We plan to add 25 Zostels across India in first half of 2023: Deep Banka, COO, Zostel

After receiving a positive surge in travellers’ demand for offbeat stays in 2022, Zostel is on a spree to expand with new Zostel units across unique destinations and penetrating into newer market segments.

1. How has the performance been for Zostel in 2022 so far, and what is the expectation from 2023 in terms of average occupancy/ARRs/RevPar?

2022 has been a great year for us. We saw an influx of travellers looking to escape the monotony of being cooped up in their homes, especially post-pandemic. The average occupancy at Zostel reached 80% this year, with a 20% year-on-year increase in ARR and Revenue. Besides, the holiday season has arrived, and we have already witnessed a surge in bookings with people opting to stay at all kinds of our properties – hostels, Zostel Homes, and Zostel Plus, which are luxury properties across different destinations.

2. What is the current operational profile of Zostel?

We are present in 70+ destinations across India & Nepal at the moment. Further, we plan to add 25 more Zostels across India in the first half of 2023.

3. What is your future expansion plan for Zostel? Which cities are on your bucket for expansion?

We plan on expanding our footprint by adding 25 more Zostels, hostels, Homes, and Zostel Plus properties, catering to all kinds of travellers across unique destinations during the first half of 2023. We understand that each destination has immense potential, and we want to promote the indigenous culture at these locations, allowing people to gain memorable local experiences.

4. What challenges do you face in managing owner-aggregator relationships?

Zostel’s growth has always been organic. We firmly believe in empowering our community and offering experiential stays to travellers. Trust and transparency are our key motivators and lie at the core of what Zostel is, and we wish to maintain this and cater to our customers in the best ways possible. We want them to take back cherished memories and continue exploring.

5. What new elements are you planning to incorporate into your marketing strategies?

We want to incorporate more brand-centric campaigns for our newly launched mobile app as well as our Zostel Homes and Zostel Trips categories. We are also considering online partnerships and collaborations with brands that share the same vibe as Zostel and aim to drive meaningful conversations.

6. What sustainability initiatives have you taken?

At Zostel, alongside building a community of travellers and offering specially curated experiences, we have a sharp focus on sustainability. It’s one of the pillars of our business. From promoting local entrepreneurs and artisans to developing tourism at offbeat places and fostering cultural and environmental sustainability in the destinations we are present in, Zostel goes the extra mile to protect and promote local communities and their businesses.

7. What is the ratio of OTAs and travel agents contributing to your overall bookings?

More than 80% of the bookings we receive are done through direct channels of Zostels, like our website or our mobile app.

8. How important is B2B for you?

The B2B aspect is crucial for us, especially when it comes to partnerships, which help us explore new horizons and create new products like events, activities, and trips. In a franchise model like ours, transparency is also a key factor, as it lays the foundation for expansion and growth. We work both on the B2B and B2C fronts to ensure seamless operations and delightful customer experiences.