|
Thursday 16 July, 2020
TOP STORY
OYO to lay off 90 per cent of US workers
Hospitality chain OYO is to lay off 90 per cent of its employees in the United States as part of its latest cost-cutting measures prompted by the Covid-19 pandemic.
If you missed our last newsletter....
1. Startups join to launch Travel in France platform
2. Vrbo reports surge in growth as Expedia cuts costs
3. New York City mayor signs Airbnb data legislation
4. Join our LinkedIn group here
5. UK's favourite Family Friendly Destinations 2020 revealed
Editor's comment
16•07•20 Welcome to the latest ShortTermRentalz newsletter!
• While we have all been impacted to varying levels by this pandemic, Indian hospitality chain OYO has undoubtedly faced some of the largest cutbacks, as its plans for global expansion have had to be scaled back.
News of widespread layoffs had been expected for some time in light of the worldwide drop in travel demand caused by the coronavirus but the eventual redundancy figures are a devastating reflection of the reality of the current market. It is the second significant round of layoffs this year, after five per cent of OYO's team in China and 12 per cent of its Indian team lost their jobs in January, while the pandemic triggered a wave of furloughs and temporary leaves from April onwards.
The SoftBank-backed chain has increasingly sought to establish its presence in the vacation rental space, in addition to its hotel footprint, by launching OYO Vacation Homes in Europe and OYO Life in Japan last year. However, the latter has become the latest casualty as OYO continues its rigorous cost-cutting measures, with its short-term residential and hotel divisions in Japan merging into one.
The merger to create "OYO Japan" is set to be concluded on 31 July. Sources claimed that OYO Life had been struggling to break even since its launch, only signing contracts for some 6,300 rooms of its one million room target and occupying just over 50 per cent of that number.
After posting escalating losses in consecutive years, this latest news will raise fresh doubts about the viability of businesses expanding at an accelerated rate on a global scale, even more so in the midst of a worldwide pandemic.
Pre-pandemic, OYO had reached unicorn status and was operating around 125,000 vacation homes and 35,000 hotels in 800 cities around the world. However, to some, the diversification of its accommodation offering has been to OYO's detriment for not placing its focus on one hospitality segment; a point illustrated by its scramble to scale back operations now.
In Europe, the company's future remains unclear after its UK chief admitted in March that occupancy in OYO-branded properties had fallen by 80 per cent. However, the appointment of Raj Kamal, a former global head of investments at PayU, as the new CEO of OYO Vacation Homes suggests the chain is still committed to the segment and will put added emphasis on innovation and sustainable growth to become a leader in the space.
• Don't forget to register for the next in our Urban Living webinar series, which takes place on Wednesday 22 July, at 14:00 BST, when the panel will be discussing student housing / serviced apartments / build-to-rent: developers changing the game with technology.
Joining the discussion will be:
• Murtaza Bukhari, general manager, strategic partnerships, Samsung
• Fred Lerche-Lerchenborg, CEO, Lavanda
• Gina McMorran, managing director, sales & marketing - Europe, CA Management Services
• Brian Welsh, CEO, Nido Student
Click here to register for the no cost webinar.
If you have a story you want us to tell the industry, please click here and get involved with the community by joining our ShortTermRentalz LinkedIn group here.
Paul Stevens, news editor
paul@internationalhospitality.media
For more information and sponsorship / advertising opportunities, please get in touch with us.
OUR EVENTS
|
|
|
|
|
International Hospitality Media is the premier specialist in online publishing; conference, exhibition and events, and advisory services for niche growth sectors of the hospitality industry. The company publishes three industry-leading b2b websites - BoutiqueHotelNews.com and ServicedApartmentNews.com and ShortTermRentalz.com which keep their respective sectors up to speed with news, comment and opinion.
Our conference experience spans four continents and covers high growth segments including boutique, lifestyle and hybrid hotels, serviced apartments / aparthotels and extended stay, and vacation rental. Our events are renowned for their intense focus and attract quality industry leaders, brands and independents, providing unparalleled networking and learning opportunities. We also organise bespoke educational events and investor breakfasts to bring owners, operators and investors together.
'Providing an inspirational community to connect people through world class online platforms and events'
© 2020 International Hospitality Media. All Rights Reserved.
|
|
Confirmation of your subscription opts you in to receive future updates on the event listed above, in addition to relevant communications from our partners. You can opt out at any time.
|
|
##footer##