Professional Documents
Culture Documents
Interviewed
by
Dr. Nagendra V. Chowdary
Ankita Sheth, Co-founder, Vista Rooms, is your unassuming women
entrepreneur at the helm of one of South Asias fastest growing Ref. ECOMM-1-0009B
November 2016
ONLINE BUDGET HOTEL AGGREGATOR.When not actively pursuing
social causes, she travels to capture newer locations and properties for
Vista Rooms.
ET CASES
Interview with Ankita Sheth Online Budget Hotels: Aggregators to Accumulators
2. How do you think the online segment would affect the competitive fortunes of the
brick-and-mortar segment of Indian hospitality industry?
To stay competitive, brick-and-mortar hotels need to focus on online visibility, customer
satisfaction and rate competitiveness. The online segment has disrupted the sense of
complacency enjoyed by established players. By working with companies such as Vista
Rooms, mid-range hotels can now provide services, manage customers and online reach
on par with four-star and five-star hotels without the inhibiting cost of adding technology
and employees skilled in revenue and reputation management.
MAXIMIZING REVENUE.
ET CASES
Online Budget Hotels: Aggregators to Accumulators Interview with Ankita Sheth
3. Certain companies, like FabHotels, operate on a franchisee model. How is this model
different from inventory model?
A franchisee model is one where the chain operates the hotel, making all the day-to-day
decisions on behalf of the owner including the hotel operations. The owner is also forced
to replace the hotels brand name with the chains. With the inventory model, the hotel is
free to use their brand name for the inventory not provided to the chain. Also, in the
inventory model the chain does not interfere with the operation of the hotel which the
owners are free to do as they please.
6. What are the major costs in a full-inventory model, including customer acquisition
costs?
The costs associated with the full inventory model are the same as the partial inventory
model. Only the approach is more focused.
ET CASES
Interview with Ankita Sheth Online Budget Hotels: Aggregators to Accumulators
8. How would the branding work in case of full-inventory model for the online budget
hotels aggregators and the principal property owners?
Branding can be done in two ways replacing the existing hotel brand with that of the
chain or co-branding the hotel brand with the chain.
ET CASES
Online Budget Hotels: Aggregators to Accumulators Interview with Ankita Sheth
11. How does a Full-inventory model operate? How do you describe the Full-inventory-
based business model?
The Full-inventory model gives Vista Rooms a chance to fully display its capabilities in
generating customers and online reach for hotels. Aggregators can no longer hide behind
the guise of discounts.
12. What are the Critical Success Factors (CSFs) of a Full-inventory model?
Average Room Rate (ARR)
Increase in Monthly Revenue
Customer Satisfaction Ratings
ET CASES
Interview with Ankita Sheth Online Budget Hotels: Aggregators to Accumulators
14. Given that a hotels room is a perishable product, like an airlines seat, what are the
pricing strategies adopted to maximize the revenue per available room.
Multiple strategies can be used such as early booking deals, last minute deals, promotions,
social media campaigns seasonal rate changes, etc. An important factor is competitor
pricing that hotels did not keenly follow earlier, but with aggregators mining large amounts
of pricing data the hotel can be priced to maximize revenue and occupancy.
15. What do you think would be the role of technology in improving the intended
Customer Value Proposition (CVP) of online budget hotels inventory model?
Technology will play a key factor. Connecting with the customer before arrival, reducing
the time taken by the customer to find the hotel, managing complaints and requests and
finally reducing customer request resolution time, technology will be the backbone of
creating value for customers. Earlier hotels would engage with the customer only once
they reached the hotel whereas with technology we can provide services proactively even
before the customer reaches the hotel.
ET CASES
Online Budget Hotels: Aggregators to Accumulators Interview with Ankita Sheth
18. When did you start Vista Rooms and what has been the progress thus far?
We started with four properties in Mumbai and have now scaled to 1000+ properties across
150+ cities. We are now operating in three countries and are operationally profitable on
every booking.
ET CASES
Interview with Ankita Sheth Online Budget Hotels: Aggregators to Accumulators
20. How do you define competition in Indian hospitality industry and who would you
rate as the biggest competitor for Vista Rooms?
The mid-and budget-hotel industry is really fragmented. There will be multiple brands that
will co-exist hence competition will primarily focus on differentiation in terms of service.
I think every player is a competitor in the industry. A boutique/individual property owner
has the advantage of delivering personalized, unique experience as compared to a
standardized but relatively bland experience at branded hotel chains. The customer has so
many options now that one has to constantly personalize and improvise experiences for
guests.
21. What is your vision for Vista Rooms and how do you propose to prepare Vista Rooms
for achieving that vision?
Our vision is to be a trusted brand for stays across Asia. Trust builds with experience and
we are working relentlessly to collaborate with passionate small property owners in
delivering personalized yet standardized stays to customers.
ET CASES