The Gurugram-based FabHotels, positioned as the “new-age” budget hotels, offer value-for-money through more than 600 properties across 50+ cities in India. The online budget hotel aggregator firm came into existence in 2014. The hotel chain could not gain widespread popularity in comparison to its primary competitor OYO. But, COVID-19 has brought the competencies of the firm to the limelight.
Hospitality industry is one of the worst-affected sectors by COVID-19. According to the recent reports by HVS India and ANAROCK, it is estimated that the total revenue loss of the Indian hospitality industry stands at around Rs. 90,000 crores in 2020. Both the demand and supply aspects have been hit hard by the pandemic.
Under such circumstances, Gurugram-based FabHotels have managed to survive and expand their business arms to novel demand channels. Much of this success can be attributed to the brand’s strategy of being proactive towards environmental changes.
While many in the Indian hospitality industry could discern COVID-19 only after the nationwide lockdown was announced in March, FabHotels had gauged the severity of the situation in February itself.
It did not come as a shock per se because we had started seeing some impact in travel already — with travel bookings slowing down as early as in February. – says Vaibhav Aggarwal, Founder, and CEO, FabHotels on the impact of coronavirus
The company did not succumb to the adversities brought by COVID-19, it rather brainstormed the opportunities that were lying beneath. The “new normal” demands were sensed quite early as the company launched a robust campaign, “Work-from-FabHotels” campaign, in March.
The campaign communicated about the brand’s offerings to its corporate clients to help their employees work at the company’s hotels and maintain social distancing without compromising their productivity. The timing of this campaign launch was perfect as it was introduced before the nationwide lockdown. The campaign was a great success and earned many leading corporate clients to the company.
It was about exploring new demand channels after the usual business of travel completely dried up. We continue to pull out all stops to drive the highest occupancy for our hotel partners and have worked on multiple initiatives, – says Vaibhav Aggarwal, Founder and CEO, FabHotels
On the other hand, Gurugram-based FabHotels are the Indian hospitality industry pioneers who introduced 100 percent contactless gateways for the customers to their rooms. The company has leveraged technology’s power to facilitate guest check-in in less than 10 seconds to ensure maximum safety. As part of their novel campaign, “100% Safe Place to Stay”, the company is committed to offering disinfected, safe, and convenient stays to the customers.
Another noteworthy aspect of their growth is that FabHotels has tactically combined the business objectives with corporate social responsibility (CSR) goals. By extending its services at discounted prices to the corona frontline warriors, the brand has contributed to community welfare and earned goodwill. FabHotels are also an active participant of the “Vande Bharat” mission, providing quarantine facilities to international travelers.
It has not been a smooth journey. The brand took some harsh steps to accomplish resource optimization amid this pandemic as well. At the same time, the company understands the importance of employee satisfaction hence ensures their physical and psychological well-being through measures like free yoga classes and flexible work conditions. The outcome of the brand’s endeavors has been great. It is already showing good growth as 60 percent of their business has risen in July 2020 on a month-on-month basis.