OYO, the hospitality giant that disrupted the hotel industry, has sparked fresh debate with its decision to restrict unmarried couples from checking into its properties. The policy, which debuted in Meerut, Uttar Pradesh, is reportedly the result of consistent feedback from civil society groups in the region. According to a company release, the move aims to address the concerns raised by locals and civic organisations.
Insiders familiar with the matter suggest that the decision wasn’t made overnight. Complaints from Meerut—and other cities—have been mounting for some time. Civil society groups and local residents have expressed discomfort with the trend of unmarried couples booking rooms, occasionally leading to disturbances. For OYO, this policy appears to be an attempt to balance community sentiments with operational imperatives.
However, changes in this policy could extend beyond Meerut. Sources indicate that similar restrictions might be introduced in other cities where the volume of complaints is significant. This raises questions about OYO’s broader strategy and its ability to navigate the fine line between social norms and its inclusive brand image.
The policy aims to ensure safety and security for OYO’s partners, many of whom operate on lease or franchise models. These property owners often face the brunt of local unrest and view a standardised policy as a way to mitigate risks. Yet, not everyone is convinced. Some franchise owners believe the restrictions could impact their revenue streams, as unmarried couples form a notable segment of the customer base. While they acknowledge the move’s intent, concerns about its financial implications remain.
Backed by investment firms SoftBank, PeakXV Partners, etc, OYO’s timing has raised eyebrows. The policy rollout coincides with the company’s delayed plans for an IPO. Critics are questioning why OYO is addressing this issue now when complaints have persisted for years. Multiple sources suggest that the policy is part of a broader effort to redefine OYO’s brand perception. Often labelled as a preferred choice for unmarried couples, the company may be looking to shed that image in favour of its more diverse customer base, which includes spiritual travellers, business tourists, and sports enthusiasts.
Last year, the company released an advertisement showcasing a family happily checking in at an OYO property. The ad portrayed how the parents, initially hesitant maybe due to OYO’s reputation for being popular among couples, eventually overcame their scepticism. This, people aware of the matter said, also indicates on brand changing its brands perception while OYO came up with premium serviced hotels.
While this policy may not significantly dent OYO’s overall customer base, it is seen as a step toward enhancing the company’s brand value. The move could help OYO position itself as a more socially conscious player, appealing to a wider demographic. Industry insiders also speculate that this rebranding effort might be tied to the company’s ambitions for future expansion and investment opportunities.
As per a source, OYO may have further delayed its IPO plans, potentially eyeing a larger deal by the year’s end. Whether this policy helps or hinders those goals remains to be seen, but one thing is certain: OYO’s move has reignited discussions about the intersection of business strategy, societal norms, and market dynamics.