Revolutionizing India’s Budget Hotel Aggregation: The Staymaker Story

• ByStartupStory     |    October 11, 2023

In Conversation with Sharath Hiremath and Pankaj Maurya, Co-founders of Staymaker Hospitality Pvt Ltd.

Empowering Budget Hotels Across India

Sharath Hiremath, an MBA with over 9 years of corporate experience spanning IT, FMCG, and Hospitality, and Pankaj Maurya, a seasoned professional with 7+ years in the Hospitality Industry, joined forces to address a significant challenge – the unstructured and complex landscape of India’s Tier 2 and non-metro lodging industry. Prior to founding Staymaker, Sharath had honed his skills at Siemens, Reckitt Benckiser, and Oyo, while Pankaj’s journey included stints at Mc Donald’s and Oyo.

The Genesis of an Idea

As former colleagues, Sharath and Pankaj identified the untapped potential of India’s smaller towns in the lodging industry. While major players were focused on metros, they saw an opportunity to bring structure and solutions to Tier 2 markets. They envisioned an ecosystem where “Customer is The King, and Hotelier is The Queen,” aiming to cater to both sides of the spectrum.

Navigating Through Challenges

The journey to establishing Staymaker was not without its hurdles. Fate had other plans when COVID-19 hit in March 2020, impacting their initial launch. However, they turned this adversity into an opportunity. Engaging with hotel owners during lockdowns allowed them to fine-tune their Go-To-Market (GTM) strategies. Staymaker adopted a lean approach, initially launching in multiple towns in Karnataka and West Bengal with just a few properties in each location, ensuring business continuity even during lockdowns.

A Unique Offering

Staymaker emerged as a budget hotel aggregator, offering end-to-end solutions for budget category Hotels, Homestays, and Resorts. Their services include building an online presence, creating multiple booking channels, engaging with customers, and much more. While competitors like Oyo, Treebo Hotels, and Fab Hotels focused on metro areas, Staymaker’s stronghold in Tier 2 towns differentiates them. They stand out by providing flexibility to hotel partners, not charging upfront fees, and offering no lock-in periods.

The Team Behind Success

Apart from the co-founders, Staymaker boasts a team of 11 professionals spread across Karnataka, West Bengal, and Jharkhand. Sharath and Pankaj’s unique blend of expertise keeps the company’s vision in check. Sharath’s innovative ideas are balanced by Pankaj’s deep industry knowledge.

The Journey So Far

Staymaker’s journey began as a revenue management company, launching in Mysore with just one hotel in mid-2020. Gradually, they expanded their footprint through referrals, with over 130 properties across 50+ towns and 5 states today. Remarkably, this growth was achieved with no marketing, minimal advertising, and near-zero acquisition costs.

Competition and Uniqueness

Staymaker views the market as one that can accommodate multiple players. They aspire to build a profitable, scalable, and sustainable model, distinguishing themselves by being customer and hotelier-friendly. For hotel partners, they simplify inventory management, pricing, payments, and customer engagement, allowing properties to focus on operations. They solve customer problems like room denial by offering reservation guarantees and providing a diverse range of booking options in less-explored destinations.

Nurturing a Healthy Work Environment

Staymaker fosters an inclusive and flat work environment, where anyone can seek guidance and share ideas. Continuous learning is encouraged, and appreciation is expressed openly. For partners, an exclusive WhatsApp group allows direct communication, and successes are celebrated collectively.

Future Plans and Investment Status

Over the next 2-3 years, Staymaker aims to expand to over 500 properties, with a yearly business turnover exceeding 50 crores. They currently operate in 5 states across India and plan to enter neighboring states. After being bootstrapped initially, they raised an Angel round in June 2022. However, they remain open to investments that align with their vision.

A Message for Aspiring Entrepreneurs

Sharath and Pankaj advise potential entrepreneurs to approach the journey with caution and preparation. They emphasize the need for financial security, a strong conviction, and a deep desire to solve a real problem. Entrepreneurship requires dedication, energy, and a strong sense of purpose.

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Conclusion

Staymaker is transforming India’s budget hotel aggregation sector, thriving in Tier 2 towns where others hesitate. Their unique approach of prioritizing both hoteliers and customers sets them apart in a competitive market. With a clear vision and unwavering determination, Sharath and Pankaj are driving Staymaker’s journey to success, offering valuable lessons to aspiring entrepreneurs along the way.

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