SOM Project Proposal

Bhavya Sree (PGPGC202100433), Brahmateja (PGPGC202100146), Sai Krishna Kota (PGPGC202100452),

Madhu Kumari (PGPGC202100232), Newaskar Aniruddha Ajit (PGPGC202100238)
About Zostel:
Post-pandemic India has witnessed a stellar growth of 169% in the hospitality
industry. With the increase in middle-class base, demand for leisure stays at affordable prices
has increased significantly. The travel enthusiasts look for hostels in prime locations with
security, cleanliness and affordability. The stay options that were available required
customers to compromise on one of the factors, and Zostel has addressed this problem.
Zostel is now one of the largest chain of backpacker hostels in India, with its presence
in 44 locations in India and Nepal. Zostel offers budget stays and home stays to backpackers,
including group sharing facility.

Operations of Zostel:
Zostel is a franchise model based operating hotel chain that is focused on the short
stay culture. They gather local entrepreneurs and train them on the operations. This way they
fostered local culture while maintaining hospitality and quality. and among the various
services offered by Zostel, group bookings, internet kiosks, common rooms, in house events
are the attractive ones.
Initial operations management through an excel sheet led to errors and effected the
customer experience. So, to smoothen their daily operations, they introduced a hotel
management software called “eZee” that included web booking engine, channel manager &
in house restaurant POS system. Setting-up and staff training are the on ground operations.

Deliverables of the Project:

1. Porter five forces analysis to understand the competitive environment in the industry
2. Application of Service Package framework to understand about the services provided
3. Analysing the quality of services offered by Zostel with the help of RATER model
4. Identifying the gaps between the expectations of the customers and the actual services
offered by Zostel using the GAP model
5. Data analysis to calculate various parameter such as average number of days stayed,
frequency of stay etc
6. Challenges faced in the day-to-day operations of the Zostel
7. Impact of the COVID-19 pandemic on the operations of Zostel
8. Final Recommendations to improve the quality of the services offered based on the
qualitative and quantitative analysis

Methodology:
1. Primary Data (Tentative)
a. Collection from any of the Zostel Franchise (or)
b. Online In-depth interviews with managers at Zostel
2. Secondary Research – Review of various relevant articles and research papers
3. Customer Surveys – Conduct customer services to identify their expectations, and
usage patterns
4. Interviews (Tentative) - Conduct virtual interviews with employees of Zostel

References: https://casereads.com/the-story-of-zostel-india/
https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/indias-hospitality-sector-
witnessed-a-169-4-yoy-increase-in-revpar-in-q3-jll/articleshow/87621083.cms