OYO Rooms vs Airbnb

OYO Rooms is India’s largest hospitality company, which was founded by Ritesh Agarwal. He became one of the youngest millionaires at the age of 22. He is “THE” youngest self-made entrepreneur, who has been able to raise his startup company and have been able to give a unicorn status. In just 12 months, they have been able to increase their footprints to five countries like India, China, Malaysia, Nepal, and the UK.

How does their Business Model Work?

OYO is an online aggregator of budget hotels in India. They partner with the hotels and book a part of hotel inventory beforehand.  Then, those rooms will be run under their name called OYO Rooms. These partnered hotels will provide their standardized services to the customers as decided in the contract with OYO. Bookings for these rooms would be made through OYO Rooms’ website and Mobile application.


It is headquartered in San Francisco and is an online hospitality service and marketplace. Joe Gebbia the founder of AirBed and Breakfast started with this hospitality service in 2008. They have their offices in Netherlands, Spain, Germany, China, Denmark, Ireland, UK, US, Italy, Canada, India, France, Brazil, South Korea, Singapore, Australia, Japan, and the Philippines.

How does their Business Model Work?

It is an online marketplace unlike OYO, which lets people rent out their space to the guests. Airbnb takes 3% commission of every booking from the host and 6% to 12% from guests. Guests are happy because they get a good value for the accommodation which ranges from a few pounds to hundreds in prime locations, which would otherwise be exorbitant in a normal hotel stay. And the hosts are also happy because they get monetarily benefitted if they have rooms to spare.

Videshi Airbnb vs Desi OYO
  1. OYO has more hotel rooms whereas Airbnb has more residential plots.
  2. In Airbnb, the apartment may have been misinterpreted, not so in case of OYO as an audit is done every week.
  3. The host might be unreachable but it won’t be the case in OYO
  4. Calendar bookings can be wrong but in OYO once booked it is finalized.
  5. Host cancellation last minute but not in the case of OYO as they have already booked the hotel rooms under OYO brand.
  6. Airbnb doesn’t do a full background check, so, security and safety are an issue but no so in OYO.

There would always be a tug of war between, videshi Airbnb and Desi OYO, but at the end price and services is what people would go for. Be it Airbnb or OYO.

7 thoughts on “OYO Rooms vs Airbnb

  • June 20, 2019 at 9:17 am

    Thanks sir or ma’am who so ever written this comparison and for such a wonderful knowledge.

  • August 10, 2019 at 5:52 am

    Thats what an angel is. Dust pressed into a diamond by the weight of this world. #TheOA needs your help. #SaveTheOA

  • August 11, 2019 at 9:46 pm

    I’m asking you to imagine that reality is stranger and more complicated than you or I could possibly know. And sometimes we get glimpses of it, in dreams or in déjà vu. #TheOA needs your help. #SaveTheOA

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  • February 5, 2020 at 12:31 am

    I have experience in operating both. This article is incorrect in so many ways:
    1. Most Airbnbs are owner operated. They take pride in the place and provide personal guidance. Airbnb reviews is a good business model for hosts and guests alike.
    2. Airbnb is the largest and offers insurance
    3. Most Airbnbs are full homes/apartments. Oyo is mostly hotel rooms
    4. Of course Airbnb reservations are fully confirmed at the time of booking.

    Oyo is having a tough time in India and many hotels have cancelled their Oyo contracts.


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