Oyo CEO Defends Business Practices That Anger Some Hoteliers
Skift Take
If you were thinking after a tumultuous last few months that a reformed Oyo would emerge, then guess again. The hotel chain is giving little ground on the basics of its business model, although it vows to get better on the execution of it all.
After downsizing his U.S. business, Oyo CEO Ritesh Agarwal defended the hotel chain's business model, and gave no hint that he would be seeking to decelerate Oyo's growth.
At the same time, Agarwal, in an interview with members of the editorial and research teams at Skift's Manhattan headquarters, acknowledged that a key tech feature — dynamic pricing — hasn't met expectations. He said Oyo is working hard to ensure that it uses more data points when making pricing decisions.
Agarwal said Oyo has significant learnings to achieve in order to improve its dynamic pricing, and there are "some learnings for our partners, as well."
Dynamic pricing is when a hotel changes its rates based on demand and other factors.
When asked about Oyo's challenges, including some hoteliers' complaints about technology shortfalls, and minimum guarantees that might not always appear, Agarwal said: "Sure, I think one of the things I have said multiple times is that we don’t claim to be — and we are not — a perfect company."
Come See Tobias Wann, Global CEO of Oyo Vacation Homes, at Skift Forum Europe March 24–25 in Madrid
He argued that most hotel partners see the value proposition in Oyo, and the quest