Alternative Room Revenue Generation &

Summary & Overview Market Analysis Marketing Strategy

Inventory Uses Cost Reduction

To Find Alternative To Increase Revenue and To Market Differently For

OBJECTIVES
Inventory Uses Decrease Cost Lasting Impact

• Changes in booking and cancellation

• Customer Loyalty Programs
360 degree approach to use every option policies
• Referral Strategies
Proposition available for increasing occupancy and • Introducing multiple payment terms
• Emotional Branding
RevPAR. • Provision for tie-ups and customizations
• Safety, Service & Convenience
• Contracting and Delegating

Global India Ranks 10

Key Decision Influencers For Growth Values to Focus Post Covid the focus of
Hospitality Industry out of 185 consumers is more of safety
Countries in Vaccination Consumer Cost and hygiene than on luxury
2020 2021 Hospitality Comfort
Status Behaviour Efficient and brand.

$3486 $4132 Global CAGR 71% of people want to travel

COVID Third Travel
Bn Bn 18.5% Regulations Convenience Safe as soon as COVID restrictions
Wave are up.

Never Ending Attractive Diverse People Who Want to

Policy Support Primary Factor of Choosing Hotel Post Covid
Demand Opportunities Attractions Travel Post COVID

1. By 2029, India’s tourism 1. Free loans to MSME 1. Campaigns like Swadesh 1. Individual state
sector to grow 6.7% to including tourism sector to Darshan are launched to governments focusing on
reach Rs. 35 Trillion, help them revive grow domestic tourism developing tourism
accounting for 9.2% of GDP 2. Government plans to tap 2. New domains like industry
2. International tourist into regional tourism by medical tourism, work 2. Diverse geography from
arrival is expected to reach opening doors for South from anywhere etc. beaches to mountains,
30.5 million by 2028 Asian Tourists opening up adding more world heritage sites,
3. Domestic tourism 3. Air bubble agreement destinations to national parks etc.
expected to grow post signed with Sri Lanka. Talks consideration
pandemic going on with Thailand 3. Revenge Tourism
 Alternative Room Revenue Generation &
Summary & Overview Market Analysis Marketing Strategy
Inventory Uses Cost Reduction

Porter’s 5 Forces

% Share by Bookings & Properties Performance of Key Hotel Stocks

 Alternative Room Revenue Generation &
Summary & Overview Market Analysis Marketing Strategy
Inventory Uses Cost Reduction

Behaviour Travellers Special Needs Consumers

Extended Home Stays Marriage Tourism
Despite the economic slowdown and the pandemic, staycations are getting popular and In smaller cities marriages mostly happen at the houses of Bride/groom itself. In this case a
trendier across the world, especially and developed and developing economies. People major problem that arises is of the stay of guests that are coming to attend the marriage.
want to go out of their homes and spend some time alone with their loved ones. Even if banquets halls are booked, the banquets don’t usually have rooms for guests to stay.
Experience comfort and convenience. We can tap into this trend and leverage by converting We can leverage this opportunity by providing special packages for Marriages and group
some of our hotels into homestays in tier 1 and 2 cities. bookings. Tie ups with banquets can be done on commission basis.
Daycations First Responders Stay
Due to this lockdown most people are stuck in their house from months. Couples are not Due to Covid number of doctors, nurses, people with social service etc. are travelling from
able to meet, Partners are not getting quality time for themselves and most importantly, one city to the other to help those in need. We have seen these first responders move to
most of us have not got the chance to indulge into relaxation and comfort from a very long cities in larger numbers. In most cases, they need affordable places to stay. Tie ups with
time. This is giving rise to intracity single day vacations also called daycations, mostly local municipalities and hospitals can help us leverage on this and gain additional
popular among young married couples and unmarried love birds, this concept is also being occupancy and revenue for our hotel.
highly leveraged by many competitor hotels.

Working Professionals Medical and Hospitals

Renting Out Office Space Medical Tourism
After this pandemic many start ups and small companies are looking for small convenient Due to the pandemic many optional and not critical surgeries and operations got
working and co-working spaces that are budget friendly. This opportunity can be leveraged postponed. Now as the number of numbers of Covid cases are declining and optional
to generate additional revenue by renting out unused back offices and converting public procedures are starting again. We can tie-up with major hospitals in the cities to provide
areas into working spaces. Even the vacant restaurants can be used as such until things get rooms for the family of patient at a low cost. This way we can leverage an untapped market
back to normal. and increase occupancy.
Work From Anywhere Quarantine Spaces
Work from home is here to stay and with time passing people are finding it more and more There still are many cities where Covid cases are on the rise and there is a shortage of
difficult to work from there homes as it becomes monotonous after a time and a lot of time hospital beds. These situations can be leveraged by us if we tie-up with the hospitals to
this becomes a problem for both the family as well as the working professional. Renting out provide rooms in bulk along with other services at a package deal for the symptomatic and
hotel rooms for using as offices has become a common trend and more people are doing recovering patients. There are people who do not have space in their homes to quarantine
so. Advertising our hotel as a comfortable and economical working space and renting out themselves of they get Covid and they do not want to stay in the hospital as well, we can
for long tenures can add on to struggling revenue tap that segment of the consumers as well.
 Alternative Room Revenue Generation &
Summary & Overview Market Analysis Marketing Strategy
Inventory Uses Cost Reduction
Room to Employee Ratio 1:1.75
Assistance in Revenue Generation Avearge Room in One Hotel 25 Total Required Number of Staff 44
Departments % Staff No. of Staff Reduction New Strength
Allowing guests to stay at the hotel now (extended stays For hotels in major tourist destinations and places with Housekeeping 40% 18 50% 9
and monthly day uses) and pay in easy EMIs over a “things to do”, tie up with local activity providers to Kitchen 25% 11 30% 3
F&B 25% 11 60% 7
period a time to motivate customers to use services assist them in getting business in return for a small Front Office 10% 4 20% 1
without worrying too much about the cost effect. commission. This will be a win-win for both. Reduction to be compensated through contract workers as and when needed
Departments Average Salary Current Pay Fixed Cost Savings
Deferred Payment Incentivise Tie-up With Activity Housekeeping 13500 237600 118800 118800
Option Rescheduling Partner Kitchen 16000 176000 52800 123200
F&B 15000 165000 99000 66000
Offer upgrades and complimentary
Customization Options services if the customers choose to No Questions Asked Front Office 18000 79200 15840 63360
Total 657800 286440 371360
reschedule. Cancellation Policy
Consumables Provided in a Guest Room Amount in Rs.
Allow guests the option to customize each and every Provide relaxation in cancellation policy and allow Soap 4
aspect of their stay from room type to meal packages to customers to cancel up to the day of booking with no Shampoo 8
add-ons and keep the process individualistic to provide a penalty fee to motivate them to book for their future Conditioner 8
feeling of importance and care to each guest. trips in advance without worry. Lotion 8
Toothbrush 10
Assistance in Cost Reduction Toothpaste 7
Comb 5
Contracting Non Guest Contact Works Reducing Dependency on Human Contact Total 50
Every department that do not need guest interaction or Optimizing process flow in each department and installing Cost for a Month 1500
minimal guest interaction can be outsourced on need self help systems for guests to reduce recurring Cost for the Hotel with 25 Rooms 37500
basis to reduce fixed costs. Departments which can easily manpower costs. Suggestions: Front Desk Kiosk for self Assuming at 100% occupancy 70% rooms
18
be outsourced: Maintenance, Public Area Cleaning, check-in and check-out, Self ordering system in are occupied for 2 nights
Auditing, Security, Banquet Kitchen Team (if available) etc. restaurants, HRIS for easy reducing redundant work. Cost of consumables for these rooms 13125
Total Reduced cost 23625
Savings per hotel 13875
Relying on ODC/Day Basis Workers Reducing Consumables Size
Assuming 20% drop in cancellation Due to
Average Cancellation Rate 40%
Reducing kitchen staff to the minimum required levels Consumables are a huge operating expense for a hotel. Incentivised Reschedule Option
Average Rooms in a Hotel 25 Cancelled Rooms 5
and hiring chefs on daily basis in case a large order comes Reducing the number of supplies provided or reducing
Average Room Rate 1750 Revenue Lost 8750
or a group events happens at the hotel to ensure the size of the supplies can help in reducing costs. Assuming 80% Occupancy-
Training to be provided to staff to not replace the 35000 Revenue Saved 5250
minimum fixed costs. Many hotel have moved to this Revenue Opportunity
model to save costs. consumables until used completely or requested by the Revenue Lost Due to Cancellation 14000 Revenue Saved in a Month/hotel 157500
 Alternative Room Revenue Generation &
Summary & Overview Market Analysis Marketing Strategy
Inventory Uses Cost Reduction

Extended Loyalty Programs Network Referral Programs Emotional Branding

A loyalty program named ‘Saathi’ targeting mainly A network referral program named ‘Mitra’ will be Using the redefined tagline of ‘Safety, Service and
on the loyal repeat customers. Which allows them launched where the existing customers will refer Convenience’ targeting customers through social
What to purchase room nights in advance for a their friends and family members to purchase the media platforms primarily focussing on emotional
extended duration at a low cost and avail the loyalty programs or stay at the hotel in exchange part of travelling, impact of COVID on employees
rooms at any time during that period. for reward points. and their family and how we are helping them.

Every registered customer will be given a unique

Awareness about the offer to be spread through Using major social media sites such as Instagram,
customer ID which can be used as a referral code.
Email, SMS and internet marketing and Facebook and YouTube to advertise the hotel via
Guests will have an option to provide the code at
How campaigns. Customers will be offered room night the time of check-in to get discount in F&B, salon
Videos, posters, competitions; as an employee
packages with other complimentary services at a friendly brand extending help in difficult times
etc. The person who referred will be given reward
discounted price valid for a limited time. and requesting customers to do the same.
points which can be availed for room nights.

Customer: With things getting better, chances of Customer: Friends and family travel all the time. Customer: Emotional connect stays with the
travelling are opening up. Possibility to get Referrer will get benefits just by suggesting a audience for a much larger period and people
Why amazing deals at reduced rates. product they already have used and like. want to contribute to a cause and feel good.
Company: Will be able to retain customer and Company: Repeat and referral business and Company: Increased brand recall and trust among
guarantee occupancy. Cash flow during crisis. increased loyalty with growing customer base. the consumers as well as connect.

Loyalty of customer increases, brand recall and Network effect will allow for increased customer Connect with targeted audience who are more
repeat business on growing trend. Hotel is able to footfall and will hence generate revenue for the likely to travel in the coming days and increased
Impact continue cash flow during crisis to sustain hotel. The RevPAR will be maintained and other bookings through call to action and on spot
business activities. services will be used as well due to discounts. discount coupons.

Estimated total guests in 2021 to be 23654 across Estimating 35% guests partake in referral The reach is extensive combining all the platforms
Exe India. Target is 15% and average plan rate is 3900. programs and average room nights is 2, expected and huge untapped revenue of up to Rs. 3 crores
Total revenue would be Rs. 1,84,50,315. revenue generation would be Rs. 2,89,76,456. can be leveraged.
Estimating that 10% of Room Rate is given as Estimated cost of advertisement per month on all
Estimated loss of revenue due to the discounts on
Cost loyalty plan would be Rs. 63,86,647
Reward points. Expected Loss would be Rs. platform including the designing cost would be
28,97,645. Rs. 8,25,000.
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