Oyo Rooms Launches Oyo Bazar, A Marketplace For Hotel Essentials
With over 5800 partner hotels and 68,000 rooms in 170 cities in India, Oyo Rooms has definitely grown to become the largest budget hotel aggregator and rental platform in India. With number of hotels increasing by the day, Oyo Rooms is now further looking to exploit this vertical to add to their bottom line.
Oyo Rooms has now launched Oyo Bazar, India’s first B2B marketplace built exclusively for the hospitality sector. Hotels and guest houses can shop for any Hotel supplies from the OYO Bazar at a price and quality which is the best in the market. OYO Bazar is a single stop online shop for any hotel supplies required for daily running of the hotel.
From Oyo’s own business point of view, this makes good sense, because this will not only help their partner hotels to procure standard quality material at competitive prices, but also help Oyo to keep their margins.
With so many hotels under Oyo umbrella, the demand for hotel essentials is always going to be quite high. With it, Oyo has power to leverage bulk sourcing capabilities and procure these good at much below market rates. For hotels, it is advantageous as they are able to procure goods at cheaper rates from a single platform without much hassle with assurance that they are getting quality products.
Ritesh Agarwal, Founder and CEO of OYO Rooms said, “As the market matures, hotel partners will look for more support from a single partner they work with. The intent is not to become an ecommerce company but to become a preferred supplier for our partners. Our margins are healthy enough to hit profitability but to continue to grow and maintain our partnerships with hotels, we need to expand our services,”
According to ET, 10 vendors have signed up agreements with Oyo Bazar for supplying with Hotel essentials at very competitive rates. The logistics will be taken care by Oyo’s preferred logistics partners or the vendors themselves will take care of the logistic.
Currently Oyo Bazar is offering around 180 SKUs under four major categories including Linen, Toiletries, LED Light and Maintenance Service. Also, buyers cannot make purchase for a single item on the marketplace. The minimum order value for products should exceed Rs. 2000 to be eligible for making any purchases.
We checked the prices on Oyo Bazar, and product rates are definitely below market rates.
Overall, Oyo Bazar is an excellent move by Oyo Rooms – A move that has very little risk, and high chances of being successful!