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AirAsia Hotel offers room for Rs180

Ahmedabad, Apr 19 () : AirAsia group-owned Tune Hotel room can be taken as low as Rs 180 and as high as Rs 2500.

AirAsia with its first budget hotel, will open its low-cost hotel business in India, on May 15 here. On an average if the occupancy is dull, the room rent would be Rs 599.

Tune Hotels works on the principle that you pay separately apart from the rent for facilities like air conditioning, television, towels or toilet kit. All inclusive facilities will cost Rs 2,000-2,500 but if you book much in advance this room will cost you Rs 599 for early bookers.

The idea is not to let any room go empty and without returns, even if the booking rates are at a low rate. AirAsia’s Tony Fernandes owned Tune Hotels has an investment of Rs 160 crore with a 60:40 joint venture with Apodis Hotels. The JV company will set up 20 properties in the next three years.

AirAsia was not sure whether this business model would be understood but it seemed to click. Air Asia has tied up with the Tata’s for India airline operations. Tata has Hotel Ginger, positioned as a budget hotel brand. Ginger does not offer such rates.

Tune Hotel will be aiming for the wedding parties. Banquet facility will be available at charges. Those in the room who want food will have to go to the restaurant. There is no room service. Like booking an air ticket, you can check daily rates and promotions on Tune hotel websites and travel sites. Without room service, the 100 room hotel staff strength is only twenty.

The big fat weddings happen in Surat, Jaipur, Delhi, Agra and Bhavnagar. These places will have Tune Hotels.

Tune Hotels have wanted to open a property in India for some years but its plans were delayed due to the (global) financial crisis and a drop in lending by banks. The company is planning to set up hotels in Surat, Bhavnagar, Jaipur, Agra and Delhi in the next three years. With twenty more properties it will increase staff from 20 to 500.

In September, if all clearances are ready, AirAsia will fly in India with Tata JV.