Given our bold dreams and humble beginnings, OYO has always been written about. Recently, there have been a few questionable claims in a publication, and today, I want you to hear about them from me. The said article described a behaviour that would violate our code of conduct.
We take all the allegations very seriously and are looking into each and every one. We, of course, continue to be subject to regular external audits and have reached a stage as a company where we are making significant investments in compliance, training, and governance that ensure operational consistency and accountability. We are - and will always be - committed to growing OYO the right way.
Oyo Rooms, the country's biggest hotel chain, has reported a total loss of Rs 2,384 crore for financial year ended March 2019 (FY19), which is six times more compared to last year. The increase in loss was attributed to rise in operating expenses and employee-related expenses.
The revenue, however, jumped by 4-fold to Rs 6,547 crore in FY19, compared to Rs 1,413 crore in previous financial year, as per a valuation report filed with the registrar of companies (RoC).
OYO shall be entitled for a fees (hereinafter, “Service Fees”) for providing OYO services to the Channel Partners. This Service fees shall be exclusive of all taxes applicable on such transaction.
OYO introduced a monthly “Platform Fee” effective from 1st December 2017, for all our Partners. As of Sep 01, 2019 the Platform Fees applicable to all our Asset Partners has been revised to 5.5% for properties signed under SMART and SPOT ON contracts and 6% for properties signed under Capital O contracts.
The Platform fees revision shall be done as per the communication dated Sep 2, 2019 and will continue to include the technology services, including but not limited to - OYO OS, CO-OYO app, booking and guest management system, revenue management services, Online Travel Agent management services, Supply of Toiletries & other consumables and Network and Sim/Data Card, along with, additional innovation and updates that we continuously bring to our systems and processes.
A) Hotels where Hotel Manager services are additionally provided: Incremental 1% over and above the base rate of 5.5 or 6% as applicable.
The above charges are exclusive of all applicable taxes.
B) OYO will have the flexibility to determine the booking floor price, at its sole discretion with an aim to increase occupancy and revenue at your property. We believe that this would be in the interest of all concerned Parties i.e. the Hotel Partners, OYO and the customers.
OYO may opt to purchase rooms/banquet with/without value added services and re-sell them to OYO customers under its own name. In such cases the Channel Partners should issue a Tax Invoice / Bill of Supply in the name of OYO at the contracted rates. If GST credit on such invoices is not passed to OYO, then OYO will deduct taxes while making payment to the Hotel.