BorneoEcho interviews OYO’s Malaysia and Singapore country head Tan Ming Luk on its operations in Sabah.
BE: How many operators in Sabah are under OYO hotels?
OYO has 110 partner properties in Sabah.
We currently have hotels in Kota Kinabalu (32), Ranau (20), Sandakan (7), Tawau (5), Keningau
(6), Semporna (9), and a couple of properties each in Kota Marudu, Kudat, Tambunan.
BE: What is the background of tourists using OYO’s services?
OYO properties are strategically placed in over 75 cities and towns around Malaysia, including
primary, secondary and tertiary cities and towns.
Many of our properties are within reach of industrial and technology parks, popular attractions while a large number are conveniently located in city centres.
This makes OYO a great option for tourists looking for affordable and comfortable accommodation as they explore tourist attractions around Malaysia.
The trends also show that domestic tourism is the focus for travelers in Malaysia, at least in the
near future. Many are thinking about exploring secondary and tertiary cities as these are often
new and quieter travel destinations.
This is in line with the government’s aim to kick start domestic travel.
OYO is also the choice of business travelers who stay with us particularly in towns where there
are no 4- or 5-star hotels. While OYO is a budget hotel chain, we pride ourselves in our pledge to deliver clean, comfortable and affordable accommodation to everyone.
This includes providing WiFi and air-conditioning for each of our guests. Two third of OYO’s customers in SEA are repeat customers. 70 per cent of those have stayed at the same OYO
Hotel they have stayed in previously.
Customers trust us. They know they can expect a certain standard of quality at an OYO Hotel.
BE: What are the requirements for an operator to list their premises under OYO?
OYO’s mission is to provide quality living spaces for millions of middle-income people across the world.
As a tech-driven hospitality company, OYO is redefining the fragmented hospitality sector
by empowering individual asset partners with its successful proposition of combining design,
hospitality, technological expertise, revenue management and operational capabilities, thereby enabling them to succeed in this competitive space by consistently adding more and more customers, with higher RevPAR and yields.
This allows asset partners to focus on what matters the most – delivering a great guest experience, making OYO their trusted hospitality partner.
BE: By using the OYO platform, how much are they being charged?
For our services, we charge a percentage franchise fee. While the hotel partner/operator handles the day-to-day operations (including front desk, housekeeping and general upkeep) and takes care of operational expenditure (opex), OYO handles the listing, promoting and also back-end dashboard.
The franchise fee comes in only if our partner makes money. Distribution costs on third party and OYO’s own channels are charged back to owners on actuals.