Tony's Tune to lure budget travellers

If AirAsia comes, can hotels be far behind?

AirAsia's Tony Fernandes-promoted Tune Hotels is going to open its first property in Ahmedabad next month.

The budget hotel brand is planning  expansion in the Indian market and set up 100 hotels in the country over the next few years.

The 100-room property in Gujarat will mark the company’s entry into India's hospitality sector.

Tune Hotels will sign franchise agreements with local partners and also expand through joint ventures with developers.

In keeping with Air Asia’s positioning as an affordable airline, the hotel business too is focused on the same segment. The hotel brand goes by the tagline “great value, great savings.”

The hotels have a low cost model, similar to airlines and use a “self-service online booking system.”

The tariff for a room in a Tune Hotel can go as low as Rs 180 a night during promotional periods. The airline too is known for giving cheap fares during promotional periods for south east destinations.

Experts say that the company has its India strategy in place and will enjoy synergies between the two businesses which are complementary to one another. The Malaysia based company had opened its first hotel in Kuala Lumpur in 2007.

Besides Malaysia, Tune Hotels has presence in Indonesia, Phillipines, United kingdom and Thailand.