As travel tech major OYO prepares for its much-awaited public listing, the continued satisfaction of its hotel partners and winning back dissatisfied partners will play a key role in determining how its business performs and, by extension, how its stock holds up.
The company has recently been affected by some of its hotel partners publicly complaining, filing cases and even writing to the regulator.
The moot question here is: Has IPO-bound OYO regained the trust of its hotel partners which it also addresses as Patrons?
Let’s take a closer look at its patron policies through its draft red herring prospectus (DRHP) filed with SEBI.
With over 157,000 storefronts worldwide, the 40 reported cases against the company or its directors translate to less than 0.02 per cent of its storefronts. OYO sources say that majorly of these originate due to shifting from minimum guarantee to revenue sharing…