As a result of rapid expansion, India’s hospitality sector is currently among the country’s most lucrative markets. There is still more to be done, even if some major Indian brands like Oberoi, Taj, Leela, and ITC have already secured a sisable portion of the market and practically all of them have created hundreds to thousands of additional rooms. Customers’ desire to schedule reasonably priced trips has not changed despite the economic downturn.
Online travel firms saw a rise in bookings as competition increased, prompting them to expand their inventory to include more affordable accommodations. While the aggregation of the inexpensive hotels was on peak and players like Makemytrip, Cleartrip, Stayzilla, Goibibo and Agoda were enjoying the success story, there was still a gap that was needed to be filled.
“Several businesses emerged with a focus on standardisation of hospitality services after it became clear that the real gap was not the aggregation of budget hotels but rather the poor experience of customers booking budget rooms.”
Nonetheless, it has not been a bed of roses in India, where no standards are being observed by budget hotels and hotel staff is not well-trained. Changing a hotel’s name can be a difficult and emotional process. Customers’ confidence in the branded budget chains and the dramatic increase in demand for these establishments nonetheless pushed their owners to shift gears and take a fresh look at aggregation. The value proposition it has developed for its hotel partners appears to be clear and persuasive.
Many OTAs were also guided by this line of thinking, and consequently, most have shifted their acquisition strategy in order to preserve their market share. A greater sense of optimism is profound, as accelerating capital markets and strong investor appetites have fueled higher transaction volumes and strengthened lodging fundamentals, and new startups are springing up in the segment to capitalise on the newly opened market of standardised accommodations.
However, a process for standardisation is as necessary for individual players who manage businesses in the budget segment, regardless of whether or not they approach their customers by brand name. Application of standards is done primarily for the purpose of managing the quality of output activities and services. If hotels were to adhere to these rules, however, they would have to treat each guest the same, which is obviously absurd. That’s why it’s inappropriate to treat them like any other visitors.
How much of an impact a company has on a customer depends on how well it caters to that customer’s specific needs and desires through the products and services it offers. Modifications can help with this. This level of personalisation improves the quality of service provided by hotels since it makes it possible to cater the provided services to each individual guest’s preferences.
To be more specific, hotels should have a strategy of cosmetic standardisation or personalisation. Allow me to attempt to define these words more simply. The same room is being sold, but it is being presented to various customers in different ways because to cosmetic customisation in the hospitality business. Promotional strategies may also vary from one product to the next. To make their guests’ stays more memorable, hotels should identify and research the various demographics they now serve or aspire to serve.
People are waiting with bated breath to see if all of India’s budget hotels would unite behind a single brand in an effort to gain their customers’ trust, or if they will instead simply copy the techniques employed by the industry’s newcomers. To what extent will new buyers remain faithful to established brands, ensuring that standardisation’s golden age endures?