Fifteen years ago，China’s budget hotels are beginning to rise，It has blossomed all over the country in just a few years。Afterwards，Several strong 188bet Online Sports Betting and Casino groups are gradually taking shape。

More than ten years later，Indian unicorn OYO comes to China，Changed the industry structure of China’s independent 188bet Online Sports Betting and Casino with lightning speed。

Lightning expansion speed，Unique profit model，OYO aroused everyone’s curiosity for a while，Become a business case that people are eager to study。In many people’s impression，OYO is successful，Is invincible。But what few people know is，In his "hometown" India，OYO and its competitors are repeating what happened in China’s budget 188bet Online Sports Betting and Casino industry fifteen years ago。

2004，When the Indian 188bet Online Sports Betting and Casino industry rushes into the budget 188bet Online Sports Betting and Casino field，THE TAJ GROUP，is a subsidiary of Indian Hotels Corporation,Part of the Tata Group。Generally considered to be the oldest chained 188bet Online Sports Betting and Casino in India)，I lost no time in launching Ginger 188bet Online Sports Betting and Casino。This 188bet Online Sports Betting and Casino focuses on low prices，The price per night does not exceed 1,000 rupees (approximately RMB 100)。However, the good times did not last long，With the rise in real estate prices closely related to it，188bet Online Sports Betting and Casino prices have also begun to rise，Three years later，The room rate of this 188bet Online Sports Betting and Casino has risen to 1399 rupees (approximately RMB 139.9 yuan) per night，And in 2015，The house price is more than 1800 rupees，The maximum is even up to 4,000 rupees (approximately RMB 400)。

Jaideep Dang, Managing Director, 188bet Online Sports Betting and Casino Business, Jones Lang LaSalle (JLL) India said: "20 years ago，Only luxury travel in India，So the 188bet Online Sports Betting and Casino on the market are either luxury five-star，Or it’s a little-known shop，No mid-range or budget 188bet Online Sports Betting and Casino at all。”

Early 21st century，Large international hotels, led by Marriott, began to pour into India。They have brought multiple brands to India，And discovered the huge business opportunities in the mid-range market。At that time，Oberoi、Indian 188bet Online Sports Betting and Casino chain groups such as Taj and ITC，Still mainly for foreign tourists，Almost 80% of demand comes from inbound travelers。

"Since about ten years ago，We are seeing more and more Indians not only traveling overseas，And traveling within India。”Dang said，"Local businessman、Middle-level business people and middle-level managers are starting to travel。Although there are many people，But not everyone can accept the 188bet Online Sports Betting and Casino price of 10,000 rupees (approximately RMB 1,000)。”

"Exactly in this case，Mid-market 188bet Online Sports Betting and Casino (budget 188bet Online Sports Betting and Casino) in India have begun to mushroom like mushrooms after a rain。”

In high-end luxury brands，Only Taj Group has tried in the field of budget hotels，But failed in the end，No progress made。Also from that time，Online 188bet Online Sports Betting and Casino aggregation platforms are beginning to rise，The curtain of the new era suddenly opens。

Empty area

2015，Three "elderly young people" who are over the age of 14--Sidharth Gupta、Rahul Chaudhary and Kadam Jeet Jain，We are experiencing some "sound and fury" together，Where to go next？

At that time，Gupta and Chaudhary are Myntra’s vice presidents of strategy，And Jain is the deputy director of MakeMyTrip。It took them two months，After 7 in-depth discussions，Brainstormed 34 ideas，Final decision，Bet their future on the budget 188bet Online Sports Betting and Casino industry。

In Delhi、Jaipur and Bangalore，They communicated with nearly a hundred hoteliers，Then the three decided to run an independent economic 188bet Online Sports Betting and Casino aggregation platform Treebo。

”We hope to solve a meaningful problem、A big and deep question。And operating a budget 188bet Online Sports Betting and Casino meets this standard。It depends on our national conditions，We are still a middle-income country。"Treebo co-founder Chaudhary said。

“We hope to choose a business where we can control our own destiny，Profitability is clear，There is no need to burn a billion dollars to achieve break-even like the giants do。”

Chaudhary said the reason why he entered the budget 188bet Online Sports Betting and Casino industry is simple: "If you can effectively manage a 25-room budget 188bet Online Sports Betting and Casino，Then you should create value，Instead of snatching it away。”

Treebo also joined the 188bet Online Sports Betting and Casino network of rivals old OYO and FabHotels，The latter two are also committed to providing customers with affordable and high-quality accommodation experience，And has been operating for several years。

They are called new-age online 188bet Online Sports Betting and Casino aggregators by traditional hoteliers，Hope to solve all the problems of the budget 188bet Online Sports Betting and Casino market once and for all。After 3 years of working in the budget 188bet Online Sports Betting and Casino field，OYO has more than 9,000 brand hotels in India，Treebo and FabHotels also acquired 500 hotels each。

According to research firm Hotelivate，As of December 2018，There are about 2.72 million room resources in India，Including traditional chain (brand) hotels、New Era 188bet Online Sports Betting and Casino Chain、Independent or unbranded 188bet Online Sports Betting and Casino、Alternative accommodation such as small hotels and B&Bs。Estimated to 2023，This number will rise to 3.33 million。

Among them，Nearly 72% of the guest rooms are single、Unbranded；15% is alternative accommodation，The portion dominated by brand hotels and traditional 188bet Online Sports Betting and Casino chains only accounts for 5% of the total。The new generation chain is highly scalable due to its business model，So most of them expand rapidly，Finally occupied 8% share。

This means，India still has 1.95 million unbranded rooms sold to OYO、Treebo and FabHotels open。Generally speaking，The budget 188bet Online Sports Betting and Casino will have 25 rooms，Price less than 3000 rupees (approximately RMB 300) per night，By this rough estimate，There are about 7 in the whole of India.80,000 independent unbranded hotels。

That’s for sure，There is still huge room for growth，However, the war trend in the 188bet Online Sports Betting and Casino industry has become confusing。Since 2015，Many budget 188bet Online Sports Betting and Casino startups including ZoRoom and WudStay have rushed onto the track，The result was that his vitality was severely damaged，Exit sadly。In the end there is only OYO、Treebo、FabHotels three companies survived。

“Companies trying to squeeze into the budget 188bet Online Sports Betting and Casino segment are high-end 188bet Online Sports Betting and Casino operators，Decades，Their system、Process and staffing，I have long been accustomed to luxury style。The so-called no destruction, no establishment，Must abandon everything，Only can we provide economical products，Only in order to find your own pattern。" Dang explained。

“If you spend too much on budget 188bet Online Sports Betting and Casino in the first place，Due to low profit，There will be no return on investment，This leads to misalignment of development。”

The revolution of business model

Prior to raising first round of funding from Accel Partner in July 2015，FabHotels has been launched for about 9 months。About 5 days later，OYO announced that 188bet Online Sports Betting and Casino has raised US0 million from SoftBank，Meanwhile，Treebo starts operations in Bangalore。

OYO initially adopted a partial inventory model，Only brand and sell a few rooms per 188bet Online Sports Betting and Casino，This makes it easier to scale，Low cost，It’s easy to persuade hotels to join。FabHotels uses a mixture of full inventory model and partial inventory model，It promises hoteliers a guaranteed minimum income，Thus gaining total control。

Minimum Income Guaranteed，No matter what the business situation is，Operators will pay corresponding amounts to their 188bet Online Sports Betting and Casino partners，Guaranteed 188bet Online Sports Betting and Casino revenue。Then，The operator may share from the revenue exceeding the minimum guarantee，Or charge commission。

188bet Online Sports Betting and Casino early days，If you are not a big brand，Complete control of inventory requires underwriting a certain occupancy rate，And pay some funds in advance。”

“As a self-reliant company，We do not plan to always use money to subsidize the minimum income of our partners，2015，Within three or four months after getting money from Accel，We ended that mode。”

Treebo has been committed to the full inventory management model since its establishment， Also known as the “manchies (franchise management)” model，This is a buzzword composed of "management" and "franchise"，means the operator works closely with the franchised 188bet Online Sports Betting and Casino。

“At that time, the 188bet Online Sports Betting and Casino owners were worried about us newbies，So we signed minimum guarantees for the first four hotels。When we went to meet the 188bet Online Sports Betting and Casino owner，We carry a personal checkbook with us，" Chaudhary said，“It was difficult to make money in the first few hotels。But by the end of 2015，We have grown to 40 hotels in 7 cities。”

December 2017，OYO adopts a full inventory model，Before 188bet Online Sports Betting and Casino was a partial inventory aggregation platform。

Different from OYO，Treebo and FabHotel have limited funds，So they often use minimum guarantees to increase their success rate when entering new markets。Once they find some good 188bet Online Sports Betting and Casino partners，And established a reputation among local hoteliers，They signed a "franchise management" contract based on revenue sharing。Two 188bet Online Sports Betting and Casino chains one year after starting operations，The minimum guarantee model has also been gradually cancelled。

However，With the strong support of SoftBank，OYO continues to acquire other independent budget 188bet Online Sports Betting and Casino，And paid a huge monthly income guarantee。Meanwhile，It sells rooms at deeply discounted prices，To support the occupancy rate of all its rooms。The subsequent result is，It expanded to 9 in five years,More than 000 188bet Online Sports Betting and Casino。June this year，It replicated the same model in China。

“OYO has been following the loss leader strategy。In order to maintain the monopoly position，60% of OYO’s inventory in any city at Rs 999 per night (approx. RMB 99.9 yuan) price，This will not create any value for 188bet Online Sports Betting and Casino owners，Because the operating cost is much higher than this price。" said an industry insider who did not want to be named。

"Correct mode，188bet Online Sports Betting and Casino be based on the appropriate price，Improve service level，Because customers are willing to pay for quality。”

Over the years，OYO from SoftBank Group、Sequoia Capital、Raised .7 billion from companies including Lightspeed Venture Partners and Airbnb，This gives investors a new understanding of the 188bet Online Sports Betting and Casino。OYO’s main rivals also benefit from its growth story。

so far，Treebo has raised million，Its investors include SAIF Venture Capital Fund、Matrix Partners, etc.。FabHotels gets Goldman Sachs、Investment in Accel and MakeMyTrip，Total USD 40 million。

“Millions of dollars poured into this 188bet Online Sports Betting and Casino，Has created higher brand awareness among consumers，Also encourages new supply。” said the aforementioned 188bet Online Sports Betting and Casino insider，“The standards hoteliers need to follow to be part of a brand，I also have a deeper understanding。”

A tough nut to crack

The budget 188bet Online Sports Betting and Casino market in India is a very tricky market，Few participants，Potential、The continued attention of investors remains to be developed，The awareness of customers and 188bet Online Sports Betting and Casino owners also needs to be continuously enhanced。However，In China and Southeast Asia，Some budget 188bet Online Sports Betting and Casino companies，Ruhuazhu Group、Home Inn、GreenTree、7 Days Inn, etc.，And RedDoorz and ZenRooms in Southeast Asia，Always thriving。

“If you look at budget 188bet Online Sports Betting and Casino brands outside India，will find them very profitable，And it’s very large。In fact，The market for budget hotels tends to be smaller than medium-sized hotels、The high-end market is bigger。”Agarwal from Fab said。

When Home Inns was established，Just in time for the rapid growth period of China’s economic 188bet Online Sports Betting and Casino industry in 2001-2002。Afterwards，GreenTree Inn 188bet Online Sports Betting and Casino in 2004 and Huazhu Group in 2005、7 Days Inn was established one after another。Experts think，India will also follow the same path，Because macro-indexes such as per capita income and tourist arrivals in India today are very similar to China ten years ago。

Of course there will be differences。“China’s 188bet Online Sports Betting and Casino industry is not as capitalized as the Indian 188bet Online Sports Betting and Casino industry。China’s budget hotels start with leasing and operation models，Always growing organically。Over time，They added franchise and management modes，Now it has become a new growth engine，" A veteran in the industry explained。

"In comparison，Indian budget 188bet Online Sports Betting and Casino startup has raised significant funding，Especially OYO。They started with a franchise and management model，So the fun is yet to come。”

“We will witness an increase in market size，Maybe even double every four years。Just like Huazhu 188bet Online Sports Betting and Casino Group, which has 18 brands，India will also have rich brands and multiple players，Because this has nothing to do with the industrial structure，It is related to capital structure。” The above-mentioned industry veteran added。“There are several startups growing organically，Who can provide a good customer experience，will eventually win。”

However，Not many budget 188bet Online Sports Betting and Casino have survived the market baptism，There are also no impressive new players joining。

“OYO does seem to be adopting a scorched earth policy – ​​leaving no room for anyone else。We’ve seen what happened to ZoRooms，OYO begins to agree to the acquisition，But he quit later。They have a very positive attitude towards competition、Radical。"Experienced person in the 188bet Online Sports Betting and Casino said。"In India，This 188bet Online Sports Betting and Casino is still in its infancy，But we already have such a player in the 188bet Online Sports Betting and Casino，It raised a lot of money，Mainly used for marketing and destroying competition，I don’t want to use the money to improve customer experience。”

Players without sufficient funds will find it extremely difficult to survive，Because the 188bet Online Sports Betting and Casino industry is like the real estate industry，Has a long gestation period，And requires continued investment。

"It will depend on how much fuel you have left in the tank。If you don’t have enough fuel，You will probably be eaten，188bet Online Sports Betting and Casino is a story that has already been played out，It is also a reality that continues to happen。" Said Jaideep Dang of Jones Lang LaSalle (JLL)。

*188bet Online Sports Betting and Casino articleSource: WeiboLetter to the public account "Zhixiang.com" (ID: passagegroup)，Author: Du Zhanyu，Original title: "188bet Online Sports Betting and Casino “like home”、"Hanting"、The Romance of the Three Kingdoms in "7 Days"》.