Looking to break the glass ceiling once again, IPO awaited Oyo Rooms, and its founder Ritesh Agarwal has remarked that hotels, homestays, and agri-stays in rural areas will be the next frontier for the unicorn company to unlock. While Oyo has reached tier-2-3 cities and changed the dynamics of the hospitality sector, the rural areas, predominantly are still untouched.
Taking to Twitter, Ritesh thanked the Prime Minister for the guidance and organizing the ideas exchange session. He remarked how his company was developing infrastructure for domestic tourists.
Ever since the pandemic, international travel has taken a hit and thus the hospitality industry needs domestic tourists to travel, now more than ever. Ritesh said giving priority to rural tourism will create additional income sources for farmers.
“Creating more infra in terms of hotels, homestays & agri-stays will be a key opportunity to be unlocked. Rural Tourism led by agri-home-stays will create additional sources of income for our farmers, which is an opportunity waiting to be unlocked to its true potential.”
Creating more infra in terms of hotels, homestays & agri-stays will be a key opportunity to be unlocked. Rural Tourism led by agri-home-stays will create additional sources of income for our farmers, which is an opportunity waiting to be unlocked to its true potential.
— Ritesh Agarwal (@riteshagar) December 22, 2021
Informing that Oyo had already started with the pilot project, Ritesh Agarwal stated that the project had received positive reviews from guests and farmers.
“OYO recently piloted such agri-farm stays in homes in Kevadia, Gujarat, which has garnered positive feedback from both guests & farmers. We hope with govt’s encouragement, support from industry peers, we can also help start such stays in other parts of the country.”
There is a growing market of tourists who want to get away from the hustle and bustle of towns and cities. They look for the calm of the village life. The rural areas around the big cities could be the ideal ground for agro-tourism.
Moreover, the rural populace will also get a touch and feel of the hospitality sector. It’s a win-win situation for all the stakeholders as it will help create a revenue stream for Oyo and farmers while generating employment for the rural folks.
Oyo and its success
OYO Rooms, an all-in-one place for budget lodging was founded in 2013 by 18-year-old Ritesh Agarwal. Over the years, Oyo has become the symbol of Indian entrepreneurship. The company has brought revolutionary changes in the tourism and hospitality industry.
OYO is not any typical company in the sharing economy as it is more involved in the operations of the product. OYO generally takes up a stay place in a good locality and ‘standardizes’ it.
The basic facilities offered in OYO Rooms are by and large the same in most places while the price range fluctuates based on the kind of hotel one is booking. However, the biggest selling point is the price of OYO Rooms, which is several times lower than that of a typical ‘starred hotel’.
Oyo has filed for a Rs 8,430 crore ($1.1 billion) initial public offering (IPO) and may go public early next year. As Oyo awaits SEBI’s nod to launch the IPO, reports suggest that early investors in the company might earn returns of up to 770 percent. The retail investors have also been waiting patiently for the IPO to hit Dalal street.