Frotels - Building a brand of micro-stay options for travellers
Problem statement and Frotels solution
While there are several use-cases for short-duration, there are no options to book hotels by the hour.
At Frotels we are making it possible with a strong value proposition for travelers and hoteliers.
For hotels: “Sell unsold inventory for short-duration stays e.g. people wanting to freshen up.” [600+ hotels have signed up]
For travellers: “Book hotels only for the duration you need”
(as on Feb, 2018)
Plans going forward
From now till September 2018 - prove model in a small market with local promotions
Post September 2018
Examples of their local advertising
Existing OTAs are what people use for booking hotels. However, existing OTAs won’t be able to do this primarily because it will canibalize their primary business.
Business model and unit economics
Customers books the hotels on their mobile-responsive website (They also have an app, but don’t expect too many to download it).
Average ticket size per hotel in our current target is Rs. 1000
Frotels commission is 20%
With local outreach as described above, a city becomes cash positive with ~25 bookings per day
CEO & Founder
COO & Co-Founder
Funding needs and use of funds
They are raising Rs 50 lacs to demonstrate operational aspects of the model (positioning, marketing program, customer engagement, etc.)
Request their investor pitch deck
Frotels is part of Qrate - a unique fundraising assistance program by the Government of Rajasthan. The program is free for startups and is open to startups across India.
The Qrate program follows the ‘Assess-Improve-Access’ model wherein startups are first provided a detailed assessment report and Applyifi scorecard, based on which startups undergo customized and group skill-building and mentoring programs. Once ready, startups are connected to investors and potential customers. Startups that graduate from the program will also get fast-tracked to pitch for grants and investments from the Government of Rajasthan.
All participating startups are given the iStart and QRate cards, which provides them access to several benefits and offers from partners. All startups start with the basic iStart card but move up the ladder – bronze, silver, gold, platinum and signature cards – as their scores improve. Depending on their Qrate score, Startups are eligible for a tiered structure of online and offline benefits, including via partners.
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