Today there are online apps and platforms for literally everything, and hotel booking is no different. Post the success of online hotel booking platforms like OYO rooms, today people are willing to cash into this trend. And this research shows exactly why it is the right time to launch a hotel booking platform of your own to make a lot of revenues. A research took place in the USA states that 60 percent of the hotel bookings are made by mobile devices instead of going to book offline. This pretty much presents the future of hotel booking. There is absolutely no stopping for it.
The hospitality industry is witnessing drastic changes with the investments made in this sector increase massively in the last decade. With immense private equity & bank funding, the new generation has entirely changed the landscape of the hospitality industry, and it is getting more and more advanced today with more and more businesses heading towards mobile solutions. And why not? Most people today use hotel booking mobile apps and platforms in order to find the best hotels and rooms that too at best prices. Hence, saving them time and money.
For someone who is willing to launch their own hotel booking app like OYO, this article can descriptively guide you about what all you require to create an app like OYO, which is a network that presently covers 18000 properties in over 500 cities across the globe and in just a few years, it has touched the mark of $950 million in revenues.
We will first begin by understanding the concept of OYO.
Little History behind OYO
Founded in the year 2013 by Ritesh Agarwal, OYO, OYO rooms, or aka Oravel Stays is the largest hospitality firm in India, and today it also rules in the market of UK, Malaysia, China, Nepal, and the USA. In China, it has attained the stature of the third largest hotel brand in China. This brand has introduced several new products in the market, consisting of SilverKey, OYO Homes, OYO Living, and Palette. As per STR, “OYO has successfully collected 515,000 rooms and with this, it has become the world’s eighth largest hotel chain by rooms under management.
Why are people going for hotel booking apps?
As compared to the websites, a hotel booking app can offer a high-quality user experience (UX), thus making the process of booking seamless and hassle-free. A Google study reveals that American Hotel-related search queries made from smartphones increased by 120 percent in the year 2012 and from tablets it jumped 306 percent.
A lot of companies have reported a huge rise in mobile-based queries and sales. For instance, a travel meta search engine, Kayak has reported that the global smartphone queries have increased by 88 percent.
In 2017, the co-living industry was valued at $55 million, and then in 2018, it went on to gain a market value of $120 million. Another study by RedSeer reveals that this market is forecasted to gain $2.2 billion by 2022.
And with these data, it is clear that the hotel booking apps have caught up among people and no time can be better than this to venture into this business.
But before starting with the full-fledged development guide, first, let’s understand the types of hotel booking apps.
Types of Hotel Booking apps
Basically, there are two types:
- Last-minute Hotel booking app: This kind of app is best suitable for spontaneous trips. The once who are known to offer the best service in this category are apps like Hipmunk, HotelQuickly, and HotelTonight.
- Before-hand Hotel booking app: In this type of app, travelers can freely book a room a month in advance. There are apps like Priceline and Expedia which are known to offer services in this category.
Meanwhile, first starting with the development, decide on whether you want to go for a classic booking app or wish to go for something different. For instance, Airbnb changed the very idea of traveling upside down by enabling the tourists to explore the foreign culture by hiring the local houses and apartments.
Then there is TripAdvisor, which allows finding the visitors to find out the most attractive place to go based on the reviews from other travelers.
Top Players in the Hotel Booking sectors
There are several businesses that are raising funds in the hotel booking market space and a few of them have established themselves successfully. Here we have talked about the top players in this domain.
OYO: This company is growing day by day at a tremendous rate. Their aim is to create gorgeous living spaces in 24 countries around the world, in about over 800 cities with over 18000 properties & over 45000-holiday homes.
They are the trendsetters in the field of hospitality with over 10,000 employees working for them. They have their headquarters settled in Gurugram, Haryana. This company was bought into existence in the year of 2013. They specialize in budget hotels, premium hotels, elite hotels, long stays, women exclusive hotels.
Nestaway: They are one of the fastest-growing companies in India, in terms of providing better rental solutions through design & technology.
Their main focus is to provide high rental incomes to house owners, providing beautiful houses at normal PG rentals to the youth of India and also easy on-boarding, servicing & exit experience to tenants & owners also.
They have employees from 200 to 500, working for them. Their headquarters lies in Bangalore, Karnataka. They came into existence in 2015. There specialty lies in the market place, rentals & youth.
Ziffyhomes: Ziffyhomes is the savior for all the young professionals who are looking for beautiful living spaces, satisfactory services, vibrant community & all-time support. They try their best to provide top notch level of support to all the young working class & save them their precious time.
They are a real estate company with a batch of 50 employees’ headquarted in Gurugram, Haryana. It was founded in the year of 2015. There specialty lies in the real estate marketplace, hassle-free renting, rental accommodation. Theirs was an initiative that was started keeping in mind where young professionals’ interest lies.
StayAbode: They came into existence in 2016 when they realized that demand for quality houses is inversely proportional to the actual houses present in the cities. They wanted the youth of today, which travel far from home to live in other cities, to get the feeling of living at home. They also wanted to solve the other problems like that of high rents, the hassle of furnishing, high deposits, unreasonable restrictions, curfew & many others. They introduced the concept of co living through their brilliant idea. They are a real estate company with have around 50 employees working under them. They have their headquarters situated in Bengaluru, Karnataka.
CoLive: They make life easier by their act of flexible lease agreement. Users can easily resign for free at any point of time. Their team finds the user’s outstanding properties & their decorator turns it into an amazing place for them. They take care of everything like that of insurance, water, gas, electricity, internet, TV, cleaning & many other stuff. Users can spend their time with a whole community of co-livers. There houses are present in the most popular neighborhoods which are close to all the public transports. They have their headquarters based in Brussels, Belgium.
Zolostays: They provide users with clean spaces for the starters. Homely food is one of their specialties apart from caring staff. Their furniture is of top quality. High-speed wi-fi is provided by them. If the users want their location to be relocated to a different location, Zolostays will get them relocated without any problem. They ask for a one month deposit in advance & you can download the app for managing the situations better. Hassle free utilities are one of their other qualities. So if anyone is looking for a place to stay in a new city then Zolostays might be the solution to all of their worries.
Despite the fact that all of these apps are giving tough competition to one another, the one that has succeeded in proving its potential to be number one is OYO Rooms.
Although all budget building hotel booking apps are giving a tough competition to each other, the app that has proven to hold the potential to be the No.1 in the industry is OYO Rooms.
Business & Revenue Models of OYO rooms
If you are looking to create an app like OYO, then it is essential to understand the business and revenue models that OYO Rooms work on. They are:
- Aggregator Model: This model was followed by OYO Rooms until last year. It allowed them to connect with several hotels, room owners and property dealers for partnership and provide rooms to customers under their own brand. This way, customers connect them through your platform and receive the hospital services from them without knowing about their actual name. Oyo only partners with hotels that meet their set guidelines, like standardization of the basic amenities, security, staff quality, location, pricing, etc. With this business & revenue model, they used to earn around 22 percent of the profit share whereas the partnered room owners and hotels gained huge traction at their end, while the customers certainly received an amazing experience.
- Franchise Model: Presently, OYO is working with this business model, where the hotel & room owners became constrained to their term & offer plans. Here the OYO rent out the hotels and rooms at a predefined price and offered them to their users at a take-up price. Here the hotels and room owners must provide great customer services and their business will grow as per OYO’s standards. This is a commission based revenue model and here the commission varies as per the services provided by the brand.
Key Features to be integrated into a hotel booking app like OYO
Easy registration and Login: Your hotel-booking app should have a very smooth registration process, as usually, users get irritated filling long registration forms and leave mid-way. So, keep the registration simple and also integrate social signups.
Booking rooms from the app: A Hotel Booking app should enable the users to easily book rooms from the app. Make the booking process effortless from them with easy payment options. After all, the instant nature of these apps to book hotels easily is what gets the users attracted to them in the first place.
GPS Functionality: Upon reaching their destination city, the app users should be able to easily locate the hotel, hence it is integral to incorporate GPS functionality to make the search effective and less time-consuming.
Room Availability and Search Functionality: The app should display the available rooms to the users so that they can book in a hassle-free manner. At the same time search functionality along with the filters, like room availability on specific dates, locations, should be integrated into the app. This way, it gets convenient to book rooms.
Prices of different rooms: In the app, the users should be able to see the prices of different rooms. This way they can make the selection as per their budget.
Check-in and Checkout: Users must be allowed to easily check-in and check-out of the app.
Easy Payment: A hotel booking app should offer easy and multiple payment options for its users, like Debit/Credit Cards, PayPal, Braintree, and Stripe.
Checking various amenities: The app should offer the users to look at the available amenities in order to make the decision process easier for them.
Modifications in Booking: In case a book has been done by the users, but later on s/he wishes to modify it, then the app must allow it. They might wish to upgrade their room or add the breakfast option. Accordingly, the additional amount can be charged.
External features: The app must display nearby malls, theatres, restaurants, or the other must-visit places.
Easy Cancellations: Often it happens that due to certain urgencies, your user may ask for cancellation. Make sure that you keep the cancellation process easy for them. This will build their trust in your brand and they are certain to use your service next time of their travel as well.
How much does it cost to create an app like OYO?
Usually, the cost to develop any mobile app depends on factors like app features, development platforms, hourly price in a region, the number of hours required to develop an app, and tech stack. And the same goes for hotel booking app development like OYO. As compared to other regions, the development cost per hour is significantly lesser in India. So, upon calculating the overall development cost for the OYO-like app, we can say it will come down to around $55000 if you choose to get it developed in India.
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