Dallas, Texas, United States
--News Direct--
Global travel technology company, OYO's USA operation announced that it has outpaced the budget hotel segment's growth in per available room revenue (RevPar) with an 18% rise in 2022 vs pre-covid year, 2019. The budget hotel segment in the meanwhile, grew by only 6% in the US, according to STR reports.
OYO has seen significant growth in its priority markets of Miami, Houston and Phoenix, where it has sizable concentration of hotels. According to STR Miami Sub Market report, the budget segment in the region saw a 21% jump in RevPar in 2022 vs 2019 while OYO hotels in the region saw a 28% uplift in RevPar in 2022 vs 2019, which translated to ~1.3x higher growth than the other budget hotels in the region. Overall, the region has witnessed a shift in demand pattern with majority of bookings coming from domestic tourists.
OYO saw a 13% jump in RevPar in Houston region while the budget hotel segment here saw a meagre 0.16% growth in RevPar, according to STR Sub Market report. For OYO, the increase in demand in the region can be attributed to uptick in business travel, given the region's proximity to the oil & gas hub.
A popular leisure market, Phoenix saw a 32% jump in RevPar in 2022 vs 2019 whereas OYO's hotels in the region saw 41% jump in RevPars, again, ~1.3x higher than industry revenue per available room.
Talking about the recovery, Gautam Swaroop, CEO OYO International said, "OYO's US hotels have seen a significant improvement in per available room revenue in 2022, surpassing industry average. Domestic tourism has spearheaded this uplift with leisure and revival of business travel in 2022, leading the way. After two years of travel constraints, the US government easing restrictions in summer 2022 has played an important role in opening up domestic travel in the country and paving way to creating newer tourist pockets across the country."
OYO offers hotels access to a large base of regular customers through its app and website, and also lists hotels on multiple Online Travel Agents (OTAs) to boost booking demand and, therefore, revenue. OYO's best-in-class Artificial Intelligence-enabled pricing software automatically drives the best booking prices across all channels, based on room type, seasonality and other factors, therefore, enabling such doubling of revenues.
The company also helps ensure great experience for customers, with ease of search and quick booking experience, highly competitive room prices, automated tools such as Artificial Intelligence powered chatbots to quickly resolve customer queries, loyalty programmes and easy refund, if needed.
OYO US recently announced that it witnessed a 46% increase in per room revenue (RevPar) for its hotels since COVID (2020) with the strongest uplift at 64%, recorded during the peak season months of June, July, August vs the same period in 2020. For OYO US, coastal Oregon, Miami, Myrtle beach, Houston and San Antonio emerged as the destinations with highest RevPar in 2022. Travel recovery was largely led by domestic travel in the US.
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