Full Inventory Model Wins Over Partial Inventory When Renting Property in Noida

Room aggregators may soon purchase property in Noida and property in other cities as well in their attempt to shift from an earlier partial inventory model to a full inventory model. While in the past room aggregators such as OYO rooms swore by a partial inventory model, today, after having burnt through a large amount of cash in a short period of time such companies are also considering a full inventory model of renting rooms to customers. The difference between a full inventory model and a partial inventory model is quite simple, in a partial inventory model a room aggregator takes charge of only a few rooms in a hotel and adds features such as Wi-Fi with a service such as breakfast served in the morning and places such rooms for rent under its own brand. In a full inventory model, however, a room aggregator would take charge of an entire property, train its staff; brand the rooms and then rents out rooms to customers who may book rooms online using the company’s app. The ownership of the hotel or property remains unchanged even when a room aggregator takes charge of an entire property.

Many visitors to Noida have spent some nights in the city in rooms which have been provided by room aggregators, many new projects in Noida have rooms which have been rented to room aggregators who have benefited tremendously from business travelers who were looking for inexpensive lodgings. While builders in Noida build units for households and are not in the business of constructing homes for the sole purpose of renting rooms or “beds”, as aggregators term them, to business travelers, room aggregators have gone one step towards become builders by taking on the management of entire properties for the purpose of renting them out. Of course room aggregators are not yet builders since they only take over the management of existing properties or hotels which lead them to incur additional expenses such as training the staff and the general upkeep and maintenance of the property, they share the earnings from their business from such hotels with the owners of such property in Noida and with the owners in nearly thirty cities where many room aggregators are present. Hence room aggregators don’t own the hotel, in a sense, they rent it and then rent it further to guests. However, unlike a partial inventory model where aggregators only rented a few rooms in a single hotel, a full inventory model means they rent every room in a hotel or establishment.

Problems faced by room aggregators who rented a few houses which were in developments with luxury flats in Noida was that other room aggregators too advertised at such locations and thus stole some business and lower the perceived brand value of room aggregators while also leading to some confusion among travelers who rented rooms. Additionally, guests who lived in such flats in Noida complained of poor treatment by those who worked at such residential property in Noida as well as by hotel staff where rooms were rented. Thus the full inventory model may prove to be the right model for room aggregators to follow as even though it is more expensive than the partial inventory model customers prefer it over a partial inventory model as the entire property is in the hands of a single company and customers who stay in rooms at such hotels or developments are assured of courteous treatment by staff along with the prompt service which is expected from a well-run establishment.