Hotel aggregator OYO Rooms aims to grow the share of its leisure business and double the number of rooms under its network in the next one year.
Presently, more than two-thirds of its business come from business cities, while the rest is accounted by leisure locations.
“Our aim is to grow the share of leisure to 40-50 per cent in the next few months,” Ritesh Agarwal, founder and Chief Executive Officer, OYO Rooms, said here.
There has been a strong growth of domestic tourism in India, and the company wants to take advantage of the favourable potential in the leisure segment.
OYO also sees new trends; for example, people now tend to take short vacations, but frequent mini ones.
Network expansionIt is in the process of doubling the number of rooms under its network to 1,40,000, in a year.
The firm is also looking at ramping up the network in Chennai and Tamil Nadu as part the expansion.
Chennai accounts for about seven per cent of OYO’s total room inventory and the city’s room occupancy is 10 per cent better than the national average.
“Our hotel partners have seen at least 1.5-2 times more occupancy after coming on board our network,” Agarwal said.
Gurgaon-headquartered OYO has three brand segments. Its super economy stay comes at price points of ₹1,000-1,500 per night. Premium or flagship brand has price points between ₹1,500 and ₹,2000.
It recently rolled out the Townhouse brand, which comes with a price level upwards of ₹2,500.
Presently, the economy category accounts for about 70 per cent of its business.