Digital Transformation through the OYO Business Model: A Qualitative Case Study of Collection O 30 Amega Crown Surabaya

Abstract

Independent budget hotels face significant challenges transitioning to digital operations, making partnerships with platforms like OYO a widely adopted strategy. Using a single case study of a budget hotel partnered with OYO since 2020, this study describes the implementation of digital transformation through OYO's business model, examines its impact on operational performance, and identifies the challenges faced. A qualitative approach was employed through semi-structured interviews with four informants: the Hotel Manager, Demand Manager, Front Office Staff, and Marketing Staff. Findings show digital transformation was implemented through the OYO OS system, staff training, standardized operating procedures, and digital marketing, improving occupancy, service efficiency, and online ratings. However, the hotel faced structural challenges, most notably centrally controlled dynamic pricing and overbooking risks, with further analysis revealing that limited control over platform policies specifically manifested as restricted involvement in promotional content and structural dependency on the platform. Notably, the platform informant suggests this dependency may be transitional, as hotels often pursue independence once occupancy stabilizes. The study recommends strengthening contract negotiations and independent marketing channels. The study recommends strengthening contract negotiations and independent marketing channels, and contributes to the platform-dependency literature by highlighting the potentially transitional, resource-conditional nature of hotel dependence on platform partners.