As highway traffic zooms across the country, the need for motels is on the rise. Behind the shining neon signs, lies a jackpot worth Rs 3,200 crore
The idea is to let every Mary and Joseph on the road have a place to stay overnight without burning holes in their money pouches.
Motels let you have the comfort of ahotel and charge you the prices of a manger! Motels, or rather motor hotels as they were originally known, came up in the outskirts of American towns around the mid-1920s as low-cost overnight shelters for road warriors (read bikers, long-distance drivers, and even outlaws!). They can be usually spotted by the generic constructional structure, being a string of cabins strewn together in an L, U or T shape. More recently, they have come to be recognized by the bright and colorful neon signs claiming boldly “room available” or “no vacancy”, as the case may be.
| DARE/potential motel business space | |
| National Highways : | 66,590 km |
| State Highways : | 131,899 km |
| Major District Roads : | 467,763 km |
| Assumption: 1 motel every 10 km on NH, every 15 km on SH, and every 30 km on major district roads | |
| Potential no. of motels required on: | |
| National Highways : | 6,659 |
| State Highways : | 8,800 |
| Major District Roads : | 15,600 |
| Total no. of motels required : over 31,000 | |
Change the settings a little. Instead of the dusty outskirts of a suburban town in the US, imagine the lush green free space that is found aplenty as you drive along one of the country’s national highways. Imagine also that it is night and you would rather be taking your forty winks than driving with your head lolling on the steering wheel. Wouldn’t you wish Indian highways too had drive-in motels where you just parked and crashed on a bed? And most importantly, where you didn’t wake up in the morning feeling ripped off.
With the improving state of the road network in the country, especially national and state highways, and more and more Indians hitting the highways, the number of road-warriors lolling their heads on steering wheels has increased many times over. Take the case of the Delhi-Chandigarh National Highway. In one day, it sees over 10,000 vehicles crossing it. At least one-fourth of the number comprises traffic at night. It starts off enthusiastically with quite a few summer resorts as you start from either end. The greenery and scene look quite rich, so do the people who stay in those resorts. An average Indian family driving down the highway at night isn’t looking for a resort to crash in. The lesser fish would do just as good, as long as comfort and safety are provided. Here is where the concept of the no-frills aura of motels holds significance. A chain of motels at appropriate distances along this road providing lodging and perhaps dining facilities for a single night at reasonable prices will give the bigger fish a proverbial run for their customers and money.
| DARE/cost and revenue | |
| COST | |
| Average no. of cabins in one motel : | 10 |
| Cost of setting up one cabin : | Rs 10,000 |
| Maintenance costs per month per cabin : | Rs 1,000 |
| Dining facilities per month : | Rs 50,000 |
| Misc expenses per month : | Rs 10,000 |
| Total Annual costs* : | Rs 5,52,000 |
| Cost of setting up 10 cabins : | Rs 100,000 |
| Misc setting up costs : | Rs 50,000 |
| Total setting up costs : | Rs 150,000 |
| REVENUE | |
| Cost per cabin per night : | Rs 300 |
| Dining per month per cabin : | Rs 55,000 |
| Annual revenue : | Rs 1,053,000 |
| Revenue from 31,000 motels : | Rs 3,200 crore |
| *Total Annual costs: (Maintenance cost/month/cabin*10*12 + dining facilities/ month*12)*0.6 + Misc/month*12 | |
| Assumptions : | Room occupancy = 60% Misc setting up costs: Rs 50,000 |
| Disclaimer: The above estimates are very conservative and have been done for minimalistic settings. | |
Business space
Out of the 33 lakh km long road network in the country, national highways (NH) span some 66,560 km, state highways (SH) and major district roads (MDR) span around 131,899 km and 467,763 km respectively. Assuming there is to be a motel every 10 km on a national highway, every 15 km on a state highway and every 30 km on a major district road, the country would be running on at least 31,000 motels. The traffic on these roads varies, depending on the time of the day, location, tourism potential, etc. Extrapolating the Delhi-Chandigarh highway example with conservative assumptions to the greater Indian-on-the-move pie throws up a figure over Rs 3,200 crore!
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The figure will rise even further if one were to take into account the rising popularity of village tourism in the country. National/state highways and major districts roads account for only a little over 22% of the entire roadways network of the country. The remaining comprises semi-urban and rural roads, out of which around 60% is kaccha (non-tarred) road. With tar and concrete reaching literally the last mile, it won’t be long before these streets are ready for the motel culture to take off. In keeping with the suburban setting, motels could even take the shape of low-cost quaint earthen huts or teepees.
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I would like to know more details on this article about motels.Requesting you to kindly send me more detailed information.
Thank you
Hazel D'Silva
Goa