OYO Sees Good Demand for Budget Spaces
Local hoteliers are bracing for a boom in the tourism sector next year as several campaigns have been launched to attract international visitors, such as Visit Malaysia 2020 and the Malaysia Year of Healthcare Travel 2020.
The country is targeting to welcome 30 million international tourists and achieve RM100 billion in tourist receipts next year.
OYO Hotels and Homes — the world’s third-largest and fastest-growing chain of leased and franchised hotels, homes and living spaces — believes that with the strength of the domestic and medium-haul traveller demographic, there will be healthy demand for dependable and good quality budget accommodation.
“For asset owners in the budget space keen to grab their slice of the hospitality pie, customer confidence and discoverability are key,” it said.
OYO is helping hotel owners in Malaysia to upgrade their property to boost occupancy and revenue.
On an average, hotels which are part of OYO’s chain, have witnessed an increase in occupancy from 25 per cent to 65 per cent within three months.
The hotels enjoy various benefits, like support for technology, design, operations, revenue management, marketing and distribution.
OYO also help them upgrade their properties to provide quality living spaces for travellers.
The OYO hotel chain, founded in 2013 by Indian entrepreneur Ritesh Agarwal, has more than one million rooms under management globally.
Since its foray into Malaysia in 2016, OYO has been expanding its presence across the country, and more local hotel owners are joining the bandwagon. The company recently achieved a significant milestone, having recorded 10,000 rooms at 300 hotels in its chain across some 40 cities.
There is OYO in Kuala Lumpur, Penang, Kota Kinabalu, Kuching, Kelantan, Kuala Terengganu, Langkawi, Ipoh, Kota Baru, Johor Baru and Melaka, among other cities and towns in Malaysia.
Properties like OYO 535 Tanjong Inn in Kota Baru, Kelantan, have seen significant improvement.
This includes 70 per cent occupancy growth and double revenue, with the impact maintained even during off-peak seasons, said OYO 535 Tanjong Inn’s owner, Che Mohd Ariff.
Before joining OYO, Che Mohd Ariff said he often struggled in getting his accommodation offering noticed.
Every hotel that is a part of OYO’s chain works on OYO operating system (OS), giving them a cutting-edge advantage with sophisticated features, including express check-in and check-out.
It further allows online procurement and inventory management. The OS offers apps for housekeeping and audits while introducing solutions for multiple hotel management aspects like expense management, staff training and engagement along with performance review and incentives for the hotel staff.
Hotel owners have seen a remarkable improvement like enhanced inventory tracking, room turnaround time and service offerings.
Faster and more effective room cleanup, high-quality upkeep and well-maintained features ensure that user experiences always hit the mark.
All these facets come together to deliver technology-driven efficiency at each one of the 300-odd OYO hotels in Malaysia.
Tan Gok Khim said his hotel, OYO 246 Link Inn in Johor, recorded healthy recovery last year.
Besides boosting occupancy, revenue has also seen an increase by 30 per cent.
“With tracking of inventory and assignments switched over to a digital system, the staff have become more focused on operations. This includes delivering high-quality experiences, employing demand management strategy and creating offerings with dynamic pricing,” he said.
Occupancy at OYO 430 Oak Valley Boutique Hotel, also in Johor, saw a healthy jump from 60 per cent to more than 85 per cent.
EXPANSION IN MALAYSIA
OYO recently launched its newest offering in Malaysia, OYO Home.
The hospitality chain aims to extend the new offering to the most travelled destinations, such as Kuala Lumpur, Selangor, Melaka, Penang, Kedah and Johor.
OYO Home combines OYO’s existing on-ground operations, hospitality technology, housekeeping skills, revenue management algorithms and distribution prowess to deliver a hassle-free solution to home-owners.
More than 1,000 homeowners in major cities like Kuala Lumpur, Penang, Johor, Kedah and Melaka have trusted OYO as their preferred choice of home management service.
OYO Malaysia country head Tan Ming Luk said the company is working towards creating quality and chic living spaces.
“What we are attempting with OYO Home guarantees unique experience for our guests and higher yields for homeowners. Malaysia offers a huge market opportunity and travellers visiting the country are keen to explore the comforts of a fully-managed holiday home.
“There’s a huge untapped opportunity in this space and we are using our strong capabilities in design, hospitality, technological expertise, financial acumen and operational capabilities to make OYO Home the preferred choice of guests,” said Tan.