The Stayzilla Case:

Rebooting the Business Model

Surinder Batra
sbatra@imt.edu

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Some Issues to be considered in the Stayzilla Case
Some issues to be considered
• What kind of business model was it for Stayzilla?

• Freemium?
• Long Tail?
• Multi-sided Platform?

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If Multi-sided Platform..
• Two-sided or more sides?
• Which other stakeholders can be considered as
additional sides besides stay providers and stay
seekers?

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Which other stakeholders may be considered
as additional sides?

Service providers, such as transport, food and other

facilities of local nature as a part of the eco-system
and served through the platform

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Platform Idea
• Business of ‘budget accommodation at tourist
places’ in India for budget-conscious travelers
looking for decent accommodation, with
convenience and security, while visiting places of
tourist interest
• The categories of tourism may include religious
pilgrimage, medical tourism and visiting exotic
places, etc.

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Customer Segments to be considered

• Individual, family or group travelers on religious

pilgrimage. They may usually travel to religious
places for specific religious events and/ or for
pilgrimage throughout the year
• Individuals or small families seeking medical
facilities, health care facilities, Yoga and
meditation centres, etc.
• Individual, family or group travelers visiting other
places such as beaches, hill stations, etc.

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Customer Value Propositions
Religious Pilgrimage
• Easy access to religious places they would like to visit
along with family members with ease of performing
religious ceremonies without being unduly inconvenienced
for facilities such as local transport and unique local food of
their choice at budget prices.
Medical/ Health Care Tourism
• Accommodation in proximity to medical facilities, health
care centres, Yoga and meditation centres, etc. so that they
can stay without exorbitant budgets for longer durations
Other Tourisms:
• Accommodation with convenience of access to the places
of tourist interest with similar benefits as above

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Creating Competitive Advantage
• Ability to fulfill the composite travel needs of
budget-conscious travelers in all the three
identified segments
• Yet offer decent (reasonable quality)
accommodation with basic amenities provided,
along with convenience and security

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Questions to be addressed
• How can the network effects be leveraged?
• What should be the approach to monetization in the
new business model?
• What can be the governance and regulatory issues?
• How should the new business platform be
launched?

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