Treebo Hotels, a technology-enabled budget hotel chain, is one of the few new entrants in the market that has seen occupancy increase from 40-50% to 75%.
Treebo Hotels was set up with the mission of providing a budget-traveller the best value for money by building a budget hotel brand.
With a core focus to delivering quality services to guests, the group heavily depends on technology interventions and boasts a network of 200 properties across 40 cities. Sidharth Gupta, Co-founder, Treebo, says that the year has been a milestone and has marked several achievements for the group. “We completed one year of operations and riding against the tough waves, raised our Series B worth $17 million from SAIF Partners, Matrix Partners India, and Bertelsmann India. The new round of funding further validated the potential of our innovative business model to transform the segment, which was later emulated by other industry players.” He asserts that handpicking their hotel partners to ensure each one of them can deliver the desired Treebo standards is one of the foremost reasons for their progress. “With occupancy increasing from paltry 45-50 per cent to 75 per cent, the take home profits of the hotel partner can multiply 4-5x, thereby preserving his motivation to maintain great quality,” he explains. “Over the past 16 months of our existence we have forged deep partnerships with players such as Cox & Kings, Thomas Cook and TBO to name a few, and these relationships have contributedin a big way for our rapid growth.” B2B sales driven by offline leads and demand from corporate partners, online travel agents, and directsales through digital campaign make up a huge part of their business. Adopting a full-inventory based franchise business model, along withan omni-channel approach are some other effective strategies Treebo uses to generate business for hotel partners, shares Gupta. “Owingto this, some of our properties see over a 100 per cent increase in their occupancies within the first few months of partnering with Treebo.”
Buoyed by the favourable environment, Gupta aims for a wider presence around the country in the next two years. “By the end of 2018, we aim at expanding to 100+ cities with 1500 properties and 40,000 rooms. To be relevant to our target customers, we need to be present wherever our customers travel. Hence, the need for a wider reach is imperative. Going forward we will remain focused on building the most loved hotel brand in the country that is known for the great experience and value for money it offers its guests.”