Business Strategy

Comparing the Business and Pricing Strategies of Two Micro-Stay Companies - MiStay and Brevistay: An Exploratory Study

Article Details

Pub. Date	: Sep' 2021
Product Name	: The IUP Journal of Business Strategy
Product Type	: Article
Product Code	: IJBS10921
Author Name	: Nita Choudhary
Availability	: YES
Subject/Domain	: Strategic Journals
Download Format	: PDF Format
No. of Pages	: 17

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Abstract

Indian tourism and hospitality industry is one of the largest service industries and has been witnessing a healthy growth accounting for 7.5% of the GDP. Increase in domestic travel, high disposable income, rise in middle class, growth of the aviation industry, and significant growth of social travel websites offering convenience and ease of access, have all contributed to the good growth of Indian tourism and hospitality industry. As the Indian market matured, the need for hotels that allowed hourly stays was realized. To tap the demand, players such as StayUncle, Brevistay, SliceRooms and MiStay entered into the micro-stay segment, where customers are allowed to make hourly check-in/out. Initially, this segment was targeted at couples, but now this niche segment has evolved to attract businessmen, corporate executives, pilgrims, students, travelers and professionals seeking rooms for a short stay or just to freshen up. There are nearly 20 start-ups in this segment trying their luck to sell this concept to Indian travelers. While MiStay, Brevistay, StayUncle and SliceRooms continue to occupy the top rung, other players are also trying to compete and make a mark in the fast-growing industry. This paper compares the strategies of two major players in the micro-stay segment - MiStay and Brevistay - in terms of SWOT, business, and pricing strategies. The methodology used for the present study includes an exploratory research based on inductive design. The findings of the study demonstrate that MiStay has better presence in the market strategically and is better in sales promotion than Brevistay. There is no significant difference in room tariff for MiStay and Brevistay, and also both the brands follow the same generic competitive strategies and competitive strategic options.

Description

India is one of the most culturally diverse countries in the world, having diverse music and folklore, dance, art, culture, language, locations, cuisine, giving a boost to the travelers from all around the world. India has the right tourism potential and attractions to enthrall all types of tourists around the globe, whether it is adventurous tour, cultural exploration, pilgrimages, visit to the beautiful beaches or to the scenic mountain resorts, or business travelers (Sadiqe, 2014). India has also been recognized as a destination for spiritual tourism for international and domestic tourists. India has moved up in position from 65th in 2013 to 34th position in 2019 in the World Economic Forum's Travel and Tourism Competitiveness Index. Also, the consistent rise of the middle class, increasing disposable income, soaring