The Seasiders will return to the second tier of English football after Sunday's defeat by champions Manchester United.
"It's an awful step back and I feel devastated for everyone at the club," Oyston told BBC Radio Lancashire.
"But we've always got to take positives and just look at the club now compared to the way it was 12 months ago."
The blow of relegation will be softened slightly with Blackpool now in-line to receive a parachute payment for dropping from the Premier League.
Under new rules set up last summer to lessen the impact of reduced revenue for relegated clubs, they will receive ?16m per season for the first two seasons, with a further two payments of ?8m thereafter.
Our team, the ones we inherited and the ones we added, have catapulted this club to a place that we probably didn't deserve to be
But Oyston says the club need time to reflect on what exactly is needed to make a concerted effort to return to the top flight.
"We're much stronger and better equipped to try and come back," he said.
"There will be a lot of change, that's inevitable. We'll have to bring a number of new players in and that's the main thrust of what we'll go away now and try and determine what to do next.
"It's probably too soon to make any comments on how, what and where we should go, but we just need to go away and lick our wounds and look on the bright side so we can come back stronger."
Blackpool manager Ian Holloway, spoke of his pride after the club were relegated by just one point.
"It takes time to build success," he said. "Our team, the ones we inherited and the ones we added, have catapulted this club to a place that we probably didn't deserve to be.
"But because they were that good they managed to keep fighting and they acquitted themselves so brilliantly that they gave us a chance right down to the last day.
"It wasn't our performance here, or even what we did in the last four or five games. We had a terrible blip which affected everybody and it took us too long to get back on an even keel.
"Unfortunately we were mortally wounded before today, but I've said to the lads I couldn't be prouder because it wasn't until the fourth goal I still believed we could do it."
Source: BBC Sport
Source: BBC Sport