Executive Our
Summary Strength
Our Strength:
Travel &
Tourism
Potential of Tourism in North East India
- North East Region of India (NER) is called “Paradise
Unexplored”
- The tourism in region is expected to grow by 10-12% in
next 3-5 years
- As per India Tourism Statistics 2017, the total domestic
tourist visits during the year 2016 was 77.13 lakh
- Improved air connectivity is one of the key reasons for
increase in tourists
- According to MakeMyTrip, 100% growth in the number of
travellers for NER such as Assam, Meghalaya, Arunachal
Pradesh and Sikkim; 30% growth in travel bookings to
Gangtok and 120% each to Shillong and Meghalaya
- Darjeeling alone is growing by 35% for summer travel
http://www.newindianexpress.com/business/2018/jun/17/north-east-tourism-expected-to-boost-by-12-per-cent-by-2019-1829472.html
https://destinationreporterindia.com/2018/08/03/tourism-in-north-east-to-ride-the-boom-wave/
Government Policies to Promote Tourism in NER
- Through government’s flagship scheme, Swadesh Darshan, in a period of 6
years a total of Rs 6061 Cr sanctioned across 79 projects to develop 8 theme
based circuits including North East Circuit
- Under the National Civil Aviation Policy, nine airports and helipads in
Arunachal Pradesh, five each in Assam and Manipur and one in Meghalaya
- Ministry of Tourism to spend 10 per cent of its plan allocation in NER
- The Ministry of Development of North Eastern Region has increased the
budget from 1986 cr. In 2015-16 to 2682 cr. In 2017-18, a 35% increase
- Organizing international tourism marts, highlighting the tourism potential of
the region in domestic and international markets
- Initiatives like ‘Act East Policy’ to build inter-regional contact between NER &
ASEAN countries and North East Special Infrastructure Development Scheme
(NESIDS) to develop core infrastructure in NER
 Executive
Our Story
Summary
Selected Cities:
Gangtok, Sikkim Shillong, Meghalaya Guwahati, Assam Siliguri, West Bengal Darjeeling, West Bengal

Our Presence Our Big Idea: Create RLH brand in north east region
- In 2017, 60.5 Lakh domestic tourists visited Assam, 79.6 Lakh in West Bengal, 13.7 Lakh in
Sikkim and 9.9 Lakh in Meghalaya
- Currently very few big hotel chains have strong presence in NER; no major chain like
Marriot, Sarovar, Lemon Tree, Taj, ITC, etc. are present in all the selected locations
- Major market share can be captured with a known trustable brand
- Other tourist places in India are saturated with hotel chains
- Strong foothold in one area would provide legitimacy to the brand name and build long
term positive customer perception
- Our biggest competitor: Udaan Hotels & Resorts(incorporated in 2017) and presence in 5
north east cities- Darjeeling, Gangtok, Pelling, Siliguri and Kalimpong; midscale

Buy, Build or Franchisee?

Franchisee Model
- We do not recommend building a new property as the amount of time required to overcome the legal obligations / technical issues would result in a delay
of our cash inflow while taking up future expenses
- Marriott has been following an asset light strategy in India; by the way of management contracts and franchisees. The strategy that the Global giant had
started to employ in 1970s helped them to double their rate of expansion in India (From 6 - 8 hotels a year in 2016 to 15 a year in 2017-18)
- We recommend a similar strategy. This will give us an easy entry to test the waters. The low investment costs will help us to establish a dominance in NER
- The model will reduce the operational downtime thereby giving us an early cash inflow

http://www.newindianexpress.com/business/2018/jun/17/north-east-tourism-expected-to-boost-by-12-per-cent-by-2019-1829472.html
 Executive
Our Story
Summary
Criteria for Selection: Great Location, Customer Rating, Mid – scale
Target Hotel
Partners for - Location provides strategic advantage and has also created a social capital amongst the North East Tourists
(Number of reviews - Higher the number ~ higher the Word of Mouth)
Franchisee Model :
- Lowest reviews, provides improvement areas related to quality of service, staff attitude and amenities
- Price Range of Rs. 2500-3500 per night
Value proposition:
Guwahati, Assam Gangtok, Sikkim Siliguri, West Bengal
Greenwood Resort Hospitality service that provides best in class amenities at budget
LA Ttakshang Residency Mount Milestone & Banquets
prices
Hotel & Spa
Cultural infusion - With the local area knowledge provided by our
staff along with the culture that is infused into the infrastructure, we
provide our customers with the real feel of North East

Concierge Service - Since the tourism industry in NER is not that

formalized, most bookings are done through local agents who charge
Darjeeling, West Bengal Shillong, Meghalaya at their own whims. We will facilitate the travel arrangements with
an assured Quality at affordable prices.
Central Hotel Centre Local cuisine - Each of our hotel will be a hotspot for Local cuisine
Gleneagles Point with the hotels striving to train the best chefs in town.
Heritage Resort
Convenient Location - All our properties are situated in prime
location
Executive
Our Story
Summary

Brand Selection
Pricing
Red Lion Hotel brand aligns the most with
Mid Scale Segment with price range of Rs 3000 - 4000 per
our value proposition of providing best in
night (inclusive of taxes)
class service along with a complete
experience of the local culture at affordable
Tourist Profile:
prices (Mid Scale)
The largest number of Foreign tourists in India come from
Choosing parent brand name would also
Bangladesh. With more than 74% registering the purpose as
allow us to leverage on the brand equity
tourism
established in US
The UDAN Scheme of the govt caps the rates at the
proposed route to Rs 2,500. Long Term Geographical
Expansion Strategy 2035
Such facts gives us an idea about the profile of a typical All over India
tourist in NER 2030 presence
Considering these we have decided to target the midscale Geographical
segment by keeping our prices in the range of Rs 3000 - Rs expansion to
2025 all North and
4000. Central
Geographical
expansion to
During Lean months the prices can be lowered further or Jammu &
innovative packages can be designed (Can also consider 2020 Kashmir,
collaborating with Weddingz.in for Off season periods) 4 Franchised Himachal
Hotel in NER Pradesh
Executive
Our Story
Summary

CEO Question: Modest Approach or Big Bang Investment?

-
• https://www.india-briefing.com/news/investment-north-east-india-
incentives-industries-16790.html/
• http://www.hospitalitybizindia.com/detailNews.aspx?aid=25620&sid
=44
• http://swadeshdarshan.gov.in/index.php?Theme#collapse13
• https://www.tourmyindia.com/blog/best-family-vacation-
destinations-north-east-india/