By.Robin KapoorSourabh Garg

Deepak KumarVikas Sharma

Prateek NaharPankaj Jain

Nitin RahejaSanjay Pal

Sakshi JoshiTushar Garg

Budget HotelsSignifies –

simplicity, convenience, informality, style, warmth, modernity, affordability

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External FactorsBusiness opportunitiesTourists Common Wealth GamesGovernment SupportOther Hotels

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Details of Budget HotelsCompetitive pricing techniqueLocated in cities with business trafficCreated a good backend industryOutsourcing of Food and Beverages as

margins are lessMinimum staff and fitted kiosksGinger Hotel

-Simple, unique, reasonable, basic and innovative

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Facilities such asSelf controlled AC roomsLCD TV’sWi-Fi internetSatellite channelsSTD facilityElectronic LocksMini fridgeDoctor on callBranded toiletries24-hour running hot and

cold water

Tea-Coffee makerATMCyber CaféGymnasium100% Power backupInternet bookingSecure ParkingLaundry service: same

day deliveryFull length mirror

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Smart Basics TM Concept of Ginger hotel Smart Sleep™

Good and better to sleep beds Advanced pressure point reliefs in beds

Smart Space™ rooms Rooms are designed with comfort and practicality in

mind Safe zone™

24-hour security Close-circuit TV maintains records of all areas and

visitors Swipe card locks that offer the latest in security

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Smart Basics TM Concept of Ginger hotel

Smart PlanetSquare Meal TM

Breakfast

Lunch

Dinner

Snacks

Give n Take Meal TM

Order the special meal from local restaurants

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The case of Accor's Formule 1The value curve of Formule 1 in the French Low Budget Hotel Industry

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STP’s

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TargetingDemographics

Middle ClassHigh Tech Youths

GeographicalTourism takes place all the year roundCities and towns which have consistent flow of

business traffic

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PositioningNo frills but Smart Basics

No Parking Person, No Bellboy, Automatic Check In

101 or 201 rooms

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•Natural and Cultural Diversity•Demand supply Gap•Government Support•Increase in market share

•Poor support Infrastructure•Slow implementation•Susceptible to political events

•Rising income•Open sky benefits•New business opportunities

•Fluctuations in International tourists arrivals•Increasing competition•Event risk

Cost cutting Strategy-1LIGHT ASSET POLICY

Management contracts, Partnerships including public-private

partnerships, Franchise option, Joint developments, Conversions

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Cost cutting Strategy-2FULL HOUSE

RIGHT PLACES

GETTING REAL

NETTING IN CUSTOMERS

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Strategies followed-1Ginger Red FoxFixed PricingSelf Service Business centric CitiesLease ModelManagement ContractsTech Savvy

Flexible PricingCheap LaborDemand OrientedMall Hotels

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Strategies followed-2Accor Sarovar Hotel50:50 joint venture with

Emaar-MGFFlexible PricingManagement Contracts

Using their own cash reserves

Areas like Mumbai, Pune, Baddi (HP)

Pay for facilities used

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International Perspective-1Operates in 100 countries40 years of experience4000 hotelsBrands such as:

Etap Hotel- more than 378 budget hotels in Europe

Motel6- North American chain of more than 900 budget hotels in USA & Canada.

Formule 1- 374 budget hotels in 14 countries

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International Perspective-2UK’s brand of budget hotels.Brands include:

Premier Inn, Beefeater, Table Table, Brewers Fayre, Taybarns and Costa Coffee

Premier Inn is the UK's largest and fastest-growing budget hotel brand with over 36,000 rooms and 518 hotels across the UK ( England, Wales & Scotland)

Whitbread also planning to expand its chain of budget hotels in Ireland.

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International Perspective-3Budget Motel Chain ( Australia and New

Zealand)Similar to USA’s Motel6Basic Philosophy-Clean, Comfortable,

Affordable accommodation Close association with the Paragon Inns

Motels and HotelsAttractive presentation and excellent

facilities.

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International Perspective-4Sawasdee Group of Hotels in Thailand

Group has 7 budget hotels in Bangkok and 5 budget hotels in Pattaya

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International Perspective-5Protea Hotels (Africa's Largest and leading

hotel group)Budget hotels in South Africa, Ghana, Kenya,

Zambia, Nigeria, Uganda, Namibia and Tanzania

Nevsky Hotels GroupProvides low cost accommodationLocated in St. Petersburg, Russia

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International Perspective-6Days INN

The group has announced to open branded budget hotels in China

Brand Name – 7 Days INN

Easy HotelsGroup has budget hotels all around the world

at great location

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Conclusion

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Thank YouRobin KapoorSourabh GargDeepak KumarVikas SharmaPrateek Nahar

Pankaj JainSanjay Pal

Tushar GargNitin RahejaSakshi Joshi

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