Project for the subject

INNOVATION & ENTREPRENEURSHIP

(UTA012)

Submitted by:
Lishika 102203006
Mokshit Sandhu 102203010
Piyush Mehta 102203011
Avishi Mittal 102203038
Anshika Bansal 102203914
Arushi Midha 102203916

Group No: 3C51

Project Title: The NapNest

Course Instructor: Dr Anu Bajaj

VENTURE LAB
THAPAR INSTITUTE OF ENGINEERING AND
TECHNOLOGY, PATIALA
 CONTENTS

Title Page Number

Certificate 3
Acknowledgements 4
Chapter 1 Opportunity Analysis 5
1.1 Opportunity Identification 5
1.2 Solution Proposed 5
1.3 Uniqueness of Solution 5
1.4 What Problem of the Market Segment is Solved by our 5
Solution?
1.5 Identification of Users and Customers 6
1.6 How will Target Users be Benefited by the Solution? 6

1.7 How will users discover and adopt their solution? 6

1.8 How the market segment will get affected by their 6
solution?
1.9 Filled Opportunity Canvas 7

Chapter 2 Customer Validation Survey 10

2.1 Sample form used for customer survey 10
2.2 Size of customer survey and its documentary proof 15
2.3 Results of survey 16
2.4 Detailed Analysis of the survey 20
2.5 Conclusions from the survey 21

Chapter 3 Financial Model 22

3.1 Cost Structure 22
3.2 Revenue Structure 24
3.3 Profit & Loss Statement 25
3.4 Cash Flow Statement 25

Chapter 4: Reflections 26

2|Pa ge
 CERTIFICATE

This is to certify that the project report on, "The NapNest" being submitted by
Ms. Lishika, Mr. Mokshit Sandhu, Mr. Piyush Mehta, Ms. Avishi Mittal, Ms.
Anshika Bansal and Ms. Arushi Midha to the Venture Lab, Thapar Institute of
Engineering and Technology, Patiala for the fulfillment of the course
requirement of INNOVATION & ENTREPRENEURSHIP is a bona fide
record of work carried out by us in conformity with the rules and regulations of
the institute.
The results presented in this report have not been submitted, in part or full, to
any other University or Institute for the award of any degree or diploma.

Lishika – 102203006
Mokshit Sandhu – 102203010
Piyush Mehta – 102203011
Avishi Mittal – 102203038
Anshika Bansal – 102203914
Arushi Midha - 102203916

3|Pa ge
 ACKNOWLEDGEMENTS

The success and final outcome of this project required a lot of guidance and
assistance from many people. We would like to thank our course instructor Dr.
Anu Bajaj, under whose guidance we could complete this project on time. We
are extremely privileged to have him by our side all along the completion of our
project.
All that we have done is only due to such supervision and assistance. We also
thank each and every person with whose help we were able complete this
project.

Lishika – 102203006
Mokshit Sandhu – 102203010
Piyush Mehta – 102203011
Avishi Mittal – 102203038
Anshika Bansal – 102203914
Arushi Midha - 102203916

4|Pa ge
 1. Opportunity Analysis

1.1 Opportunity Identification: Embracing the Future of Hospitality

In a fast-paced world where travel is more frequent and urban environments are
constantly bustling, there is a growing need for flexible, affordable, and private rest
spaces. The NapNest presents an opportunity to revolutionize short-term rest by
introducing smart sleeping pods strategically placed in airports, railway stations, and
transit hubs. This concept redefines conventional lodging by offering a quiet, secure, and
convenient alternative for travelers needing short rest periods.

1.2 Solution Proposed: Unveiling a New Era in Accommodation

The proposed solution involves deploying affordable and compact sleeping pods
equipped with soundproofing, privacy-enhancing features, and smart technology such as
lighting, temperature, and noise control. These pods provide a practical and accessible
solution for travelers seeking rest between trips, without the high cost and inconvenience
of full-day hotel bookings.

1.3 Uniqueness of Solution: Where Innovation Meets Comfort

The NapNest differentiates itself through its space-efficient and sustainable design,
offering energy-efficient pods made from eco-friendly materials. Unlike traditional hotels
and lounges, these pods focus on privacy, security, and convenience, allowing users to
rest peacefully in crowded urban locations. With features like quick self-check-in/out and
mobile app access, the experience is seamless and user-centric.

1.4 What problem of the market segment is solved by the solution?

This solution addresses critical problems faced by urban and transit travelers:

• High costs of hotels for short stays

• Lack of privacy in public spaces
• Noisy, crowded lounges that hinder relaxation
• Unavailability of secure and private short-term rest solutions in transit hubs

5|Pa ge
1.5 Identification of users and customers: Welcoming the Modern Explorer

Target users include:

• Frequent travelers and individuals on layovers

• Business professionals needing short rest between meetings
• Budget travelers looking for cost-effective lodging alternatives
• Passengers seeking quiet rest spots in public transit areas

1.6 How will the target users be benefited by the solution?

Users gain multiple benefits:

• Affordability – cheaper than hotels or lounges

• Convenience – easy access, quick check-in/out
• Comfort and privacy – secure, soundproof personal pods
• Time-saving – no long wait times or booking hassles

1.7 How will users discover and adopt the solution?

Adoption will be driven by:

• Introductory promotions and discounts for early adopters

• Strategic partnerships with airports, railways, and travel agencies

• Digital marketing and influencer campaigns to create awareness

• Referral programs and corporate tie-ups to reach business travelers

1.8 How will the market segment be affected by our solution?

The NapNest introduces a disruptive rest solution in the hospitality and travel space. It
will:

• Redefine short-stay lodging standards in transit environments

• Encourage competition and innovation in travel-rest solutions
• Drive a shift in customer preferences towards smart, self-service rest options
• Offer scalable solutions that can be replicated in various urban locations

6|Pa ge
1.9 Opportunity Canvas: Mapping the Path to Success
• Customer Segments: Solo travelers, business professionals, budget
travelers, and passengers in transit
• Problem Addressed: Lack of private, affordable, and secure short-term
rest spaces in public areas
• Solution Proposed: Smart sleeping pods with privacy features, strategic
placement, and tech integration
• Unique Value Proposition: Affordable, secure, and comfortable short-
term lodging in high-traffic transit zones
• Channels: Digital marketing, early adopter discounts, influencer
partnerships, and corporate tie-ups
• Revenue Streams: Pay-per-use model, additional services (charging
ports, snacks, entertainment)
• Cost Structure: Pod construction, maintenance, app development, and
marketing
• Key Metrics: Occupancy rate, repeat usage, user satisfaction, ROI,
and revenue growth
By embracing the opportunity presented by capsule hotels and weaving a
narrative of innovation and authenticity, we aspire to create a hospitality brand
that resonates with the spirit of urban exploration and adventure. Through our
commitment to excellence and our passion for redefining hospitality, we
envision a future where every guest experience is a journey of discovery, and
every stay is an unforgettable adventure.

7|Pa ge
 OPPORTUNITY CANVAS

8|Pa ge
 Business Model Canvas

9|Pa ge
 2. Customer Validation Survey

2.1 Sample form used for Customer Validation Survey

10 | P a g e
11 | P a g e
12 | P a g e
13 | P a g e
 Fig 1. Google Form Questions

14 | P a g e
2.2 Size of customer survey and its documentary proof
We circulated a Google form containing the above-mentioned questions to get a
customer survey. The survey was filled by 108 individuals.

Fig 2. Documentary Proof (Form Responses)

15 | P a g e
2.3 Results of Survey

16 | P a g e
17 | P a g e
18 | P a g e
 Fig 3. Analysis of responses of the survey

19 | P a g e
 2.4 Detailed analysis of the Survey
1. Traveler Profile & Behavior
• Travel Frequency:
o 76.9% travel moderately to very often (31.5% "Very often," 45.4%
"Moderate")
o Only 23.1% travel rarely
o High demand potential among frequent travelers

• Resting Challenges:
o 83.3% struggle to find comfortable rest (36.1% "Yes," 47.2% "Sometimes")
o 49.1% avoid resting due to cost/inconvenience
o Clear market gap for affordable solutions

2. Current Market Failures

• Traditional Hotel Pain Points:
o 56.5% cite high costs
o 17.6% face lengthy check-ins
o 13.9% lack privacy
o Pods must prioritize affordability, speed, and privacy

• Layover Needs:
o 51.9% prioritize sleep/rest
o 40.7% seek food/beverages
o Opportunity for bundled services (rest + F&B)

3. Sleeping Pod Acceptance

• Awareness & Intent:
o 78.9% don't know about pod hotels
o 50.9% likely to use them (+34.3% neutral = 85.2% potential uptake)
o Strong market readiness

• Usage Patterns:
o 44.4% have used similar services (lounges/retiring rooms)
o Proven comfort with compact accommodations

4. Critical Features & Pricing

• Awareness & Intent:

o 78.9% of respondents are unaware of pod hotels
o 50.9% are likely to use them
o 34.3% are neutral toward the idea
o 85.2% total potential uptake
o Indicates strong market readiness despite low awareness

20 | P a g e
 • Ideal Stay Duration:
o 55.6% prefer 1-3 hours
o 28.7% want 3-6 hours
o Focus on short/mid-term stays
5. Location Strategy
• Top Pod Locations:
o Railway Stations (52.8%)
o Airports (42.6%)
o Tourist Spots (50%)
o Tier 1 transit hubs first
6. Pricing Insights
• Cost Sensitivity:
o 96.3% prefer affordable options over hotels
o 60.2% believe pods solve cost issues
o Price below hotel alternatives (INR 500-800 range)

2.5 Conclusions from the Survey

The data confirms a ready market for sleeping pods in Indian transit hubs, with travelers
prioritizing affordability (96.3%), privacy (72%), and convenience. A phased rollout at
railway stations and airports, priced under INR 1,000, can capture 60%+ of the transit-
rest market within 18 months.

21 | P a g e
 3. Financial Model
Assumption:
After the survey analysis and keeping in mind the prevailing market conditions,
we have assumed that
• On an average, one pod would be used at least two times a day, which makes
revenue of 12 hours each day.
• Customers would be paying Rs. 500 /- for usage of sleeping pod up to 6 hours.
3.1 Cost Structure
The Cost Structure outlines all expenses necessary for the functionality of the
business model. It encompasses the different categories of costs and the
distribution between fixed and variable expenses that the company will face
during its operations.
Initial One-Time Investment Notes
The cost of buying the sleeping pods
Rs.
Sleeping pods cost which the customers would rent from
14,00,000 /-
us.
The cost used in constructing the basic
Construction and Rs. 8,00,000
structure which would include a small
Renovation /-
reception and 20 sleeping pods
The cost involved in furnishing the
Rs. 3,00,000
Furnishing hotel which includes the costs of desk,
/-
chairs, tables etc.
Cost involved in putting up banners and
Marketing and User Rs. 1,00,000 pamphlets around the town so that more
Acquisition /- and more people would know about this
service.

Monthly Expense Notes

The salary given to the people we would
Rs. 45,000 hire for the basic maintenance and
Manpower
/- reception duty. No. of
employees are assumed to be 3.

22 | P a g e
 The rent of the land on which the hotel
Rs. 2,00,000 would be built. The land size is assumed
Land Rent
/- to be 8200 sqft which would be near the
railway station.
From the electricity cost to paying the
Maintenance & Rs. 55,000
wifi bills, all these costs come under
Support /-
this section.
Cost involved in keeping up the
Marketing and Rs. 30,000 ongoing marketing and making more
Advertisement /- and more people aware about our
unique hotel.

Total One Time Investment: Rs. 26,00,000 /-

Total Monthly Expenditure: Rs. 3,30,000 /-
Total Yearly Expenditure: Rs. 39,60,000 /-

COST STRUCTURE

Manpower
Land Rent
Maintenance & Support
Marketing and Advertisement

Fig 4. Cost Structure

23| P a g e
 3.2 Revenue Structure (Yearly)
The Revenue Structure delineates the various avenues and origins from which
the business generates income. It offers insight into both the existing revenue
streams and the prospective opportunities for profitability.
Sr. Channel Revenue Explanation
No.
We would raise 26,00,000 at the
Rs. 26,00,000
1. Investors beginning of our startup as seed
/-
funding.
Rs. 500/- * 2 *
The revenue generated by renting the
365*20
sleeping pods to the customers in the
Sleeping pod
2. = hotel. (Assuming that at least 2
charges
times a day, each pod is utilized by the
Rs. 73,00,000 /-
customers.)

Income from putting up ads of local

3 Advertisement Rs. 30,000 /- businesses or sponsors within the
hotel spaces.

Total Revenue Monthly: Rs. 3,30,000 /-

Total Revenue Yearly: Rs. 73,30,000 /-

REVENUE STRUCTURE
0%
26%

74%

Investors Sleeping pod charges Advertisement

Fig 5. Revenue Structure

24 | P a g e
3.3 Profit and Loss Statement
The profit and loss (P&L) statement serves as a financial snapshot that
consolidates a company's revenues, costs, and expenses over a defined
timeframe, typically a fiscal quarter or year. It computes by subtracting total
expenses, including taxes, from total revenue. A positive net income signifies
profitability, while a negative figure indicates a loss.

Fig 6. Profit and Loss Statement

3.4 Cash Flow Statement
A cash flow statement presents comprehensive information on all cash inflows
derived from both ongoing operations and external investment sources for a
company. Additionally, it accounts for all cash outflows utilized to finance business
activities and investments over a specified period. This statement aids in assessing
the magnitude and duration of cash surplus or deficit anticipated for the business in
the forthcoming timeframe.

Fig 7 : Cash Flow Statement

25 | P a g e
 4. Reflections

Embarking on the journey of conceptualizing and planning a sleeping pod hotel

near railway stations has been a transformative experience, filled with valuable
lessons and insights. Through this endeavor, we have gained a deeper
understanding of the multifaceted nature of entrepreneurship and the intricate
dynamics of the hospitality industry.
Our journey has taught us the importance of meticulous research and strategic
planning in laying the groundwork for a successful venture. From analyzing
market demands to understanding consumer preferences, every step has
reinforced the necessity of being proactive and well-informed in decision-
making.
Moreover, the collaborative nature of entrepreneurship has been a cornerstone
of our learning experience. We have come to appreciate the significance of
teamwork and synergy in navigating challenges and capitalizing on
opportunities. Leveraging the diverse expertise and perspectives within our
team has proven instrumental in shaping our venture's trajectory.
As we delved into the operational aspects of our business, from financial
modeling to operational logistics, we encountered a myriad of challenges.
However, each obstacle served as a learning opportunity, strengthening our
resolve and honing our problem-solving skills.
Above all, this journey has instilled in us a profound appreciation for
dedication, resilience, and adaptability. We have learned that success in
entrepreneurship is not merely about having a groundbreaking idea, but about
the relentless pursuit of excellence, even in the face of adversity.
Looking ahead, armed with the lessons learned and the insights gained, we are
poised to chart a course towards realizing our entrepreneurial vision. With a
clear focus on customer satisfaction, operational efficiency, and innovation, we
are confident in our ability to carve a niche for ourselves in the competitive
landscape of the hospitality industry.

26 | P a g e