The Indian Hotels Company (IHCL), owner of the Taj Hotels portfolio, is revamping its Ginger brand to appeal to modern travelers. Deepika Rao, IHCL’s executive vice-president for new businesses and hotel openings, discussed the brand’s evolution and strategic approach.
Indian tourists’ travel options, including leisure and business trips, are growing. Well-known Indian hotel brands such as the Taj group, the Oberoi, the Leela, and the ITC group, as well as global chains like Marriott, Hyatt, Hilton, and Accor, provide a variety of luxurious experiences. This expansion is fueled by high-end accommodations and increased travel among various age groups and economic classes.
One such growing segment in India is the mid-scale segment, which sees a high proportion of travel to India’s government-ranked tier-two and tier-three cities for both work and leisure.
IHCL has introduced a new offering under its Ginger brand, aiming to fill a gap in the market. IHCL operates several brands including Taj, Seleqtions, Gateway, Vivanta, and Ginger, each with its unique positioning and offerings.
The evolving story of the Ginger brand
Ginger has an intriguing history, dating back to its first iteration as IndiOne in 2004. This marked the hotel company’s initial venture into the no-frills segment. The Bengaluru-based property served as a pilot project for IHCL and offered valuable insights into meeting the needs of the value-conscious Indian consumer.
This traveler is a complex customer and is equally concerned about getting a level of service as they are about the price point.
Putting all the learnings together helped IHCL rewrite the brand blueprint and relaunch as Ginger – a budget brand with enhanced service elements. Over the last few years, the brand continued expanding its footprint to Indian metros and many of the smaller cities.
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In 2018, the company realized the necessity of revitalizing the brand to better relate to the changing needs of travelers. This led to the introduction of the newly minted ‘lean luxe’ segment to the market, where both aspirations and exposure were on the rise, according to Deepika Rao, executive vice-president of new businesses and hotel openings at IHCL. Rao was previously the chief exec of Ginger Hotels, before she took on the current larger mandate at the group.
Ginger unveiled its prototype hotel in Panjim, Goa in 2018. This showcased the new brand identity and promise. IHCL has been working on improving the brand’s appearance, atmosphere, and offerings since then to fully realize its potential in this growing segment.
The journey of Ginger’s renovation
Ginger recently launched its reimagined offering, designed to reflect the significant changes in travelers’ needs as they move to the next stage of their journey. The flagship 371-room property at Mumbai airport is the first in the mid-scale segment to adopt a lifestyle approach. According to Rao, this launch will set the standard for all future and existing properties, which are being updated with the new brand elements.
The elements encompass vibrant and smart experiences, from the lobby to the rooms. Bright and cheerful colors are visible both inside and outside the rooms, complemented by high-energy music and unique art installations. The menu features a variety of comforting food options, and the seating areas are vibrant, reflecting the rejuvenated Ginger brand. “The reimagined Ginger is all about catering to the needs of the evolving traveler,” says Rao.
The evolution of the Indian traveler
According to DGCA India (Directorate General of Civil Aviation) data, Indians are traveling more than ever before. In the first half of 2024, domestic airlines in India carried 7.93 crore passengers, marking a 4.28% annual growth compared with the previous year.
According to data from the Official Airline Guide (OAG), a leading global air travel intelligence provider, India has risen to become the third-largest domestic airline market in the world. This is a significant jump from its position as the fifth-largest market a decade ago, surpassing Brazil and Indonesia. The top two positions continue to be held by the US and China.
It also makes the task of hospitality companies much more complex as they have to cater to a diverse set of consumer needs, ranging from luxury to economy and everything in between. This also gives the Indian hospitality story a unique twist when compared with many other markets that have more straightforward offerings.
Ginger’s marketing playbook
As India’s travel market grows, brands are striving to tailor their offerings to meet the evolving needs of different customer groups. Rao highlights some interesting trends in this growth path. For instance, frequent travelers include Gen-Z and millennials on one end and senior citizens on the other. Ginger intends to accommodate all of them with its enhanced offerings and insights gained over the years.
This evolving profile also impacts the brand playbook for Ginger. As Rao shares: “To reach out to the millennials and the Gen Z travellers, we have a different plan in place.” The choice of media, the verbiage, the frequency and the content – all of it is different there, she says.
Instead of the traditional big-budget mass advertising approach, the brand has taken a different route by heavily relying on music performers, stand-up comedians, and relevant speakers to enhance customer engagement and build the community.
When asked about deploying a celebrity as the face of the brand, Rao says: “We currently don’t feel the need for a brand ambassador at Ginger.” But she adds it may use influencers if they align well with the brand.
Describing the typical Ginger consumer, she says: “We are targeting individuals who take pride in their Indian heritage, love to explore different destinations, and, above all, are unapologetically Indian.” That confidence is reflected in the various elements of the hotel decor and the rooms.
What is in store
Rao suggests that the mid-scale segment presents a significant opportunity and could be present in every district headquarters, tier-two, and tier-three cities. This is a growing market with many larger chains already having a presence there or aiming to establish one.
Currently, Ginger has announced 92 hotels, with 66 already in operation in the lean-luxe format. The company hopes to reach 100 properties soon. The ultimate goal is to have a 100% lean-luxe portfolio of Ginger hotels, she adds.
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The hotel segment is experiencing significant activity as various hotel companies are introducing new properties under brands such as Novotel, Fortune, Holiday Inn Express, and Hyatt Place. At a slightly lower level, there are brands like Ibis and Red Fox, among others.
It is no wonder that India’s travel industry is back with full gusto after a tough pandemic-led couple of years. Even as luxury travel thrives and prospers at the top end, the belly of the market is expanding on the back of the thriving middle-class traveler. Ginger is one such brand offering that is trying to usurp that growing space with its renovated offering.
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