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OYO Looks Set To Bounce Back

CEO of OYO India, and South Asia, Rohit Kapoor, took to Twitter on Monday to publicly announce the results of the annual report for the FY 2019. 

OYO, in the recent past, has struggled at a number of hurdles, such as falling out of favour in the hotel industry, and breaking ties with over 200 hotels, according to The Federation of Hotel and Restaurant Association of India. Moreover, poor customer service and refund policies forced many disgruntled customers to voice their disapproval on social media, further the brand’s image.

The FY 2019 Annual Report however, seems to promise greener pastures. The company’s revenue increased over 4-fold as compared to FY 2018, while its gross margin in India rose from 10.6% to 14.7% in the same period. Though the company is still recording net losses, the same decreased by 10%. OYO charted amongst the top 3 hotel booking apps globally. While customer satisfaction has seemed to be an issue for the brand, FY 2019 showed that an average of 73% of its customers over the four quarters have been repeat clients. 

Founder Ritesh Agarwal conceded that while the company’s consolidated losses may have ballooned from $44 Million to $335 Million, in the past year, it is still focused on “building a sustainable business”, focused on customer satisfaction.

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