Lastly, we saw the in-depth analysis of the business model of Treebo Hotels, this time we will look at the elaborated SWOT analysis of Treebo Hotels.
Treebo is an India-based hospitality company that possesses and handles a series of hotels that delivers food and accommodation services throughout India. Treebo Hotels is an Indian budget hotel chain that operates franchising. As of January 2021, Treebo Hotels has over 600 hotels in 113+ cities in India.
In a hyper-competitive market such as hotels and hospitality, marketing becomes a key area for companies to get ahead of each other. Currently, the field of marketing is also changing and fast digitizing. If you are interested in learning more about the latest, watch the Free MasterClass on Digital Marketing 101 by our CEO and Founder, Karan Shah.
In this blog, we’ll go through Treebo Hotels’ strengths, weaknesses, opportunities, and threats in-depth, but before starting with the SWOT analysis of Treebo Hotels, first, let’s learn a little about the company.
About Treebo Hotels
(The Founders of Treebo Hotels, Source: StartUpTalky)
Treebo is headquartered in Bangalore, Karnataka. Treebo Hotels were founded in June 2015 as Zipotel by the IIT Roorkee graduates Sidharth Gupta, Rahul Chaudhary and Kadam Jeet Jain to provide high-quality hospitality in the otherwise unorganised and busted reserve item of the Indian Hospitality Industry.
Treebo chain of hotels is one of India’s largest groups of hotels in the hospitality industry, having its presence in 113+ cities and counting. Being one of the fastest-growing groups in the sector, Treebo desires a network that could not just help them collect data but also protect a trace of their corporation.
Treebo Hotels aim to be a budget hotel brand as opposed to struggling aggregators and systems. Treebo’s new logo represents a pinwheel. It represents the colourful and childlike spirit of wonder that accompanies travel. Through its gesture, it generates a feeling of joy that puts a smile on each one’s face regardless of age, occupation, and income.
|Founder||Sidharth Gupta, Rahul Chaudhary and Kadam Jeet|
|No. of Employees||500+|
|Market Cap||Rs 580.2 Crore (2021)|
|Annual Revenue||USD 11.7 Million (2021)|
|Net Income/ Profit||USD 9.7 Million (2021)|
Services by Treebo Hotels
- Clean Rooms
- Affordable Basic Breakfast Services
- Reasonable Price
- 24 Hours Room Services
- Rooms are Also Well-Equipped
Competitors of Treebo Hotels
- Vista Rooms
Now that we know all the inside details about Treebo Hotels, it’s time to dig into the SWOT Analysis of Treebo Hotels.
SWOT Analysis of Treebo Hotels
As the name goes a SWOT analysis tells us about the strengths, weaknesses, opportunities and threats of a company. Such analyses are often done by companies to know their standing in the market. These analyses are not only done by companies to see their standing but also to see the standing of their competition.
To better understand the SWOT analysis of Treebo Hotels, refer to the infographic below:
So let us first start by looking at the strengths of Treebo Hotels from the SWOT analysis of Treebo Hotels.
Strengths of Treebo Hotels
- Strong Investors: Treebo Hotels is expected to make more money than ever before by 2021 and that is why the hotel chain is backed by well-known investors such as SAIF Partners and Matrix India Partners.
- Advanced Technology: The company completely manages all aspects of their hotels using advanced technology and strives for the best revenue management and quality.
- Affordable Hotels: With India’s growing hospitality industry, customers can easily book any hotel under Treebo Hotel for a minimum charge of Rs. 3,000 to Rs. 5,000. This provides customers with complete hostel facilities with no interruptions.
- Range of Options: Treebo delivers a variety of hotels enclosing mid-market to the upscale market.
- Facilities & Services: It can be difficult to find a suitable hotel with fresh toiletries, clean rooms, and affordable basic breakfast service. Finding this at a reasonable price is always difficult for the middle-class and this is where Treebo Hotel comes into play.
- Customer Service: Treebo Hotel offers excellent customer service and manages their customers’ basic needs at their leisure.
- Strong Foothold in Market: Treebo Hotel is well-known among the members of India’s burgeoning budget hotel networks and has established a strong foothold in the highly competitive market.
Weaknesses of Treebo Hotels
- Unwilling to Convince: Reluctance in customers or clients to use the internet for financial transactions like booking tickets online.
- No Direct Customer Interaction: No direct customer-seller interaction due to this sometimes fraud data can be spotted on websites.
- Significant Losses: It has suffered significant losses in recent years, but with advances in technology they employ and their services, Treebo Hotels is regaining ground.
- Difficulty in On-ground Operations: Developing strong on-ground operations is critical in this sector to provide a consistent experience for customers.
Opportunities for Treebo Hotels
- Budget Hotel Segment: Treebo Hotels should make its presence in the budget hotel segment because there is an increasing demand for budget hotels in India. Due to frequent travels of officials.
- Full Utilization of Internet: Utilization of the internet to display hotels, offer visibility, presence, marketing and distribution. Showcasing affordable hotels which are an ideal option for a weekend stay will increase the bookings at Treebo.
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- Business Class: There is a surge in the number of business travellers in India. This is where Treebo Hotels can launch their business suit for entrepreneurs who are looking for luxury stay and accommodation at their respective destinations.
- Tie-ups With Travel Partners: Treebo Hotels can tie up with bus travel businesses such as redBus. So that if redBus is promoting a group tour then Treebo can work as an accommodation partner for that tour. If you wish to learn more about the SWOT analysis of the largest online bus ticket company redBus, you should read the SWOT analysis of the redBus blog by us.
Threats to Treebo Hotels
- Increasing Competition: Treebo Hotels compete in the hyper-saturated market of mid-tier hotels and faces fierce competition from MakeMyTrip and FabHotels. Even though they have a strong presence in the industry, they are dwarfed by the revenue of their competitors.
- Customer Expectations: Due to increasing options of online hotel booking, customers are more possessed to urge online budget hotels with all the facilities at low prices. This habit of customers has affected the revenue generation of Treebo Hotels.
- Services By Competitors: The hospitality experience by Treebo Hotels cannot match the level of existing market leaders. Competitors such as Oyo Rooms are deliberately capturing the market with their premium hotel segment.
- Losing Faith of Customers: Dishonest online businesses damage consumers’ confidence and faith in the entire enterprise of internet marketing.
- Safety Concerns: After a pandemic, people who stay in hotels are more likely to stay in a sanitized and safe hotel. A careless step from hotel partners will create a negative image of Treebo as an unsafe stay and could face some legal action and cases from customers.
- Misbehaviour With Customers: Any sudden misbehaviour and informal way of talking with customers by the hotel manager or welcoming staff will affect the brand image of Treebo. Travellers will not prefer to book hotels next time from Treebo.
This ends our elaborated SWOT analysis of Treebo Hotels. Let us conclude our learning below.
Treebo Hotel is well-known among the members of India’s burgeoning budget hotel networks and has established a strong foothold in the highly competitive market. However, it has suffered significant losses in recent years, but with advances in technology they employ and their services, Treebo Hotels is regaining ground.
Developing strong on-ground operations is critical in this sector to provide a consistent experience for customers. This makes hospitality a capital-intensive business because it necessitates significant funding and effort to establish.
So, we also now know that Online Marketing skills are gaining importance in today’s corporate world. As in the case of Treebo Hotels, digital presence only helped them to come up with a solution and establish a great venture out of that. You can learn these digital marketing skills too, with our IIDE’s 3 Month Advanced Online Digital Marketing Course.
We hope this blog on the SWOT analysis of Treebo Hotels has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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