OYO is leading, new-age technology platform empowering the large yet highly fragmented global hospitality ecosystem. They have been focused on reshaping the short-stay accommodation space since incorporation in 2012 and have developed a unique two-sided technology platform, comprehensively addressing key pain points of our Patrons (being the owners, lessors and/or operators of storefronts listed on our platform) on the supply side and Customers (being travelers and guests who book accommodations) through their platform. OYO mobile application was the third most downloaded travel mobile application globally and the most downloaded travel mobile application in Asia in 2020, according to Sensor Tower, and had over 100 million downloads as at March 31, 2021. They had 9.2 million OYO Wizard members (including 2.1 million members who pay subscription fees for higher membership tiers) in India as of March 31, 2021, making it one of the largest loyalty programs run by leading travel or food brands in India, and the largest among online hotel or food brands in India, based on the number of members as of March 31, 2021, according to RedSeer. They are at the middle of supply and demand in the highly fragmented short-stay accommodation value chain.
Company benefits significantly from the flywheel effect of the interplay between the supply and demand sides on their platform, underpinned by strong local network effects and operating leverage. Their platform provides multiple touchpoints across Patrons’ business and Customers’ experience, enabling them to establish a strong value proposition for both our Patrons and Customers and creating the foundation strong consumer brand.
According to RedSeer, within the travel and tourism industry, the short-stay accommodation market is one of the fastest growing segments. The short-stay accommodation segment refers to stays of up to one month, and the market comprises stays across hotels, homes, guesthouses, bed and breakfasts and campsites for tourists and travelers. From 2015 to 2019, the total short-stay accommodation market grew at 7.5% CAGR to reach around US$1.3 trillion in 2019. While the industry dipped in 2020 due to COVID-19 restrictions, it is projected to revive back and reach US$1.1 trillion in 2021. Going forward, the industry is projected to grow at 6.6% CAGR from 2021 to 2030 to reach US$1.9 trillion in 2030.