OYO, which launched its loyalty programme — OYO Wizard in August 2018, has reached a subscriber base of 1.5 million customers and accounts for around 25 per cent of OYO’s bookings. The programme was launched by OYO to attract more customers and reward frequent ones with benefits such as discounts, cashbacks, room upgrades.
The total number of rooms booked on OYO increased from 5 million in FY17 to 10 million in FY18 while on an annualised basis the number stood at 39 million in December 2018 with a 2.9x year-on-year growth from 13 million in December 2017, OYO had said in its 2018 annual report card published in February this year.
OYO currently has 9,000 hotels partnered in India out of which more than 6,000 hotels are part of the Wizard programme, the company said in a statement.
“This also helps in more earning for hotels part of the programme as more than 70 per cent bookings made by Wizard customers are through Wizard hotels. Also, every fourth booking we get is made by a Wizard customer,” an OYO spokesperson told Financial Express Online.
With the Wizard programme, OYO is expecting “to reach 3-4x of our customer base by the end of this year,” OYO India and South Asia CEO Aditya Ghosh said in a statement, while the repeat rate among Wizard customers is twice vis-a-vis regular customers.
OYO is also offering additional discounts to Wizard customers along with a free membership upgrade to OYO Wizard Silver hotels.
OYO has rapidly scaled to become the world s sixth largest hotel chain with a presence in over 800 cities across 24 countries and is backed by marquee investors including SoftBank, Sequoia Capital, Lightspeed Ventures, Hero Enterprise, and China Lodging Group.
The company is now looking to raise $1 billion in its latest round of funding that would double its valuation from current $5 billion to $10 billion, a source familiar with the fundraising had told Financial Express Online on Tuesday.