Introduction
Treebo Hotels is an Indian budget hotel chain that operates on a franchising model. The business Model of Treebo involves its business Plan, Revenue model, its competitors, SWOT Analysis and many more. Treebo Hotels is headquartered in Bengaluru, India.
Treebo derives its name from “Bo Tree”, the fig tree under which Gautam Buddha attained enlightenment. The fig tree family — banyan, peepal among others – has inspired not just our name but also what Treebo Hotels, an Indian budget hotel chain and hospitality service that operates on franchising, is actually into.
The company completely manages all aspects of their hotels using advanced technology and strives for the best revenue management and quality. Treebo chain of hotels is one of India’s largest groups of hotels in the hospitality industry, having its presence in 113+ cities and counting. Being one of the fastest-growing groups in the sector, Treebo desires a network that could not just help them collect data but also protect a trace of their corporation.
Business Plan
Treebo Hotels is more concerned with branding than with aggregating a marketplace. Their business model is based on franchising. Treebo Hotels seeks out the best-suited hotels with excellent service to maintain their brand’s high standards. They communicate with the owners and provide excellent customer acquisition channels, branding, management software, and a variety of other services.
Treebo Hotel’s mid-to-premium pricing strategy makes them appropriate for middle-class customers who wish to enjoy luxury or richer customers who wish to be on a budget while not compromising too much. Their main clientele is that of corporate travelers who like to have standardized experiences as they go around the world.
Revenue Model
The pricing strategy maned by Treebo Hotels is quite reasonable and affordable, trying to offer a price tag on their hotel rooms that can be afforded by everyone. Even though the organization offers low prices for the services they provide and have not broken even with their profits yet, the company and its management cover the gap by the investments that fuel the company.
Competitors
Whether E-com or startup industry, competition is inevitable. Here is the list of some of competitors of Treebo:
- FabHotels
- MakeMyTrip
- OYO
- Cleartrip
- Yatra
- Vista Rooms
- booking.com
SWOT Analysis
Strengths
- Strong Investors: Treebo Hotels is expected to make more money than ever before by 2021 and that is why the hotel chain is backed by well-known investors such as SAIF Partners and Matrix India Partners.
- Advanced Technology: The company completely manages all aspects of their hotels using advanced technology and strives for the best revenue management and quality.
- Affordable Hotels: With India’s growing hospitality industry, customers can easily book any hotel under Treebo Hotel for a minimum charge of Rs. 3,000 to Rs. 5,000. This provides customers with complete hostel facilities with no interruptions.
- Range of Options: Treebo delivers a variety of hotels enclosing mid-market to the upscale market.
- Facilities & Services: It can be difficult to find a suitable hotel with fresh toiletries, clean rooms, and affordable basic breakfast service. Finding this at a reasonable price is always difficult for the middle-class and this is where Treebo Hotel comes into play.
- Customer Service: Treebo Hotel offers excellent customer service and manages their customers’ basic needs at their leisure.
- Strong Foothold in Market: Treebo Hotel is well-known among the members of India’s burgeoning budget hotel networks and has established a strong foothold in the highly competitive market.
Weaknesses
- Unwilling to Convince: Reluctance in customers or clients to use the internet for financial transactions like booking tickets online.
- No Direct Customer Interaction: No direct customer-seller interaction due to this sometimes fraud data can be spotted on websites.
- Significant Losses: It has suffered significant losses in recent years, but with advances in technology they employ and their services, Treebo Hotels is regaining ground.
- Difficulty in On-ground Operations: Developing strong on-ground operations is critical in this sector to provide a consistent experience for customers.
Opportunities
- Budget Hotel Segment: Treebo Hotels should make its presence in the budget hotel segment because there is an increasing demand for budget hotels in India. Due to frequent travels of officials.
- Full Utilization of Internet: Utilization of the internet to display hotels, offer visibility, presence, marketing and distribution. Showcasing affordable hotels which are an ideal option for a weekend stay will increase the bookings at Treebo.
- Business Class: There is a surge in the number of business travellers in India. This is where Treebo Hotels can launch their business suit for entrepreneurs who are looking for luxury stay and accommodation at their respective destinations.
- Tie-ups With Travel Partners: Treebo Hotels can tie up with bus travel businesses such as redBus. So that if redBus is promoting a group tour then Treebo can work as an accommodation partner for that tour. If you wish to learn more about the SWOT analysis of the largest online bus ticket company redBus, you should read the SWOT analysis of the redBus blog by us.
Threats
- Increasing Competition: Treebo Hotels compete in the hyper-saturated market of mid-tier hotels and faces fierce competition from MakeMyTrip and FabHotels. Even though they have a strong presence in the industry, they are dwarfed by the revenue of their competitors.
- Customer Expectations: Due to increasing options of online hotel booking, customers are more possessed to urge online budget hotels with all the facilities at low prices. This habit of customers has affected the revenue generation of Treebo Hotels.
- Services By Competitors: The hospitality experience by Treebo Hotels cannot match the level of existing market leaders. Competitors such as Oyo Rooms are deliberately capturing the market with their premium hotel segment.
- Safety Concerns: After a pandemic, people who stay in hotels are more likely to stay in a sanitized and safe hotel. A careless step from hotel partners will create a negative image of Treebo as an unsafe stay and could face some legal action and cases from customers.
- Misbehaviour With Customers: Any sudden misbehaviour and informal way of talking with customers by the hotel manager or welcoming staff will affect the brand image of Treebo. Travellers will not prefer to book hotels next time from Treebo.
Conclusion
Treebo Hotel is well-known among the members of India’s burgeoning budget hotel networks and has established a strong foothold in the highly competitive market. Developing strong on-ground operations is critical in this sector to provide a consistent experience for customers. This makes hospitality a capital-intensive business because it necessitates significant funding and effort to establish.
