REVENUES

Shimla, the problem was that the merchants would not give you a room on weekends. So, for the first two months, I incentivise them,” says Agarwal. Minimum guarantees – an initial sum paid to the hotelier to ensure inventory – is currently less than 2 per cent of OYO’s overall inventory, the company claims. Minimum guarantees were the predominant model till last year. There was more domestic competition and hoteliers would play one against the other to strike a better bargain. Some of OYO’s competition is, however, dead. Zo Rooms, for instance, has shut shop. OYO also has a far larger war chest than any of its existing rivals, including Wudstay, though going ahead, it may face a tougher fight from the well-funded Ibibo group’s GoStays.

OYO, therefore, seems keen to boost the quality of its inventory, and not just the quantity. Scroll through OYO reviews on TripAdvisor, and you will find everything from “good and nice” to “did not provide what I booked”. In January and February of this year, the company slowed down to focus on customer experience, weeding out 51 poor hotels from its platform. Its representatives now respond faster.

Back to the quaint haveli of Burja, where this writer had booked two rooms. On arrival, there was a surprise – OYO, for a reason best known to them, had cancelled one of the rooms. The customer service representative on the phone apologised, re-booked within minutes, and offered a discount. That’s exactly how OYO looks to change customer experience for the better. ~ MILLION RUN RATE