OYO Plans to Expand with 50 Hotels in Ayodhya Amidst Flourishing Tourism
- ByStartupStory | May 1, 2023
OYO to add 50 properties, including hotels and homestays, in Ayodhya in 2023 with the support of the Ayodhya Development Authority and Uttar Pradesh State Tourism Development Corporation. OYO 360, a self-onboarding tool, enables hotel owners to easily enroll on the platform and offers growth, partnership, and network benefits. Revenue of hotels onboarded on OYO doubled within three months, as per hotel data from January to September 2022, compared to similar-sized independent budget hotels.
Over the past few years, there has been a consistent rise in tourist arrivals in Ayodhya, with approximately 1.5 crore tourists visiting in 2017, 2 crores in 2019, and more than 2.20 crore in 2022. The government anticipates a tenfold increase in Ayodhya tourism by 2024 following the completion of the Ram temple construction and development work.
The transformation of Ayodhya into a global spiritual center, akin to the Vatican City and Mecca, is a top priority for the government, with a budget of approximately Rs 30,000 crore allocated for this purpose. The plan involves several key initiatives, including the construction of an international airport and a riverfront, as well as the creation of a Ramayana-based theme park, smart transportation and waste management systems, a bird sanctuary, and public safety systems under the smart city mission. Additionally, the Uttar Pradesh government is committed to preserving and restoring heritage sites in Ayodhya, such as the Ram Katha Park and the Ramayana Museum.
In 2023, OYO plans to leverage religious corridors like Ayodhya to accelerate its expansion plans in India. According to OYO’s Cultural Travel 2022 Round-up Report, spiritual travel is playing a vital role in the recovery of domestic travel in India. As community experiences gain popularity among travellers, there is an increasing demand for cultural destinations, lesser-known locations, royal palaces, and spiritual or wellness destinations. The report highlights that North India is the most sought-after spiritual destination, followed by South, West, and East regions. OYO aims to tap into this growing trend and boost its growth in India.
Anuj Tejpal, Chief Merchant Officer of OYO, has shared further details about the company’s expansion plans in Ayodhya, which were developed after multiple meetings with the government to understand their needs and concerns. OYO aims to support the local economy by opening well-run homestays, and has already started onboarding homestays in the area. Ayodhya is a key city in OYO’s expansion plans across major religious corridors in India, and the company has received strong support from the Ayodhya Development Authority and UP Tourism Department. OYO’s recent booking trends show a growing interest in spiritual travel, with Varanasi emerging as the top pilgrimage destination during the Good Friday long weekend, followed by Puri, Shirdi, Amritsar, and Haridwar.
Several other cities, including Tirupati, Mathura, Vrindavan, Guruvayur, and Madurai, have experienced a significant surge in booking demand for spiritual travel in India. According to data from the National Sample Survey Office (NSSO), the temple economy in India is booming and contributes to 2.32 percent of GDP, worth Rs 3.02 lakh crore.
The NSSO figures indicate that 55 percent of Hindus prefer to stay in mid and small-sized hotels during religious pilgrimages. Additionally, more than 36 percent of Muslims, 35 percent of Christians, and 72 percent of Sikhs are expected to undertake religious tourism between 2022 to 2027. The report suggests that Indians prioritize pilgrimage over business trips and education-related travel, and are willing to spend more on spiritual travel.
Customers can easily book hotels through OYO Hotels app’s simple three-click booking process. OYO Rooms’ ‘hotels near me’ feature contributes to around 50 percent of same-city bookings. Outstation bookings are popular for Goa’s beach destinations, as well as heritage tourism in Jaipur and Udaipur. Same-city bookings are high for hotels in Delhi and Chandigarh in North India, Mumbai in the West, and Bangalore and Hyderabad in South India.
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