Global hospitality company OYO has announced that it has become the first in India’s hospitality sector to adopt Google’s Veo 3 generative AI video technology. The move marks a significant shift towards data-driven creative production for hyperlocal advertising campaigns.

The company launched its first pilot in Europe under its premium vacation homes brand, DanCenter, with a campaign titled Time Out targeting summer travellers in Denmark, Norway and Sweden. The AI-enabled advertisements focused on cultural familiarity and authenticity, using realistic gestures and expressions to connect with local audiences.

According to OYO, the campaign delivered strong results compared with traditionally produced advertisements. In Germany, the Veo 3-generated video achieved a 130 per cent higher view rate, while in Denmark it registered an 80 per cent increase. Viewer engagement also showed major gains, with full plays of the AI-generated content in Germany rising by 187 per cent over conventional campaigns.

Traditionally, campaigns required large production teams, equipment, on-location shoots and long timelines. With Veo 3, OYO expects to reduce production costs by up to 70 per cent and timelines by around 60 per cent. The technology also allows localisation at scale, enabling customised storytelling across multiple geographies.

Shashank Jain, Group Head, Technology and Marketing at OYO, said, “Veo 3 is set to become OYO’s virtual production studio for its authenticity which is critical to our business. From sunlit balconies in Copenhagen to bustling city streets in Mumbai, everything could be rendered with realism. We are planning to use Veo 3 for generating localised advertisement variants in Hindi, English, Danish, Bahasa, German, and many other languages across the globe where the brand is spreading its footprint.”

The company also plans to extend this initiative to its Motel6 brand in the United States. OYO continues to collaborate with Google to strengthen demand generation for its hotels, leveraging YouTube as a key platform for performance marketing, audience insights, and creative advertising solutions across markets.