How to Create an App like OYO Rooms? App Cost and Business Model
Nowadays, mobile apps are developed for all kinds of industry business and hotel booking apps are not an exception.
The successful growth of the hotel booking apps shows you the reasons for developing the same application for your business. Also, stats say, that 60% of people are booking hotel rooms only through their mobile apps instead of offline booking.
This article will give you the complete guide of developing an app like OYO rooms, its business model, cost, etc., Also it shows you why it is the right time to develop an app like it.
About OYO Rooms:
When talking about the history of OYO rooms, it was created by Ritesh Agarwal in 2013. Founded in India, the business is landing into many countries like the USA, UK, Malaysia, etc.,
Due to its hospitality services, it becomes one of the successful hotels booking mobile apps among others.
Why Hotel Booking Apps are Popular?
Find the two reasons behind the popularity of hotel booking mobile apps:
When compared to a website, a mobile app gives the best user experience to complete the booking process.
With this app, people can find less expensive hotel rooms and can book from their place. It will save time and money. This is the main reason for the success of the hotel booking app.
Benefits of Developing an App like OYO Rooms:
Here are the advantages when you create a hotel booking app:
Since people can able to book anytime and anywhere, your app will receive traffic all the time.
People who have different payment systems through you can get your payment faster. You have to develop an app that supports multiple payment ways.
These days, mobile phone is used all time and apps are more convenient than a website, your app will be downloaded by many users. Also, your app will remain on the phone, thus retargeting the same audience will be easier through the mobile app.
The mobile app analytics tool will help you increase the performance of the app service and the performance of your business.
Before diving into the topic, you have to clear about the types of hotel booking apps.
Two Types of Hotel Booking Apps:
Before building your mobile app, make sure, what kind of app services do you want to offer, so that you can decide your budget and requirements.
(1) Before-Hand Booking App:
In this type of app, the app users can able to book their hotel rooms in advance. Also with this service, you can offer your app users two choices like classic booking app (the cheapest hotel booking) or different booking types (booking local house/apartment to feel the local place travel experience). OYO rooms are lying in this category.
(2) Last-Minute Booking App:
With this app type, people can complete the booking process at the last minute of their travel plan. In simple, it is the best app for immediate trips and travels for bookings.
You can either build your app in one type or offer two services depending on your business goals and budgets.
Let’s discuss the actual topic.
Business Model of an App like OYO Rooms:
If you are a beginner in developing an app, then you can hire mobile app developers to simplify the development process.
Though, you have to know about the different business models to know your right model that suits your business.
(1) Aggregator Business Model:
The concept of the aggregator business model is, the app owners can make a partnership with different service providers and offer service to the people under the app brand name. So, the users will get the services from different providers under one brand without knowing the name and details of actual providers.
In this way, people will get their quality services, the service providers can earn profit by partnering with one brand app platform and the app owners will get their commissions.
In simple, the mobile app will act as a bridge between the people and service providers.
OYO rooms were also followed this aggregator business model for some years where the app partnered with different hotels, room owners, and property dealers and provide the hotel booking services under one common brand name as ‘OYO Rooms’.
The main thing is, the app partnered with the hotels that follow the guidelines and meet their quality of services like pricing, environment, location, etc., This is important to increase the loyalty of the app.
(2) Franchise Business Model:
At present, OYO follows this business model strategy. In this model, the OYO rooms app rent out some hotels and rooms for some fixed price and offers the same hotel booking services to the users with these rented rooms for a take-up price. Here the commission rate will vary depending on the hotels and services.
Even though OYO earns a 22% profit share with the aggregator business model (based on research information), it finds it interesting to follow the Franchise business model now.
Depending on your audience requirements and your business services, you can decide your business model.
Features of Developing a Hotel Booking App like OYO Rooms:
OYO rooms offer its services only with simple but amazing features in its app. Some of the main features that you have to provide in your hotel booking apps are:
(1) Simple Registration: The first process after downloading the booking app is registration. Instead of long-form and unnecessary details, provide a simple and short registration form with the necessary details. Make sure that all these details will be secured.
(2) Easy Login: After successful registration, the people should log-in to their account with simple steps like OTP or mail verification without disturbing with a long process.
(3) Room Availability: The main reason for downloading your app is for finding the cheapest rooms. All these room details are available clearly with high-quality images.
(4) Search and Filter Functions: Many people want to find rooms with some conditions like price, location, etc. so that filter option should be available along with search buttons. This will increase the user-experience of the app.
(5) Different Price Ranges: The price details for different rooms can be provided in a simple chart to find the cheap and best rooms quickly.
(6) Check-in and Check-Out: After finding the room, the user will able to include their check-in and check-out dates for easy convenience.
(7) Easy Payment Process: When the app user finds their room, the next process is to complete the payment process which should be finished within a single-page. Also, different payment options make the user feel easy to finish their payments.
(8) Cancellation Process: Along with this booking process, the app should also provide options to cancel the booking process. This will make the users feel safe within your app and hence retargeting the audience will be easily achieved.
(9) Other Features: Some other features like customer care support, recommending the amazing travel places near the hotels, etc., can be included to increase the app quality.
Cost of Developing a Mobile App like OYO:
The hotel booking mobile app has various features and the cost of the app will be varied depending on the following factors:
(1) Budget and Services Offered:
When you decide to develop the app, you will have a fixed budget rate in your mind. Also, as said above, there are different business models and features available for the hotel booking mobile app.
The cost of the app will vary from client to client depending on their interested budget and the kind of services that they want to offer.
(2) App Platform:
When talking about mobile apps, it is important to decide whether your app is created on Android or iOS or both platforms. This will also decide the cost of the app.
(3) App Design and Size:
The main attraction of an app like OYO comes from its design. Design and user experience are important in developing a mobile app. On the other side, the number of features and functions included in the app are also counted. Depending on the design and size of the app, the cost will be decided.
(4) App Developers:
When hiring mobile app developers, you have options to hire Android or iOS developers, and also have options to hire from local or foreign developers. Your app development cost will be varied with the developers that you hire. (depending on their service rate per hour or fixed period)
(5) Other Necessary Factors:
Following are some of the factors that also decides the cost of mobile app like hotel booking app:
Multiple payment system integrations
Advanced app features like voice search.
Mobile wallet to maintain the balance amount
High-security features to protect users' details
Admin dashboards, User’s dashboard, and Employees Panel
Social sharing functions
QR code options
Calling and chatting features, and many.
These are some of the main features that can decide the total cost of your mobile app. Also, your development cost will vary when you add some extra features.
The fixed cost of mobile app development is not decided prior and it depends on the various factors based on your requirements. This article helped you know the complete detail of developing a hotel booking app like OYO.
If you want to develop a hotel booking app with low prices and customized features, you can contact us. As a leading mobile app development company in USA, MAB Technologies will help you develop your app.