A Report On

EFFECT OF AGGREGATOR MODEL ON FABHOTELS IN BUDGET

HOSPITALITY SEGMENT

By

Shreya Vengurlekar

18BSP1135

Batch: 2018-2020

Name of the Organization: FABHOTELS

 REPORT

ON

EFFECT OF AGGREGATOR MODEL OF FABHOTELS IN

BUDGET HOSPITALITY SEGMENT

By

Shreya Vengurlekar - 18BSP1135

For:

A report submitted in partial fulfilment of the requirements of PGPM Program

of IBS Mumbai.

Distribution List:

Faculty Guide - Prof. Silpy Gupta (Faculty, IBS Mumbai)

Company Guide – Mr. Rajarshi Chakrabarti (Regional Head- West)

Date: 31st May, 2019

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 Authorization

I hereby declare that this project is a record of original work done by me. The results
embodied in this report have not been to any other university or institute for the award of any
degree or diploma.

The findings and conclusions of this report are based on my personal study and
experience and are conducted under the guidance of Mr. Rajarshi Chakrabarti (Regional
Head- West) and Prof. Silpy Gupta (Faculty Guide, IBS Mumbai).

The report is submitted in partial fulfilment of the requirements of PGPM Program of,
IBS Mumbai.

Name: Shreya Vengurlekar

Enrolment No. 18BSP1135

Prof. Silpy Gupta

(Faculty Guide, IBS Mumbai)

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 Acknowledgement

The internship opportunity I had with FabHotels was a great chance for learning and
professional development. Therefore, I consider myself as a very lucky individual as I was
provided with an opportunity to be a part of it. I am also grateful for having a chance to meet
so many wonderful people and professionals who led me though this internship period.

I would also extend my gratitude to all the people with whom I have worked and
helped me in completion of my report. I want to convey my special regards to Prof. Silpy
Gupta (IBS Mumbai) for guiding me throughout.

I express my deepest thanks to Mr. Rajarshi Chakrabarti (Regional Head- West) for
taking part in useful decision & giving necessary advices and guidance and arranged all
facilities to make life easier. I choose this moment to acknowledge his contribution
gratefully.

I perceive as this opportunity as a big milestone in my career development. I will

strive to use gained skills and knowledge in the best possible way, and I will continue to work
on their improvement, in order to attain desired career objectives. Hope to continue
cooperation with all of you in the future. Lastly, I would like to thank the employees working
at the Area office.

Sincerely,

Shreya Vengurlekar

Place: Mumbai

Date: 30th May, 2019

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 TABLE OF CONTENT

AUTHORIZATION

ACKNOWLEDGEMENTS

ABSTRACT..................................................................................................................................5

1. INTRODUCTION.............................................................................................................6

1.1 ABOUT THE COMPANY...................................................................................................6

1.2 AGGREGATOR MODEL AND ITS EFFECTS.......................................................................7

1.3 HUMAN RESOURCE ASPECT..........................................................................................9

1.4 FINANCIAL ASPECT......................................................................................................10

1.5 MARKETING ASPECT...................................................................................................11

1.6 NEWS ABOUT THE COMPANY.......................................................................................13

1.7 SWOT ANALYSIS..........................................................................................................15

1.8 BCG MATRIX..............................................................................................................17

1.9 PORTER'S FIVE FORCES ANALYSIS................................................................................18

1.10 COMPETITORS ANALYSIS..........................................................................................19

2. OBJECTIVES OF SIP.....................................................................................................20

3. BRIEF METHODOLOGY.............................................................................................21

4. DETAILED WORK DONE............................................................................................22

5. LIMITATIONS…...........................................................................................................25

6. LEARNING OUTCOME...............................................................................................26

7. RECOMMENDATION..................................................................................................28

8. CONCLUSION................................................................................................................29

9. BIBLIOGRAPHY...........................................................................................................29

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 Abstract

FabHotels is a branded network of hotels in India. FabHotels currently operates in

more than 50 Indian cities including Delhi, Gurgaon, Jaipur, Mumbai, Bangalore, Hyderabad,
Goa, Chennai, Kolkata and others. FabHotels is present in major metros, regional hubs,
leisure destinations and pilgrimage towns.

FabHotels provides standardized hotel rooms with features such as an air-conditioned

room, complimentary breakfast and Wi-Fi with 24x7 customer service support. Guests can
use the FabHotels App for booking rooms on the go. They can also order beverages and
request room service through the app.

Hotel owners who partner with FabHotels are connected via world’s first tablet based
property management App and become part of the FabHotels brand.

According to a research carried out by CB Insights for The New York Times,
FabHotels is among the companies that may be the next start-up unicorns. The company is
backed by investors like the Goldman Sachs and Accel Partners.

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 Introduction

1.1 About the Company

Started in 2014 by Vaibhav Aggarwal and Adarsh Manpuria, FabHotels is a branded

budget hotel aggregator wherein it partners with smaller hotels for providing standardised
services to budget travellers. It currently operates in more than 50+ cities of India with 500+
Hotels, including major cities like Mumbai, New Delhi, Chennai, Bangalore, Hyderabad ,
and Coimbatore.
Be it taxis (Uber, Ola, etc.), hotels (FabHotels), groceries (Grofers), food
(Munchery, Food Panda, Swiggy, etc.), or travel (Make My Trip), aggregator business model
has entered into and has disrupted every industry. When people travel, they look at
accommodation as the option for… Convenient, Comfortable and Safe stay which would also
help you save on your overheads! They provide Great Hospitality Made Affordable.
What are FabHotels offering to its customers?
 Convenient Locations- Close to Main Business Centers & Travel Hubs
 Excellent Sleep & Shower Experience- Spot-less White Linen and Sparkling Clean
Bathrooms.
 Value For Money- Starting From Rs. 1,249/- Only (inclusive of all taxes, breakfast &
24x7 Wi-Fi)
Vision of the company is to expand Pan India rapidly- 800+ Locations 60+ Cities within
2020. FabHotels Current Footprint 450+ locations across 50+ cities • 30+ hotels Gurgaon
• 15+ hotels New Delhi • 10+ hotels Noida • 25+ hotels Bangalore • 20+ hotels Hyderabad
• 15+ hotels Chennai • 45+ hotels Mumbai • 10+ hotels Pune • 65+ hotels other cities. Other
cities include: Agra, Ahmedabad, Amritsar, Chandigarh, Goa, Haridwar, Jammu, Jaipur,
Jalandhar, Ludhiana, Manesar, Shimla.

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1.2 Aggregator Model and its Effects

Aggregator Business Model is a network model where the firm collects the
information about particular good/service providers, make the providers their partners, and
sell their services under its own brand. Since the aggregator is a brand, it has to provide
services which have a uniform quality and price. This is done by signing up a contract with
the partners. The good/service providers never become aggregator’s employees and continue
to be the owners of the good/service provided. Aggregator just helps them in marketing in a
unique win-win way.

Characteristics of Aggregators:

 Customers: The aggregator business model runs on a two-fold customer’s strategy

where the service consumers as well as the goods/service providers act as the
customers of the company. The brand is built in such a way so as to attract both of the
parties to use this platform rather than the competitors.

 Partnership Model: The good/service providers are not the employees of the
aggregator. They act as partners to the business. Partners always have the freedom to
accept or to reject the offer provided by the aggregator (which is mentioned in
contract)

 Brand: Aggregators spend most of their revenue in building up a brand. This brand
has certain notable features like – quality, price band, on-demand delivery, etc. All the
goods/services are provided under a single brand but by different providers. Branding
is done at every customer touch point to have a recall value.

 Quality: The aggregator strives to provide a standardized quality to every user. They
make sure that the partners provide you with the standardized quality product/service.
These aggregators have teams that make sure quality is maintained.

 Contract: A contract is signed between the aggregator and the goods/service provider
where all the terms are cleared. The terms provide a win-win situation for both the
parties where the partners focus on providing quality product/service to the customers
and the aggregator focus on marketing and creating more leads for the partners. Terms
usually include: Branding Terms, The standardized quality required by the aggregator,
The Commission (Uber Business model), or Take Up rate (FabHotels Business
model) and other terms depending on the industry and the aggregator involved.

Aggregator Revenue Model: As already stated above, the good/service providers play a vital
role in aggregators’ revenue model.

 Aggregators provide them with the customers and in return charge some commission.
(Uber Business Model), or
 The partners quote the minimum price at which they’ll operate and the aggregators,
after adding up the take-up rate, quote the final price to the consumer. (FabHotels
Business Model)

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This method isn’t always in operation. The revenue generation is different for different
business stage, cycle, and season. There is a big role of discounts and dynamic pricing in
determining the total revenue generation by the aggregators.

Pricing: Aggregators are different from a marketplace (like Amazon, Alibaba, Flipkart, etc.).
They provide different services for different but standardised prices (or price bands).

Competition: Competition in aggregator business model is tough to handle as same partners

might work for competitors too.

How Does Aggregator Business Model Work?

Theoretical explanation of this model is simple:
 Aggregator visits the Good/service providers.
 Aggregator promises them more customers and proposes a partnership plan.
 Service providers are now the partners.
 Aggregator builds up his own brand and tries to attract customers through many
marketing strategies.
 Customers make purchases through the aggregator.
 Partners get the customers as promised.
 Aggregator gets the commission.

Business Model of FabHotels

FabHotels business model was similar to the usual aggregator business, wherein the company
used to –
 Lease a part of Hotel’s inventory beforehand,
 Organize those hotel rooms under their brand name – FabHotels
 These partner hotels provided standardized service to customers of those rooms as it
was decided in a contract with Fab
 Bookings were made through the FabHotels website and mobile application.
In an aggregation model, the player takes part of a hotel room inventory and tries to sell it
under a brand. Rooms from the same hotel are sold separately by the hotel owner and, at
times, on other online platforms, too (without a brand). In the branded approach, all the
rooms of the hotel seek to offer a uniform experience and pricing. Fab Hotels, which has 500
hotels under its franchisee, experimented with the aggregation model and decided to
discontinue it. “The variation of service is higher in budget hotels. As a brand, you need to
bring it down. But in aggregation, you have little control on these. As an aggregator, you do
not add much value. The interests of an aggregator having partial inventory in a hotel and the
interests of the hotel owner are usually not aligned. There is disparity in pricing and there is
some cannibalisation of the overall business due to higher discounts by the aggregator,” said
Adarsh Manpuria, co-founder of Fab Hotels. Vaibhav Agarwal says there is no ambiguity in
the company’s mind about the future potential of aggregation business. “We have continued
to innovate within the category to add further value to both the customer and partner
experience. Technology enables us to exercise greater control over guest interactions and on-
stay experience."

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1.3 Human Resource Aspect

 At-will employment- This statement reiterates that either you or the employee can
terminate the employment relationship at any time and for any reason, as long as the
reason is a lawful one.
 Leave and time off benefits- These policies address a company's rules and procedures
regarding holidays, vacation, sick, and other types of time off benefits, or leave required
by law or company policy. 18 Personal leaves and 6 Sick leaves are allotted to
Employees.
 Employment classifications- It is a best practice to clearly define employment
classifications, such as full-time, part-time, exempt or non-exempt since an employee's
classification can dictate eligibility for benefits and overtime pay.
 Leave of absence- Employees need to submit requests for time off or other types of
leave in writing.
 Performance and discipline- All performance and disciplinary events are documented,
whether positive or negative. This includes annual performance reviews, recognitions
received, promotions, and disciplinary action, such as written and oral warnings and
performance improvement plans. Company provides appraisal half yearly. At least 10
months should be completed by employee to earn this. They are been given in the month
of January and June. Incentives are given every quarterly which are 25% of the Total
Salary to be awarded only after an employee achieves 75% of the given target.
 Business expenses- If employees travel for work, or incur other business-related
expenses, have them maintain an expense log and submit reimbursement requests in
writing. Company employees are given a reimbursement of Rs.4000 as a travel expense.
Apart from that phone expenses are also given to employees Rs.500 that of Regional
Head is Rs. 1500 and to the TSM its Rs. 1000.
 Resignation and notice periods- When an employee resigns, they may have to
give notice to their employer. The notice period: starts the day after the employee
gives notice that they want to end the employment and ends on the last day of
employment. They have 30 days of Notice Period.
 Employee Benefits- Benefits are any perks offered to employees in addition to salary.
Every employee is given Laptop on the date of joining the Company. Also on occasions
like Diwali, Gift Hampers are offered by the Employer.

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1.4 Financial Aspect

FabHotels has raised $8 million in a Series A round from Accel Partners and RB
Investments. Mohandas Pai’s Aarin Capital and Qualcomm Ventures also participated in the
funding round. Budget hotels brand FabHotels has recently raised $25 million in Series B
round of funding led by financial services firm Goldman Sachs. The funds have been raised
for brand building and to expand their network of operations. The company will use the
newly-raised funds from Goldman Sachs to double the number of hotel rooms on its
platforms. It is also looking to strengthen its presence in select cities.
Since FabHotels was founded in 2014, it has participated in 4 rounds of funding. In
total FabHotels has risen $40.5M. FabHotels' last funding round was on Jul 2017 for a total
of $25.0M

$45.00

$40.00 Round Funding Amount Investors

$35.00 Date
Series B July $25M Goldman
$30.00
$25.00 2017 Sachs
$25.00 Series A June $8M Accel
$20.00
2016
Seed June $2.5M Accel
$15.00 2015
$8.00 Unattributed May $5M Accel
$10.00
$15.50 2015 Partners
$5.00
$7.50 $7.50
$0.00 $0.00
2015 2016 2017

Revenue is the amount of money a company receives in exchange for its goods and
services. The revenue received by a company is usually listed on the first line of the income
statement as revenue, sales, net sales, or net revenue. FabHotels has revenue of 360 Crores in
FY2018.

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1.5 Marketing Aspect
FabHotels uses 80% of its budget in Digital Marketing.
 SEO- Search engine optimization is the process of increasing the visibility of a website or
a web page to users of a web search engine. The term excludes the purchase of paid
placement, referring only to the improvement of unpaid results. Fabhotels use a lot of
these techniques.
 Social Media Marketing- Social media marketing is the use of social media platforms
and websites to promote a product or service. Instagram, Twitter and Facebook are used
to promote their products. A lot of memes are used to promote and attract their brand.

 Campaigning- Budget hotel chain, FabHotels, has launched its maiden TV campaign
"Recharge. Refresh". Conceptualised and executed by BBH, the campaign targets
millennial business travellers. The 360-degree campaign is live across leading TV
channels, YouTube, Facebook, Hotstar, Radio and other digital platforms. The brand is
also leveraging offline and online engagement through outdoor advertising & social-
media-led contests.

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 Message marketing- It uses this as a promotional area to connect with people.
A marketing message is any media or communication that is designed to influence
customers. They are often used to generate demand, build brand awareness and sell.

 Email marketing is the targeting of consumers through electronic mail (email). Often
associated with data mining, email marketing can be used to impact consumers in a
variety of ways.
 Banner marketing- An essential pair of advertising tools are banners and banner stands.
They are used to advertise any and all service or goods, indoors and outdoors. They are
commonly used in trade shows, exhibitions, and other display zones like along streets or
outside a business or event. Fab hotels use Ola, Uber Cabs to display its banners.

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1.6 News about the company

1. How MakeMyTrip shut out two smaller budget hotels to favour OYO- Makemytrip
featured OYO inventory for four quarters, shutting out FabHotels and Treebo.
OYO has stopped competing as a hotel aggregator with Makemytrip, evolving
into a budget hotel brand. Under competition law, an aggregator can deny listing
an operator/customer, but based on objective justifications. “This is true of
competition law, not just in India, but also in other jurisdictions,” Kumar adds.
But FabHotels, for instance, had been associated with MakeMyTrip since
inception. The latter had even signed an exclusivity agreement with FabHotels in
October 2017, but then served a discontinuation notice on March 28, 2018. That
meant taking off at least 250 hotel properties of FabHotels (5,000 rooms) without
any objective justification.
- CNBCTV18-18-Apr-2019

2. FabHotels plans to double inventory by 2019- FabHotels, which operates primarily

through franchising arrangements, plans to double its inventory to 20,000 rooms by the
end of next year. “We have about 10,000 rooms across 450 franchising hotels. We
don’t do aggregation. We want to double the inventory next year to 20,000 rooms,”
said Vaibhav Aggarwal, cofounder of Goldman Sachs and Accel Partners-backed
FabHotels. Aggarwal said the company will also add some business and leisure cities.
“We will add another 20 cities to the current 40 cities we are present in. We are
looking at expanding to locations like Manali, Shimla, Vadodara, Coorg, Raipur and
Nagpur,” he said. According to Aggarwal, in the last six months the company’s topline
has grown by 50% and occupancy rates are upwards of 75%.
- Economic Times-12-Dec-2018

3. Treebo and FabHotels initiate merger talks- Treebo and FabHotels are looking for
merger as investor appetite to fund hotel startups is waning following the massive
funding round by Oyo Rooms. Budget hotel brands Treebo and FabHotels have
initiated merger talks, as investor appetite to fund hotel startups is waning
following the massive funding round by market leader Oyo Rooms, three people
familiar with the matter said. The talks between Treebo, run by Ruptub Solutions Pvt.
Ltd, and Casa2 Stays Pvt. Ltd-owned FabHotels are at an early stage, so it is difficult
to say whether the deal will go through or not, the people cited above said, requesting
anonymity. The talks are being led by investors of the two companies, they added.
Treebo and FabHotels have been trying to raise fresh capital, but potential investors

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 have so far shied away from putting money into companies competing with SoftBank-
backed Oyo, the people said.
-Livemint-17-Oct-2018

4. Hotel rooms: Independent/unbranded segment still dominates with 72 per cent

share- New age chains have eight per cent share; number of hotel rooms estimated at
2.72 million. Assessing the size of India’s hospitality sector for the number of rooms
has rarely been attempted, given the complexity of the exercise. But a hospitality
consulting firm Hotelivate conducted a survey to put the figure at 2.72 million hotel
rooms as of December 2018, across the country. It estimates the number to grow to
3.33 million rooms by 2023. These rooms operate across branded/traditional hotel
chains like Indian Hotels Company Ltd, Marriott International, ITC Hotels; new-age
hotel chains like OYO Rooms, Treebo, Fab Hotels; independent or unbranded hotels
and alternative accommodation that include guest houses and residential properties.

-The Hindu-28-Apr-2019

5. Expanding Into a 'Fab' Space- Vaibhav Aggarwal, Founder and CEO of FabHotels
speaks about his journey to become a serious contender in budget hotels. IT WAS in
the summer of July 2013, Vaibhav Aggarwal was travelling to Pune for a friend’s
wedding when he realised there was a major gap in the low-budget segment hotels in
the price bracket of INR 1000–2500. Having booked a room for INR 3,500 a night
online, he was extremely disappointed with its actual state. Already thinking of
opening up something of his own his experience pushed him to finally do it, entering
the hotel space.

-BW Businessworld-05-Sep-2018

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1.7 Swot analysis

Strengths in the SWOT analysis of FabHotels:

 Standardisation: The FabHotels are mostly owned by various providers but have just
been standardized under the FabHotels franchise and thus people are guaranteed of
standardized service in all FabHotels rooms wherever they may be located.
 Ever growing network: What started off as a one room one hotel thing in Gurgaon
now has around 450 properties to its credit. This is a clear strength.
 Spirit of Innovation: The root idea or need from which FabHotels were conceptualized
is a highly innovative one of a one-stop shop for a budget stay in India. The company
continues to maintain its strong spirit of innovation as is evident from the policy to
standardize rooms amongst many others.
 Subsidising Hotel Stays: FabHotels subsidizes rooms to make them affordable for
customers and similar to Ola and Uber have emerged successfully in their line of
business.

Weaknesses in the SWOT analysis of FabHotels:

 Strategy of co-branding: Fab does not own any of the rooms that it lets out. But it is
more like a hotel aggregation platform where the buyer and seller are allowed to
transact with each other through a common window provided by FabHotels. Thus they
just cobrand with various budget hotels but do not own the rooms.
 Tight margins: Hotels that are on a tie-up with Fab can also loop in other agents for
which Fab cannot do anything much to circumvent. In this context, the model thrives
solely on how well the margins they provide for their hotels are which can be risky in
the long run.
 High turnover of employees at the lower levels is also a concern for the Fab these
days. It can lead to higher salaries to maintain the talent within the firm.

Opportunities in the SWOT analysis of FabHotels:

 Growing demand for aggregators: As the world reels from the aftermath for repeated
recessionary trends, pay cuts, and job losses, most higher end hotels are struggling to

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 balance supply and demand. This increases the scope for aggregators like FabHotels
since most hotels would prefer to take external support for sourcing new business.
 Focus on budget accommodation: Earlier the trend was more biased towards luxury
and boutique hotels but not anymore. People are trying to minimise spending and focus
on saving and thus budget hotels that can provide decent boarding and lodging
facilities are on a high demand today.
 A surge in the number of business travellers in emerging economies: The number
of people who travel on business from both genders has grown profusely in emerging
economies. This has resulted in a demand for budget stays.
 Customer preferences are fast changing: Driven by rising disposable incomes, easy
access to information and fast adoption of technological products, customers today are
more willing to experiment / try new products in the market.

Threats in the SWOT analysis of of FabHotels:

 Competition: With lowered barriers to entry, every new entrepreneur is looking at
aggregating services. There are a lot of online portals like ibibo, trivago, makemytrip
etc which offer a varied gamut of services similar to Fab.
 Growing concerns about safety: Today there is negative imagery of unsafe stays and
the number of cases of harassment is on an increase. Though FabHotels does not
guarantee safety at any point in time for its hotels they have a moral commitment to
ensure that no such untoward incidents happen.
 Shortage of skilled human resources: Given the high turnover of employees and
increasing dependence on innovative solution, company name can face skilled human
resources challenges in the near future.

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1.8 BCG Matrix

FabHotels has four products of their own FabExpress, Fabhotels, FabPrime and FabPremium.
FabPrime and FabPremium belong to Question Marks: These products are launched
recently by Fab. These parts of a business have high growth prospects but a low market share.
They consume a lot of cash but bring little in return. In the end, question marks, also known
as problem children, lose money. However, since these business units are growing rapidly,
they have the potential to turn into stars. Company is advised to invest in its product so if the
product has the potential for growth, or to sell if it does not.
Strategic choices: Market penetration, market development or product development.
FabHotels belongs to Cash Cows: Cash cows are the most profitable brands and should be
“milked” to provide as much cash as possible. The cash gained from “cows” should be
invested into stars to support their further growth. According to growth-share matrix,
corporates should not invest into cash cows to induce growth but only to support them so they
can maintain their current market share.
Strategic choices: Product development or diversification.
FabExpress belongs to Dogs: Dogs are generally considered cash traps because businesses
have money tied up in them, even though they are bringing back basically nothing in return.
They are units or products that have both a low market share and a low growth rate.
Strategic choices: Retrenchment, divestiture or liquidation.

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1.9 Porter's five forces analysis

New
Entrant
Moderate

Supplier Competitive Buyer

Power Rivalry Power
Low High High

Substitues
Moderate

The Porter Five Forces that determine the industry structure in Hotel Services are -
 Rivalry among existing players– If competition is intense then it becomes difficult for
existing players such as FabHotels to earn sustainable profits.
 Bargaining power of suppliers– If suppliers have strong bargaining power then they
will extract higher price from the FabHotels. It will impact the potential of FabHotels to
maintain above average profits in Hotel Services industry.
 Threat of substitute products and services in Construction Services sector – If the
threat of substitute is high then FabHotels has to either continuously invest into R&D or
it risks losing out to disruptors in the industry.
 Bargaining power of buyers– If the buyers have strong bargaining power then they
usually tend to drive price down thus limiting the potential of the FabHotels to earn
sustainable profits.
 Threat of new entrants– if there is strong threat of new entrants in the Hotel Services
industry then current players will be willing to earn lower profits to reduce the threats
from new players.

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1.9 Competitors Analysis

A competitive analysis is a critical part of one’s companies marketing plan. With this
evaluation, company can establish what makes their product or service unique--and therefore
what attributes you play up in order to attract your target market.
These are the current players in Budget hospitality space:

 OYO rooms - OYO is FabHotels's #1 competitor. OYO is a Private company that

was founded in 2013 in Gurugram, Haryana. OYO is in the Hotels industry.
Compared to FabHotels, OYO has 5,456 more employees.
 Treebo Hotels- Treebo is seen as one of FabHotels's biggest rivals. Treebo was
founded in Bangalore, Karnataka} in 2015. Treebo is in the Hotels field. Compared to
FabHotels, Treebo generates $200K less revenue.
 Zen Rooms- ZEN Rooms is a leading budget hospitality company founded in 2015 to
offer the best value-for-money accommodation in South East Asia and optimize the
quality and financial performance of budget accomodation in the region. ZEN Rooms
is now present in 5 core countries, more than 50 cities and 1,000+ locations. Fully
equipped double rooms start as low as US$10. With marquee investors and partners
and a young and vibrant team, ZEN Rooms driven to improve the lives of budget
travelers by giving them the best accommodation experience at the lowest rate
possible.
 Vista Rooms- Vista Rooms is one of FabHotels's top competitors. Vista Rooms is
headquartered in Mumbai, Maharashtra, and was founded in 2015. Vista Rooms
competes in the Hotels industry. Vista Rooms generates 93% the revenue of
FabHotels.

Company Company CEO Employees Total Funding Revenue

FabHotel Vaibhav Agarwal 44 $40.5M $3.2M

OYO Ritesh Agarwal 5500 $1.8B $400M

Treebo Siddharth Gupta 75 $40.5M $3.2M

Cleartrip Sturat Crighton 900 $56.4M $70M

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 Objectives of SIP

 To obtain a balance between findings of new opportunities and hitting revenue targets.
 To build relationships with new and old customers this would pave the way to develop
long-term customer loyalty.
 Identifying competitors and evaluating their strategies to determine their strengths and
weaknesses relative to those of your own service.
 Apply business concepts and theories to real-world decision-making.
 Increase proficiency in specific business disciplines; such as business development
management, operations management, marketing, etc.
 Develop and improve business skills in communication, technology, quantitative
reasoning, and teamwork.
 Observe and participate in business operations and decision-making.
 Meet professional role models and potential mentors who can provide guidance,
feedback, and support.
 Expand network of professional relationships and contacts.
 Develop a solid work ethic and professional demeanour, as well as a commitment to
ethical conduct and social responsibility.

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 Methodology

 Call and fix appointments with Corporates that have their regional/branch offices in
Mumbai.
 Meet the Administrator/HR of the company and propose the idea of choosing FabHotels
as their official accommodation partner.
 Offer the company with FabHotels portal. Some of the tech features
FabHotels Business Toggle are:
o Official Company Accountant
o Monitor all booking and payment activities
o Add employees and assign per diem
o Personalised Automated Assistance
 As now the Corporates have partnered with FabHotels it is our prime responsibility to
provide the corporates with certain Corporate Advantages.
 Observing the working of various departments like finance, marketing production etc.
 Discussion with the company executives, managers and employees.
 Mapping of Corporate parks, Cold Calling through database visiting clients for Meeting.
 Other events that I’ve focused to generate leads are Mumbai is by attending Exhibitions,
Schools and Event Management Companies.

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 Detailed Work Done

Detailed Work done:

FabHotels is more focusing on Corporate Clients as the Target Audience. Our main
work was to get Corporates on board with FabHotels which is done by cold calling,
generating meetings, taking follow ups to get them on-board. For customer satisfaction and
retention budget hotels keeps on increasing its standards and keeps on introducing new
trends.
 Data collection:
 We were allotted mentors from FabHotels, each mentor has an area. The area that is
allotted to me was Western Line of Mumbai, i.e. Borivali to Santacruz except Andheri.
Initially, the mentors provided the data, we had to call on that data and come up with
the potential clients. .
 The secondary source of data collection was through different websites present on the
internet we searched the data of potential clients through it. In my whole period of
internship, I was able to collect 700+ data of the clients through primary and secondary
sources.
 Mapping:
 The area that is being allotted to us included corporate parks, by mapping we have to
walk-in those corporate parks and generate our own data base. We had to visit the
companies in corporate park and brief the company about the FabHotels and then take
their business card or the relevant information about the concern person. This helped
us in understanding the potential of the company as well as for future contact with the
concern person who handles travel desk for their employees.
 Mapping is more fruitful for making clients on board because by meeting the
concerned person face to face i.e., physically present to meet them rather than on call
so that they get the better picture of our motives.
 Follow Ups:
 After Mapping, if we haven’t met the concern person who handles the travel desk, we
call and talk to the concern person and brief them about the FabHotels or if we don’t
have information about the concern person we call on board line number of the
company to speak with concern person.

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  We try to fix a meeting with the concern person and with the authorised person for
FabHotels who can speak to the corporate concerned person. If we met the concern
person and we do not take the follow ups than probably there are chance that he might
forget us and the offers that we have brief them about FabHotels, which results in loss
of clients.
 Meeting:
 After taking an appointment, we fix up meeting with the corporate concerned person
who is authorised to handle travel desk of their employees with our Line Manager, Sr.
Executive or company representative. In meeting, our company Sr. Executive will
explain about the USPs of the FabHotels and ask them about their requirement across
Pan India and gather the require information they need to make business with them.
 While working we realised that only mapping corporates would not fetch us clients we
need to search for new ways to reach corporates who are in need of hotel bookings to
their employees, so we started to map them by going to Exhibitions to meet new
people from different states. Lot of contacts were made through it and many clients
were converted on-board with FabHotels.
 BTC(Bill to Company) Agreement:
 After the confirmation from the client, an agreement is prepared on client’s letter head
or Legal Papers. The required details and documents are taken from client, once BTC
documentation is done the client is on board and is added to our portal. They can start
using our services. In BTC mode of payment, the bill is sent to company after stay of
their employees.
 If company has done BTC agreement then the payment mode goes under BTC that is
30 days credit period will be given to the company to pay it’s stay expenses otherwise
if a company is giving booking for the first time then pay at hotel option is given
where the customers who will be staying in the hotel has to pay during check out.
 Booking of Client:
 When a client wants to book a room in Fabhotel. We make booking for them from our
portal for the required dates and we share booking voucher with them as a
conformation of booking. I brought three companies on board and five companies are
in pipeline.
 I have generated around 25 room nights in my entire internship period. As we were the
single point of contact, we were the only who were going to deal with the hotels owner

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 on behalf of clients and if there is any problem then we would rectify it talking to the
owners and make clients stay stress free.
 Escalation of issue:
 It is our responsibility to provide best experience to the clients whiles their stay with
us. Hence if there is any issue that the client employee’s faces while their stay, we are
the first point of contact to escalate the issue and to provide maximum satisfaction to
the client.
 We have a backend team for escalation of issues, in case of major issues they would
handle it and provide best results.
 Invoices Delivery:
 After the employees check out from the hotels, we had to deliver the bill i.e. invoice to
the company which had booked rooms for its employees. We provide a credit period of
35-40 days of payment.
 When we delivered invoices we would also ask them for feedback about their stay to
know whether the client had a pleasant stay or faced any issue in that property.
 If an issue was observed then the escalation was done and which was then fixed. Any
issues at the property were taken care of by maintaining the property and blocked if
required.
 Payment Collection:
 After delivering the invoices, the concern will do the payment by cheque or Online
Transaction. We had to go to company to collect the cheques as no payment is done in
cash and ask them about the experience staying in the FabHotels; further the cheques
are deposited to the finance department.

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 Limitations

 Time limit was a major constraint.

 As per the company rules many information were not disclosed.
 As the managers were busy in their daily schedules were not possible for us to spend
more time in interacting with them.
 Some customers refuse to co-operate and do not disclose their Genuine opinion.
 Customer information is highly confidential, so organization doesn’t disclose it properly.
 We found that on Weekends Booking counts increased immensely.

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 Learning Outcome

In review this internship has been an excellent and rewarding experience.

I have been able to meet and network with so many people that I am sure will be able to help
me with opportunities in the future.
 Understand fundamental marketing concepts, theories and principles in areas of
marketing policy; of market and consumer behavior; of product, distribution,
promotion and pricing decisions.
 Understand the role of marketing as a fundamental organizational policy process.
 Analyze the interaction of marketing and environmental forces through an
understanding of marketing decisions and practices with social, technological,
economic, and political forces
 Apply the knowledge, concepts, tools necessary to understand challenges and issues
of marketing in a growing international and global context.
 One important thing that I have learned through this internship is time management
skills as well as self-motivation. When I first started I did not think that I was going
to be able to make myself work eight hours a day, five days a week.
 Once I realized what I had to do I organized my day and work so that I was not
overlapping or wasting my hours.
 I learned that I needed to be organized and have questions ready for when it was
the correct time to get feedback.
 From this internship I had to learn how to motivate myself through being in the office
for so many hours. I came up with various proposals and ideas that the company is
still looking into using.
 The clients who had bad experience with FabHotels reacts very aggressively, in this
case I have handled them very calmly and peacefully. I indulged them in the
conversation and note down each problem they faced and made sure they don’t face
such problems again with FabHotels.
 We found that maintaining good relations with all internal & external stakeholders
helps in smooth conductions of Operations.
 Business Promotion Techniques - From FabHotels I have learnt about various
promotion techniques. Online advertisement was their key aspect of marketing. Apart
from this, there were advertisement on vehicles to make people aware about the

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 FabHotels and commercial advertisements. Social Media is the most effective
platform that garners maximum number eye balls and Fabhotels used them with best
efforts.
 Working Process of Hotel Industry- Working under FabHotels I got to know about the
procedure that is usually followed by the Hotel Industry.
o the process of hotel housekeeping,
o the process of supplying necessary inputs,
o the process of guest’s arrivals and departures and
o the process of producing and serving food and beverage.
 Develop a professional sales solution for a product or service to a prospective
business-buying customer using appropriate sales methodologies.
 Professional communications, taking constructive criticism well and work hard no
matter what!
I enjoy this line of work and hope the company reaches Fortune 500 list one day. I will
continue to work hard in my position and hope to continue to learn about the industry and
meet new people. This was an excellent experience and I hope that other interns got as
much out of it as I did.

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 Recommendation

 FabHotels should give more focus on Demographic Condition, Market & Geographic
Condition like Demand, Supply, Business, Locations, and Clients as they vary from city
to other city.
 FabHotels should go for a short stay.
 As a suggestion, FabHotels must go for collaboration with Shrine Board for YATRA
Parchi.
 ‘Hygienic Mobile Mini Restaurants’ be set up at selected tourist destinations on an
experimental basis providing various local level food items and beverages.
 The hotels and restaurants in the State should arrange more facilities for western and
Indian food items to meet the requirements of the foreign and domestic tourists.
 We also found that by regular interactions with the guests, we are able to resolve the
issues in no time and ensured their stay.
 We found that in Weekends Booking counts increased immensely, so we focused
accordingly and took preventive measures to improve guest experience.

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 Conclusion

The Internship Exposure makes me realize that theoretical education is not enough to
allow graduates to perform at a higher level. In the real floor, analytical skills are not enough.
Students must have both theoretical as well as practical knowledge. By effectively using
internships, students will increase their skills and make them valuable in the job market.
Their employers will benefit as well, and they can increase the efficiency of their businesses.
I came to believe that a successful person needs to have professional, strong and good
public speaking skill since their job scope includes them with large amount of
communication imperative to verbal and written communication. A person also needs to
possess creative skill and reinventing himself in order to survive in the dynamic environment.
We also need to have a good people skill, which we should be able to communicate as well as
interact with other working professional including pals and clients.
The internship I have just went through have made up my mind that hospitality
industry is my cup of tea, and the passion that I instil since secondary school really reinforce
me to involve in this industry. I will definitely pursuing my career in hotel. I believed that
one day I will achieved personal goal.

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 Bibliography

Book Reference

Referred Books:- Principles of Marketing- Philips Kotler

Websites:-

 www.google.com
 www.fabhotels.com
 https://en.wikipedia.org
 https://www.slideshare.net/
 https://www.scribd.com/

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