Case Study 11 Hotel chain operator seeking advice to sustain in highly competitive market

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Ladies and gentlemen,
I am here to share a unique service for Business owners in the small and medium enterprise industry. SMEs
Dhande ki baat SME business review and advisory
Case Study 10: A case study of a business owner running a Hotel chain in many cities.
Once, in our meeting, A young, energetic, and competent entrepreneur, who was running five hotels in different cities – came and presented his business challenges to seek advice
He was running 3-star hotels and other smaller hotels in large cities and was doing ok, but there was a significant shift in the market.
His model was to take properties on lease and then RUN that hotels under his brand name
He came and presented his issues in one of our SME business review and advisory meeting.
He was experiencing a significant shift in how the hotel business changed due to the Internet-based – demand aggregation companies.
His first challenge was when the majority of his booking started coming from online portals and MakeMyTrip – started charging 22% of revenue per booking
His second challenge was – when on the same street – there were 3 to 4 OYO rooms
How to deal with this situation – was a significant concern – this case was before Corona Shutdown.
He presented his challenges in our SME business review meeting.
Dhande ki baat is a FACILITY where a small group of business owners from all over INDIA works together to resolve business issues.
They meet once a month – in a boardroom-style meeting.
So, would you like to know what happened in that meeting?
These are professionally managed and conducted meetings – just like a formal board meeting.
Step 1: Case presentation
The business owner shared three issues,
- Being an old player in the market, most of his properties were leased at a much higher rate than prevailing market rates
- Online portals – started controlling bookings and charged 20% of revenue
- On the same street of every hotel – there were 3 to 4 new OYO rooms – who were taking away business
Step2: Understanding of issues and concerns
Other Business owners in that meeting Identified and understood his significant concerns, such as
- His costs were on the higher side.
- His properties were with many rooms; generating daily occupancy demand to fill so many rooms per day was a challenge And
- Market dynamics started to shift.


Step 3: Deep dive analysis
Business owners did a deep dive analysis of circumstances and situations he was operating and
What was bothering him internally?
They analyzed the way the nature of this business was changing and significantly impacting the growth.

Step 4: Benefits to staying in this line of business
His core strength and significant opportunities were analyzed.
His hard work was paying off, and
They analyzed – till what gross margin it was viable to stay in a property else move on.


Step 5: Advice & Recommendations
Business owners in the meeting suggested him
Focus on Food and Beverages business because many small hotels do not have simple restaurants – especially the Oyo rooms.
Focus on local events – like parties, marriages, and other social events
Reach out to corporates for direct bookings with Hotels.


Step 6: What he got in this meeting.
Listening to thoughts, ideas, and recommendations from other business owners, He declared that
He will renegotiate lease rates with owners as other properties were going on much cheaper rates.
Focus on Food and beverages and other social events
He will take smaller properties on rent.

The business owner realized that
Within the meeting, this business owner realized and declared
Large Aggregation companies like OYO and MakeMyTrip leave no space for smaller players to survive.
And he does not have the wherewithal to take them head-on.
He declared in the meeting and decided to explore every way possible to get New corporates bookings
And focus on more local events – like marriages, parties, social events
The market was changing very fast, and for sustaining in the business, he needed to change strategy by moving to smaller properties rather than running big hotels with large rooms.
Also, explore options like aggregation companies.


And this realization became possible because he could openly share his concerns, and other participating business owners could share their rich experience and contribute to his success.
And that's what we do at Dhande ki Baat.