The main purpose of this paper is to utilise the customer-based brand equity (CBBE) model of David Aaker (Aaker, 1991) to examine the influence of brand equity on customer satisfaction in midscale and budget hotels in Jaipur. This study recruited 250 respondents who regularly visit the identified branded midscale hotels of Jaipur. In this paper, managerial implication of CBBE is proposed to provide a reference tool for the management of the brand equity of these midscale hotels and to enhance their brand value. The negative impression, which existed in the minds of consumers of midscale and budget hotels, is being replaced by a perception of affordability, efficiency, and good experience. The fast-changing market equation has positively impacted the midscale hotels segment. It can be seen from the competition among domestic as well as international hospitality operators in this segment. Midscale hotels are being redefined with new concepts, innovations, and strategies. Now they are mini full-service hotels being recognised as business class and installed with the basic facilities, targeting a specific market and mid-rank business executives and price sensitive corporate customers. Budget hotels reasonably priced with good service, style, and better ambience demonstrate professionalism. With heavy demand and less supply of midscale and budget hotels in Jaipur, hotel management has to stick to brand equity in order to maintain customer satisfaction, which in turn leads to profit.

CBBE; hotels; customer satisfaction; hotel management; Jaipur