‘Day Use’ hotels to make next big splash in Tamil Nadu hospitality biz

One of the target groups of the Day Use option is the business traveller who needs a hotel for a few hours to freshen up and relax before or after business meetings. And the format is believed to be rapidly gaining popularity as it is backed by the strong benefit of rates that are up to 60% lower than standard room tariffs (listed price being onethird of the full day price). 

Speaking about this newly introduced pricing feature, Sharat Dhall, President, Yatra. com, says, “The Day Use feature allows the customer to choose a hotel with options ranging from two-star budget properties to five-star luxury stays, in packs of 3, 4 and 6 hours. It offers flexibility of payment according to use, so that one can book a hotel only for the time he or she actually needs it.” Sharat adds that apart from business travellers, the feature can be considered by people going for job interviews, couples and families on holidays and those embarking on pilgrimages. It is an efficient option for relatives accompanying a patient, who need a hotel for a few hours to rest.

The flexi-plan can turn out to be beneficial even for the hotels as Sharat says, “I believe this is a wonderful way for hotels to increase occupancy of the rooms as the market is completely untapped. New customers with such needs will get accustomed to the Day-Use model thereby driving demand. Also, it will allow hotels to make their rooms more profitable, as they can sell them more than once per day, and this increases their revenue. This category of hotels is yet to reach its potential in the country. And supply will adjust to how the demand shapes. We will observe this category closely and take future decisions.” 

On the importance of Chennai as a market, Sharat tells us, “The southern part of India has been a strong contributor to Yatra’s revenue. We currently have 60-70 partner hotels in Chennai. There is representation of all types of hotels in terms of price range – business/leisure, chain hotels, all-star categories including Kohinoor Asiana 5-star property, Ginger properties and many budget properties as well. All business, religious, and leisure locations have been doing well. Chennai, Bengaluru, Kochi have become important destinations for business travel while Kodaikanal and Coorg are popular destinations among getaway seekers and holiday travellers.” 

The online hospitality market in India right now has great scope for growth as Sharat points out, “The hotel segment here is highly fragmented, leaving huge potential for online intermediaries to grow the category. With the rising adoption of internet and smartphones, the online hotel booking segment has seen significant growth. Yatra is focussed on expanding its hotels and holiday side of the business. The portal is among the largest aggregators of hotels amongst OTAs having more than 60,000 hotels in India and over 4,00,000 internationally. The objective is to create a platform which caters to the needs of every type of traveller whether a deal seeker, adventure traveller or those seeking unique experiences. We have taken a step in this direction by creating a market place for holidays that enables other travel firms to sell their product on our platform. We are also keen on continuous innovations and expanding our offerings on the mobile platform.”