Indian Hotels gives Ginger new look for the new year
This budget hotel brand is being repositioned to target the ever-elusive millennial market.
Indian Hotels, a company owned by the Tata Group, is making over its Ginger Hotels brand with a view to improving revenues in 2019. This budget hotel brand is being repositioned to target the ever-elusive millennial market after finding itself in competition with other leading budget brands, and posting losses for the last three years. We find out more.
Ginger gets a new look
New year’s is all about new beginnings; and the same is true for Ginger, a brand operated by Indian Hotels.
This budget brand will be given a facelift just in time for 2019, as the Tata-owned group tries to set Ginger on the right course to make profits in the coming twelve months.
Indian Hotels has overhauled their budget Ginger brand to make it more appealing to millennials, after facing stiff competition from similar brands such as Ibis, Key Hotels and Oyo.
Ginger’s existing 45 properties will be completely renovated as part of the repositioning initiative, which will also involve a new brand identity and logo.
A total of 30 of these renovations will be completed in the next two years, with the first revamped hotel opening in Panaji, Goa in December 2018.
Deepika Rao, managing director and CEO of Ginger Hotels, said, “We are completely relooking at repositioning the brand (Ginger) itself. From being seen on the pyramid of being value-driven, we are transforming it to one more aspirational and provide an experience that speaks to our target audience of millennials.”
Profitability, expansion and growth
The program to transform and reposition Ginger was launched after the brand reported successive losses for the last three years.
However, this is only one arm of a strategy by Indian Hotels to recover the losses returned by Ginger. There is also the plan to expand the hotel’s portfolio to 100 in the next four years, effectively more than doubling its current number of hotels.
This will also be conducted alongside the sale of some of the brand’s assets. Puneet Chhatwal, managing director and chief executive of Indian Hotels Company Limited, said, “This year we will make a profit at a minimum break-even. We are also selling four Ginger hotels this financial year though we have already identified to sell a total of six.”
The repositioning of Ginger will hopefully better align it with the expectations and demands of the target millennial market, who wish to spend their money on experiences rather than more formal hotel stays, he added.
“The product has got stuck at a certain perceptions in the customers’ mind. Therefore, there is only a certain price point he is willing to pay,” said Rao.
The focus on developing Ginger’s perception also feeds in to Indian Hotels’ strategy of differentiation, which they have learned is better for scaling and for higher profit margins.
“One of the objectives when I started is to clean our brand scape. We had put Taj everywhere. Then we said where and how can we get scale. We can sign 10 Ginger hotels in a year but it is very difficult to sign ten Taj hotels. So the scale can mainly come from other brands namely Vivanta and Ginger,” Chhatwal said.
Indian Hotels is South Asia’s largest hospitality company with brands such as Taj, Vivanta and SeleQtions to its name.
Let’s take a look at a few other projects currently underway by The Indian Hotels Company Limited:
Taj Hotel at Deira Creek
The Gateway Hotel Kolhapur
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