Acquisition project | Treebo Hospitality Ventures

Treebo Product Overview

Vision: To democratize the joy of travel by providing affordable yet luxurious hospitality services.

Key Features:

• Affordable Luxury: Treebo combines cost-efficiency with a serene and luxurious guest experience, ensuring travelers don't have to compromise on comfort.
• Consistent Quality: Every Treebo property, be it in a bustling metropolitan city or a peaceful leisure destination, upholds the highest brand standards. This ensures guests enjoy the same exceptional experience across all our locations.
• Widespread Presence: Treebo boasts a vast network with a presence in over 120 cities, spanning across the most sought-after leisure spots and major metropolitan hubs.
• Budget-Friendly Travel: Committed to making travel accessible, Treebo offers competitive rates that cater to budget-conscious travelers without sacrificing quality or service.

Mission: To create a unified brand experience across all properties, making luxury hospitality affordable and consistent for all travelers.

The Ideal Customer Profile (ICP) for Treebo Hospitality Ventures would include:

1. Budget-Conscious Travelers: Individuals or families looking for affordable yet comfortable lodging options.
2. Business Travelers: Professionals traveling for work who need reliable and reasonably priced accommodations.
3. Leisure Travelers: Tourists exploring various cities and regions in India, seeking value-for-money stays.
4. Young Professionals and Students: Those who travel frequently for internships, job opportunities, or educational purposes and prefer economical lodging.
5. Event Attendees: People attending conferences, weddings, or other events in different cities who need short-term, budget-friendly accommodations.

Market Overview

• Industry Growth: The Indian hospitality industry has been experiencing steady growth, driven by rising domestic and international tourism, business travel, and increasing disposable incomes.
• Competitive Landscape: Treebo competes with other budget hotel chains like Oyo Rooms, FabHotels, Bloom Hotels and so on. The market is highly competitive, with a focus on digital marketing and customer acquisition.
• Market Position: Treebo has established a strong presence with over 850 properties in more than 120 cities. The company's focus on maintaining brand standards and offering affordable luxury has helped it carve out a niche in the market.
• Investment and Funding: Treebo has raised significant funding from investors like SAIF Partners and Matrix India Partners, which has supported its expansion and technology-driven operations.
• Customer Base: The primary customer segments include budget-conscious travelers, business travelers, leisure travelers, young professionals, students, and event attendees.

Key Trends

• Digital Transformation: The hospitality industry is rapidly digitizing, with a focus on online bookings, revenue management, and customer service through technology.
• Sustainability: There is a growing emphasis on sustainable practices within the hospitality sector, with hotels adopting eco-friendly measures to attract environmentally conscious travelers.
• Personalization: Customized experiences and personalized services are becoming increasingly important to meet the diverse needs of travelers.

Market Potential 

• Industry Growth: The Indian hospitality market is expected to grow from USD 247.31 billion in 2024 to USD 475.37 billion by 2029, with a CAGR of 13.96%
• Budget Hotel Segment: This segment is expanding rapidly due to the increasing number of domestic and international travelers seeking affordable accommodations.
• Rising Domestic Tourism: There's a significant rise in domestic travel, driven by a growing middle class and increased disposable incomes.
•  Technological Advancements: Adoption of advanced technologies like AI, IoT, and data analytics is enhancing guest experiences and operational efficiency, creating lucrative opportunities for market growth.
• Government Initiatives: The government's efforts to boost tourism, such as developing ports as cruise tourism hubs and reducing GST rates, are expected to further stimulate the market,

Opportunities for Treebo

• Expansion Potential: With a presence in over 120 cities and 850+ properties, Treebo can continue to expand its network to tap into emerging markets and underserved regions.
• Brand Consistency: Maintaining high brand standards across all properties can help Treebo differentiate itself in a competitive market.
• Sustainability Focus: Emphasizing eco-friendly practices can attract environmentally conscious travelers and enhance brand reputation.

Challenges

• Market Saturation: The budget hotel segment is becoming increasingly crowded, making it essential to innovate and offer unique value propositions.
• Operational Costs: Balancing cost-efficiency with quality and service can be challenging, especially as the network expands.

Overall, Treebo is well-positioned to capitalize on the growing demand for budget-friendly yet luxurious accommodations in India. The company's mission to democratize the joy of travel aligns well with the market trends and opportunities.

Currently, Treebo's primary customer acquisition channels are Online Travel Agencies (OTAs) and B2B corporate bookings. Our extensive presence across over 120 cities and 850+ properties makes us an attractive choice for both individual travelers booking through OTAs and corporate clients needing reliable, budget-friendly accommodations. These channels have enabled us to reach a broad audience and maintain consistent occupancy rates. While these platforms have been crucial to our growth, we are exploring strategies to drive more direct bookings and reduce reliance on third-party intermediaries.

Hypothesis:

By leveraging a loyalty program and focusing on personalized customer experiences, Treebo can reduce CAC and attract higher-quality users who are more likely to return and recommend the brand to others.

Strategy:

Loyalty Program:

Implement a loyalty program that rewards repeat stays and referrals. Offering discounts, exclusive deals, or points that can be redeemed for free nights can incentivize guests to book directly through Treebo's website or app, bypassing OTAs and reducing associated costs.

Personalization:

Utilize data analytics to personalize marketing efforts. By understanding customer preferences and behaviors, Treebo can tailor its promotions and offers to individual guests, enhancing their experience and encouraging loyalty.

Partnerships:

Form partnerships with travel influencers, local businesses, and corporates to drive B2B bookings. Offering exclusive packages or deals to corporate clients can increase booking volumes and attract high-quality users.

Enhanced Direct Booking Experience:

Improve the user experience on Treebo’s direct booking channels by offering a seamless, intuitive interface, attractive deals, and transparent pricing. Highlighting the benefits of booking directly, such as better rates and loyalty rewards, can drive more customers to Treebo's platforms.

Content Marketing and SEO:

Invest in content marketing to attract organic traffic. High-quality blog posts, travel guides, and videos about destinations where Treebo is present can draw potential guests to the website. Effective SEO practices ensure that Treebo appears higher in search results, driving more direct bookings.

Expected Outcomes:

Reduced CAC: By encouraging direct bookings and fostering loyalty, Treebo can cut down on commission fees paid to OTAs and reduce marketing costs.

Higher-Quality Users: Personalized experiences and loyalty rewards can attract and retain users who value consistency and quality, leading to increased repeat bookings and word-of-mouth referrals.

Organic Search:

Keyword Optimization: Ensure that Treebo's website is optimized for relevant keywords such as "budget hotels in [city]," "affordable hotels near [landmark]," and "best budget hotels in India." Conduct thorough keyword research to identify high-volume, low-competition keywords that potential guests are searching for.

Content Quality: Create high-quality, informative, and engaging content that addresses the needs and questions of potential guests. Blog posts, travel guides, and destination reviews can help attract organic traffic and improve search rankings.

Local SEO: Optimize for local search by ensuring that Treebo's properties are listed on Google My Business and other local directories. Use geo-specific keywords and phrases to target travelers looking for accommodations in specific cities or regions.

On-Page SEO: Improve on-page SEO elements such as title tags, meta descriptions, header tags, and image alt texts. Ensure that these elements are keyword-rich and accurately describe the content on each page.

Backlink Building: Develop a backlink strategy to acquire high-quality backlinks from reputable travel blogs, review sites, and industry publications. Backlinks can significantly boost search rankings and drive referral traffic.

User Experience (UX): Enhance the overall user experience on Treebo's website by improving site speed, mobile-friendliness, and navigation. A positive user experience can lead to higher engagement and better search rankings.

Technical SEO: Address any technical SEO issues such as broken links, duplicate content, and crawl errors. Ensure that Treebo's website is easily crawlable by search engines.

Social Media Integration: Leverage social media platforms to drive traffic to Treebo's website. Share engaging content, run promotions, and encourage guests to leave reviews and share their experiences.

Content Loop:

Hook: Premium budget friendly stays across tourists places in India.

Content Creator:

• Influencers and Travel Bloggers: Collaborating with travel influencers and bloggers to create authentic and compelling content about their stays at Treebo properties.

Distribution Channels:

• Social Media: Sharing content across platforms like Instagram, Facebook, Twitter, and LinkedIn to reach a broader audience and encourage engagement.

Paid Ads Strategies for different ICPs:

Business Travelers:

Platform: LinkedIn Ads, Google Ads

Ad Content: Emphasize convenient locations, business amenities (Wi-Fi, meeting rooms), and corporate discounts.

Marketing Pitch: “Stay Connected! Enjoy high-speed Wi-Fi and complimentary breakfast at Treebo Hotels. Book your business trip today!”

Targeting: Target professionals, business travelers, and corporate travel managers.

Leisure Travelers:

Platform: Instagram Ads, Facebook Ads

Ad Content: Showcase beautiful destinations, guest experiences, and travel inspiration.

Marketing Pitch: “Escape the everyday hustle. Enjoy cozy rooms and top-notch amenities at Treebo Hotels. Book now and unwind!”

Targeting: Focus on users interested in travel blogs, travel influencers, and leisure travel content.

Young Professionals and Students:

Platform: Instagram Ads, TikTok Ads

Ad Content: Promote trendy, affordable stays, student discounts, and vibrant social scenes.

Marketing Pitch : Affordable Comfort Awaits! Discover budget-friendly stays without compromising quality. Book now!”

Targeting: Target young adults, students, and those interested in travel and lifestyle content.

Event Attendees:

Platform: Google Ads, Facebook Ads

Ad Content: Highlight proximity to event venues, special event rates, and convenient booking options.

Marketing Pitch : Attending an event? Enjoy comfortable accommodations just minutes away from the venue at Treebo Hotels. Book your stay today!”

Targeting: Focus on users searching for event accommodations, conference venues, and event-related queries.

Product Integrations:

Content Integration with TripAdvisor

• Concept: Incorporate TripAdvisor reviews and recommendations directly in the Treebo app for attractions and restaurants.
• Benefit: Help users make informed decisions while enhancing their overall trip planning experience.

Transportation Integration with Uber or Ola

• Concept: Integrate ride-hailing services to allow guests to book rides directly from the Treebo app for airport transfers or local travel.
• Benefit: This convenience adds value for travelers looking to navigate the area easily.

Event Ticketing Integration with BookMyShow

• Concept: Allow users to book tickets for local events, concerts, and activities through the Treebo app.
• Benefit: Attract event-goers who need accommodation while enhancing the overall travel experience.

Referral Program:

Customer Touchpoints: When guests book a stay at Treebo, they encounter the referral program through various touchpoints:

1. Website & Mobile App: Guests see promotional banners on the homepage and receive pop-up notifications during their booking process.
2. Email Campaigns: After booking, guests receive a confirmation email that includes details about the referral program.
3. In-Hotel Promotions: Flyers and posters in the lobby, rooms, and common areas inform guests about the program.

Brag-Worthy Element: Treebo offers an exclusive perk: “Refer a friend and get 20% off your next stay or enjoy a free room upgrade!” This enticing offer encourages guests to share their positive experiences with others, knowing they'll receive a valuable reward.

Platform Currency: The program uses a points-based system. For every successful referral, both the referrer and the referred guest earn points. These points can be redeemed for discounts on future stays, free nights, or unique perks like room upgrades.

Audience for Referral: Treebo targets:

1. Frequent Travelers: Those who travel often for leisure or business and appreciate consistent quality and affordability.
2. Corporate Clients: Companies booking hotels for employees, valuing reliable and budget-friendly accommodations.
3. Social Media Enthusiasts: Guests who are active on platforms like Instagram and X, and enjoy sharing their travel experiences.

Referral Discovery for Users: Treebo makes the referral program easy to find:

1. Dedicated Referral Page: A clearly labeled and informative page on the website and app details the program.
2. FAQ Section: Answers common questions about how the referral process works.
3. Push Notifications: Guests receive alerts about the program and its benefits on their mobile devices.

Referral Sharing and Communication: Guests can share their referral link through various channels:

1. Social Media: One-click sharing on Instagram and X.
2. Email: Pre-filled email templates make it easy for guests to refer friends and family.
3. Direct Messaging: Sharing via WhatsApp, SMS, and other messaging apps.

Tracking Referrals: Treebo uses a robust tracking system:

1. Unique Referral Links: Each guest gets a unique referral link to track their referrals.
2. Referral Dashboard: Guests can see their referral status and earned rewards in real-time through a user-friendly dashboard.
3. Regular Updates: Treebo sends notifications and emails updating guests on their referral progress and earned rewards.

Encouraging Continuous Referrals: To keep guests engaged and referring:

1. Tiered Rewards: More referrals lead to better rewards. For example, 5 referrals = a free night stay, 10 referrals = VIP status with additional perks.
2. Seasonal Campaigns: Limited-time offers and bonuses for referrals during holidays or special events to create a sense of urgency.
3. Engaging Content: Regular updates with success stories, testimonials, and new rewards keep guests motivated and excited about referring Treebo to others.