OYO Hotels & Homes has announced that its corporate channel has witnessed an 80% growth in revenue on a year-on-year basis, making up 30% of its total revenues. Interestingly, this announcement came hours after Economic Times reported that several large corporates have cut back on their business with OYO.
As per the ET report, L&T Infotech, Vodafone Idea, Tata Consultancy Services and several other companies are now looking elsewhere for employee accommodation.
In contrast to OYO’s claim of 80% growth, ET reported that the SoftBank-backed firm’s corporate business has remained flat over the past year.
However, OYO announced that it has over 8,400 clients, which include Utkarsh Small Finance, Think & Learn (P) Ltd. (BYJU’S) and Extramarks Education among others.
OYO has said that it helps companies realize up to 30% savings in their travel costs, offering benefits and specialised offerings such as customized bookings, dedicated 24X7 customer care support and free cancellations.
The ET report, however, cites sources and former employees as saying that companies have been cutting back due to issues such as safety, security of women, service and quality issues. The report also mentioned instances of women’s safety being compromised at OYO’s properties.
L&T Infotech reportedly cut business ties with OYO after the safety of its female employees was compromised in an incident in Pune.
“We have had two such incidents in Pune which have led us to question employee safety … We as a company are liable for their safety and wellbeing when they are away for work … keeping this mind we will discontinue services to Oyo pan India in lieu of our employees’ safety and wellbeing,” ET quotes an email that L&T Infotech reportedly wrote to OYO while cutting ties.
Gaurav Ajmera, Chief Operating Officer, India & South Asia of OYO said in a statement that it added over 4000 new companies in 2019.
“As part of our continuous efforts to strengthen the corporate portfolio, we are working to customize our offerings as per their requirements both in terms of in-room amenities or technology and service-based solutions. We will continue to move forward in this direction as we find more and more ways to add value to the experience of our corporate guests.’’