Why has OYO Rooms's customer satisfaction score for budget hotels declined from 4.2 to 3.8 in the past 60 days?

Introduction

OYO Rooms' customer satisfaction score for budget hotels has declined from 4.2 to 3.8 in the past 60 days, indicating a significant drop in guest experience. This analysis will systematically investigate potential root causes, validate hypotheses, and propose solutions to address this concerning trend.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has there been any significant change in booking patterns or occupancy rates over the past 60 days?

Why it matters: Seasonal fluctuations could impact service quality and guest expectations. Expected answer: Slight increase in bookings due to holiday season. Impact on approach: Would focus on capacity management and staffing issues.

• Considering the scale of the drop, I'm curious about recent changes. Have there been any major updates to OYO's booking platform or hotel management systems in the last 90 days?

Why it matters: System changes could disrupt operations and affect guest experience. Expected answer: Minor UI updates to the mobile app. Impact on approach: Would investigate potential user experience issues related to app changes.

• Given the budget hotel focus, I'm wondering about pricing strategies. Has there been any shift in pricing or promotional activities recently?

Why it matters: Price changes could attract different customer segments with varying expectations. Expected answer: Increased discounts to boost occupancy rates. Impact on approach: Would analyze the relationship between pricing and guest satisfaction.

• Thinking about operational consistency, has there been any change in the number of properties or types of properties in the OYO network over this period?

Why it matters: Rapid expansion or changes in property mix could affect service quality. Expected answer: Moderate increase in property count, mainly in tier 2 cities. Impact on approach: Would focus on onboarding and quality control processes for new properties.