C AS E

4
Ginger: Smart BasicsTM
Dr Mukta Kamplikar1

Roots Corporation Limited develops and operates a fast-expanding chain of economy hotels across India under the “Ginger” brand. There is currently a lack of competition in the branded economy hotels segment and Ginger is the only branded economy hotel chain in India. The Ginger hotels are built around a concept that provides facilities to meet the key needs of today’s traveler, at affordable rates. Ginger faces challenges in different aspects of its business as it aims to deliver consistently, quality service to the customer and manage customer expectations.

COMPANY BACKGROUND

Exhibit 1: The proportion of hotel segments across Indian cities.
Jaipur Cochin Goa Pune Hyderabad …show more content…

Tune Hotels Red Fox

Peppermint

Royal Orchid 50 hotels by 2010; bids for 11 Hotels hotels on Railway land are held up; first hotel open in Hyderabad Kamat Hotels 50 hotels in the next five years; focused on West coast; tie-up with ONGC /MRPL Wyndham with Gammon 38 hotels by 2011

Kamfotel

Days Inn / Super 8 Premier Travel Inn

Whitbread 80 hotels in 10 years in a joint venture with Emaar MGF Landmark 20 hotels by 2009 Group, Dubai DIC Starwood No numbers mentioned No numbers mentioned

City Max Hotels Travelodge

COMPETITION
The lodging industry in India is highly fragmented and competitive, and competition is expected to persist and intensify. Currently, Ginger competes with three-star full-service hotels from the unorganized sector (these are hotels developed and operated as standalone hotels with no chain/hotel group

Campanile

While some developments have started in the mid-market segment with Lemon Tree Hotels, Ibis (Accor), Keys (Bergruen Hotels), Day Hotels (Dawnay Day), Hometel (Sarovar Group), Hilton Garden Inn Hotels (DLF) and Taj Gateway Hotels, not much activity is visible at the economy end of the spectrum. This is possibly on account of the high prices of real estate.
Ginger: Smart BasicsTM

447

CASE STUDY

Ginger—The Service Concept
The concept of Ginger was developed in association with renowned corporate strategy thinker, Dr C. K. Prahalad, and the hotels were indigenously designed and developed