Optimizing Occupancy Rates: A Study on the Impact of Upselling Last Minute Deals on the OYO App (within 48hours Product Design Challenge)
In today’s fast-paced world, travellers are often looking for last-minute deals to save money and find the perfect accommodation. In this case study, I will describe how I introduced a new feature on the OYO app within 48 hours of the design challenge. So, We will explore the impact of upselling last-minute deals on the OYO App on occupancy rates.
We will look at how targeted business metrics can help hotels fill empty rooms and increase revenue. Join us as we dive into the world of last-minute booking and discover the potential of upselling strategies in hotel booking application
(Click on the below Links to directly go to desired topics)
- About Product Design Challenge
- Problem Statement
- Final Solution & Comparision
- Secondary Research (Competitor analysis)
- Wireframing & Critical Decision making
- Usability Testing
- Iteration based on feedback and my Inference
- Future Scope
- Key Learnings
1. Product Design Challenege
This case study is an outcome of 48 hours product design challenge conducted by Growthschool under the mentorship of UX Anudeep. The challenge starts at 9 PM (06 Jan 2023), We have a lot of constraints. Personally, I have faced a lot of constraints during this 48hrs challenge because I have to do a key role from Understanding about problem statement to building the final solution. However, we can discuss this with our team members So, it's like a product design festival.
I ) Technical Constraints
Coming up with a matured solution within 48 hrs, On spot learning, limited Iterations and usability testings.
II ) Physical Constraints
Unfortunately, one day before this product design challenge I am suffering from a fever and a severe throat infection. My physical condition put so many limitations on doing this product design challenge.
2. Problem Statement
a) Context
OYO is a hotel booking platform that allows users to search for and book rooms at hotels around the world. Currently, the platform does not have a feature that allows users to find and book last-minute deals.
b) The core idea of the feature
The core idea of the feature is to allow users to find and book last-minute deals on the OYO platform. This can be done by implementing a feature that allows users to search for available rooms at hotels that have last-minute deals. The feature should also allow users to book these rooms directly from the platform.
c) Impact on business metrics
- The implementation of this feature has the potential to increase revenue for OYO.
- By offering last-minute deals, OYO can attract users who are looking to book a room at a discounted rate.
- This can also lead to an increase in the number of bookings made on the platform, which will ultimately lead to an increase in revenue.
d) How it helps users
- The feature will help users find last-minute deals on hotel rooms, which will allow them to save money on their bookings.
- It will also provide users with an easy and convenient way to book last-minute deals, as they will be able to do so directly from the OYO platform.
e) Constraints
There are a few constraints to consider when implementing this feature.
- One constraint is the availability of last-minute deals at hotels. It may be difficult to find a large number of last-minute deals, as hotels may not always have rooms available at discounted rates.
- Another constraint is the need to ensure that the feature is easy to use and understand for users.
f) Assumptions
- It is assumed that there is a demand for last-minute deals among OYO users and that the implementation of this feature will lead to an increase in bookings and revenue for the company.
- It is also assumed that the feature will be well-received by users and that it will be easy for them to use and understand
Before entering to detailed process list. I will explain how I am come up with my final solution
3. Final Solution
Here, I am focusing on a few business metrics to reach my final Solution
I assumed I have to consider 3 KPIs for a successful hotel business from the OYO app.
i) Total Available Rooms
ii) Revenue per Available Rooms
iii) Occupancy Rate, then I focus on some of the business metrics such as
- Conversion
- Retention
- Reduce the drop-off from each page.
1. How do Upselling last-minute deal features Impact conversion?
From comprehensive usability testing, I validate my hypothesis.
What is Comprehensive Usability Testing?
Here, first, we determine the user task So, I showcase my screen and then ask about what you are observing from the screen. Get comprehensive feedback from the user and understand how users visually and physically interact with our screen.
Note: During Usability testing, most of the users thought we are checking their IQ levels. So, make the user comfortable.
In every application home page plays a key role, especially in conversion and reducing bounce rate from this page.
Insights from users ( Comprehensive Usability testing)
( User 1) I am tempted to click deals and offers banners.
( User 2) I Understand what is Last minute deal. So, do not wait so much time to click this banner because I understand it is a limited-period offer.
My Assumption
As per my assumption. The deals banner gives enough attention to the user and the timer icon acts as a signifier.
2. How do Upselling last-minute deal features Impact Retention?
Insights from users ( Comprehensive Usability testing)
( User 1) I am willing to book this hotel because I get a flat 50% on Next-booking.
My assumption:
The user has an eagerness for flat offers. Because of last-minute deals, they want to avail of these flat offers for their next bookings So, they don’t mind about terms and conditions and prices of future bookings etc.., At the end user will be retained for the next 3 bookings. If we will provide validity then the user will effectively be retained.
( User 2) What is the ‘W’ Symbol
(User 3) Wizard Banner shows about free stays so I want to Explore it
My assumption:
The ‘W’ symbol and Wizard cards are given an Impact on the user. So, I have to make interactions and push wizard membership benefits while booking hotels. Ultimately I will retain the user when he becomes a subscriber of OYO Wizard.
Find last-minute deals from any location. The below screen denotes how the screen looks when the user entered the location.
Let's see upselling, Conversion and retention strategy on the Checkout Page:
Before the Price break up section I have planned to include upselling OYO products and Other offers
Why?
As per my assumption during checkout time users will think about other deals and discounts. As per the heuristic “ Match between system and the real world,” Most users have to think and bargaining nature before spending on some product.
Why do I Include the “Book Luxury hotel in Coimbatore” Section?
- So, Here “ Coimbatore” is the location searched by the user. Users can explore luxury Hotels, Hotels located in Special locations and Other Last Minute deals.
- Major cities and deals in beach view luxury hotels will convert the budget user into the luxury market.
Why do I Include the “Become Wizard member” Section? ( Inspired from Swiggy Checkout Page )
After the usability test, I plan to Increase the visibility
OYO Wizard and its offer. Users will think before going to pay. I assumed If you provide value in ₹ discounts then the user will suddenly be got an overview and become a wizard subscriber.
If you Increase the visibility and clarity of your upselling products then User will Quickly Convert as a wizard member and he will be retained to book hotels from the OYO Platform.
I am coming up with this solution based on business metrics, My hypothesis / Assumption, Competitor analysis and Usability testing.
Wait! Wait! Wait! Are you willing to know details about how I have come from ambiguity to clarity? If Yes Scroll down further.
Let see about what are the process followed to Implement upselling last minute deals feature in OYO app.
After Understanding the problem statement I followed these process
4. Secondary Research (Competitor Analysis)
Due to time constraints, I am directly jumping in to explore OYO apps and other competitor's apps such as Agoda, Swiggy and Treebo.
From Agoda, I understand how they are pushing their discounts and retaining their user.
Home Page of Agoda
Coupons Placed on the Home page will push their products and Users will lead to converting. On the deals Page, the main focus for retaining their user.
Upselling
They upsell products through promotional banners and they are placed in 1st fold of the home screen to reduce dropoff and Conversion from the different types of use cases.
Deals Page of Agoda
Agoda separately has a coupons and deals page. Here each coupon has different validity which helps with conversion and retention. Especially offers increased based on the minimum booking amount (₹ value), Average Order value will be increased.
Here I understand what elements will impact the checkout page. I get an idea about how to Increase clarity and visibility on the checkout page of OYO.
5. Wireframing & Critical Decision Making
Wireframing is very much help when we are in an ambiguous situation to Clarity. I am initially planning to do a paper sketch (Low-fidelity wireframe).
Planning before wireframes:
- When we introduce this feature in the home screen as a filter or card then customers automatically try to book ASAP.
- Users use the OYO app several times and they can able to see last-minute deals all over India/ own state then users may predict price rooms season/ timings before going to that place.
- For retention, we can Introduce special coupons for last-minute deals. Special Coupons user can book their upcoming bookings for discount prices.
- How to come up with a unique feature from the competitor?
From 1st fold of OYO, the actual screen didn’t have deals and coupon banners. So I plan to sketch and grab some user attention from the home page itself.
Critical decision-making:
Critical Decision 1 - Home Page
- Initially, I planned to add last-minute deals from the existing Continue your search section which is highlighted in the home screen sketch.
- I plan to add offers with validity on the past search cards themselves. So, Users can able to see deals from their previously searched location when they click the card it will navigate to the Last-minute deal page of the previously searched location shown on Deal page 1.
Deal Page 1
This page represents the list of OYO’s have last-minute deals depending on previously searched hotels and as well as users can able to search anywhere and explore last-minute deals.
Critical Decision 2 - Deal Page 2
Deal page 2 is iterated from deal page 1. Here I am providing a carousel for which all the OYOs provide last-minute deals. It also included other OYOs based on the selected location.
After sketching the Lo-fi wireframe and competitor analysis I have a clarity about how to implement the last-minute features on the home screen.
Hi-fidelity wireframe:
Here, I build a Hi-Fidelity wireframe from the idea of Low -fidelity wireframe.
Critical Decision 3 -Banner on the home screen:
I plan to Implement last-minute deal banners on 1st fold of the home screen below the location carousel.
How I got this idea?
I again visited a competitor's home screen Agoda and other products such as Swiggy and Zomato. Then I will come to a conclusion from Swiggy and Zomato banners because they quickly generate revenue from presenting 60% or 70% offers on banners and which are placed on the home screen.
- The Banner is Introduced on the home screen
- The Last-minute deal page Initially shows deals in the top cities.
- Users can able Search for last-minute deals at any location on the last-minute deal page.
- After selecting the deals user will navigate to the checkout page.
6. Usability Testing
Due to limited time and resources, I am done comprehensive Usability testing with 3 users
What is Comprehensive Usability Testing?
Here, first, we determine the user task So, I showcase my screen and then ask about what you are observing from the screen. Get comprehensive feedback from the user and understand how users visually and physically interact with our screen.
User Inference about Home screen:
I am not revealed about whether it is a home screen or not. I am just observing the user
1. What do you understand from the screen?
· He understands the logo and search icon from the home screen
· He understands about location from below search icon
· He understands about Last minute deal banners. Like deals will expire soon/ Deals at the last minute
· He has misconceptions about continuing searches like Date, and heading, and didn’t have sufficient details.
· Understand about Handpicked for you
2. What do you understand from the Last Minute deals? Have noticed that? If noticed did you want to explore?
· He can able to Understand last-minute deals, He just clicks the last-minute deal banner and explores the 2nd Screen ( Last Minute Deals).
My Assumption from User inference
My assumption they Understand deals and noticed about wizard symbol. So I have to introduce some features for better understanding.
User Inference about Last-minute deal screen.
1. What do you understand from the screen?
· He said “ I can see last-minute deals for Top cities”
· He is directly willing to book hotels because of offers and He notices Book Now flat 50% off next booking.
· He is also aware about the deal is a limited-period offer
· What “ W “ symbol shows to some hotels?
- He is not noticed the Search bar and Banners at the top
2. What do you understand from the search bar? Have noticed that? If noticed did you want to explore?
· He is not noted the search bar, He thought he can able search hotels
· If required he is willing to explore it
3. What do you understand from the banners? Have noticed that? If noticed did you want to explore?
· He said, “When he saw this banner he was willing to click the 1st banner because it says about free stay”. If Beach views hotels at a cheap rate he is willing to explore them.
User Inference about the Checkout page
1) What do you understand from the screen?
· He understands about hotel's name. Why book this
· He is not clear about “Browse through special offers”
· He understands price breakups He is willing to explore the OYO Wizard subscription Because of further discounts.
2) What do you understand from the banner “ above? Have noticed that? If noticed did you want to explore?
· He not Noticed that properly Because He thought it is an advertisement.
· “Book a luxury hotel in Coimbatore” He is not aware of it showing its own location but is willing to explore because of the free stay.
After getting user Inference Iterating the UI screens and coming to the final solution based on User feedback and My Inferences
7. Iteration based on feedback and my Inference
Home Page
As per my assumption. The deals banner gives enough attention to the user and the timer icon acts as a signifier. So there is no chance in Home Screen.
Last-Minute Deal Page
1)Why title provided on the Last-minute deal page?
- During exploring this page users are sometimes confused about which page it is.
- As per heuristic evaluation “ Match between the system and the real world” is used like a Newspaper has the title.
2)Why bottom sheet provided on the Last-minute deal page?
When the User clicks the wizard ‘W’ Symbol a bottom sheet will open.
(I) Why It is Important?
User Insights are willing to know about Wizard Symbol so This bottom sheet option will lead to pushing Wizard product to the user
3. Before entering the location, the User can explore the page based on deals in major cities
Why?
Major cities and deals in beach view luxury hotels will convert the budget user into the luxury market.
4. Here I include a Heading and timer. It will lead the user to take quick action.
5. I am expanding the abbreviation of the Wizard logo. So, Users understand the logo and they may willing to explore the subscription
Before Usability Testing
Book Luxury Hotels in Coimbatore:
Here “ Coimbatore “ is the location searched by the user. Users can explore luxury Hotels, Hotels located in Special locations and Other Last Minute deals.
OYO Wizard In Price breakup page:
Some of the users are tempted to click that because of huge discounts and future bookings. But some of them are not noticed properly
After Usability Testing
After the usability test, I plan to Increase the visibility
OYO Wizard and its offer. Users will think before going to the checkout page.
8. Future Scope
The future scope of the last-minute deal feature in the OYO app will likely depend on its success and popularity among users.
- If the feature proves to be popular, OYO may expand it to include more properties or offer more deals. Additionally, OYO may incorporate other features such as flash sales, dynamic pricing, etc. to make the feature more attractive to users.
- The company may also use data and analytics to personalize the deals and offers for individual users based on their preferences and booking history.
- Overall, the future scope of the last-minute deal feature in the OYO app will likely be shaped by user feedback and the company’s efforts to stay competitive in the hotel booking market.
9. Key Learnings
From this 48 hours Product Design Challenge, I’ve learnt a lot of things like:
- Time Management
- Team Collaboration
- Sharing and Using all the Available resources
- Work efficiently under multiple constraints
- Understand comprehensive usability testing
➡️ Conclusion:
- With all these, I conclude my project and case study. I’m very thankful to my mentor Mr Anudeep Ayyagari for making this challenge happen smoothly.
- Also, I want to thank all of my group members who were very much supportive and helpful to me throughout the challenge.
- And finally, I want to thank everyone who is reading this entire case study till the end. I hope you all have read a good story about my 48-hour project.
