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Zo Rooms Analysis

In: Business and Management

Submitted By avnie
Words 481
Pages 2
ZoRooms: Changing the way India Travels’.

The major cause for whatever happened was unnecessary expansion just to compete with oyo rooms
Second revenue model for hotels were never uniform it varied even within a city, which turned hotel owners hostile
Later reveneue share and mg model
Oyo switched from Rev share as soon as it saw zo as a competition and it completely switched to minimum guarantee model throughout
There was a time when zo rooms could have killed oyo cause oyo had the numbers with them, but the customer support was horrible
So rather than focusing on the existing properties and improving upon customer satisfaction zo drove itself into expansion mode

Moreover one of the major reasons was also that there were 7 CO founders and everyone had their one go to guy in every department
That's because tiger refused to pool in more money, resulting to which zo rooms pulled out of mg model from almost everywhere

Zo claimed to have a network of 11,000 rooms on its platform with 1,000 hotels across more than 50 cities in India.

hmm.. ZoRooms had more revenue than OYO at the time of acquisition !
Unlike its competitors Stayzilla who worked on a marketplace model focusing on low-budget accommodation, and Oyo Rooms which had adopted an inventory-led model, Zo Rooms decided to go for a Commission Model, wherein the company charges a percentage share of the sales that would be generated through Zo Rooms.

If hotel owners spend money to provide basic facilities and carry out renovations
Revenue share model vs minimum guarantee model

Zo Rooms also went ahead and installed inventory and property management software.
They also claim to be the only hospitality service provider in the world in the budget segment at each property. These tablets in turn have helped them manage inventory, one-touch check- in, and record instant feedback &…...

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