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18 Jan 2019

Is OYO making hotels lose their identity?

I've been reading about the tussle between the hotel owners and OYO - the business that's disrupting the hospitality industry. It looks like many hotel owners all over the world are not revolting against OYO and are disassociating their hotel from listing as OYO. 

I could figure out the reason. But for that we'll have to look at the typical flow of customer acquisition.

  1. Customer goes to OYO for booking the hotel
  2. At the time of check-in to the hotel, it's all 'OYO' branding
  3. Hotel provides the service
  4. People remember 'OYO' offered a good service.
  5. OYO charges ~30% commission for mere hotel booking!

I could have missed any steps in the above flow; but in general - the user is exposed to the OYO brand much more than they are exposed to the hotel, its name and goodwill. 

I had booked OYO once and more than the hotel's name, I only remembered that it was OYO that I got the hotel from. 

I think hotel owners realised that OYO is taking away their brand identity. That's why many hotel owners are now delisting their hotels from OYO - as I read on various social media posts. 

I wonder if OYO is making hotels lose their identity. What do you think?