How to Build a Hotel Booking App Like OYO: Key Features, Revenue Model, and Cost

In the modern world, mobile app technology is transforming the way people interact with the hospitality industry. With a simple tap on their smartphones, millions of travelers worldwide can book their favorite hotel rooms at affordable rates, thanks to apps like OYO Rooms, Trivago, and Booking.com. The travel and hospitality industry continues to grow at an exponential rate, with new players entering the market daily.

Understanding OYO Rooms’ Business Model

OYO Rooms has become a leader in the hotel booking space, offering a successful business model that can be replicated or customized for your hotel booking app. The two key revenue models used by OYO Rooms are:

1. Aggregator Business Model
Until 2018, OYO Rooms operated as an aggregator platform. The company connected with guesthouse owners to list their rooms on the OYO platform, thereby attracting a large customer base. In this model, OYO earned approximately 22% of the revenue through profit-sharing agreements, providing guesthouses with better visibility and more business.

2. Franchise Model
OYO expanded its operations by introducing the franchise model. In this model, property owners share 90% of their revenue with OYO, while the properties must adhere to OYO’s operational standards. This includes offering high-quality customer service, cleanliness, and amenities. As a result, OYO maintains a consistent brand identity while rapidly scaling its operations.

Steps to Develop a Hotel Booking App Like OYO

Creating a hotel booking app like OYO is a multi-phase process that involves strategic planning, development, and continuous updates. Here’s a step-by-step guide:

1. Research and Concept Development

The first step to building a successful hotel booking app is identifying a unique idea. Research the current market trends, analyze competitors, and gather feedback from potential users. Once you have a clear understanding of the market demand, draft a blueprint for your app, including features, UI/UX designs, and monetization strategies.

2. UX & UI Design

Design plays a critical role in the success of your app. The user interface (UI) should be clean, attractive, and easy to navigate, while the user experience (UX) should ensure smooth and efficient interactions. Ensure that your design resonates with your target audience and offers an intuitive booking flow.

3. Validate the Concept

Before proceeding to development, validate your app concept with a sample of your target audience. Collect feedback, identify potential improvements, and make the necessary changes.

4. Development

At this stage, your app begins to take shape. Develop the backend and frontend of your app, integrating features like payment gateways, geolocation services, booking systems, and databases. Make sure to optimize performance for both Android and iOS platforms.

5. Launch and Testing

Once the app is developed, it’s time for rigorous testing. Test the app for bugs, security vulnerabilities, and user experience flaws. Only after thorough testing should you launch your app on the App Store and Google Play Store.

6. Maintenance and Updates

Post-launch, it’s important to continue maintaining the app and releasing regular updates. This helps improve functionality, security, and user experience, while also staying competitive in the market.

Essential Features of a Hotel Booking App Like OYO

To make your app like OYO Rooms appealing to users, consider incorporating the following key features:

1. Easy Registration and Login
Offer multiple ways for users to register and log in, such as using email, mobile number, or social media accounts. Simplifying this process ensures a seamless user experience.

2. Room Search and Availability
Allow users to search for hotels based on destination, dates, room type, and price range. Provide filters for different amenities, meal plans, and other preferences.

3. Room Rates and Inclusions
Display clear information about room prices, available amenities (such as free Wi-Fi or breakfast), and taxes. This ensures users can make informed decisions based on their budget.

4. Easy Payment Options
Integrate various payment options, such as credit/debit cards, e-wallets, and PayPal. Providing a secure and hassle-free payment process is essential for customer satisfaction.

5. Booking Modifications
Allow users to modify or cancel bookings, based on the property’s terms and conditions. This flexibility improves the user experience.

6. Nearby Places and Attractions
Integrate geolocation features to show nearby tourist attractions, restaurants, and shops. This helps users plan their trips better.

7. Taxi or Ride-Hailing Service
Offer an integrated taxi or ride-hailing service for users to book transportation to and from the hotel.

8. Trip Planner
Help users plan their entire trip, including accommodations, transportation, and sightseeing tours, within a single app.

9. Reviews and Ratings
Allow users to rate their stay and leave reviews. This feature helps other travelers make informed choices and fosters trust.

10. Push Notifications
Use push notifications to keep users informed about new offers, discounts, and updates.

11. User Support (Chat or Call)
Integrate a customer support system within the app, enabling users to reach out to the hotel or booking platform quickly in case of any issues.

Unique Features to Differentiate Your App (OYO Room Features)

1. OYO Money and OYO Rupee
OYO offers users virtual currencies as rewards for referrals. This incentivizes users to bring new customers to the platform, boosting growth.

2. OYO Wizard
OYO’s loyalty program, which rewards frequent customers with discounts and exclusive offers, helps retain customers in the long term.

3. OYO Captain
This service assigns a local representative to help guests with their bookings and ensure their needs are met during their stay.

4. OYO SOS Button
The SOS button allows users to alert OYO’s customer support in case of emergencies, ensuring safety for travelers.

Admin Panel Features

An essential component of the hotel booking app is the admin panel. It allows administrators to manage:

• User Management: Access and control user data.
• Hotel Management: Add, edit, and track hotel properties.
• Booking and Transaction History: Track bookings and payments made through the app.
• Discount and Offer Management: Create and manage promotional discounts.

Technology Stack for Your Hotel Booking App

Building an app like OYO requires a robust tech stack. Here’s a recommended technology stack:

• Frameworks: Android, iOS, and Cross-Platform (Flutter, React Native)
• Languages: Kotlin, Swift, Java, PHP, Node.js
• Database: MongoDB, MySQL
• Payment Gateways: PayPal, Stripe, Braintree
• Cloud Environment: AWS
• Maps & Geolocation: Google Maps API

Team Structure for Hotel Booking App Development

To build a feature-rich hotel booking app, you will need a skilled team:

• UI/UX Designers: For designing the app’s interface.
• Android & iOS Developers: For developing the app on both platforms.
• Backend Developers: For server-side functionality.
• QA Engineers: To test the app for bugs and issues.
• Marketing Team: For promoting your app to potential users.
• Product Manager: To oversee development and strategy.

Cost of Building an App Like OYO

The cost to develop a hotel booking app like OYO varies based on several factors, including features, technology stack, and the location of the development team. The development cost typically ranges between $20,000 and $50,000, with Indian development teams offering a more affordable pricing structure, ranging from $20-$25/hour.

Conclusion

The hotel booking industry is undergoing a digital transformation, and now is the perfect time to enter the market with an innovative solution. Building an app like OYO Rooms offers immense potential to tap into the growing travel and hospitality sector. By focusing on user-centric features, a solid revenue model, and ensuring a seamless user experience, your app can stand out and thrive in a competitive market.

However, developing a feature-rich hotel booking app requires technical expertise and strategic planning. This is where Softkingo can help. With their experience in app development, Softkingo can assist you in building a high-quality hotel booking app tailored to your business needs. From UI/UX design to backend development and post-launch maintenance, Softkingo ensures that your app will meet industry standards and exceed user expectations.

Whether you’re looking for custom features, seamless payment integrations, or real-time booking capabilities, Softkingo’s team of expert developers is ready to bring your hotel booking app vision to life. Start building your own app today and tap into the thriving hospitality market with the right partner by your side.