The hospitality sector is set to see a big change, it got a shot in the arm when investments in the sector were booming between 2005 and 2010. With immense private equity and bank funding, the new generation has changed the landscape of the hospitality sector, therefore, it has become more advanced and soothed through Enterprise Mobility Solution.
We all are aware with the OYO as this has become an inseparable part of the hotel industry. Today, it covers 18,000 properties in 500 cities around the world and has earmarked $950 million to bankroll a multi pronged expansion across Asia over the next five years. So this could be your startup idea as still, some people find trouble in searching fully-furnished room to stay in a new city.
A Brief History of OYO
OYO, OYO rooms or Oravel Stays is India’s largest hospitality company, founded in 2013 by Ritesh Agarwal. Today OYO is ruling in the market of China, Malaysia, Nepal, UK, and the USA and has become 3rd largest hotel brand in China. The brand has launched various new products in the market including OYO Living, SilverKey, OYO Homes, and Palette.
According to STR, “OYO has collected 515,000 rooms, making it the world’s eighth-largest hotel chain by rooms under management”.
Top Players of the Hospitality Market
Notable hospitality networks;
- OYO Rooms
- Friendship Force International
Recent Fundings Raised in the Co-Living Market
The co-living industry was valued at $55 million in 2017 and in 2018 it gained a market value of $120 million. And according to the RedSeer study, this market is expected to gain $2.2 billion by the year 2022.
- Co-living startup Colive has raised $9.2 million from real estate developer Salarpuria Sattva Group.
- Stanza Living has raised $4.4 million in debt from Alteria Capital, a venture debt firm.
- StayAbode raised an undisclosed amount from Voyage Group, Akatsuki and Incubate Fund as an add-on to Pre-Series A funding.
- Housr has been co-founded by Tribeca Developers MD Kalpesh Mehta and Deepak Anand.
- Grexter, a co-living startup based in Bengaluru, gained $1.5 Mn in a Pre-Series A funding from Venture Catalysts.
- ZoloStays raised a $30Mn Series-C funding by IDFC Alternatives, Mirae Asset and Nexus Venture Partners.
- Oyo has raised over $1 billion in funding from Son’s SoftBank in September for $800 million, and then Singapore’s ride-hailing giant Grab in December for $100 million and China’s ride-hailing major Didi Chuxing in February for $100 million
- Airbnb received $600,000 in seed money from Sequoia Capital and, in November 2010, raised $7.2 million in financing from Greylock Partners.
Features of OYO like App
Take a quick look to ease the OYO mobile app design and development process:-
- Profile creation and management
- Search option
- Invite and Earn
- Book a Room
- Payment option
- Check-in, Check-out option
- Booking History
Hotel Vendor Panel
- Account creation and management
- Booking Management
- Room Management
- Track Booking
- Upgrade/Degrade Amenities
- Customer Review and Rating
- Customer Management
- Booking Management
- Manage discount and coupons
- Regulate Payment Transaction
- Manage Promotional Activities
- Hotel Management
These are the simple features of co-living space mobile application. Recently OYO has introduced various new functionalities to provide a better living experience to users such as;
- OYO Money and OYO Rupee
- OYO Wizard
- OYO Captain
- OYO Assist
- OYO SOS
- Deals for You
If you want to develop an app like OYO with all these latest features, it won’t help as OYO already established itself in the co-living market. Therefore you have to think out of the box to come up with a new approach to enter in the market and get the hype like OYO.
Let’s get into the technical aspects of the mobile app design and development and see what framework and languages lie under OYO app tech stack.
OYO Mobile Application’s Technology Stack
- Framework: Android, iOS, and Website
- Map: Google Map API
- Interface: Rest API, Slim Framework
- Database: MongoDB, MySQL, Redis
- Payment Gateway: Paytm, Mobikwix
- Web Server:Nginx
- Real-Time Analytics: Hadoop, Spark, Bigdata
- Traffic Analysis Tools: Google Analytics, Mouseflow
Business Model of OYO Rooms
When it comes to how to start a business like OYO, you can go with two different business and revenue models:-
- Aggregator Model
- Revenue Model
- Aggregator Model
In this model, OYO Rooms partners with other hotels across the world to provide rooms to the customers under their own brand. OYO only partner with those hotels which meet certain guidelines such as the standardization of basic amenities, the standard of rooms, staff quality, security, pricing, location, etc.
- Revenue Model of OYO Rooms
Currently, OYO is working on this business model. Under this model, OYO used to rent out the hotels at a predefined price and offered them to the users at a take-up rate. This is a commission based revenue model and this commission does vary according to the services provided by the brand.
OYO Mobile App Development Cost
The cost that we have mentioned in our blog for OYO mobile application development is not finite. The cost of iOS Mobile App Development and Android Mobile App Development varies based on various factors, including the app features, tech stack, hourly price of the hired mobile app developer, and most importantly – the number of hours required for the development cycle.
At Consagous Technologies, we calculated the cost of OYO-like app development based on the number of hours, the value comes down to nearly $65000. This estimated cost of OYO-like app development may differ.