becomes a Company worth $10 billion? and learned so many things regarding success from Ritesh Agarwal. If you like then share it to everyone, Thanks for Reading.

– by Indranil Bhuin

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