OYO vs Airbnb | What’s The Difference & Which One Is Better?

OYO vs Airbnb

OYO and Airbnb are the two giants in the hospitality industry that offer different types of accommodations for travelers. Both of them helped the hospitality and tourism industry in many ways. But the dilemma arises when you have to select one of the two. OYO vs Airbnb! Which one to choose? Which one is better? For that, you need to understand the key differences. That may seem like a big hassle. But don’t worry! You will get a clear answer at the end of this article. 

OYO vs Airbnb

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OYO vs Airbnb: A Quick Comparison

First of all, you need to go through the quick insights of the two hospitality companies. You will get the differences between OYO and Airbnb in the following table-

Parameters for ComparisonOYOAirbnbTakeaway
Full Form“On Your Own”“Air bed and breakfast”
FoundersRitesh AgarwalBrain Chesky, Joe Gebbia, Nathan Blecharczyk
Year of Establishment 20132008Airbnb is older
HeadquartersGurugram (Haryana, India)San Francisco (California, USA)OYO is indigenous to India
Experience (as of 2023)10 years15 yearsAirbnb is more experienced
Front endHotels & ResortsDiverse lodgings (homes, apartments, rooms, tree houses, hotels)Airbnb has a wide variety of accommodations and is not only limited to hotels
Business ModelBased on franchising & leasingBased on sharing economy Both are equally effective but Airbnb’s model is better w.r.t customer comfort and reach.
PricingComparatively lowBased on the location and decision of the ownerOYO is more affordable
Stay DurationNot mentioned by the company90 daysOYO is better for long-stays
Commissions22% of bookings from hotel ownersOn every booking, 3% from hosts & 6-12% from guestsHigh commissions of OYO confer better income.
OYO vs Airbnb: A Quick Comparison

Detailed Information for OYO vs Airbnb

Let’s dive deep into the key differences between OYO and Airbnb. 

1. A Brief Background

OYO (“On Your Own”)

It was founded by Ritesh Agarwal in 2013. Headquartered in Gurugram, it serves over 80 countries including-

  • India
  • Malaysia
  • UAE (United Arab Emirates)
  • Philippines
  • Japan
  • Saudi Arabia
  • Sri Lanka
  • Indonesia
  • Vietnam
  • United States of America

OYO works as a hotel aggregator and booking platform. It joins as a partner with hotel owners through the franchise model and then leases the hotel rooms. But you won’t get any accommodation other than hotels and resorts. 

Airbnb (“Air bed and Breakfast”)

It was founded in 2008 by the trio Brain Chesky, Joe Gebbia, and Nathan Blecharczyk. Its headquarters are present in San Francisco and serve worldwide. Booking hotels during trips is affordable and convenient but what if I say that you can book apartments too? Won’t it be a better-personalized approach? Unlike OYO, its services are not limited to hotels and resorts. You can book any kind of accommodation as per your requirements through Airbnb. Such as-

  • Hotels
  • Homes
  • Apartments
  • Rooms
  • Treehouses

But how Airbnb provides apartments and homes to tourists? You will get to know about it in the upcoming sections.  

Note: Both companies do not own the hotel or accommodation properties that are listed on their website. They work on a contractual basis.

2. Business Model

Both OYO and Airbnb work in the hospitality sector by aggregating hotels and lodgings. But there is a significant difference between the two. 

OYO Rooms

OYO rooms business model

OYO’s business model is based on a franchise system. It leases the hotel rooms and upgrades them to a standardized format with its branding. Customers can directly book the hotels from OYO’s official website or application (OYO app). Basically, it focuses on creating a market segment of affordable hotels. The prices of the hotels depend on the location, time, and officials of OYO. We have already explained the business model of OYO. You can check it out for more details. Also, OYO takes feedback only from the customers. There is no limit to stays in OYO hotels. If you take premium membership then you will get an extra night in a hotel as a reward.


Airbnb business model

Airbnb’s business model is based on the “sharing economy.” It provides a platform on which people (hosts) can rent out their properties (spare rooms or houses) to customers (guests). The point to note is, the host (owner) decides the prices of the properties (accommodation: rooms/apartments). Airbnb has to deal with two parties i.e. hosts as well as the guests. As per the reviews, Airbnb provides better comfort and reach to customers. 

Its business model is quite innovative due to which it became the world’s fastest accommodation booking site. Since the hosts are equally important as guests in Airbnb. Therefore, it takes feedback from both of them.

How does Airbnb work?

When you make a reservation through the official site of Airbnb, you will need to wait for the next 32 hours. Because the host has 32 hours to accept or deny the booking request of the customer. Once the host accepts it, then your booking request is confirmed. Although this process is slower than that of OYO. But this process is quite systematic. 

Another significant feature of the Airbnb business model is the limited stay duration. You cannot stay in Airbnb accommodations for more than 90 days.

3. Affordability

OYO vs Airbnb: Affordability

Do you know OYO hotels are considered one of the most pocket-friendly hotel services? Whereas the cost of Airbnb accommodations is comparatively high. Why so? For this, you need to understand the revenue model of both companies.

OYO charges 22% commission from the hotel owners whereas Airbnb charges 3% commission from hosts and 6-12% commission from guests. But still, OYO is far cheaper than Airbnb’s accommodations. Because the prices of OYO are decided by the officials. But the prices of Airbnb’s rooms are decided by the homeowners. If there are good reviews then Airbnb agrees to the cost fixed by the homeowners. However, there is a drawback on this side too! Home accommodations can be overpriced. So, guests/tourists with ground-level knowledge about the locality can make better pricing decisions. Otherwise, he/she has to pay the overpriced value.

4. Convenience & Personalized approach

OYO's budget friendly hotels

When it comes to convenience, Airbnb surpasses OYO in the battle of OYO vs Airbnb. How? You may ask. Because their working strategies differ when it comes to ensuring the cleanliness level of the rooms. Once the hotel pays a commission to 

OYO after franchising, then it does not pay heed to hygiene or upgradation. To cut costs, the hotels do not care much about reviews. This acts as a red flag for the guests/customers.

But the story is different when it comes to Airbnb. As you have read above, the prices of Airbnb rooms are fixed by the hosts. And the prices are determined by the number of positive reviews. So, the hosts go the extra mile to ensure that the guests should not face any problems regarding amenities/cleanliness. Therefore, to get maximum positive feedback, the hosts (owners) go beyond what a hotel operator will do for a guest. 

Airbnb's personalized approach

Being a guest you can set the Airbnb room/accommodation as per your choice. But in OYO you will have to stick to the rules and routine of hotels.

Thus, you will get a more convenient and personalized approach in Airbnb as compared to OYO hotels. But for that, you need to compromise the price.

5. Cancellation Policies

OYO: If you cancel your booking 24 hours prior to the scheduled check-in then you will get a 100% refund. However, the refund amount will be credited to you within 14 working days. But if you can after 9 am on the check-in date, then, you won’t receive any refund.

Airbnb: Here the cancellation policies vary from one country to another. Full information is available on Airbnb’s official website. However, the cancellation policies are stricter in Airbnb than in OYO. To receive a full refund, you need to cancel your booking 30 days before the check-in date.

Final Words: Which one is better?

Both OYO and Airbnb have unique performances in each vertical. OYO is specialized in hotel rooms while Airbnb comprises residential plots and houses. But the question still remains for OYO vs Airbnb. Which one is better? Well, the answer lies in your preferences. Yes! It truly depends on what you value in your accommodations. If you prefer the consistency and affordability of a hotel experience, then OYO may be a better choice. Also, you can prefer OYO due to its better cancellation policies. However, if you want a unique and personalized experience that varies from place to place, then Airbnb may be the way to go!

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Published By: Supti Nandi
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