OYO Bucks Industry Trend in the US with 16% Jump in Online Summer Booking Revenue
Dallas, Texas
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December 09, 2024 08:00 AM Eastern Standard Time
- Travel-tech platform sees 15% increase in online bookings compared to last year
- Midwest and Northeast emerge as standout performers with 44% and 46% growth, respectively
- OYO is expanding its US presence through the acquisition of Motel 6 and Studio 6 brands
Global hospitality technology company OYO reported a 16% increase in summer booking revenue (June to August) in the US compared to last year, according to STR, significantly outperforming the broader economy hotel segment that experienced a 2% decline, underlining its growing footprint in the world’s largest hotel market.
The growth was primarily driven by a 15% increase in bookings across OYO hotels in the US. The company saw particularly robust performance in the Midwest and Northeast regions, recording 46% and 44% growth in booking revenue respectively, substantially outpacing the market growth of 22% and 24%.
Nikhil Heda, Head of Business Development – OYO US said, “Our strong performance this summer demonstrates the growing preference for OYO's value proposition in the US market. By focusing on delivering quality accommodations at competitive prices, backed by our technology platform and online demand generation expertise, we’ve been able to capture increasing demand despite broader market headwinds.”
Texas emerged as the top-performing state, contributing 22% of OYO's overall summer booking revenue, followed by Oregon (18%), Florida (7%), and Louisiana (6%).
At the city level, Newport, Oregon, and Houston, Texas each contributed 5% to the overall summer booking revenue, while Seaside accounted for 4%. In an encouraging trend, destinations such as Houston, Port Allen, Rockford, Portland demonstrated exceptional growth, significantly surpassing market averages.
OYO enhances the guest experience through its technology-driven platform, offering seamless bookings, dynamic market-based pricing, AI-powered customer support, and flexible cancellation policies. The platform's integrated loyalty program further rewards customers while ensuring competitive rates.
The India-headquartered company’s impressive performance augurs well for its growth prospects in the US as it closes in on concluding its acquisition of G6 Hospitality, which owns the iconic Motel 6 and Studio 6 brands. Oravel Stays, the parent company of OYO, inked a deal with Blackstone Real Estate to buy G6 Hospitality, which has a franchise network of around 1,500 hotels across the US and Canada.
OYO has steadily expanded its footprint in the US since its launch in the region in 2019 and currently operates over 400 hotels across 35 states. In 2023, OYO added nearly 100 hotels to its US portfolio and aims to add ~250 hotels in 2024. OYO will leverage its comprehensive technology suite as well as its global distribution network and marketing expertise to further strengthen the Motel 6 and Studio 6 brands and drive continued financial growth.
About OYO
OYO is a global platform that empowers entrepreneurs and small businesses with hotels and homes by providing full-stack technology products and services that aim to increase revenue and ease operations; bringing easy-to-book, affordable, and trusted accommodation to customers around the world. OYO offers 40+ integrated products and solutions to patrons who operate over 184K hotel and home storefronts in more than 35 countries including India, Europe and Southeast Asia.
For more information, visit here.
Contact Details
OYO
Anupriya Malik
+91 97911 63065
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