#GINGER HOTEL

GINGER HOTELS

 #Stay smart

A chain of hotels in India in the “Smart basics” category, have set new standards of service quality at affordable prices. The concept of the hotel is loosely inspired from the success of low-cost airlines and target the modern, experienced traveller who does not relate low tariffs with poor standards. Ginger hotels employ skeletal staff and most of the regular hotel services are outsourced. They economize on cost by offering the guests self –check-in facilities.  The guests wheel in their own luggage and carry it to their rooms. The hotel provides limited room service. The guest can avail of the dial-a-meal facility from local restaurants and collect their meals from the front desk. These hotels also have a multi-cuisine restaurants, vending machines for hot and cold beverages, ATMs, a basic gym, and a WiFi network. As another innovation and display of sensitivity, the last room in the hotel in the Ginger chain is specially designed physically challenged guests. The brand name implies something fresh, simple, warm, yet stylish. The hotels are located in smaller business centres and tourist destinations that attract visitor round the year. In a short time, the hotel chain has achieved an occupancy rate of 85 percent, and that too, without significant advertising support.

INSIGHTS:

STRATEGY 1: CONCEPT OF SMART BASICS

The ginger hotels are built around the concept that provides facilities to meet the key needs of today’s traveller, at affordable rates. Smart Basics™ is a philosophy of providing intelligent, throughout facilities and services at ‘value’ pricing and reflects the new spirit in which people live and work today.

The first of the Smart Basics™ hotel was launched in Bangalore and was called indiOne. When the test marketing of the concept was completed. After that, the Smart Basics™ was rolled out across India. This category of hotel was launched with a new name, Ginger hotels, in the line with fresh, simple yet stylish and warm world of Smart Basics™.

The target segment for Ginger is the larger growing middle class with increasing disposable incomes. They are the class of travellers who spend on travel but not on luxury accommodations. These travellers look for value-for-money that is clean and secure and also include international travellers looking for hygienic accommodation in the smaller cities.

THE OFFERING- SMART BASICS™:-

Ginger hotels designed their facilities and services to include The Square Meal™--- a multi-cuisine restaurant, on site cyber café, a meeting room (that seats 10 people), laundry facility (same day delivery), on-site ATM, a gymnasium, secure parking and Doctor-on-call. They provide single rooms; twin rooms; and special rooms for the specific needs of the physically challenged. The rooms are packed with electronic locking systems, cable TV, Internet connectivity, a mini fridge, tea/coffee makers, an ergonomic work area, and a 17-inch flat screen TV. Each room has branded toiletries, 24-hour hot and cold running water, a shower area, and bath and hand towels.

Ginger also offer other facilities like:-

“SMART Wellness”, which is an Ayurvedic wellness facility for business travellers at low cost.

“SMART Sleep”, which includes a posture-pedic mattress for absorbing and redistributing pressure from the body weight

“SMART Shower”, this concept is still under development.

STRATEGY 2: EMPLOYEES AND TRAINING

Ginger believes that their ability to attract good talent, train and retain employees is critical for their growth strategy, as people are critical to maintaining the quality and consistency of their services, and thereby their brand and reputation.

The business model of ginger uses a fair amount of outsourcing. Only about 10 managers per hotel are on the payrolls of Ginger, while all other facilities like kitchen restaurant, backend maintenance, are outsourced. Ginger tries to leverage on hotel management schools to develop a management talent pool with sufficient capacity to meet the demands presented by their rapid growth.

Ginger has implemented extensive training programs and periodic tests for managerial and other hotel-based staff primarily through training partners. New unit managers of the hotel are required to undergo a two-month training in managing all core aspects of the hotel operations. It is also important to ensure that the people working for the outsourced partner see themselves as a part of the same team. It is important that the outsourced partner sees the advantage in the following policies, processes and systems of Ginger.

Ginger makes efforts to ensure that employees see additional value in non-monetary rewards like developing employee’s competencies by making this visible to their employees through certifications, etc.

STRATEGY 3: CENTRALIZED HOTEL MANAGEMENT

The key elements of Ginger’s centralized hotel management program are:-

Budgeting and Monitoring:-

The annual budget is based on historical operating performance of the hotel, planned targeted marketing, planned renovations, operational efficiencies and local market conditions.

Quality Assurance and Training-Quality standards:-

The compliance with quality standards is monitored through both scheduled and unannounced visits and reviews conducted periodically at each hotel. In addition, the practice of mystery audits and tracking customer comments through guest comments cards allows Ginger to improve services and amenities at each hotel across the chain.

To maintain a competitive edge and enhance their hotels’ appeal the company requires each hotel to allocate a fixed percentage of their revenue for periodic renovation and replacement of furnishings and equipment to maintain the quality and standards of its facilities.

STRATEGY 4: MARKETING GINGER

Gingers core targeted customers consist of corporate customers, value-oriented individual SME business traveller s and leisure travellers seeking comfortable and convenient lodging at an affordable price. Ginger is currently using online media to market the hotel chain which includes:-

·         Website

·         Large travel agencies and smaller travel agents

·         Call centre

·         Travel portals and other travel related websites

·         Distribution partners

Ginger’s corporate marketing and advertising programs are designed to enhance consumer awareness and preference for the Ginger brand- which is to offer the best value, convenience and comfort in the economy hotel segment of the Indian lodging industry; and to encourage customers’ use of their centralized reservation system.

In reshaping customers’ expectations to make the brand endearing, Ginger does not provide room service, valet and concierge, ad communicates the message “Please help yourselves” through its advertisements. However, there is clearly an expectation-perception gap as the Indian customer is still uncomfortable with the concept of Smart Basics™.

THE CHALLENGES:

Creating awareness for the Ginger brand at this point in time is a challenge, and since the business model does not allow huge expenditure on media, innovative promotion is needed. The challenge is not only in communication through advertisements, but also to communicate it clearly when a customer checks in.