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Asked a question 4 years ago

What is the difference in the business model of OYO and AIRbnb?

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OYO works in the hospitality sector. It is a hotel chain aggregator working in many countries and is rated in top 10 hotel chain aggregators. It collaborates with the hotels i.e. the hotel and OYO partner with each other and sell the hotel rooms for a fixed period and for the fixed amount under the brand name of OYO. So, all the rooms are booked on the OYO's name. In this all the inventory is also hired by OYO only. The OYO gives the full charges of the rooms booked under their branding even if there is no full occupancy of the rooms. OYO makes the contract with the corresponding hotel. This contract consist of the actual pay offs and the conditions of the standardised services to the OYO's customers.





AIRbnb also works in the hospitality sector. It is a peer-to-peer space renting b business for a given definite time period. In this business, AIRbnb lists all the rentable property on their site. The person who wants to get that property for some finite period of time. For all this renting of property, AIRbnb charges a commission of 3% booking charge of every booking from the host and commission of 6% to 12% booking charge from guests. Both i.e. the guests and the hosts are getting benefit in the form i.e. host is getting a good a good amount for his/her speared room and the guest gets an environment like it's own home with all the facilities.