Redefining Budget Hotels - PK Group

Travel Industry has undergone a sea change post COVID' 19. With more focus on Luxury Travel specially after COVID'19, People has stopped focussing on Budget Travel which till date is the major contributed amongst the two. There is no doubt that Luxury Travel specially Tourism has increased manifolds post COVID'19 but now post the increase in costs thus leading to a substantial increase of hotel room rent, Budget Travel is post for a huge bounce back.

Costs have increased costs substantially and thus there has been a huge increase in costs for Hotels thus leading to an increase in pricing for Hotels across all categories. With increased costs, Budget travel has again made its importance known in the Industry. PK Group of Hotels with its brands like Hotel PK Residency, PK Boutique Hotel, PK Apart Hotel & PK Budget Hotel is one of the leading Budget Hotels operators in Northern India with a huge presence specially in Noida, Gurugram, Faridabad & South Delhi. There are other brands worth mentioning also like Bloom Hotels, Royal Orchid Regenta & Keys by Lemon Tree Hotels which are also performing staggering well in the Budget segment. 

However, in consideration to the Luxury Hotels segment, the Budget Hotel segment is very large but still they are only few good operators in Budget Hotel segment in comparison to Luxury Segment. The main reason for such low branded Hotels in Budget Hotels even after it is more that quadruple of the Luxury Hotels Segment is the unavailability to do long term tie ups with Hotel owners. Hotel owners in the Budget Hotel Segment are mostly short sighted with wanting immediate returns with least Investment. Secondly most old properties image makeover is generally very expensive for both the Hotels or the Owner to make a profitable business decision on the same. Thirdly, Licensing of these Budget Hotels are generally not up to date so the operator doesn't want to occupy an illegal property considering risk hampering of the Brand name.

All the above reasons amongst others, are a reason that the Budget Hotel Industry categorised as Room Rent of 3500 or lower has only few brands listed above in Para 2. Those few Brands have invested a lot of money and in some cases more the luxury hotels to have their chain of hotels across a locality. A luxury Hotel operator spends on branding, services & the entire product mix whereas a Budget Hotel operator though smaller is size has to first spend on the product i.e. the Property to get it up to a basic standard. 

The travel Industry in India is mainly reliant on Domestic Travel with the International Travel Segment has a far decline post COVID' 19. With more young Indians travelling, there has been a boost in the Hotel Industry. However now, Luxury Hotels are facing a crisis because overseas destinations in South Asia, Andaman, Eastern Europe and Western Asia are becoming much cheaper and with a lot of Countries giving VISA FREE travel for Indians so more Indians are going abroad rather then visiting the domestic destinations. However, Luxury Hotels are unable to reduce the pricing beyond a certain threshold because there costs are very high specially after COVID'19 and to be financially reliant they need there Average Room Rent (ARR) above a certain amount. But in keeping the ARR, they are witnessing huge decline in Occupancy as travellers have lot of options.

Above problems are not faced in the Budget Hotel segment as same is still untapped. PK Group of Hotels has initiated some Industry first measures to be seen as an Active & Leader in Budget Segment of Hotel. Some of the initiatives are as follows:-

1.  Fitness & GYM Centre - All PK Group of Hotels are equipped with a 24/7 Fitness and Gym Centre having a Personnel Trainer for there guests. Modern Travellers have become more physical and work out regimen is strict even while travelling. Keeping in the needs of the modern travellers in mind, PK Group has taking this initiative.
2. Swimming Pool - Keeping in mind the importance of fitness for our travellers, We have opened a swimming pool in most of our Hotels in Noida, Delhi, Gurugram & Faridabad. We are still planning to open a swimming pool across our brands and as a compulsory amenities of our brand. Same is in process and hopefully by end of 2026, We will have a Swimming Pool across our Hotels and Brands.
3. Kids Meals - With more people travelling with Kids, PK Group has carefully curated its Kids Menu serving Burgers, Pastas & other Healthy Meal for your loved ones.
4. Kids Play Area - With the opening of Giggle Wiggle in PK Boutique Hotel, Noida - the same been an immediate success amongst locals & travellers, PK Group of Hotels has decided to have a Kids Play Area across its Hotels and Brands by the end of 2026. Same is a Big Target but PK Group always believes and achieves the IMPOSSIBLE.
5. Limited Night Menu - With the best Executive Chef and Chef De Partie, We have curated a night menu for our travellers. With work timings being 24/7 it was highly important to have Food delivered to our customers at any point of time.
6.  Hi Speed Internet - All PK Group of Hotels across its Brand has tied up with Reliance JIO for a dedicated set up across its Hotel ensuring no down time and speeds on 100 MBPS or more thus ensuring PK Group customers have the best speed of Internet connectivity at our Hotels.
7. Coffee & Tea- PK Group understands the importance of Coffee, Tea & Caffeine of modern travellers. We have a curated menu of Coffee in all our Hotels across Brands ranging from Cappuccino, Espresso, Lattes & Mochas. We have tied up with Astoria for providing the best coffee machines to make sure our customers have a memorable experience.

The above measures introduced by PK Group are in sync with the facilities of a Luxury Hotel. Our founders inspired for our Brand to have utmost value with world class services and adhering to the same principle we are trying to create a product in a Budget Industry having world class services.