fhraimagazine

JULY 2012

A MONTHLY ON HOSPITALITY TRADE Vol 12 Issue. 7 Pages 74 50

By DDP Publications

She, the traveller

The hospitality industry is going that extra mile in ensuring a safer and secure stay for women travellers

Technology Focus

Hospitality IT A special feature on Hospitality IT needs

STAFF CRUNCH

Industrial training experiences make or break students’ career choice

COMMUNITY CONNECT

GM of Hilton Janakpuri, New Delhi, talks about the hotel’s approach

July 2012 Cover Story

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Boosting lipstick wanderers

Whether travelling single or as a group, women travellers have now come on their own. This is primarily due to the caring approach of the hospitality segment to this particular group of customers.

Picture on the cover: The Imperial, New Delhi

28 Cover Story

20 News You Can Use

contents EVERY MONTH President’s Message

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FHRAI Desk 10 News Updates 20 Products & Services 66 Movements 68 Events 70

FEATURES

58 Explore: Formule1, Greater Noida

59 Dine Out: Jusht Imagine, Noida

Technology Feature: Let’s talk IT loud…

Hospitality IT is consistently emerging 34 as a force that can turn around businesses towards profitability Technology Highlights: An insight into IT company 48 products that are finding huge scope in the hospitality industry Report: Rate Parity - Hoteliers’ biggest dilemma!

June 2012 study signifies that clarity 50 on rates is the dominant factor affecting hotel distribution and revenue strategies today

63 GM Canvas: Hilton Janakpuri, Delhi

64 Analysis: Beating the crunch

ITtalk: Share IT Shared IT optimises both 51 investment in IT infrastructure and productivity of scarce skilled and experienced manpower

Chairman Publications Sub-committee Vijai Pande Editor Deepa Sethi - deepa@ddppl.com Assistant Editor Sanjeev Bhar - sanjeev@ddppl.com Desk Editor Neelam Singh - neelam@ddppl.com Photographer Simran Kaur Advertising Gunjan Sabikhi - gunjan@ddppl.com Delhi Prateek Sahay - prateek@ddppl.com Shovan Kanungo - shovan@ddppl.com Prem Sagar - prem@ddppl.com Mumbai Harshal Ashar - harshal@ddppl.com Kerala Vinu Nair - vinu@ddppl.com

66 Products & Services

Guest Column: Stability Sets the Stage for Summer 2012 May 2012 results of Indian hospitality wrap up spring travel with a steady demand

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Concept: Changing waves New technology can change the nature of radiation to avoid its harmful effect on human health, i.e., Geopathic Stress

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Explore: Size matters Formule1 hotel offers triple occupancy in a single room that might well create a ripple effect in the Indian hospitality

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Dine Out: Of platters & combos In a short span of time, a multi cuisine restaurant – ‘Jusht Imagine’ has captured the pulse of Noida’s demographics

creative Design Shivali Shakdher FHRAI - Marketing S.P. Joshi

FHRAI B-82, 8th Floor, Himalaya House Kasturba Gandhi Marg, New Delhi 110001 Tel: 91-11-40780780, Fax: +91-11-40780777 Email: fhrai@vsnl.com FHRAI Magazine is published, edited and printed monthly

by DDP Publication Pvt. Ltd. On behalf of Federation of Hotel and Restaurant Associations of India and published from DDP Publications Pvt. Ltd. 72 Todarmal Road New Delhi 110001 Email: fhraimag@ddppl.com Tel : 91-11-23731971 Fax: 91-11-23351503 Printed at Cirrus Graphics Pvt. Ltd. B 62/14, Phase-II, Naraina Industrial Area New Delhi 110028

68 Movements

All information in the FHRAI Magazine is derived from sources, which we consider reliable and a sincere effort is made to report accurate information. It is passed on to our readers without any responsibility on our part. The publisher regrets that he cannot accept liability for errors and omissions contained in this publication, however caused. Similarly, opinions/views expressed by third parties in abstract and/or in interviews are not necessarily shared by FHRAI Magazine or DDP. However, we wish to advice our readers that one or more recognised authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific advice before acting on information contained in this publication which is provided for general use, and may not be appropriate for the readers’ particular circumstances.

Contents of this publication are copyright.

No part of FHRAI Magazine or any part of the contents thereof may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing. The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extracts used for the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publications reproducing material either in part or in whole, without permission could face legal action. The publisher assumes no responsibility for returning any material solicited or unsolicited nor is he responsible for material lost or damaged.

This publication is not meant to be an endorsement of any specific product or services offered.

The publisher reserves the right to refuse, withdraw, amend or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian and International Advertisements Code. The publisher will not be liable for any damage or loss caused by delayed publication, error or failure of an advertisement to appear.

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GM Canvas: Changing the game Hilton Janakpuri started its journey 62 two years back and has gone through its own share of learning and still discovering opportunities Analysis: Beating the crunch The industrial training leaves a lasting impression in the minds of candidates which enable them to decide their career option

This issue of FHRAI Magazine contains 70+4 pages cover

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70 Events

president’s message

cover story

news updates

technology

travel

beverage

Dear Readers, It has been one of our endeavours to kick start country-wide seminars by FHRAI, once again. This and many such exercises have been initiated by our team at FHRAI this year, which will keep gathering momentum year after year, thus increasing membership services by FHRAI for our readers. Our Seminar Sub Committee Chairman, Mr. Dinesh Advani and FSSAI Sub Committee Chairman, Mr. Pradeep Shetty have contributed relentlessly for more than fourteen of these FSSAI workshops, which were successfully conducted all over the country for educating our members at large, about the new food safety act’s implementation. The support from all four regions including my Vice Presidents and the regional association offices has been excellent.

Attendees of these FSSAI workshops have sent us extolling praises and also for Dr. V. Pasupathy, who has conducted these workshops as our FSSAI consultant on board.

On June 20, I have taken a ‘Clean India’ pledge, at the Qutub Minar, Delhi, with our Tourism Minister Mr. Subodh Kant Sahai, on behalf of FHRAI, which you might have witnessed in print and on electronic media. We all need to join hands so that India can shine truly ‘Clean’!

Our member of Honour, Dr. Ajit Kerkar celebrated his 80th birthday on June 12, 2012.

We wish him good health, happiness and many more wonderful years ahead.

It gives me great pleasure to announce that the HFTP India Chapter was launched at the HiTec 2012 in Baltimore, USA officially on June 28,

2012, amidst 5,200 plus attendees. HFTP stands for Hospitality Financial & Technology Professionals, an association that was founded in 1952 in USA. We compliment Prakash Shukla as the President, Rajesh Chopra as the Executive Vice President, and Jimmy Shaw and Ravish Jhala as its Secretaries. HFTP, WTTC, AH&LA have already confirmed to meet you in Goa for the national convention.

Three thought provoking topics are discussed in this month’s issue. The cover story is about hotels luring women travellers, the concept of Formule1 by Accor and an analysis on the hospitality manpower crunch.

Hotels in India today are starting to roll out specialised services for female guests, of course, at a premium. Around 41 per cent of business travellers are women now, while just 30 years ago female executives comprised only one per cent. Imagine when the size of the tourism industry shall be USD 21,011 billion by 2022, how important this segment shall be for all of us. A glance around any airport or train station confirms that things have changed. The airline industry has already recognised this change and

is working closely with their flight attendants to become more responsive to women travellers on their flights. Women will now find not only female drivers, all-women floors and added security in our hotels but even women-only ‘Eva’ floors staffed by an all-female staff in our member properties.

Read more about Accor’s low-cost brand Formule1 and what this innovative budget hotel brand tells us about this European leader in the low-cost hotel segment, which opens at Greater Noida this year with a fresh approach to economical Indian accommodation, renowned to deliver great comfort, offering guests the 7C’s – a Clean, Cool, Convenient, Cheerful, Corporate, Check-in (24x7), Coffee Bar and a Wi-Fi enabled environment.

You should be receiving the Goa Convention’s brochure in the next few days, kindly send your registrations quickly so when we meet, I could share with you FHRAI’s Five Year Plan and the deliberations with the Tourism Ministry at the National Tourism Advisory Council’s (NTAC) meeting we had in Delhi.

Kamlesh Barot President FHRAI kamleshbarot@revivalhotel.com (facebook.com/kamlesh.barot; twitter: @KamleshBarot)

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“Indian hospitality going that extra mile”

Vijai Pande Chairman Publications Sub-committee FHRAI vijaipandit@yahoo.co.in

Here is the July 2012 issue in your hands. I am

states, the functioning of the regional member associations,

happy to share that this issue touches upon

etc. Lastly, we appreciate your inputs for this magazine in

many interesting facts that present what the

terms of articles, news on the industry, any view or plan of

Indian hospitality is going through. Like, the

the government on our industry that you differ from and

unique triple occupancy option of Formule1 is

any article or case study which is useful for our industry.

going to give a fillip to the idea of increasing resident guests.

Your comments or suggestions are helpful in making the

Hypothetically, if a 100-room budget hotel can have all rooms

magazine more informative, so please share your thoughts

with bunk beds, then, at any given point of time the hotel will

with us. Further, we are also planning for a guide, which is

be able to accommodate 300 guests in comparison to 200. It

under preparation. Please provide your business listings

directly reflects that it would make projects profitable where

and advertisements. Your discount cards are also due to

room shortage is an issue with a drawback of increasing land

be sent shortly for which you are requested to pay your

prices even in smaller cities and towns.

subscription dues.

On the other hand,the cover story analyses some integral steps

I am also happy to share with you that the FHRAI Annual

hotels need to take in order to address women travellers. This

Convention to be held in Goa is all set to welcome you in

is becoming a strong segment on its own. Though its share

September 2012. Shri. Subodh Kant Sahai, Hon’ble Tourism

within the leisure or corporate travellers might be small, but

Minister, Government of India has consented to be at the

by providing quality services according to their needs, this

event and will deliver the inaugural address. The moment will

segment can easily be made loyal. They primarily look for

also witness the presence of Shri. Manohar Parrikar, Hon’ble

that extra comfort zone to feel safe and secure. And hotels

Chief Minister of Goa, presenting his inaugural address on

need to look into this aspect, especially those in the small

September 6, 2012 at Aparanta, Lower Lobby Level, The Leela,

towns and cities where single women travellers find it tough

Goa. To make this convention a great success, our Western

where their concerns are not understood at all.

Region Association HRAWI is working relentlessly and

fhrai Desk

putting in their efforts to bring a consolidated programme This is your magazine and it bears activities of our President,

that will address the industry by raising critical issues. I am

office bearers, Chairmen of various committees and their

happy to share that an interesting line up of sessions has been

views relating to our industry. We put our efforts to keep you

planned, thanks to the effort of the Convention Organising

informed with latest market updates and also positioning our

Committee of which Mr. Vivek Nair is the Chairman and Mr.

sector parallel with the tourism sector. We also provide our

Sunit Kothari is the Co-Chairman. I wish them great success

reports and studies on new opportunities and challenges

to take the Convention to a new high.

arising in our industry. Over the last couple of issues, we have received positive feedback about the magazine and its

FHRAI hopes that it will get support from the government

contents.Yet, I am deeply saddened by the fact that my FHRAI

and its members to make it a grand success. Our

members are not contributing enough by giving suggestions,

President welcomes you all at this grand event of the

updating the state of affairs of hospitality in their respective

hospitality industry.

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July 2012 I www.fhrai.com I

Convention

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Come September!

The total number of jobs (direct and indirect) in the tourism sector in 2016 are estimated to be 77.5 million as compared to 53 million in 2010. If India’s employability is to be treated as a serious concern, then this sector comprising hospitality deserves a much needed push to create employment opportunities. KAMLESH BAROT

i

The theme of our 47th FHRAI Annual Convention this September in Goa is based on employment generation. We chose this as our theme for the convention because of the manpower crunch and the importance of the hospitality industry in the growth story of India.

Consider this. The labour-intensive hospitality industry employs 250 million people worldwide directly and indirectly, which is about 8.6 per cent of the employable, while in India we contributed 6.2 per cent to the GDP by employing 49.8 million people in 2009 or 9.2 per cent of the employable, followed by automobile at 13.1 million, IT by 10.2 million and 2.9 million in Pharma. If our industry grows at a rate of 8.8 per cent, the sector would generate employment for about 40 million people and revenue of about $275 billion by 2018 as per WTTC. Even UN World Tourism Organisation (UNWTO) echoes the same by saying that the contribution of tourism to worldwide GDP is estimated to be in the range of 5 per cent. For diversified economies, the contribution of tourism to national GDP ranges from 2 per cent for countries where tourism is comparatively a small sector, to over 10 per cent for countries where tourism is the main driver of the national economy.

Tourism’s contribution to employment is estimated to be 6-7 per cent of the overall number of jobs worldwide (direct and indirect). Women make up 70 per cent of the labour force in the tourism sector and half of all tourism workers are 25 years or under, worldwide. As per a UNWTO forecast, the travel & tourism th industry in India will grow by 8 per 47 FHRAI Convention cent per annum, in real terms, between 2008 and 2016. Foreign exchange earnings from tourism could show annualised growth of 14 per cent during the same period.

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In India, hospitality industry contributed 6.2 per cent to the GDP by employing 49.8 million people in 2009

and indirect) is likely to be generated during 2010 to 2016. As per the report of the working group on tourism, Ministry of Tourism, Government of India, for the 12th Five Year Plan (2012-17), the all India estimated demand for hotel rooms is as follows:

Availability of Hotel Rooms 2010 Requirement of Hotel Rooms 2016

Additional requirement in 2016

Classified Unclassified Total

1,28,77 1 25,83,5 19 27,12,2 90

Classified Unclassified Total

3,10,52 3 46,61,8 07 49,72,3 30

Classified Unclassified Total

1,81,75 2 20,78,2 88 22,60,0 40

On the supply side, according to them, there are 337 training institutes (count till March 2010) and 38 government-owned hotel management and food craft institutes. Out of the 41 IHMs, 5 Food Craft Institutes (FCIs), 200 other institutes affiliated to a university or approved by the AICTE and 101 travel & tourism institutes - only 63,000 students were churned out from all the various hospitality courses in 2010.

With such a huge potential of employment generation, it is our exertion at FHRAI for the past year and more now, along with our PR consultants, to focus the government’s attention to this “ProPoor Tourism” achievement in our industry for the masses. The Approach Paper for the 12th Five Year Plan, prepared by the Planning Commission also highlights the need to adopt a ‘pro-poor tourism’ approach, aimed at increasing net benefits for the poor from tourism and ensure that tourism growth contributes to poverty reduction.

After carefully studying these shortages and the importance, we decided to adopt the convention theme as ‘Employment Generation: Engine of Inclusive Growth’.

Come September, we shall welcome you in Goa to be the part of a The total number of jobs (direct and indirect) in the tourism sector new beginning, a new thought. in 2016 are estimated to be 77.5 million as compared to 53 million in 2010. Therefore, an additional employment of 24.5 million (direct (The writer is the President of FHRAI.)

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July 2012 I www.fhrai.com I

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Archaic Laws

Regulations

ACP Dhoble is in news for his raids on bars and restaurants. These raids have divided the entire argument into Pro-Dhoble and Anti-Dhoble groups. S M SHERVANI The Pro-Dhoble group feels that the

example, when we did manage to get

some may fall on the way side and

foreign culture of bars and pubs is

a license in Delhi we were asked to

lose their focus in life. But is that

invading the Indian culture and this

remove bar stools and not to display

reason enough to deny many more

honest officer is making an effort to

liquor in the premises as it was illegal.

their freedom to live. Life is all about

stop this. On the other side, the Anti-

We could only dispense drinks under

making the right decisions and to

Dhoble group feels that people like

the counter as we were a restaurant

drink or not to drink should also be an

Dhoble are like medieval monsters

and not a bar. The distinction was that

individual’s choice.

who have no business to exist in

bars were only permitted in hotels and

today’s society. They are an affront

the rationale was because they were

How long will we continue to protect

to the liberty and freedom that our

frequented by foreigners, therefore,

our children and stifle them with our

democracy guarantees.

they could display the bottles.

fears rather than be more open about everything and have the confidence

Today, Mumbai known as ‘the city

It took us six years to get this law

in them that they will choose the right

which

this

changed but it did happen. It has been

path? Heavy drinking is injurious both

never

reputation

sleeps’

shattered

finds

instead

a continuous struggle. The problem

to mind and body but how many of

Delhi has become the place to rock

lies with our medieval thinking and

those who drink can be classified into

and party.

archaic laws. Why do you need a

that category. Today, the need is to

license for dancing in the restaurant?

change these archaic laws as well as

In 1995, we opened a restaurant in

One can understand having a license

our mindsets. We will have to conquer

Delhi and to our dismay found that

for cabarets but DJs, live band, live

our own fears. We live in a country

the restaurants outside 5-star hotels

singing and premises where guests

that considers our youth responsible

were not entitled for a bar license. It

can dance all require various licenses.

enough to drive, marry,

took us six months to get a license for

These professions, though well paid,

their Govt. representatives at 18 yet

our restaurant with a change in the

are often shunned by our society but

we do not consider them responsible

policy by the department of tourism

are they not a source of employment

enough to sit in a licensed bar with

eligible

for many talented youngsters?

friends of the opposite sex till 3 am on

for

bar

and

licenses. Today,

nearly two decades later, there are

and elect

weekends. I hope in times to come, we

more than 400 licensed premises in

Mr. Dhoble said that he was only

will be able to balance our laws, and

Delhi. However, when we compare it

following the law and it is not his job

change them according to the need of

to Mexico City which has over 3,300

to make laws. He was right. It is the

the times, meet the aspirations of our

licensed premises, we seem very far

duty of our elected representatives

youth and learn to have more faith in

very behind.

to amend laws but they find it difficult

them.

to ignore the mindset of many in our As an Association, we struggled hard

society.

to change the Delhi law to permit the opening of bars till 1am. But, the

People generally visit pubs to unwind

real problem lies in our mindset. For

and de-stress. Though, it is true that

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July 2012 I www.fhrai.com I

(The writer is theVice President, Federation of Hotel and Restaurant Association of India and Managing Director of Shervani Hotels and Rodeo Restaurants.

He is also the President of The Hotel and Restaurant Association of Northern India.)

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FHRAI expands its FSSAI initiatives with a proposal to set up

Pradeep Shetty Chairman FHRAI Sub committee: FSSAI

‘Food Testing Labs’

FHRAI regards the enactment of the Food Safety & Standards Act as a landmark legal Testing and regulatory development, which will have Food wide-ranging ramifications for all segments of the Indian hospitality industry. As the leading voice of the industry, FHRAI has unequivocally welcomed the progressive aspect of this legislation and is deeply committed to extend its full and constructive cooperation to the government and FSSAI to ensure the success of this ambitious initiative. However, while supporting the basic tenets, FHRAI remains cautious about certain procedural issues and implementation mechanisms envisaged in the new law and its accompanying regulations. We believe that it is imperative for all stakeholders to work together to ensure that the new rules do not place an excessively onerous compliance burden on the industry, particularly our small and mid-sized establishments. We are confident that the government itself would not want this intended reform to add yet another layer to the already complex labyrinth of rules and regulations currently governing our hotel and restaurant sector, which serves as a vital catalyst for India’s rapidly growing service economy.

We believe that it is imperative for all stakeholders to Over the past six months, FHRAI’s work together to ensure that the new FSSAI and Seminar Subcommittees, rules do not place an chaired by myself and my excessively onerous compliance burden EC colleague Dinesh Advani, on the industry, respectively, have been conducting particularly our small a series of interactive seminars (16 and mid-sized establishments sessions pan India) and workshops across the country in close cooperation with our four regional associations viz. HRANI, HRAWI, HRAEI and SIHRA. These widely attended events have proven to be indispensable in increasing awareness among our members about various facets of this new regulatory

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July 2012 I www.fhrai.com I

architecture and have also provided a vibrant platform for the industry at large, to share its concerns, apprehensions and technical queries in this regard. Based on our dialogue with eminent scientific scholars and industry experts, FHRAI has submitted a comprehensive memorandum to FSSAI, making detailed and specific recommendations, supported by ample empirical data.

In the next phase of our active engagement on this pivotal issue, FHRAI is planning to set up a series of state-of-the-art food testing laboratories across the country with a view to offer the industry a cost-effective alternative, as MNC Labs approved by the National Accreditation Board for Testing and Calibration Laboratories (NABL) are few in number and expensive. Work on a pilot project is already well underway, and it will be our endeavour to gradually scale up this initiative to cover all four regions. We have urged FSSAI to recognise and notify these labs, as required under the new Act for all Food Business Operators (FBOs). FHRAI will ensure NABL accreditation in due course for all such labs.

FHRAI’s analytical laboratories will be fully equipped with sophisticated scientific instruments and facilities, adhere to stringent testing and sampling protocols and strive to offer the highest standards of quality assurance. They will be managed by a team of experienced professionals and trained technicians, working under the overall supervision of renowned independent experts. The significant investments planned for this purpose are a symbol of FHRAI’s steadfast commitment for safeguarding the public health, safety and hygiene and will be our proactive contribution towards facilitating capacity building for making the new regulatory framework a durable success.

I am enormously gratified by the overwhelming response of our esteemed members to all our FSSAI related initiatives and we hope to continue to benefit from your generous feedback.

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SIHRA initiatives

K Syama Raju President South India Hotels & Restaurants Association (SIHRA)

Objectives of SIHRA One of the important objectives of our association is to make our members truly professional. With the assistance of training experts, we have lined up several professional development programmes and workshops to be held in Chennai, Kochi, Bengaluru, Visakhapatnam, Madurai, Coimbatore, Hyderabad and other key cities, for the year.

In addition to the above programmes being organised

by SIHRA, the Institute of Hotel Management Catering Technology (IHMCT), Chennai, in cooperation with FHRAI and SIHRA, conducted a workshop at their campus on March 6–7, 2012, on the Revised Classification/Re-Classification Guidelines and Skill Development, with particular emphasis on the ‘Hunar Se Rozgar Tak’ employment scheme instituted by the Ministry of Tourism, Government of India, for the under-privileged.

Reaching members In order to familiarise our members about the legal and regulatory aspect of the Act, our association along with FHRAI has organised Food Safety and Standards workshops at various cities in South India. These workshops are being conducted by Dr V Pasupathy, an expert on Food Safety. The workshop which took place in Kochi in March 2012 was a

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July 2012 I www.fhrai.com I

great success with more than 70 participants attending from our member hotels in Kerala.

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In order to familiarise our members about the legal and regulatory aspect of the Act, our association along with FHRAI has organised Food Safety and Standards workshops at various cities in South India

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The beginning of the year witnessed an increase in hotel occupancies throughout Initiatives the country, a positive sign for the growth of the hospitality industry in India. In a recent presentation, given by Shri Subodh Kant Sahai, Minister for Tourism, Government of India, to the Prime Minister Dr Manmohan Singh on tourism development, several inputs were provided for facilitating increased tourist arrivals and towards making India a favourable destination. This has given confidence and encouragement to the hospitality industry which expects favourable support both from the Central and State Governments by way of concessions, rationalisation of various taxes and the announcement of infrastructure and industry status to this sector.

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I wish to inform the members that the construction of the building where SIHRA’s new office premises will be located is progressing as per schedule and is expected to be ready by mid-2013.

Members will be happy to note that this year, the FHRAI Annual Convention will be held at Goa from September 6-8, 2012. The Convention Committee led by Vivek Nair, Convention Chairman (immediate past President of SIHRA) is working hard to make this convention meaningful and interesting for its members and their families. Presidents of various international hotel bodies have been invited for the Convention which will add value to the proceedings. I expect SIHRA members with their families and friends to register in large numbers and make the FHRAI Annual Convention 2012 a grand success.

Puducherry:

A sought after tourist destination

On July 6, 2012, an interactive meeting was held at The Windflower Resorts and Spa, Puducherry, under the aegis of SIHRA. As its President, it was indeed a privilege for me to welcome all dignitaries and members at this interactive meeting which was being held for the first time in Puducherry and to share our views on the initiatives taken by the hospitality industry and the role of the Government of Puducherry to make the State a much sought after Tourist Destination.

I am happy to state that the Government of Puducherry is the most pro-active State extending maximum concessions to the hospitality industry. This has attracted many

hotel chains in India and abroad who wanted to establish their presence by investing in the construction of hotels.

At present, the state of Puducherry has 20 approved /classified hotels having 2300 rooms. By the end of 2012, four more properties are expected to be completed which will provide additional 320 rooms.

Besides this, some of the Heritage homes with French ambience have been converted into Heritage hotels.

With the proposed commissioning of the airport and increased shipping traffic including cruise ships, there will be a greater demand for rooms in tourist places of Karaikal,Yanam and Mahe.

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MoT launches pilot project for a cleaner India Under the Clean India campaign, the Ministry of Tourism (MoT) recently launched its pilot project at Qutab Minar.

Unveiled by Subodh Kant Sahai, the Tourism Minister, this initiative of MoT is aimed at improving the conditions of heritage sites to attract more tourists. ITDC, the PSU under the ministry, is entrusted with this project at Qutab Minar. Talking about the new development, Sahai remarked, “Around 100 monuments would be taken up in the PPP model under the Clean India campaign. Currently, there are about six million foreign tourists coming to the country. To reach our target of achieving the 12 million mark, we have to provide a hygienic environment in and around tourist destinations across the country.”

According to Sahai, the project involves round-the-clock garbage clearance, drinking water facilities, maintenance of parking lots and toilets, and proper signages at the heritage complex among others.

The project will also address issues such as conversion of Qutab Minar complex into a friendly zone for physically-challenged persons, tourist help-desks and deployment of volunteers for better management amongst others.

Urging the PSUs to come forward and support the campaign, he said, “The campaign will be carried out in the PPP model with the involvement of PSUs and corporates. I will convene a meeting of PSUs and corporates to work out the details as well.”

ITDC has networked with various stakeholders, including the Municipal Corporation of Delhi (MCD), Archaeological Survey of India (ASI), Delhi Jal Board (DJB), Delhi Development Authority (DDA), Traffic Department and the Shop Owners and Trade Association around the Qutab complex to make the project a success. An NGO, Prayas, has also been roped in as a partner in this project.

Shankersinh Vaghela takes over as Chairman, ITDC Shankersinh Vaghela, former Chief Minister of Gujarat and ex-Cabinet Minister (1996 - 1997), has taken over as Chairman of India Tourism Development Corporation (ITDC), the public sector undertaking under the Ministry of Tourism, Government of India. Vaghela has assumed charge as Chairman of ITDC from June 13, 2012.

Dr Lalit K Panwar (IAS, 1979 Batch), the former Chairman and Managing Director of ITDC will continue to function as the Vice-Chairman and Managing Director of ITDC. Vaghela’s appointment was approved by the Appointment Committee of Cabinet (ACC) on May 31, 2012. ITDC is a PSU with the mandate to develop and expand the tourism infrastructure in the country. Its scope consists of accommodation, catering, transport, travel agency, duty free shopping, entertainment, publicity, consultancy, manpower training as well as hospitality education.

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July 2012 I www.fhrai.com I

Subodh Kant Sahai, Union Minister of Tourism welcoming Shankersinh Vaghela on the occasion of his taking over as Chairman, ITDC at The Ashok, New Delhi

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Karnataka’s 2nd GIM attracts 35K-cr investments in tourism sector In a bid to hard sell its tourism sector to prospective investors globally, Karnataka hosted the second edition of the Global Investors Meet (GIM). The state government inked agreements promising private investments of about Rs 35,000 crore in tourism and hospitality projects during the event. GIM was hosted in Bengaluru in June, where the state engaged in aggressive marketing of its heritage sites, coastal lines, religious places and wildlife spots. This helped the sector attract investment commitments by way of MoUs and expressions of interests (EoIs).

Jose Dominic, MD, CGH Earth

Sushil Mantri, Chairman, Mantri Developers

According to Latha Krishna Rau, Principal Secretary, Tourism Department, Karnataka, the state government is looking beyond Bengaluru to promote tourism in the state. “We are looking at promoting tourism in tier-II and tier-III locations and are setting up infrastructure facilities for tourists,” she said. While discussing the role of the state government in boosting tourism, she revealed, “The state government is advising prospective investors to build infrastructure facilities in central, northern and coastal areas of the state. We are anticipating $170 million in foreign exchange earnings from overseas tourists in 2020, up from $104 million in 2010, projecting an increase of 63 per cent.”

The state government is also offering a range of incentives for developing infrastructure facilities at 100 tourist locations across the state, such as 50-75 per cent exemption on stamp duty on investments above $10 million. The inflow of tourists to India is growing at 11.8 per cent, whereas in Karnataka the rate of inflow of tourists

has been growing at 15-20 per cent for the past five years, she added.

Of Rs 35,000-crore investment proposals in the tourism sector received by Karnataka at the GIM, majority are for setting up infrastructure facilities at Mysore, Hampi, Pattadakal, Aihole, Belur, Bijapur and Jog in the state, she added. Among global and domestic investors showing interest in the state, Hyatt Hotels & Resorts has signed an agreement with the state tourism department to build a five-star hotel at Hampi. Orange County, Somatheeram and Windflower have come forward to set up resorts at other heritage sites, including Pattadakal, Aihole and Belur, Rau pointed out.

Foraying into the hospitality sector, the Sushil Mantri-led Mantri Developers is aiming high with investments worth Rs 1,750 crore across all sectors. The company also has plans of building a theme park. “As a part of the mixed-use development project, a 200-key luxury hotel at an investment of Rs 250 crore has been earmarked.

The theme park will also be a part of this mixed use development. We expect to start work on the project in the next one year after getting all the approvals in place,” Sushil Mantri, Chairman, Mantri Developers, said. A leading hospitality chain in Kerala – CGH Earth – is also investing in Karnataka. Jose Dominic, MD, CGH Earth, said, “The group has committed to invest Rs 50 crore in setting up multiple hospitality projects across the state. Karnataka’s tourism and hospitality sector is a sleeping giant which has tremendous opportunities for growth.”

FHRAI sees investment boom in industry Despite the hike in service tax from 10 to 12 per cent during the recent Budget, the hospitality industry is geared up for big investments. It is expected to see an investment boom of almost Rs 26,000 crore by 2017, feels Kamlesh Barot, President, FHRAI. He further elaborates, “The hotel industry will need an additional 1,88,000 rooms by the end of the 12th Five Year Plan period as per the estimate. We anticipate an investment of about Rs 26,000 crore by that time.”

According to him,the industry currently employs 24 million people and by 2017, it is expected to add another 44 million employees.

Barot also suggested that lowering input costs of hotels could lead to reduction of hotel tariffs.

Addressing the concerns of hotel tariffs, he said,“If the infrastructure status demand, made by the FHRAI in its post-budget memorandum submitted to the government, is extended to below three- star hotel categories in the near future,this would automatically mean reduction in hotel tariffs.”

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Infrastructure status to the hospitality industry under RBI’s Infrastructure lending list would mean bank loan repayment periods would be extended to 10-15 years and the interest rate would settle around three-four per cent compared to the current 12-13 per cent.“When interest rates would come down to be in tune with the international hotel lending rates, it would translate into our input costs getting lowered. If the interest burden is reduced, tariffs may come down by two-three per cent,” he explained.

According to the FHRAI, though the industry was given infrastructure status, it excludes majority of hotels in the country. “It covers only five per cent of the hotels.The remaining 95 per cent will not enjoy infrastructure status.

We have requested the government to provide this status to the entire segment. We will then be able to compete with the rates at which foreign hoteliers operate,” he added.

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RCI expands its network to more than 100 properties Ananta Spa & Resorts, The Aranyawas Resort and The Summer Plaza Resort are the latest which have joined RCI, a leading group in vacation exchange. RCI recently announced these resort affiliations which are located in the popular tourist destinations of Rajasthan and Panchgani in India. With these additions, RCI expands its Indian portfolio to more than 100 affiliated properties.

On the occasion of this new development, in addition to RCI’s celebration of its 20th year of operation in India this year, Radhika Shastry, Managing Director, RCI India, said,“Our growth is truly reflective of our commitment in providing members with the types of vacation experiences they want by adding affiliated resorts in highly-desirable destinations in India.”

Research

FICCI-YES Bank report on capacity building in tourism

FICCI-YES Bank recently released a theme paper ‘Furthering Quality Capacity Building in Tourism’, which highlighted that the tourism sector touches a wide value chain, and it is imperative that investments into, and benefits garnered from the sector, spread out more widely and efficiently amongst the populace, thereby acting as a strong socio-economic enabler.

It was noted that the estimated increase in human resource requirement over the period 2008-2022 for hotels is 215.3 per cent and for restaurants, it is 34.1 per cent.The 12th FiveYear Plan (2012-17)

envisages a growth of 12 per cent per annum in inbound and domestic tourists, which is in line with the objective of doubling the inbound and the domestic sector.The current initiatives and the ones proposed are expected to generate 25 million additional direct and indirect jobs in the country.

The research highlights the findings of IMACS-NSDC report on human resource and skill requirements of the tourism sector, which estimates that the travel trade will employ 0.16 million people in 2012 to approximately 0.22 million people in 2018.

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Claridges finds international tie-up enhancing bookings

Oliver C Martin

Marketing

Elaborating on his new role as the Regional General Manager Marketing of the Claridges brand in India, Oliver C Martin feels that now the challenge will be to consolidate and synergise marketing strategies and streamlining cost management, revenues and good hospitality practices. Talking about the growing relationship of the hotel brand with the Europe-based collection of independent hotels and regional hotel brands – Worldhotels since 2007, Martin informed, “Being part of Worldhotels’ global portfolio provides us with access to an advanced reservation and distribution system. It also boosts the group’s recent initiatives to further expand and develop the Claridges brand across

other major gateway cities in India. The share of reservations from this segment has now risen from the initial 5 per cent to the current 15 per cent. Thus, today 15 per cent of our bookings for The Claridges New Delhi are generated through their booking channels and this will only grow in the future.”

Claridges currently has a portfolio of three luxury hotels in New Delhi, Surajkund and Mussoorie.

“Our next property will come up in Bharatpur.

A boutique palatial property, this hotel will take two years for completion. The hotel brand’s sub brand, in the four-star category, Atrium Surajkund, is also being refurbished for a new look,” he added

Leela Hotels betting big on leisure properties

Sanjoy Pasricha

As far as business is concerned, this season is not all that bad for Leela Hotels, Sanjoy Pasricha, Vice President (Sales & Marketing), Leela Hotels, points out. “This summer we have received a huge footfall at our leisure properties in Udaipur, Goa and Kovalam. Hence, our expanded portfolio has enabled us to offset the difficult times,” he says. As air tariff becomes dearer and the industry witnesses a rupee slide, there is one part of the market which has declined. But, there are also people who have chosen to travel domestic because of the same reason. “This has helped in diverting the traffic and increasing footfall to our leisure properties,” he adds.

The luxury hotel group is, thus, betting big on the FIT leisure traveller this season. “What would be affected is the MICE segment. However, FIT leisure travel and even business travel will not be adversely impacted,” Pasricha believes. Talking about how the hotel chain is reinventing processes and rationalising costs to tide over the current crisis, he reveals, “We are pulling back about 10-15 per cent of the sales and marketing expenditure.

We are turning more aggressive on public relations and other below-the-line activities to achieve a balance.”

The group also feels that the hospitality business will bounce back in the second quarter of this year.

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Ginger targets 80 hotels in next 3-4 years Post the opening of its 25th property in Delhi NCR, Ginger Hotels a Tata Group enterprise - is looking at investing over Rs 600 crore in the next four years.

The budget hotel chain owned by Indian Hotels, owners of the Taj Group of hotels, thus expects to run 80 hotels in the next three-four years. After the launch of Ginger Hotels in Faridabad, Prabhat Pani, Chief Executive Officer and Director, Roots Corporation Ltd, a subsidiary of Indian Hotels, said, “In the next four years, we are looking at opening 55 new hotels, which would require us to invest over Rs 600 crore.”

Prabhat Pani

The group sees a lot of potential in tier-II and tier-III cities.

“We will open multiple hotels in bigger cities such as Delhi, Mumbai, Chennai and Kolkata. However, we are also looking at foraying into smaller places such as Patna, Coimbatore, Kochi and Nagpur. Most of our properties would have an inventory of 100 rooms,” he added. Of these proposed 55 properties, seven hotels are under construction in Noida, Greater Noida, Chennai, Bengaluru, Jaipur, Chandigarh and Amritsar.These will be opened in the next 12-15 months, he informed. Elaborating on the details about each property, Pani revealed,“While some of these hotels are leased ones, some have been constructed by us.The total investment will be around Rs 60-70 crore for these seven hotels, comprising a total of around 600-700 rooms.” Previously, the company would acquire land and promote the project itself. It has now taken alternative routes which include developing hotels inside malls, a public-private partnership model or redevelopments to an existing property as well.

Regarding its new launch in Faridabad, he pointed out,“This is our fourth hotel in the NCR and our first hotel in Faridabad.

Ginger Hotels has been well received in North India for its immense potential in this innovative category of hotels.The new hotel will meet the needs of travellers visiting the NCR region, which has seen rapid growth in industrialisation and urbanisation, but has retained the sanctity of its culture.”

Research

Bengaluru’s Yeshwanthpur emerging as an investment suburb

Apart from being the Silicon Valley of the country, Bengaluru has also emerged as one of the fastest growing hospitality hubs in the last few years. But now, according to the research by LJ Hooker, the place hospitality should be eyeing is the former industrial suburb of Yeswanthpur. B M Poonacha, Head – Land & Special Project, LJ Hooker, says, “Due to the sudden rise in hotel demands and acute shortage of quality hotel space, serviced apartments have mushroomed over the past 5-8 years to fill the gap of good, branded three-star hotels. This led to the search of new avenues and Yeswanthpur is emerging a winner.”

The city of Bengaluru has been developed through the popularity of some areas like Whitefield, Outer Ring Road, Sarjapur Road and Hennur, though these areas mostly comprise of IT developments. Hence, a lot of hotel chains have opened here. Poonacha adds,“With the airport shifting out to the north of the city, the above areas have lost their sheen and

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occupancy rates are quite low. Our research team found that the next hub for development is the former industrial suburb of Yeswanthpur. The company is currently marketing a property under development, which is suited for a branded hotel chain to take up. “As per industry experts, this would be suitable for a 60-80 room business hotel or a 20-25 room boutique hotel. Due to lack of a good three-star player in the area, we expect 85-90 per cent occupancy throughout the year,” he says. LJ Hooker is under negotiations with leading brands which it expects to close in the next few months.

In Yeshwanthpur, there are already three 5-star hotels Movenpick, Vivanta by Taj and the Sheraton. Also, Poonacha adds, Bengaluru’s tallest commercial tower, the world trade centre is located in the Yeshwanthpur - Rajajinagar area.

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Boosting

lipstick wanderers As the quantum of the single lady traveller leaps, the travel industry is going forward to woo the women traveller. Today, hotels are pampering this niche segment and offering special services to make women feel not only more secure but also more at home. Read more… MEGHA PAUL

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Today, hotels are pampering this niche segment and offering special services to make women feel not only more secure but also more at home

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recent TripAdvisor survey -- Summer Holiday Travel Survey -- shows the Indian woman is ready to go solo with 64 per cent female respondents willing to travel alone on leisure.

Also, statistics reflect that an ever increasing number of women are now travelling for business. The rise in single women jet-setting business and leisure travellers has spawned the hotel industry to sensitise their services as per women’s needs, reorienting them to be in-tune with the industry’s international trends.

Today, hotels are pampering this niche segment and

July 2012 I www.fhrai.com I

offering special services to make women feel not only more secure but also more at home.

Evolving Trends Pointing out to the evolving trends in the industry, Kamlesh Barot, President, FHRAI, explains, “Hotels in India today are starting to roll out specialised services for female guests, of course, at a premium. Around 41 per cent of business travellers are women now, while

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Apart from security being the primary concern, most hotels have incorporated free pick-up and drop services from the airport for their women travellers. Rooms are offered near the elevators where it is usually well lit and a guard is present. Use of Video phones to check the identity of any person seeking entry into the guest room, and screening of telephone calls, have likely to become an industry norm.

Kamlesh Barot

just 30 years ago female executives comprised only one per cent. Imagine when the size of the tourism industry shall be $21,011 billion by 2022, how important this segment shall be for all of us.� A glance around any airport or train station confirms that things have changed.

The airline industry has already recognised this change and is working closely with their flight attendants to become more responsive to woman travellers on their flights, he adds.

A set of Eva rooms is dedicated exclusively to the single lady traveller at ITC Maratha

Eva room

Dedicated floors & services But the recent and more dynamic trend has been of entire floors or rooms being dedicated for the individual woman traveller. Says Sanjay Sharma, Complex General Manager, The Westin Gurgaon, New Delhi and The Westin Sohna Resort and Spa, “We have seven dedicated rooms, one on each floor for single Sanjay Sharma women travellers, named after the Greek Goddess of Breeze - Aura. Exclusively designed for the chic, modern women on-the-go, these rooms are generous in size and conveniently located close to the

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Pranay Verdia

Move away from the hotels and their comforts, women are now venturing out in the wilderness to explore nature and give a kick to their adrenaline rush.

elevators on each floor for easy access.” The Aura rooms are serviced by female associates only for elevated security of the single female travellers, he adds. The Westin Gurgaon, New Delhi, features 313 keys, including seven Aura rooms. Regarding the business generated by these exclusive women rooms, Sharma states, “There is definitely an increasing trend of women, especially single women travellers on leisure and business trips using these rooms. They account for 16 per cent of our hotel’s total business. Not just this, but their per capita spend during the stay is 35-40 per cent more than the average spend of their male counterparts.”

Reiterates Pranay Verdia, Director-Operations, Jaipur Marriott Hotel, “Women do not just seek comfort and security in their hotel rooms but also expect the finer things in life. Single women guests are now being considered as an important client category for our hotel.” Jaipur Marriott Hotel ensures that the guest is tracked right from the moment the reservation is made with a special VIP code to their arrival and then through their stay until they depart.

“We ensure the complete patrolling of the floor throughout the day and night. Especially, when a single lady checks in, the list is shared with the Loss Prevention department (Security Department) to have the complete patrolling

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A woman traveller, whether travelling alone or in a group, expects the concerned staff to be polite and responsive of the floor, especially at night,” he reveals. Some of the added amenities for the women travellers consist of rooms being serviced by lady associates from housekeeping. The reception also does not permit any outsider into their rooms without getting appropriate clearance from their end, he informs.

ITC-Preferred choice for women travellers ITC business hotels were one of the first hotels in the country to dedicate entire floors – Eva floors - with standardised facilities for women travellers. Confirms D Kavarana, GM, ITC Maratha & Area Manager, West, “At the ITC Maratha, a set of Eva rooms is dedicated exclusively to the single lady traveller.

Conceived as a haven of relaxation and contemporary style, the Eva rooms cater to the requirements and preferences of our special lady guests. Whether it is providing airport assistance on arrival, to lady butlers, unpacking clothes, guidance in terms of travelling within the city, aid with hiring of reliable transportation, draping a sari, announcing of calls after 10 pm, a video phone in room; all these are a part of the service design. However, the option of staying in an Eva room is at the sole discretion of the single lady traveller.” ITC hotels have been accredited with the ‘Women Aware’ certification, making it the preferred choice of single lady travellers from across the globe, he adds. At the ITC Maurya, there is one

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Move away from the hotels and their comforts, women are now venturing out in the wilderness to explore nature and give a kick to their adrenaline rush. However, even in this scenario, safety concerns are the first prerogative of the fairer sex Eva floor with 14 rooms, which is dedicated to womenonly travellers. What is interesting is that without the room key card, one cannot even stop at the Eva floor.

The card needs to be swiped in the elevator to direct it to the Eva floor, allowing limited entry and optimal security. The defining moment of the Eva floor is the interactive door bell, where the guest is able to see, without moving from where she is seated, who is at the door.

Challenges to overcome Move away from the hotels and their comforts, women are now venturing out in the wilderness to explore nature and give a kick to their adrenaline rush. However, even in this scenario, safety concerns are the first prerogative of the fairer sex. Hence, a number of companies that organise adventure-based activities are now targeting women travellers with increased attention on women-specific amenities.

Confirms Anshul Mendiratta, Owner, Virgin Travel Spots, “While booking packages, women generally ask for experienced and trustworthy guides or escorts from the group. Cleanliness and hygiene are other important points which we take into consideration.

Another crucial issue which they often raise is whether they can travel with their kids.”

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Women do not just seek comfort and security in their hotel rooms but also expect the finer things in life.

Single women guests are now being considered as an important client category for our hotel

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A lot needs to be done in this segment as there are challenges galore, feels Mendiratta. “The major roadblock would be the lack of skilled women guides and escorts. The industry has not been able to retain good professionals. Though, there is a boom in the hospitality sector, but most of them join other industries such as aviation or retail. The picture of India with its poverty, political uncertainties and safety issues also harm the travel industry. I think if we empower rural women and make them a part of the tourism industry, it will bring an overall change in the industry.”

And travelling in India can be a herculean task. Due to the prevalence of social conservatism, it is important that women educate themselves of how to handle themselves in public. Says Neelam Singh, Desk Editor, DDP Publications, “In my opinion, safety and hygiene are the two most important issues women look for when travelling or staying in a hotel. Apart from this, a woman traveller, whether travelling alone or in a group, expects the concerned staff to be polite and responsive.”

Reminiscing about her last trip and the potential in the untapped segment, Singh feels, “I have found metro

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cities more women-friendly than small cities.

Absence of security outside airports, especially late at night when women are waiting for shuttle buses or cabs in badly lit and unguarded parking lots need improvement. Also, I have noticed that generally people find it hard to accept that a woman or a group of women is travelling by themselves. For example, on a recent trip, the driver of our vehicle expressed his astonishment on seeing a group of women travellers sans men.�

The increase in women travellers is a fascinating trend. In India, the tourism industry has understood the importance of this niche segment. As a result, hotels have been offering special services for its female guests. It has been seen that women prefer to be more loyal to companies that address their special needs. Hence, hotels are focussing more to go out of their way to make a woman traveller feel comfortable and secure.

When the industry responds to women’s needs, everyone benefits. It just makes a good business sense!

Neelam Singh

Hospitality IT

Technology

Feature

Let’s talk IT loud…

Breaking the clichéd thought that the IT Department is a cost centre of any hospitality unit, IT professionals are projecting it in a diametrically opposite light. According to them, it does more to ensure that the balance sheet of hospitality look promising. Hospitality IT is consistently emerging as a force that can turn around businesses towards profitability. SANJEEV BHAR

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hough the conventional wall is breaking up, it will take some time for the operation professionals in the hospitality industry to understand the dynamics of IT, feel many in the technology sphere. According to some IT heads in the hospitality sector, technology cannot be viewed in isolation. It has become a part of the service. In future, it would be difficult to ascertain the thin line which would divide the use of technology from service.

of operations, and therefore, contribute value to an organisation’s bottom line performance. IT generates revenue in many tangible and intangible ways.

Need is…

Today, travellers are using high-speed Internet connection. They are gadget-oriented and prefer to be on a communication mode on the move. Hence, hospitality has to be abreast with the latest in technology to keep up with travellers’ pace. And it is known that even the wake-up calls and keyless-card entry are coming under Hospitality has started adopting IT-related initiatives quite late the purview of smart products. So, the need of IT is fast becoming in comparison to many other service sector businesses. But, in a pervasive in a hotel unit. small span of time, technology has emerged as an overpowering agent that is making the industry far more customer-oriented. It is also believed that apart from customer-oriented services, basics Nonetheless, the IT fraternity feels that there are still apprehensions of a company dynamics like Finance, Marketing and Accounts have about this department as a cost centre and must be looked upon to be interlinked and the demand is that IT should also fall under the critical category. The fact is that all other systems depend heavily with a revenue generating objective. on IT. If this department falls flat, then other functions literally break Poor procurement planning and often under or over-utilised down. In a 24x7 environment of a hotel, IT is fast becoming the infrastructure and services, forced IT to come into the picture to first department that needs to be in order to ensure that all other curb the wastage. In IT’s viewpoint, one can clearly trace the result of departments remain intertwined for a streamlined operation. investment on IT and the capability it holds to curb the expenditure.

In the long-run, argue IT heads, IT turns out to be an investment, and FHRAI Magazine, in association with Hospitech, presents different therefore, should be treated at par with other so-called revenue- viewpoints of professionals from the IT domain of the hospitality sector who are confident that sooner than later, hospitality will take driving departments.

IT into account, while making key operational decisions.

Today, strategic moves by IT can provide optimisation at all level The message is loud and clear!

IT churning revenue

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“Core functions often don’t walk hand-inhand with IT”

Hospitality IT

Technology

Feature

Bracing up for challenges

Dhananjay Rokde Global Head – Information Security Cox and Kings Group

‘Flexibility of scaling’ is always an issue. The hospitality sector goes through clearly visible business/ revenue peaks and troughs every calendar year. Preparing for the peak is just as important as scaling down for a dip. Often, this is not the case. Systems that are once scaled up never scale down and only scale up further during the next immediate peak.

The start of a holiday season is a good example to illustrate this.

Marketing, PR & Sales go into over-drive during this time. What is a learning technology teams at these times is that such peaks are time-bound and this is not a reason to go around hardware shopping or splurging on upgrades.

If you have a scale down strategy in place, your IT infrastructure will always have plenty of juice left to take you through a spike, smoothly. While other sectors concentrate on the robustness of systems, the hospitality sector ‘must’ spend time strategising on agility and flexibility. An agile IT infrastructure environments also help to normalise CapEx and bring down the overall total cost of ownership. This is one of the most effective ways to present the IT vertical in good light.

Needs of IT in today’s hospitality

The hospitality industry is unlike other sectors like BFSI, NBFC or even pure-play IT services. It actually suffers from the disease of ‘silo-fication’. Since the hospitality vertical lacks a kind of regulator pressure (unlike RBI for banks or TRAI for telecom companies), there is an excessive amount of freedom that is exercised.

Inconsistencies, right from the core business processes and on-the-field procedures to business practices and diversity of systems, make it increasingly difficult for an organisation to interlink and collaborate within itself. It is a very common phenomenon to see large/multinational hospitality corporations spending most of their time and money in trivial firefighting, rather than taking proactive steps. Core functions like Finance, Marketing and Accounts often don’t walk hand-in-hand with IT.

Products, Services and Trends

My top ‘must haves’: • Centralised Infrastructure management • Compliance in-a-box (centralised compliance management – for all accepted standards and regulations) • WAN acceleration (can help to reduce bandwidth costs as well as CapEx on point-to-point links and MPLS) • Business process management/modeling systems (BPMS) My top ‘good to haves’: • Universal Content Management System • Information rights management • Tele-presence and instant collaboration

‘IT Department’ as a ‘Revenue Creation’ opportunity

It is a clichéd problem area and someone has yet to crack this issue. The problem begins with the fact that core business functions always segregate themselves from IT. But it takes two to tango.

I feel that IT is not considered as a revenue function because: • While corporate silos exist, IT often builds its own silo • IT teams never reach out to other business functions – it’s always the other way round • Most of the time is spent on suppressing issues than actually finding solutions and closing them • Poor planning of procurements and often under or over-utilised infrastructure and services Technology teams can break this old curse and actually empower business, if they simply learn to stay involved in the business.

Viewpoint My concern - Senior management and board members of the hospitality industry should devote the much deserved attention to the centralisation of planning and strategy and business process unification.

Opinion - Unfortunately, there is no single product or service that exists for this problem.This issue has more to do with vertical leaders not joining forces and working towards a common goal.

Each vertical and geography must adhere to the same business practices and processes. Come what may, the top management should mandate and enforce this.While ERP is a good stepping stone, I would recommend starting with mapping the process and identifying points of improvement and conflict.

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“CONTRIBUTION OF IT TO THE COST OF SALE IS BOTH VISIBLE AND TRACEABLE”

Hospitality IT

Technology

Feature

Bracing up for challenges

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With various technological innovations/solutions implemented by the hospitality industry to create a benchmark for competition, the IT must be in line with the business to transform it. Today, many hotels Ravish Jhala are struggling and IT should focus Systems Manager on lowering costs, identifying new Trident, Bandra Kurla, Mumbai revenue streams and improving guest loyalty.

IT should take a lead and consolidate the current infrastructure and make a strategy to utilise current resources to 100 per cent, create automation in processes to increase efficiency and save cost. In the near future, the focus will be more towards reducing capital and operational cost, guest interfacing technologies and automation.

Needs of IT in today’s hospitality

Travellers are using high-speed Internet connections and hightech gadgets like television on the move, portable media devices, scanners, mobile devices, etc. Therefore, hoteliers need to race to keep up with technology: from automated wake-up calls to keyless-card entry to high-speed data ports.

Becoming increasingly demanding, today’s guests expect more than a comfortable night’s sleep. They expect an Internet connection, movies that start when they want and an overall experience they can customise.

Products, Services and Trends

There is so much going on and yet so little is known about the results. In the coming years, we will see the following key technology trends: • Business intelligence • Mobility • IT security and governance • Cloud services like SaaS, PaaS

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• Social media • Guest loyalty solutions • Green building technology solutions and energy management systems • Interactive technologies like IOTV, IP Phones, etc.

‘IT Department’ as a ‘Revenue Creation’ opportunity IT initiatives really generate new revenue. But visibility of costs measured against visibility of quantifiable benefits is a way to show how IT contributes to the top and bottom line. There is almost no enterprise project these days where IT is not a big piece of the puzzle.

The visibility of IT asset consumption and the capability to allocate the cost of those assets, based upon that consumption results in an accurate measurement of IT’s contribution to Cost of Sale (COS), is both visible and traceable. Achieving visibility of costs as a key IT strategic initiative today provides a pathway into technology optimisation and justification of IT’s value contribution to the organisation’s bottom line performance within each revenue stream.

Viewpoint My concern - IT is the backbone of business and provides a technology edge. Hoteliers should look at IT not only from the point of view of a cost centre or maintenance department but involve IT to enable business and transform operations to the next level.

Opinion - IT should lead and extend its support to business ideas for implementation. Hospitality IT should also come out of its old silo and participate in industry conferences, events, share knowledge and support the Indian hospitality industry to compete with the best in the world.

“IT Department is a strong ‘Profit-CENTRE’ candidate”

Hospitality IT

Technology

Feature

Bracing up for challenges

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Vijay Choudhary Deputy General Manager - IT HRH Group of Hotels

IT, being the business enabler in the present economy, has to be ready for showing tangible business results.

The challenge in the boardroom is to justify ROI in terms of efficiency, new market reach, innovations and added brand values. These are various avenues where technology is associated with every nut and bolt of the hospitality business.

Challenges considering expectation of internal users and various stakeholders are optimisation of IT resources, controlling cost of running IT, high uptime and availability of Hospitality-IT-domainexpert manpower.

Further, there is an increasing customer demand for connectivity on smart phones at BYOD front with constant optimised quality.

This is resulting in IT service expectation being considered equally important as compared to other traditional hotel services like rooms, F&B, housekeeping, etc. Now, IT stands among the front-end department coming from the place where it was always perceived as the back office operation.

The increased dependency on IT from all other departments wherein the guest services and workflow are tightly integrated with IT-enabled process flow, the challenge is to keep it running with zero downtime.

Needs of IT in today’s hospitality

The needs could be divided into three different perspectives: • Business: IT should be completely integrated and part of the corporate strategy in the Hospitality business.

• IT Infrastructure: Has to be deployed looking into the elasticity of demand of IT services, wherein at the supply side, the perishable IT services are available in the form of Cloud, virtualisation technology, etc.

• CIO/Head IT: CIO should have a place in the boardroom to assess, suggest and implement technology keeping pace with the growth and market dynamics.

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Products, Services and Trends

• Integrated BI solutions for complete business agility and analysis on top of the PMS, RMS, CRS and MMS. • Specialised Hospitality cloud services in the form of IaaS (Infrastructure as a service), PaaS (Platform as a Service) and SaaS (Software as a Service).

• Desktop virtualisation at key Guest Service areas/Departments like Front Office, Point of Sale (F&B Services) and Housekeeping.

• Increased commoditisation of rooms requires low-cost and integrated single platform comprising of PMS, RMS, OTA inventory management tool to handle market dynamics in more automated ways.

‘IT Department’ as a ‘Revenue Creation’ opportunity

It’s a common perception that the IT department is nothing but a mere cost centre. Now, with the capability of developing new customers, new markets and creating new revenue streams, the IT department can now be seen as a ‘Profit-Centre’.

IT as a platform is contributing a lot to hotels getting the property made available on one click of a mouse to the entire world. The hotel website, considered as the face of property, now seems the preferred way of customer acquisition and retention. Social media presence, OTA channels, GDS/IDS all made IT a competitive advantage for greater customer reach and retention.

The IT team in synergy with ‘Revenue Department’ can bring in a big difference in terms of growth of revenue, better RevPAR and ADRs.

Viewpoint My concern - (Alignment of business strategy with IT objectives + Incremental IT service delivery expectations) versus (availability of domain expert manpower and its recognition/retention)

Opinion - IT should be considered equal to a main hotel operational department. IT matrices and evaluation parameters should be introduced at various processes like strategic initiatives, brand representation and assessment, customer facing events, budgeting, internal audits and appraisals.

Hospitality IT

Technology

Feature

“IT generates revenue in many tangible and intangible ways”

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Bracing up for challenges

Technologies that enhance guest experiences, speed up hotels operations, make hotels safe and secure, increase revenue and reduce the cost of operations will evolve in times to come. Hospitality IT and Harish Chandra General Manager – IT telecom have become the nervous Sarovar Hotels system to generate revenue with the use of various integrated hospitality systems and e-commerce and distribution technologies. Also, the role of an IT manager has changed to a business manager. Social media is also an important tool that can assist a marketing department.

Needs of IT in today’s hospitality

Reasons are simple: firstly, to have maximum uptime of hotel IT system with minimum downtime to support internal and external customers, and also to maintain a simple and integrated hospitality system to assist guests and hotel operations.

Secondly, to provide guest satisfaction with hotel IT services through fast check-in and speedy/accurate billing. Also, these services need to be easy to use and high-speed with secured Wi-Fi and Internet connection options.

Products, Services and Trends

• Hotels, in future, will move away from sharing their Internet revenue with any third party professional and will have their own indoor Wi-Fi set-up to save on costs • Indoor wireless access points will replace outdoor wireless access points • Cost of bandwidth will further go down • ‘Cloud’ or ‘SaaS’ based integrated PMS and systems with CRO and distribution network will replace traditional HMS in future • Concept of managed IT services may pickup as they reduce the

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cost of IT infrastructure management • Usage of IPTV for better clarity and freedom to view the content of guest choice • Shift the complete network of Hotel on optical fibre to get rid of wires • Deployment of the digital signage system interfaced with banquet sales module • Usage of iPad, tablets and PDAs interfaced with POS for digital menu with F&B menu mentioning pictures, calorie value, preparation method, etc.

• Implementing Bring Your Own Device (BYOD) programme for reservation, loyalty and marketing of hotel services as the usage of smart phone is on the rise • Centralised IP surveillance and common Hosted modules of PBX in multi-property scenario

‘IT Department’ as a ‘Revenue Creation’ opportunity

IT generates revenue in many tangible and intangible ways. It is no longer seen as a cost department. Internet revenue is one of the examples. IT assists S&M teams in many different ways whether it is a website bounce rate or hits count, mass mailing for F&B promotions, digital marketing and so on.

Viewpoint My concern - Concepts like ROI and TCO should not be given too much emphasis in Information Systems, if an IT solution helps in increasing the speed of operation, making the hotel secure and keeping a guest happy.

Opinion - Show the value of suggested IT solution and win the business case. Any technology that helps in creating a ‘WOW’ factor among its guests will help in winning guest loyalty, beating competition and will be readily adopted by the management of hotel at a reasonable cost.

Hospitality IT

Technology

Feature

“IT Department should be involved in business decisions”

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Bracing up for challenges

Johnson David Deputy General Manager - IT Mirah Group Hospitality Business

IT should help the business in evaluating an apt ERP to get rid of traditional solutions used in the F&B business on a large scale. The support in identifying apt and commercially viable Cloud-based technologies to suit the requirements of the business is becoming extremely important. IT should be an enabler and help sync with in-trend technologies like digital signage, tablet solutions, various payment modes (web-based, mobilebased, etc.).

Needs of IT in today’s hospitality

• To change the department’s face as not only a technical team but business drivers • Need applications for support which brings outlet close to corporate support team virtually • Need organisations supporting with adequate budgets for infrastructure and later for implementation needs • To increase security standards to prevent intrusions through mobile devices

Products, Services and Trends

IT products are emerging in a big way to boost the hospitality business. The industry, as it courses along with a vibrant growth climate in the country, continues to adopt new solutions that would help it to reach the optimum level in utilising its existing resources. I see some interesting elements being added up in the

July 2012 I www.fhrai.com I

hospitality: • Interactive solutions • Digital signage solutions • Tablet-based solutions • RFID-based solution • Gaming solutions • Kiosk for information • Effective ‘Business Intelligence’ tools And there are many more which are yet to be explored.

‘IT Department’ as a ‘Revenue Creation’ opportunity

Both revenue creation and guest satisfaction opportunities should be looked at when utilising the services of IT department. Revenue could be generated through business centres, Internet usage, etc. and guest satisfaction could be achieved by providing the necessary support to guests in handling modern smart devices by the IT team.

Viewpoint My concern - The IT department is not appraised or involved in the business decisions in many organisations even today. And the IT requirements are decided on assumptions and manipulations presented by non-IT professionals, which leads to incomplete technology availability and monetary losses.

Opinion - The IT department should be involved in all decision making activities, as IT is an integral part of business and is considered as business enabler, at least at my organisation–MIRAH.

“Hotels should focus on funding to adopt latest technology”

Hospitality IT

Technology

Feature

Bracing up for challenges

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The information technology in hospitality has been instrumental in bringing a new lease of life to the business engine with its dynamic approach.Yet, it has to be constantly monitored and kept abreast with the latest developments so that we do not fall short of the required or desired Rajesh Sonar task supposed to achieve. In this Information Systems Manager direction, there are a few challenges Park Hyatt Goa Resort one has to identify with. Handling and Spa of EPABX without proper training from OEM is one such concern that needs to be addressed. In the case of a pre-opening of a project, information system manager is involved after all the technology requirements have been selected and most of the hardware, cabling and other infrastructure decisions are in place. In such a scenario, he cannot do anything and it brings issues when actual operations start.

Needs of IT in today’s hospitality

IT has enabled hospitality business to take decisions and bring innovations to fortify the industry. But the

Viewpoint My concern - Hotels should focus on funding to adopt latest technology, provide training of actual technology apart from in-house school of hospitality training and consider IT as a revenue generating department.

Opinion - In pre-opening of a hotel, an IT Manager has to be on board before any decision on technology and infrastructure implementation is taken, which will reduce future problems.

constant demands are changing the perception of the business day in and day out. Therefore, IT in hospitality needs to keep abreast of the latest developments.

Today, hospitality is required to make use of the latest technologies in order to deliver quality services like • Cloud computing • BPOS • Consistent support from Hardware OEM • Funding to be pre-approved for any unknown latest technology to implement

Products, Services and Trends

SAP modules (MMS, HR and Finance) can be implementing to hospitality.

‘IT Department’ as a ‘Revenue Creation’ opportunity

Without IT infrastructure and support, the operational department can’t function faster and independently.

“IT department should focus on revenue enhancement” Bracing up for challenges

Amrendra Gupta Manager - IT Hotel Sahara Star

Technology is constantly changing and improving. Decision time-frames are getting shorter. Whatever is relevant today will become obsolete in three to five years. So, we have to be on our toes to know all about the next generation of technology. We have to keep upgrading our technology to support the growth of our business.

Needs of IT in today’s hospitality With the aid of the IT team, we should not only be able to streamline our business processes but also be able to get constant information in ‘real time’. In the coming years, the critical success factor will be a control over costs and operating efficiency, through the innovative use of technology – without compromising on the basic level of hygiene and security.

Products, Services and Trends Cloud Computing is the emerging technology in the field of IT. Software as a Service (SaaS) or pay-as-you-go services have also emerged as another cost-effective way of handling data and processes over the Internet.

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Fiber To The Room (FTTR)

In earlier conventional copper cabling, i.e., RF & CAT6 cable, there were some limitations about cable length, bandwidth etc., whereas Gigabit Passive Optical Network (GPON) provides a capacity boost in both the total bandwidth and the cable length in kilometers.

‘IT Department’ as a ‘Revenue Creation’ opportunity

Instead of being a revenue creation department, the IT department should focus on revenue enhancement of each individual department in every possible way through technology. It can be done by providing data to the top management in a highly accurate and secured manner for strategic decisions on the move, to pull data from our different systems in real time to change the room inventory and rate on real time basis as per hotel occupancy across all portals, OTAs, GDSs, etc.

Viewpoint

My concern - ThereViewpoint are obvious barriers and challenges for investing in technology like the general resistance to change, lack of funds and the inability to quantifybenefits. The most challenging issue is to decide which aspects of our business will benefit from technology the most, and hence, ensure that we manage our tech adoptions within our budget.

Opinion - If these barriers and challenges are evaluated for long-term benefits that technological upgradation results in, e.g. the overall business efficiency, then it will not just make us more competitive but will also enhance our market share and profitability.

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Manish Bhatia DGM – Sales Catvision Limited

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Providing turnkey solutions

in 1985, Catvision is a widely held public limited company (BSE) and i Founded has two business divisions: Cable TV (CATV) Products and Hotel Systems. The

company has its head office at Noida and a manufacturing unit at Dehradun, with operations in UAE also.

Catvision is acknowledged as a systems integrator of ELV systems - Digital TV/IPTV, ITV, EMS, AV, CCTV and Data Networking.

CATV Products

Catvision markets a range of products, mostly designed and manufactured in-house, to MSOs and more than 60,000 small cable operators in India. Catvision also exports its products overseas.

Hotel Systems Catvision provides turnkey installation of cable TV (analog, DVB, IPTV), energy management and CCTV systems to the hospitality industry. Premium hotels in India and UAE are its major customers. The company provides world class systems integration services and a single point of responsibility in association with the ‘best in class’ international partners.

Digital IPTV and Catvision interactive TV

carbon footprint. Energy is the second-greatest operating cost with heating, cooling and lighting. INNCOM EMS ranges from low-cost, standalone products to centrally-controlled systems that include various controls. The EMS can be integrated with Intelity ICE (for ipad/touchscreen) and the ITV/IPTV systems (for on screen TV controls).

Intelity ICE - the interactive customer experience The ICE software from Intelity is the ultimate multi-tasker.

Now, hotels will have over 35 different services to offer their guests. With ICE integrated into hotel’s PMS, guests can place requests, schedule transportation, set spa times from their mobile or in-room devices like ipads or the TV.

The Triple TV headend delivers MPEG-2/4 content over the Hotel’s IP network to a TV via a concealed IP Set Top Box (STB). The Triple TV system supports acquisition of encrypted and FTA digital channels. One of the leading providers of digital Hotel Interactive Systems, Catvision Triple Play and Koolconnect solutions offer a choice of Standard and High Definition platforms, along with interactive services, digital VOD and various customised guest services.

CTG Tru-Link media gateway

Digital (DVB) television

Security and Surveillance systems - Execution of turnkey cable systems at hotels, corporate townships and luxury apartments allowed us to extend this expertise with IP/digital, HFC and Coax cable systems to now execute security solutions in association with world leaders.

The DVB headend solution offers a cost-effective digital solution (instead of IPTV) for small and medium-size hotels.

This digital headend supports standard and high definition (HD) and can distribute Video, Audio and Data along the same coax cable network (used earlier for analog transmission), with razor sharp digital quality and enhanced channel capacity.

INNCOM Energy Management System (EMS) INNCOM EMS offers significant energy savings and an enhanced guest experience while reducing the property’s

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July 2012 I www.fhrai.com I

The TruLink Media Gateway suite of connectivity panels gives your guests exactly what they want by combining the most popular A/V connections to plug in their laptop/iPod®/ iPad®/iPhone®.

Hotel pay-TV operation Get relieved of the non-core activity of operating and maintaining the cable TV system with Catvision which will upgrade your network and operate your system along with pay channel operations, hence offering a Single Point contact.

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Micros upbeat about its e-commerce, e-solution products Sagun Sawhney

MICROS, known for providing integrated, end-to-end solutions to the hospitality and retail industries, acquired two companies viz. DIG Global and Fry Inc. couple of years back. Following this, the company is now actively promoting its new repertoire of products that go beyond the conventional IT needs in hospitality. Sagun Sawhney, Country Manager, Fidelio India, informed, “For the past few years, MICROS has focussed on developing a suite of e-commerce and guest engagement products for the hospitality environment. Now our focus is on two products viz. e-commerce and e-solutions for which we have been doing pilot projects in US, Europe and Asia Pacific this year.

“These are two major thrust areas for us. In e-commerce solution, we have webHotel and myStayManager. For enterprise solutions, targetted towards hotels and restaurant

segments, we are promoting key products business intelligence solutions,” he informed.

The MICROS e-commerce business unit provides custom-build to semi-custom website design and marketing solutions.

He said, “webHotel is a website design and management tool where operators can offer personalised content and online bookings to customers through their customised website.

The myStayManager is a user-friendly mobile smart phone application that allows hotel guests to create reservations and self-manage their hotel details through their smartphones or handheld devices, when booking at participating hotels.”

On the other hand, e-solutions products have a different approach. “We offer real time business intelligence through mymicros.

net to track real time performance of even a single restaurant down to a single order in a chain of restaurants spanned across India.

One can view the performance on a single page. iCare addresses the concerns-related customer services like loyalty/gift cards, stored value cards, coupon management which is managed in real time. myinventory is a hosted inventory management solution,” added Sawhney. All solutions from Micros including integrated front office, back office, central and web-based solutions, are designed to optimise and streamline workflows, improve customer service, and increase the bottom line. “The company offers several deployment options, ranging from onsite installations to fully-hosted solutions and with a vast number of certified interfaces to third-party products,” he summed.

Data Devices helps in programming enhanced efficiency Jacob John

Kochi-based company, Data Devices, is one of the pioneers in integrated property management software solutions, partnering some of the leading hotel groups and resorts in India for over two decades. Jacob John and Jaya Jacob, who manage the company informs, “Data Devices offers both off-the-shelf and customised software solutions to its clients, i.e., from single-property enterprises to multi-location, multi-property hospitality groups, across India and the Middle East.”

The company is known for its comprehensive Central Reservation Management System (CRMS) that streamlines reservations across any hotel group’s properties. Special features of the product are as follows: 1. Integrates seamlessly with the hotelier and allows one-stop reservation for all group properties 2. Central pooling and control of room inventory, rates, itineraries, etc.

3. Facilitates direct and targeted marketing to guests, agents, etc.

4. Increases multi-property bookings and occupancy 5. Integrates with many booking engines

Says John, “Corporate Accounting System (CorpAccS) is another product that consolidates data across the group properties for better management of resources.” He points out various benefits of the same: 1. One point accounts control for all group properties 2. Central pooling of data from properties for better analysis, control and management of information 3. Better control on inventory, credit and costs 4. Low cost of maintenance: works over the internet broadband and VPN

The company has a fully integrated, multi-module Property Management System (PMS) for hoteliers. “The Hotelier delivers exceptional efficiency for properties of any size. It has the characteristic of reducing back office workload by approximately 70 per cent. Further, the PMS enables on-line monitoring of profitability, costing, bookings, etc., and offers flexi-zoom feature, to zoom from a report to the entry level. It also comes with very user-friendly feature to get adapted to the system easily,” John concludes.

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Rate Parity Hoteliers’ biggest dilemma Released in June 2012, a recent study by Ecole Hôtelière de Lausanne (Switzerland) and RateTiger signifies that clarity on rates is the dominant factor affecting hotel distribution and revenue strategies today.

The multi-regional study - The Distribution Challenge 2012 - conducted in five countries

by Ecole Hôtelière de Lausanne (Switzerland) and RateTiger, has found that revenue managers are using channel management tools and price shopping reports more than ever, up to 11 times a day on an average, to drive revenue on their main channels.

However, as hotels struggle to maintain price consistency, they are now seeking new ways to improve exposure, reach new markets and increase direct bookings.

“Retail sites are continuously monitoring rate parity placing a lot of pressure on hotels to update rates on their channels,” observed Horatiu Tudori, Senior Lecturer, Revenue Management, Ecole Hôtelière de Lausanne, Switzerland. “Hoteliers are spending more time managing rate parity and ensuring rate integrity which is taking them away from defining more sophisticated strategies to reduce the cost of distribution and increase RevPAR,” Tudori adds.

Key Findings

According to a six-month study, the following are the top three issues revenue managers want to focus on: • increasing RevPAR, • controlling cost of distribution/e-business, and • increasing exposure

“The hotels defined the strategies they put in place for 2012 as being the need for RevPAR improvement to be achieved by higher rates

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and ADR, or by increasing LOS (length of stay). Their key challenge will be decreasing costs of distribution while raising rates and occupancy all at the same time ensuring rate parity across their distribution partners to avoid strict policy conditions,” continues Tudori.

“OTAs are getting bigger and bigger and we cannot fight them, so we are trying to find other ways of communicating and being exposed on the web. Of course, we need to be present and we need to have some availability and rate parity with the OTAs,” said one of the research respondents.

The challenge of rate parity and influencing the nature of OTAs makes it difficult for hoteliers to source new revenue and booking streams. The study found that hoteliers are focussing on direct sales by developing new corporate contracts, pushing their own web sales and maintaining faster availability and rates on non-conventional distribution channels to try to stay ahead of the game.

Research Methodology

The intention of the review was to collect feedback from 3-star and 4-star hotels evenly

distributed in five geographical markets: France, Germany, Spain, United Kingdom and USA. Among the 20 hotels participating in the survey, 65 per cent were chains and 35 per cent were individual properties, with capacity spread between 25 and 392 rooms. All the interviewees were in charge of managing pricing and distribution–two thirds being revenue managers and the remaining general managers or directors in either sales or reservations.

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There is an ongoing struggle among hoteliers study to maintain rate parity.

This has not only resulted in hotels neglecting the fundamentals of revenue management, but it has also opened their eyes to alternative distribution techniques. They are now looking at a widened distribution mix.

Hotels are now seeking new ways to improve exposure, reach new markets and increase direct bookings

hotel’s mail challenge today in maximising yield and revenue

Rev PAR Distribution Direct Sale Competition Occupancy Economy Others

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Share IT

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Shared IT optimises both – investment in IT infrastructure and productivity of scarce skilled and experienced manpower

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Evolving complexity in hospitality IT poses challenges for hotels. On the other hand, evolving technologies afford opportunities to resolve two key issues for hotels and hotel chains. Firstly, how to optimise investment in IT and, secondly, how to best use scarce skilled manpower resource pool? FHRAI Magazine brings you a perspective.

The scope of IT in hotels is ever-expanding. So is Lowering the required investment.

Cost Fortunately, advanced technology can provide some mitigating answers.

Outsourcing IT is a serious option that hotels should consider. More commonly referred to as SaaS or cloud services, outsourcing IT helps adoption of newer and evolving technologies by reducing or eliminating up-front investment. It is an equally good option for implementing traditional hotel management systems.

Of course, hotels need to assess network reliability and guard against data security risks. Competent and experienced consultants can help.

Hotel chains have even more to gain.

Apart from lowering IT costs, they can optimally use skilled and experienced IT and non-IT manpower for more than one hotel at a time. This way one can reduce the overall need for such scarce resources in functions like IT management, central reservations, guest relationship management, night audit, purchase and accounting. Hyatt Hotels have successfully done so with some back office functions. Closer to home, Lemon Tree Hotels, Magarpatta Hospitality and Elgin Hotels have or are implementing centralised IT infrastructure.

The decision to centralise IT infrastructure is easier in chains that own and manage their properties than in those where the ownership and management is distinct. But, the benefits are so compelling that hotel owners and management companies can be expected to arrive at a consensus on how to benefit from shared IT.

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Q You Ask, A We Reply Rajesh Sonar

How to create compatibility of software on new Windows platforms?

Rajesh Sonar, IT Manager, Park Hyatt Goa Resort and Spa Amlan Ghose, MD, Prologic First, says…

The answer lies, largely, in the way the software is developed and compiled in the first place. Very often, newer Windows platforms provide a ‘compatibility mode’ that enables users to continue using legacy applications.

For example, 32 bit applications can be used, in a compatibility mode, on 64

bit Windows 7.

Depending on the tools used, this may presuppose that the application was compiled with the compatibility option in the first Amlan Ghose place. Database applications where business logic is programmed using ANSI standards are more likely to be compatible than others.

In our company, we have managed compatibility in most cases. But then, we have access to the source code and have a compelling need to do so. That may not be the case in a hotel.

A very useful alternative is to deploy legacy applications within virtual machines. The virtual machine would be deployed on a current generation platform while executing applications on a legacy platform. Of course, you will not benefit from the new features of the latest technology. But, you could preserve the investment previously made on the legacy application and avoid the cost of change.

(Readers can send us any ‘Hospitality IT’ related question to find its answer. We can be reached at fhraimag@ddppl.com)

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Stability Sets the Stage for Summer 2012

May 2012 results of Indian hospitality wrap up spring travel with a steady demand that can serve as the perfect foundation for creating a more lucrative summer season. Julie Parodi Travel activity in May 2012 did not bring great gains as report compared to the previous card year for the country overall, but it did hold on to progress made from prior year and provides assurance that the demand for travel has not fallen away. Rather, it has stabilised.

Bookings were almost level with prior year in April 2012, however, the performance was assisted by lower levels of inbound travel due to Japan’s earthquake and tsunami crisis last year. April was the first full month following those horrific events. Not only were arrivals from Japan affected, but companies around the world with operations in Japan or dependent on Japan for key aspects of their product supply chains, paused travel to assess potential impacts. Many companies resumed outbound travel once again in May due to which inbound traffic to India also benefitted. Understanding this context, total bookings in May 2012 that came within -9.2 per cent of last year’s uplifted volume displays sturdy travel demand. Demand from both the corporate and leisure sector has also maintained better performance against prior year from the dip in March by -14.1 per cent.

On-going Travel Demand

As industry surveys confirm, consumers are willing to travel with family and friends for rest, relaxation and fun during this summer. With everyone wanting to get the most for their money, regardless of their travel budget, consumers are equally willing to get the best value.

To do so, they consider a wide range of options not only related to hotels, but also destinations, distance and timing. Part of a successful summer season revolves around understanding which markets, both domestic and international, are providing the most bookings and which have the most untapped potential for more.

Captive Markets

The tables give a perspective on how India is performing in relation to Asia Pacific as a whole. Here again, we see how Japan and surrounding areas in Asia Pacific are benefitting from lower than usual prior year booking volumes due to the crisis in Japan.

However, part of the more favourable booking performance is also driven by strong individual markets within the region, such as China, Singapore, Indonesia, South Korea, Taiwan and Thailand. These regions are worth researching for further inbound visitor potential for India.

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Rates have delivered the steadiest performance and evidence of on-going travel demand. Despite aboveaverage room supply growth, India’s ADR (average daily rate) India’s average has stayed within -10 per cent of length of stay prior year during 2012. In fact, is longer May’s ADR held the margin to globally and is -7.2 per cent, which is slightly continuing to grow. improved from April’s decrease This speaks well of -7.4 per cent. Steady rate of consumer performance has been the confidence stabilising force for revenue, and will be the key for driving revenue through the summer vacation season.

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There are equally strong markets in South America also, that are prime targets as well, such as Brazil, Chile and Argentina, which have active and growing travel industries. Though, Europe is having its fair share of economic struggles, those individual countries that aren’t under as much financial stress should remain a key consideration.

India itself provides a vast, varied and vibrant source of travel and serves as the foundational source of guests from which hotels can build upon. Regardless of your targetted markets, however, attention to trends in booking lead times and length of stay will help to customise your efforts to

net avg length of stay (nights) may12

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3.19

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2.77

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0.9%

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2.14

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-0.2%

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19.49

19.10

2.1%

asia pacific

20.51

19.21

6.7%

global

18.36

18.26

0.6%

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india, regional, global – % change over prior year

capture a larger share of that market.

gds & ads channels combined

A good sign to see is that India’s average length of stay is longer globally and is continuing to grow. This speaks well of consumer confidence. Longer stays also typically accompany longer distances travelled; distances consumers are willing to undertake for a good value.

net reservations india

Mar ‘12 vs ‘11 Mar YTD ‘12 vs ‘11

-9.2% 10.6%

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Mar ‘12 vs ‘11 Mar YTD ‘12 vs ‘11

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Mar ‘12 vs ‘11 Mar YTD ‘12 vs ‘11

net ADR

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-7.2% -6.8%

-9.2% -10.5%

-0.3% -4.1%

-1.4% -0.3%

-2.2% -4.3%

-5.4% -2.9%

-4.2% -5.0%

-1.3% -1.0%

-5.4%

11.6%

Targetted Audience Booking lead times are continuing to expand also, which speaks well of consumers’ commitment to travel and companies’ commitment to travel for meetings and conferences that require early bookings for registration deadlines. It is important to make sure that your offerings are timed for when targetted audience is most likely to book their accommodations.

Especially, if your hotel hopes to attract a greater share of vacation travel this summer, booking lead times reveal that most consumers are still in the process of solidifying their plans for the summer. Fine tune the promotions and packages you have planned, and be sure to use your hotel

system’s data and industry market data to identify which market holds the best for more guests. India’s results demonstrate its powerful, durable and widespread travel demand; make sure you capitalise on it this summer.

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Changing Waves The constant usage of devices and equipment that emit radiation is harming human health and work efficiency. Environics claims to have found a solution which can change the character of radiation with ease. SANJEEV BHAR Graphic showing areas having high level of Geopathic Stress

T

he Earth’s magnetic core results in radiation of different kinds. According to Pranav Poddar, Director of Environics, “Any radiation that goes against our body and affects it even minutely is considered harmful. But when we talk of it, we have a tendency to overlook the Earth’s energy fields, which have a direct impact on our health.” It is usually the radiation emitted from equipment/electric gadgets, etc., that draws our concern. These magnetic fields also have a negative impact on our bodies when they are distorted leading to ‘Geopathic Stress’.

Geopathic Stress represents a distortion of the natural electromagnetic fields of the earth created by geological fault lines, underground caverns and certain mineral deposits viz. coal, oil and iron. The distortion rises up by weak electro-magnetic fields created by subterranean (underground) running water, fault lines and underground cavities. In addition to this, radiation from other artificial sources have also become a major cause of concern like electro-magnetic fields caused by electrical wiring, lighting, microwaves, clocks, radios, computers, TVs, mobile phones and others.

Understanding radiation

The magnetic core of our planet emanates Hartmann Lines, named after the German medical doctor Ernst Hartmann. “These magnetic grid lines are perpendicular to the surface at intervals of 5-20 metres. They run

Pranav Poddar

from North to South and East to West. They create negative energy flows and have extremely high intensity – almost 200 times higher than our body energy levels,” informs Poddar.

Radiation leads to stress that diminishes the resistance of our body.

As a result, our body succumbs to nervousness, allergies, exhausted, depression, insomnia, restless sleep, nightmares, sleep walking, headaches on waking, tingling in arms and legs, grinding teeth and so on. The modern day lifestyle is further adding on to the stress and there is no way one can escape it. Poddar further adds, “Mobile phones and computers emit Microwave Radiation. Mobile phone is the most dangerous as it has become an extension to your body these days. The constant radiation attack over a long period of time has become a critical concern for our health.” Hence, high intensity work place is more prone to succumb to such a disorder.

Negative to Positive To understand it more lucidly, one has to understand the way radiation works, i.e., in the form of a constant or random wave. The constant wave of sound, like music, is more harmonious and harms less, whereas random wave is against the rhythm of nature. These energies in the form of radiation impact us on a regular basis at a slow pace leading to permanent

Radiation sources

Radiations are Bio-Electro-Magnetic in nature. They emanate from: • Natural geological phenomena • Underground water streams and fissures • Earth’s magnetic grid lines • Radiation from personal gadgets like mobile phones and computers • Constructional phenomena structure and building materials, etc.

Detecting the radiation

Lecher Antenna is a mechanical instrument developed by Austrian physicist, Ernst Lecher that can detect and measure the various radiations present in a built environment. It works on the phenomenon of resonance and identifies radiations based on their wavelengths.

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Geopathic Stress represents a distortion of the natural electro-magnetic fields of the earth.

These are created by geological fault lines, underground caverns and certain mineral deposits viz. coal, oil and iron

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damage. “Our aim is to correct the random waves to ensure that its character is changed to make it harmless,” Poddar informs.

At present, Environics is providing solutions for 20 different categories of Geopathic Stress, where apart from simple gadgets the company is even offering its expertise on various other areas of such concern. “Our research has shown that the emission of these electro-magnetic rays cannot be stopped, deflected or reduced, except by using excessive energy on a sustained basis. But their nature can be changed,” he adds.

Chip(ping) in Environics, established in 2005, has been correcting companies of these magnetic gridline effects. “Two years back, we launched a chip for mobiles and laptops as these gadgets are mostly used by us and have a harmful effect of radiation emitted by them,” adds Poddar.

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The chip devised by the Environics changes the nature of radiation flow and neutralises it. Poddar explains, “The ‘Enviro Chip’ results in the zone debarred of any negative Geopathic Stress order for all.

At a small level, an individual can get rid of the same like mobile phones and at a larger level, we correct establishment buildings, hotel properties, etc.”

Property correction A building can be made to curtail all its negative energy with the right correction techniques. In hospitality, where the service element is critical, keeping the energy flow positive is extremely important.

“We have found from our assessment that following the correction of properties, the quality of work life increases manifold. Hotels, where we have worked with, have observed a rise in productivity and confidence with less stress levels. A company would not like its sales force to be down but would rather require its staff to remain vigilant offering the optimum customer satisfaction,” articulates Poddar. Environics has dealt with over a thousand establishments in the last seven years. For example, the Taj Hotels has bought 400 such chips for mobile phones for its corporate level. “We have even worked on the entire City Palace complex of HRH Group of Hotels in Udaipur. We have been quite active in correcting the entire property’s energy space and done so for the Courtyard by Marriott for its Chennai and Vizag properties,” he adds.

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Size Matters Offering triple occupancy in a single room might well create a ripple effect in the Indian hospitality that is not only looking for fresh ideas to increase room nights but also, to create avenues for more revenue from limited spaces. SANJEEV BHAR

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t took long for the Accor Group to bring the smallest flower of its bouquet to India. But the wait was worthwhile, believes Florian Kohli, GM of the Accor’s newest brand in India, Formule1 in Greater Noida. “The fact that now everyone relates to the Formula 1 race with Greater Noida, the brand – Formule1 – has received a strong footing and promoting the same meant that the brand name would be easily related to the place. It is sheer coincidence that the first Formule1 came to Greater Noida, now very popular for obvious reasons,” he evaluates.

The brand brings with it a change in dynamics for India’s hospitality in more than one way. Where space is a major constraint and offering services is still the key, Formule1 is probably the best bet one can think of, getting away from conventional hospitality. Positioned in the category to offer comfortable clean rooms without any fuss is probably the core of this brand with a point or two to prove.

“We are clear about what we want.

There are only 25 people manning this 114-room property. It talks of more than just keeping the staff to room ratio at 0.2. It has more to do with efficiency and addressing Accor’s organisational philosophy,” says Philip Logan, Vice President Formule1 Hotels, India.

Not only is the staff to room ratio, the room size too has become a talk point about the hotel. While size does matter to most, the hotel’s attractive proposition is its small sized rooms. “They have been kept small and actually serve the purpose they are meant for.

They are 13 sq mt all through and the design meets market demands very aptly,” says Logan.

Triple Sharing

While the room size has been reduced to keep the concept of the brand intact, even in India, it is actually addressing the concerns

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So What if Small?

While size does matter to most, Formule1’s attractive proposition is its small sized 13 sq mt rooms

Florian Kohli

that many non-branded hotels implement half-heartedly. It is a time of reckoning when this international brand brings to the table a ‘triple sharing room’ concept that the Indian hospitality has been hesitant about. But it is undeniable that everyone knew at the outset that such a packaging proposition would be accepted with both hands. But someone had to take the risk!

Philip Logan

Here, Formule1 steps in with an innovative budget approach promoting standard rooms with a single price for up to three people. The bunk bed proposition reminds one of a home, a railway coach or simply boarding school hostels. Logan says, “This hotel will be a game changer in the budget hotel sector.

Formule1 will appeal to domestic corporate clients, frequent travellers for work and leisure who are looking for outstanding value combined with quality and service standards.” It is the

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first true international budget hotel brand in the country filling the void for standardised comfort at a highly competitive price. “We have introduced a rate of Rs 2,112 plus taxes per room per person with breakfast and Wi-Fi connection. Even from a business travel point of view, the proposition is attractive,” says Kohli.

Less, But Satiating

The lobby is small and engulfs many things. It has been uniquely designed to keep all that is needed and presented neatly. Services are limited but have been designed meaningfully. The matter of size is a major concern for the hotel and it ensured that size is where Formule1 will score. The food and beverage facility in Formule1 hotel is outsourced to third-party firms, explains Kohli. For example, he adds, in this property, Café Buddy’s is the breakfast corner at the lobby level, which is a third party vendor. And we don’t boast any restaurants. If required, the hotel helps customers in arranging their food requirements for dinner from nearby restaurants and eateries.

Located in the Wakefield Business Park, the first Formule1 in India is a part of a mixed use development.

Within the Business Park, an Indian restaurant – Swagat – is scheduled to open within a few months to ensure that other revenue based, yet capital intensive avenues, are kept nearby but out of the operational agenda.

Also, considering that Accor continues to grow as an owned and managed concept, its emphasis on making the concept successful will be high.

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Formule1 will target corporate travellers, institutions, small and medium enterprises in Greater Noida and event organisers in the NCR to develop business

The target market for Formule1 has an interesting mix of customers.

SMEs are a critical element of the growing Indian economy and they can be found at many business districts that are growing. In fact, to an extent, even educational institutes are becoming small and medium enterprises. “Educational institutes are very critical for us. Their presence in Greater Noida is proving to be a high for the hotel. Many parents visiting from different cities need to stay back for a night or two to help their children while getting them enrolled in colleges,” says Kohli. The hotel attracts this segment with its innovative pricing to suit the pockets.

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Smart, Limited, Desirable Service

“The hotel product will also act as the key infrastructure to support the growing events industry in the NCR,” Logan adds. The other innovative measures at this property include complimentary Wi-Fi facilities, Formule1 buffet breakfast, a Café and a 24x7 Snack Kiosk. Speaking about client segments, Logan informs that the hotel is bullish on the Greater Noida location. “Formule1 will target corporate travellers, institutions, small and medium enterprises in Greater Noida and event organisers in the NCR to develop business,” he concludes.

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this restaurant as part of a bouquet of restaurants at the Lemon Restaurant Complex, which can cater to over 500 pax at any given point of time. Apart from that, the scope for terrace dining option increases the count by 100 pax further.

Menu marketing The scope of good food is broad enough and one needs to captivate that opportunity. Bhayana informs, “Noida is a perfect platform for food service. It is one of the biggest corporate hubs in Delhi NCR and provides ample opportunities for quality F&B services to flourish.” Hence, the restaurant complex experiences good business on Wednesdays, Thursdays and Fridays during lunch and dinner.

“On an average, we manage to sell 95 covers per day in ‘Jusht Imagine’ that shows the command this restaurant has been able to achieve in a small time. The other restaurants in the complex viz. Lemon Twist and Trance, combined together manages an average of 300 covers per day,” he adds.

Of platters & combos Capturing the pulse of Noida’s demographics in a short span of time has been the most important achievement for the multi cuisine restaurant – ‘Jusht Imagine’. It has brought in stylish elements in dining combined with practicality in menu to manage its own place.

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he 86 covers restaurant – Jusht Imagine – started its operational journey in March 2012. The name probably derives its essence from the feeling a diner gets while scanning through the menu to place an order. But the scope of imagination widens up after knowing the sheer magnitude, its promoting group has taken to bring many choices under one roof. “The uniqueness or differentiation of our approach lies in the fact that the Lemon Restaurant complex, where we have launched Jusht Imagine, is the largest restaurant complex in Delhi NCR. It has an area spread of 12,000 sq ft,” proudly claims Ashish Bhayana, Founder and CEO, Jusht Imagine.

The restaurant group – Ranch Cuisine Concepts – that started its journey almost two decades back with brands like Bamboo Shoots and Lotus Pond, has now a strong portfolio of brands viz. Lemon Twist, Hookah Lounge, Trance, Café Lemon Twist, Indian Food Courts and Wokamama.

It has now added Jusht Imagine as its latest restaurant. “We now present

Keeping in mind the captive base, the choice of food that is offered to customers has been kept attractive and satiating, “It should not leave room for any expectations,” feels Bhayana.

He says that the same philosophy has been ascribed while selecting the menu design in the restaurant. He says, “We offer varied menu in ‘Jusht Imagine’ with a choice of many cuisines. In our menu design, everything on a platter has been decided keeping in mind the customer-friendly choices which are quite affordable to bring again and again.”

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Ashish Bhayana

dine out

A need for

classification I think it is high time that we get classification norms in place for restaurants too in India. It will at least keep restaurateurs on their toes to offer nothing short of brilliant service and quality food.

I would appeal FHRAI to take this issue forward in the appropriate corridor, remarks Ashish Bhayana.

The restaurant offers combos which have more to do with platter and assortments. Like for the Indian platter, whatever is ordered is served as a complete meal with side dishes as complimentary. “Like for pastas,” Bhayana explains, “we serve all pastas with a slice of toasted garlic bread and all Chinese Oriental Combos are served with Kimchi Salad and choice of vegetarian fried rice or vegetarian Hakka Noodles without any additional charge. Further, all Thai Curries are served complimentary with a choice of red and green served with steamed rice and Thai pickle salad.”

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No more monotony Customers today are well-travelled, and therefore, the scope has to be articulately determined while positioning a restaurant. Bhayana explains, “We have to give importance to the food which is a priority for any restaurant.

Then the service and ambience follow to add on to the overall experience.”

According to him, food is to be treated as an element of marketing. He adds

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that restaurants need to graduate themselves in terms of the concept they offer. “The Indian food industry is capable of attaining international standards. But I feel, the franchise option is killing the fine dine concept resulting in imparting a bad name to the industry,” he says.

Bamboo Shoots is approaching different brands of restaurants to position itself differently by addressing myriad demographics. “Today, a diner has a lot to do with his mood. A diner might relish a subtle environment for lunch and a crowded lounge as part of his evening out. We wish to offer through this restaurant complex, all options with distinctive ambience to make customers feel refreshed when they dine here,” professes Bhayana.

Similarly, food offered at restaurant has also acquired a much broader role, as it aims to go beyond filling the stomach and satiating the palate cravings. “To add on to our existing repertoire, we are planning another brand which will be Chinese in a format of a lounge offering preplated service in an oriental set up,” he revealed.

Emphasis on food Jusht Imagine presents a modern look and sleek dining experience. The theme is more casual with a hint of exclusivity. Emphasis is more on food with subtle ambience which doesn’t become too intimidating. The ambience gives a sense of old charm mixed with the new. “We are guided by a strong CRM which helps us to keep a followup on our loyal customers. For a new restaurant like Jusht Imagine, it takes a minimum of six months to identify its progress,” Bhayana says.

The company is also very upbeat about the way hospitality is shaping up and perceives that the dedication towards restaurant business is far more important than just having passion for food. “Passion is always temporary and we, as humans, will shift from one liking to another at some point of time. In restaurant business, quality consistency is crucial and only dedication can determine its success,” he concludes.

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Changing the game Hilton Janakpuri started its journey two years back and has gone through its own share of learning. Rubal Chaudhary, GM of the property, says that they are still on the path of discovering new opportunities that are intertwined with a new set of challenges. sanjeev Bhar The greatest achievement for any hotel is to bring Connect about a change, in thought or in action, in a zone that was waiting to be explored. Hilton Janakpuri brought about certain thought provoking changes, if not completely, to the western part of the Capital that was devoid of any star hotel.

Chaudhary informs, “For over one year, I have been a part of this hotel and it has been an interesting journey for me. While I have learnt some new things here, this hotel too, has graduated itself in a progressive manner and in the process taught so much to the hospitality market.”

Connecting with community

The hotel is guided by the fact that the hospitality approach has to look beyond the inbound city traffic that usually fills rooms. “Many underrate the importance of association of a hotel with its immediate community. In this respect, our hotel has been a game changer,” articulates Chaudhary. According to him, the west Delhi market always boasted a strong business community. There was a demand for a property to offer them services matching their aspirations. “West Delhi consists of small business houses, banquets,

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unstructured businesses, catering units, food destinations, etc., but people craved for superior hospitality. They always wanted to go beyond the existing service options,” he explains. Hilton Janakpuri, thus, has made its mark with an approach that caters to demands of the people and has established itself with the first mover advantage.

Consequent to Hilton’s entry in this market, the business dynamics started changing here. Many hotel investments soon catapulted the region into a hub similar to what has been established in the southern and eastern parts of the Capital.

Competition, soon, started knocking the door. But, Chaudhary remained unfazed by the buzz, as Hilton Janakpuri continued making innovative strategies to remain as a property with a top of the mind recall value.

He says, “Today, competition might be there, but we have always concentrated on our strength and will continue to fair well.”

Scope of growth

The growth of hospitality relies on basic infrastructure, how the economic growth is going to shape up the next decade and so on. Further, the growth is also related to the fact that how affordable India is for

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Business is growing and hotels will have to innovate.

We see a lot of scope in the MICE segment. Asian countries want to come to India for MICE

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gm canvas

tourists, as everyone in the trade accepts that the inflatable room rates will have to go through a correction with incoming supply.

“Business is growing and hotels will have to innovate. We see a lot of scope in the MICE segment with interests from Asian countries. In fact, in the long-term, as the inventory grows, we would have rooms at a corrected rate. This will augur the MICE business further,” Chaudhary articulates.

He assesses that the Delhi market is going through a reverse growth mode with room rates having come down by an average of 10-15 per cent over the last few years.

“India is still perceived as pricey by tourists with rates touching USD 300-350 per room per night. It is definitely very high.

Though business volume is growing, similar to the inventory that is coming into the market,” he adds. The market scenario is not seen as positive by many hoteliers with reasons like attrition, negative growth of the economy and Indian Rupee devaluation coming into the frame of concerns. He says, “Hotels are becoming more dependent on leisure traffic. Nonetheless, we have started concentrating on the MICE segment.

We received a couple of international conferences from Hong Kong and Malaysia.

There is a demand for MICE requirements from the domestic market too.”

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55%

of the share of business achieved by the hotel from the corporate segment.

Rest is leisure.

20%

is the growth figure of MICE revenue on year-on-year basis.

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We are tapping those segments that depend on the overall performance of the country’s economy and not rely on a particular policy decision

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Positive expectations

He is also aware of challenges that demand attention. “There is an uncertainty in the country’s business scenario. We are tapping those segments that depend on the overall performance of the country’s economy and not rely on a particular policy decision,” he explains. The hotel, in order to keep the newness factor alive, keeps itself abreast with new menus along with alternative pricing. “We have been very unconventional with the pricing. We are offering fantastic proposition for our loyal customers. This way, we also showcase our best F&B offerings which promote our property. To tackle the challenges, including competition, we are focussing on new ideas. We have some new F&B concepts on cards,” Chaudhary informs.

The hotel is maturing with each passing year. Indian mentality is yet to mature as a business enterprise, Chaudhary feels.

“Another decade of struggle might get us there where the strategies implemented yield similar results that we get in the West. The market dynamics are different, and therefore, we have a long way to go in thought to make hospitality successful.

We are still unstructured, and the scope for creativity should keep us yearning for more,” he concludes.

Rubal Chaudhary

The hotel is consistently coming up with new strategies that will interest its captive audience. “We are planning our strategy according to the growth targets and expect to maintain business stability. That means, we are still realigning operations to achieve efficiency in all respects following rate correction,” says Chaudhary.

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Beating the crunch

The industrial training, hotel management candidates go through, leaves a lasting wrong impact on their minds and they head towards other industries for a career. This leads to the shortfall or lack of desirable candidates for the industry. Megha Paul

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eeling under a severe manpower shortage, the hospitality sector finds scarcity of candidates and attrition as the major problem areas that hinder its smooth functioning.

Being a service industry, where talent redeems the brand promise, employee cost, on an average, is increasing and this is denting the profits of the industry. A recent survey conducted by the global recruitment tendering platform MyHiringClub.com also echoes the same sentiment. To understand the trend of employees’ attrition rates in Q4 of FY12 in India, the survey revealed that aviation and hospitality sector witnessed the highest attrition rates. On the one hand, the hospitality industry is complaining that it is grappling with attrition. On the other hand,

the hospitality education institutes see a dichotomy here. They argue that the problem of less students opting for hospitality is selfcreated by the hotels. The impression passed on to candidates during industrial training leave a wrong tale in their minds and they head towards other industries for a career.

Hence, this leads to the shortfall or lack of desirable candidates.

While India’s government-run and private sector hotel management schools turn out a little over 10,000 graduates a year, many of these graduates are not lured by the hospitality industry. Laments Ranjit Chaudhury, Principal, IHM, Kolkata, “Even a top job as a management trainee is not luring the students. They are reluctant to join as the entry-level salary structure is too low even now. What adds on to the woes of students are the taxing long working hours and inter-personal relationship among the hierarchy of employees and employer.” Thus, hotels rather than creating future workforce with leadership qualities often become the roadblock.

Negative experiences Most of the students after completing their industrial training do not want to join the industry, Chaudhury feels. “At IHM Kolkata,

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students spend at least one semester in industrial training at reputed hotels. The average stipend for this training ranges from a meagre Rs 500 to Rs 5,000. There are big hotels which pay the candidates as low as Rs 500-800. At least 30-35 per cent of the students return with bad experiences and hence, the disillusionment is obvious.”

The system says that the four-week long training should include one week each in housekeeping, front office, F&B and food production. However, many times students complain that this is not adhered to by many hotels. This is another grey area, he states.

Urging hotels to develop more amicable working conditions, he says, “Hotels should not treat the students as regular manpower at such a tender age.”

This year, out of 34 companies that visited the IHM Kolkata campus for recruitment, 22 companies consisted of hotels and international food chains. Among 204 final year students, almost 150 have already been placed as management trainees in different hotels. What also attracts these students is the retail and BPO sector. “IT- service, retail and BPO industries too nibble at the available talent pool, leaving only a fraction of this for the hotel industry. Mushrooming stand-alone restaurants too poach trained hands from hotels, leading to attrition. With their lucrative pay packages and comfortable five-day work structure, they pose a major

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Ranjit Chaudhury

On the one hand, the hospitality industry is complaining that it is grappling with attrition.

On the other hand, the hospitality education institutes see a dichotomy here. They argue that the problem of less students opting for hospitality is self-created by hotels Hotels need to change their approach but the students and parents also need to change their attitude and perception about the industry

threat to the industry.” However, this is an inevitable phenomenon. BPOs and retail segment are mainly looking for students with brilliant soft skills and this is where our students score above the rest. Hence, the only way forward is that hotels have to mend their ways. They need to realise that the manpower crunch can only be avoided if they retain skilled workforce. And this will only be possible when amicable working conditions are created within the industry, he claims.

Attrition reasons Elaborating reasons for attrition in this industry, Sarah Hussain, Assistant Professor, Banarsidas Chandiwala Institute of Hotel Management and Catering Technology, New Delhi, feels, “The reason for high attrition in the hospitality industry is high stress and pressure levels as the service industry does not have quantifiable measures to satisfy guests’ needs. The first three years are considered to be the toughest as these are the learning years and most of the students leave the industry in this period only. We prepare students at the college level for a real picture but there are so many other industries which attract them when they join various hotels.”Women find it more difficult to combine and balance career goals and family needs. Success in the industry usually involves long hours and frequent geographical moves and it is difficult to meet these needs and still satisfy

family needs, Hussain confesses. Calling upon for a more compassionate approach by the hospitality industry, she says, “Hotels have to change their practices and become more humane towards the fresh graduates and women employees if they want to keep them for long.”

K V Simon, Regional VP, American Hotel & Lodging Educational Institute (AHLEI), however, begs to differ. Responding to the MyHiringClub.com survey, Simon opines, “There is a non-alignment in the survey.

There is an aspiration actualisation gap.

Increasingly, entry-level jobs are being perceived as transitory vocations. This calls for some reality check and transformation.”

Regarding the scene of attrition in the industry, Simon feels, “Attrition is nothing new and it exists not only in the hospitality industry but in other service sectors also.

We are dealing with a generation which has the option of choosing from so many different avenues.”

Simon believes that attrition necessarily need not be a negative phenomenon. It has positive aspects as well. “One will not like drinking from a pond but a river as that has flowing water. Similarly, some amount of attrition is good as it helps the personality to grow by not letting him become stagnant.”

Also, hotels need to change their approach but at the same time, students and parents also need to change their attitude and perception about the industry. It is a two-way process. The accountability in this case rests as much with students as the industry.

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Awkenox innovative cutlery Awkenox has launched a new range of buffet ware with its bold black and milky white colour range that includes buffet elevation, multi level risers, plate holder, ice tub, snack warmer set, etc.

Awkenox has been innovating world class cutlery by introducing a classy look and feel to it, which is traditional in its craftsmanship.

Each piece is crafted to enhance the royal treat. On the other side, there is a modern pattern manufactured with a satin handle finish. In this, the cutlery is made out of 304 Stainless Steel, which is unique and has a hollow handle to make it look good and userfriendly.

Kitchnrama promotes Electrolux products Ditomix 5 Ditomix 5 is a professional planetary mixer with electronic speed variation. It is ideal for kneading, emulsifying and whisking for customers like restaurants, catering facilities and pastry making. It is supplied with three tools (flat hook, paddle and whisk) and equipped with accessory drive hub type k (accessories are not included).

Elegant & functional Sambonet Paderno Products

Green & clean Hood Type The Electrolux ‘green & clean’ dishwashing range is produced for customers with the highest conceivable demands for good efficiency, economy and ergonomics for dishwashing operation. The product range comprises glasswashers, undercounter dishwashers, hood type dishwashers, rack type dishwashers, flight type dishwashers and pot and pan washers. The hood type dishwasher range specific for Asia consists of units with different voltages and has a capacity of 67 racks per hour.

Minigreen The Minigreen is a vegetable slicer designed to prepare raw salad vegetables such as grated carrots and celery, sliced cucumber, shredded cabbage, beetroot, etc., quickly and safely. Easy to use and clean, the Minigreen is the ever-ready ideal solution for economic preparation of buffets of freshly cut vegetables, trays of starters or à la carte service.

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Sambonet Paderno is an Italian company that manufactures tableware, holloware, banqueting items, professional cookware and kitchen utensils for restaurant and food service industry. It boasts an international distribution that stretches from Europe to Asia, including Middle East, USA and Australia. All the brands of the group are characterised by elegance and functionality, two essential keys of success in products design suggesting an involving atmosphere.

Among the latest products, Arthur Krupp has presented refined collections of steel, which offers several mix and match for buffet and banqueting, besides tableware. Sambonet Paderno provides a wide range of items for cookware, cutlery and pastry utensils branded Paderno.The company can be reached at sales@jacioindicus.com

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Springfit introduces Ortholife Springfit, India’s most premium and progressive mattress brand, introduced its technologically advanced premium pocketed spring mattresses – Ortholife. The mattress is designed to address the endemic back problem, a by-product of today’s stressful lifestyle.

It is in-built with Triple Zone Technology, i.e., three different zones with different concentrations of Pocketed Springs that support the natural S shape of the spine. The personalised massage and the rejuvenating experience make Ortholife mattresses almost indispensable. These varying concentrations of pocket springs provide support to head, body and feet, helping to ease out the pressure on heavy parts like lower back while gently supporting the rest of the anatomy. This technology is widely endorsed by orthopaedic doctors.

Bar accessory

by Heineken Heineken, the iconic global beer brand, has introduced a unique bar accessory - the Heineken Arctic Glass. It is a revolutionary double-walled glass that chills beer within minutes. This glass is modern, slender and incredibly stylish and apart from cooling the beer, it keeps it chilled right through till the last sip.

The Arctic Glass is stored in the freezer (-15˚C to -25˚C) for at least an hour and then removed from the freezer. After that, one can pour room temperature beer into the glass and in minutes the Arctic Glass chills the beer to a perfect drinking temperature of around 0˚C to 2˚C. This limited edition Arctic Glass is available on promotional stocks at select outlets in select cities from May 2012.

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Luca Muscat White Wine Luca Wine, a leading Indian wine maker has announced the introduction of one more entry in their wine bank Luca Muscat White Wine.

It is a classic assortment of Muscat white wine produced at Nirvana’s state-of-the-art winery at Bawal, Haryana.

Muscat White Wine is a golden yellow white wine, highly aromatic with rich fruit extracts and honey. It’s a medium-bodied wine ideal to have in summers.

Luca Muscat White Wines are available in Delhi, Chandigarh, Haryana, Punjab, Himachal Pradesh, Uttar Pradesh, Rajasthan, Andhra Pradesh, Karnatka & West Bengal in the price range of Rs. 480/- for 750ml. (Delhi MRP)

Zespri Green Kiwifruit Zespri Green Kiwifruit contains more than 210 per cent of the recommended daily intake of Vitamin C.Vitamin C from Zespri Green Kiwifruit is also five times better absorbed by the body than a dietary supplement and has two times more Vitamin C than oranges. Every 100 g serving of the edible flesh of Zespri Green Kiwifruit contains 85.1 mg of Vitamin C. Kiwifruit, ranked at the top of the nutrition density model, is aptly called a ‘Nutritional Powerhouse’.

Known as the ‘Super fruit’, kiwifruit gives more health-promoting vitamins and minerals per gram, and per calorie than most other fruits. Bite-for-bite, kiwifruit contains more essential nutrients than 27 of the most popular fruits.

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new faces

within the hospitality trade Vijay Wanchoo

Yuvneet Suri

Sr. Executive VP & GM The Imperial, New Delhi

AVP – Operations Best Western India

Wanchoo has been promoted i Vijay to the role of Senior Executive Vice President & General Manager at The Imperial New Delhi. With his new position, Wanchoo plans to bring in innovations and set benchmarks of The Imperial hospitality in the industry.

He has brought extensive hotel experience to The Imperial’s operations and management since June 2009.

Presently, he is aiming to take The Imperial to new heights with his various initiatives like introducing ‘Nostalgia’ – classic retro evenings at 1911 and launching Daniell’s Tavern with a new look and menu. He also served for three years in The Imperial New Delhi in 1996 as the EAM and launched The Spice Route, Patiala Peg and The Daniell’s Tavern and was actively involved in the refurbishment of the hotel.

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Zubair Alam

General Manager Enterprise Business NEC India

India has announced the i NEC appointment of Zubair Alam as the

Western India, a part of the i Best world’s largest hotel chain has announced the appointment of Yuvneet Suri as Associate Vice President – Operations.

With more than two decades in the hospitality industry, Suri has worked with some of the best names in the industry, including Ruby Tuesday, Carlson Hotels and Sarovar Hotels. Suri started his career with The Ashok, Delhi, as a management trainee in 1989 and successfully continued moving up the ladder while handling many challenging assignments.

Suri has done his three years Diploma in Hotel Management from IHM, Chennai. He will be based out of the Corporate Office of Best Western India at Bengaluru.

General Manager - Enterprise Business.

Alam will be responsible for leading the growth and profitability of the company by driving business management, segment strategy development, monitoring execution and inculcating a culture of operational and execution excellence within the team.

Alam will also be responsible for providing thought leadership, setting up internal and external strategic review processes apart from scaling up existing and identifying new strategic partnerships and growth opportunities.

He brings with him over 20 years of experience in the IT industry and a strong senior-level management background. His elaborate experience in managing large channel partners and OEMs will help NEC drive efficiencies for its varied verticals including enterprises, hospitality, education, retail among others.

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Samir Avasthi

Radhika Dewan

BĂŠla K. Rieck

Director of MICE Marriott India

Associate Director of Sales Jaipur Marriott

Executive Chef Sheraton Bangalore

Avasthi has been i Samir appointed as the Director of MICE (Meetings, Incentives, Conferences and Exhibitions) for Marriott India.

Associated with Marriott India since 2008, he has recently been elevated to his current role. Having worked in the industry for over eight years for hospitality brands such as The Grand, InterContinental, and Taj, Avasthi has extensive experience in handling diverse portfolios, driving revenue and mentoring sales teams.

His responsibilities in the current position entail creating unit synergies with all Marriott hotels within India to increase rotational association business and improve networking opportunities.

He will also be responsible for convention sales of all the Marriott hotels in India.

Dewan has been appointed i Radhika as the Associate Director of Sales

K. Rieck has recently been i BĂŠla appointed as Executive Chef of the

at Jaipur Marriott. She has been associated with the Marriott group of hotels since 2006. She will now develop and implement sales strategies, drives revenue and oversee sales teams.

Implementing and executing all aspects of sales analytics of the property will be her key focus areas.

Sheraton Bangalore at Brigade Gateway.

Rieck will oversee culinary operations of the Sheraton Bangalore at Brigade Gateway including the six restaurants and bars, in-room dining and banqueting.

Dewan has a Bachelor’s degree in Hotel Management and during her career span so far, she has held different positions.

Before Jaipur Marriott, she served as Sales Centre Manager at Courtyard by Marriott Mumbai and Assistant Sales Manager at Goa Marriott Resort, Panjim.

She has also successfully steered the finance team at Standard Chartered Bank as Personal Finance Manager.

Prior to this, he was the Executive Chef of The Kempinski Hotel Yinchuan, China, where he oversaw the culinary operations for its seven restaurants/bars and a full-service banquet facility.

Hailing from the European Continent, Chef Rieck brings with him a dynamic and powerful perspective to food and contemporary cooking. He believes in an unconventional method of culinary preparation and yet never compromises on the palatability of his dishes.

Rajan Malhotra

Joyjit Chakravorty

Director Sales & Marketing Le Meridien, Jaipur

Director of F&B Sheraton Bangalore Hotel

Meridien Jaipur, has appointed Rajan i LeMalhotra as the Director, Sales & Marketing. His responsibilities will entail organising and directing all Sales & Marketing efforts for the luxury resort with a specific focus on creating and developing new markets and business associations.

Whilst Malhotra takes over a well-established hotel and an internationally acclaimed brand, this, infused with his experience of over a decade with well-known domestic and international hotel companies, is expected to support the hotel in its current upgrade plans.

Chakravorty has recently been appointed as i Joyjit the Director of Food & Beverage at the Sheraton Bangalore Hotel at Brigade Gateway. With over 12 years of experience in the food and beverage industry, Chakravorty will work seamlessly to elevate the dining experience of guests at the hotel. He will monitor all service standards of the F&B department to ensure exceptional guest satisfaction.

Prior to joining Sheraton Bangalore, Chakravorty headed the F&B division of the twin hotel complex - DoubleTree by Hilton & Hilton, New Delhi. He started his career as Food and Beverage Supervisor with The Leela Palace Goa.

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JW Marriott Mumbai brings ‘Arola’ to Asia JW Marriott Mumbai now partners with two-star Michelin Chef Sergi Arola to bring his sublime Arola brand to India. This chic lifestyle destination will offer its guests some exclusive flavours of authentic Catalan cuisine and is slated to be the most anticipated announcement in Mumbai’s gastronomic scene.

Speaking on the launch of the new restaurant, Thomas Guss, General Manager, JW Marriott Mumbai, said, “There is a perceptible movement underway with guests now familiar with exotic cuisines; they want preparations that are new and different, authentic in flavour and reminiscent of their last holiday abroad.” Chef Arola added, “India is on the brink of a culinary revolution. I am very excited about bringing the Arola experience to India. The menu will include specially selected mix of all the popular dishes from Arola restaurants all over the world, while also creating signature items for Mumbai.”

The restaurant aims to surprise the Indian audience with eclectic European cuisine designed especially for their increasingly discerning palate.

Mango Mania at Grand Hyatt Goa For the summer months of May and June, Grand Hyatt Goa is promoting recipes made with mango as the key ingredient. It offers a range of mango feast starting from mango charlotte, ginger mango chocolate cake, mango jam to mango pudding, mango shakes, mango margaritas and many more. It is promoting the offerings through special promotions like Mango Magic and TeaMe-Mango that have been planned throughout these two months.

The hotel chefs are also dishing out mango tart to the selection of tangy mango pickles to the innovative sticky rice and mango pudding. The Palace Lawns at the property are home to a number of mango trees laden with fruit. Some of these mango delicacies on offer at its restaurants are prepared from freshly plucked mangoes from the trees.

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July 2012 I www.fhrai.com I

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Clarks Inn Alwar organises Cross Country Run

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(From L- R): Manish Bhatia and Rajindera Kumar

The MGB Group celebrated the 4th anniversary of Clarks Inn Alwar in a unique manner. It organised a ‘Cross Country Run for Tourism’ on July 1, which was flagged off by the chief guest for the event, Rajindera Kumar, Director, Taj Vivanta Ambassador Hotel New Delhi. At the event he said, “Connectivity to Alwar and Sariska are two main issues which will decide the fate of Alwar as an attractive tourist destination.”

Speaking at the event, he expressed satisfaction over AlwarBhiwadi express highway providing excellent connectivity but showed concerns for low attendance in the Sariska sanctuary. He also stressed the good work Manish Bhatia, MD of MGB group, has been doing by stressing the need to promote Alwar tourism.

“It is time to encourage more budget hotels in the organised sector which would go a long way in promoting tourism in Alwar,” Kumar added.

The event was attended by Harshpal Kaur, Chairperson Municipal Council of Alwar, Gulshan Lal Bhatia and Vandana Bhatia, Director, MGB Group, S. N. Patwardhan, Principal - Alwar Public School, Alwar, and many eminent social activist and representative from the political fraternity. The run was coordinated and conducted under the guidance of international fame athlete Bishan Kalra.

Jaipur Marriott celebrates Associate Appreciation Week Jaipur Marriott celebrated ‘Associate Appreciation Week’ in the first week of June 2012. The initiative was a week long programme that Jaipur Marriott celebrates every year to express its appreciation to its family of associates who play an essential role in building enduring relationships externally and internally. In keeping with the fundamental ideals of service to associates, customers, and community, which serve as the cornerstone for all Marriott associates, Jaipur Marriott family indulges in ‘Spirit to Serve’ activities like Blood Donation initiative, and interacting with underprivileged children playing games, singing, dancing and organising a fun day for them at the hotel.

The Appreciation Week paid tribute to all associates for their dedication, commitment and commendable

services. During the celebrations, Jaipur Marriott hosted a number of exciting activities for its associates like Band Baaja welcome, One minute games, Relay Races, Seven Stone games, Inter House Dance competition, and Antakshari competition, among other enjoyable activities. The hotel also celebrated diverse cultures of its associates and hosted different Theme Lunches on different days with a variety of dishes from different parts of the country. Speaking on the initiative, Director Human resources, Govind Sharma, said,“The Associate Appreciation Week with the ‘Spirit to Serve’ is meant to thank all our associates for their significant contribution which is the backbone of our continued growth.We firmly believe that our dedicated staff deserves all the recognition and praise which we celebrated as a weeklong appreciation week.”

RNI No. DELENG/2000/1230 Posting Date 15-21/08-2011 Postal Reg. No. DL-(C)-01/1294/2012-2014 at MBC-1 Date of Publication 12-07-2012