by Vijaylakshmi
Started in 2013, Zostel, a leading backpacker hostel brand, has nearly 85 properties spread across 70 odd destinations. Apart from India, the brand has its presence in neighbouring Nepal as well. As the travel bug is getting stronger and stronger among the new generation travellers, the company is also looking at growth and expansion like never before. “We have another 20 odd properties in the pipeline this year,” says Deep Banka, COO & business head of the company.
From a backpacker hostel brand, Zostel has evolved and diversified to various products within the Zostel brand as its customer-base expanded and their requirements changed. While bulk of their brand presence, around 60, are still Zostels, currently, they have Zostel Plus, a much-enhanced version of Zostel; Zostel Homes, a homestay/private villa/BnB kind of a product for families, couples, etc.; and Zo Trips, a group travel packaging product.
“We have a strong loyal customer base for all our products,” Banka said. He said that Zostel Homes have grown organically in states like Maharashtra, Kerala, Rajasthan, etc. in the last couple of years.
Banka said that the focus is to grow the existing brands as well as innovate and bring in new innovative products. While growth is given, Banka said that the focus is on bringing more structured processes with clear standardisation to deliver seamless experiences to guests.
“Customer experience is core to hospitality. We feel that as we scale up we need to have structured and standardised products and processes,” he said.
As far as new supply expansion is concerned, Banka said that they are exploring opportunities in the northeastern part of India, where brands are not so far not able to get any breakthrough opportunities. The company is also looking at opportunities in destinations like Andamans, Lakshadweep, etc. which are aspirational but lack in infrastructure.
He said that the company follows the franchisee model of business and enables and empowers local people to realise their entrepreneurial ambitions. “More than 60 percent of our partners are first time entrepreneurs,” he said. He said that the entrepreneur development programme of the company is well-received to support people in realising their entrepreneurial dreams.
“We understand that our growth happens through these local entrepreneurs. Therefore, be it our franchise owners or our customers, we follow the highest transparency in our relationships,” he said.
