Hicsa day2 by Cross Section Media Pvt. Ltd.

Day1

Day

6th april 2016

Nakul Anand delivers the keynote yesterday. Turn to page 3

Jahangir Aibara receives the award for his late father, Homi Aibara, eminent hotel consultant.

Jyotsna Suri receives the award for her late husband, Lalit Suri, leading hotelier who founded Bharat Hotels Limited.

Big take-away from day one; growth cycle is showing green shoots At the end of the first day, the overall consensus was in favour of growth coming back. After occupancies have showed significant increases, and with no immediate new supply in the offing, rates are meant to rise. Profitability is round the corner!

Global hospitality majors are batting for India. A few dissenting voices regardless, the vote is in favour of infrastructure changes beginning to impact positively on growth of hospitality. Challenges remain galore, and some of these, it appears, are not being addressed sufficiently. For instance, availability of manpower remains a huge challenge. Financing options are also limited and hospitality would do better, given infrastructure status. The burning issue of our times is the internet invasion, with the advent of aggregators and OTAs. How much ser-

Delegates exchange notes on TF Daily content

vice are they doing for hotels remained somewhat unanswered and possibly to each his own story. Some hotels are getting never before reach and occupancies while others may be stuck on rates. Hotel chains are fighting back to give the best options on their own websites and increasing their focus and penetration in online space. At the end of the day, HICSA is also about networking, meeting friends even many of them belonging to competition. It is bonding and industry fraternity coming together that defines the matured spirit of the community.

Last night, it was Pullman/Novotel Aerocity that hosted a gala reception for HICSA delegates. We bring you an image that captures the innovative spirit of the party.

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Tourism major contributor to growth; must focus on domestic sector, says Manav Thadani Instead of looking at just one aspect of the impact of recent developments in hospitality after the advent of OTAs and aggregators, Manav Thadani spelled out a balanced view.

By Shashank shekhar

ommenting on the Indian economy, Manav Thadani, MRICS Chairman – Asia Pacific HVS said that the Indian economy was one of the fastest growing economies in terms of GDP growth. He said that Indian economy was expected to grow at 7.6 percent, making India a preferred destination for investments. “Interestingly, service sector is making up for almost fifty percent of the total GDP which works well for us as hospitality industry is a part of the service sector,” he said. Calling India the third largest economy in Asia and the seventh largest in the world, he explained that coupled with a young workforce and low levels of inflation, India was right and ready for the next big leap forward. Sharing some key figures pertaining to global and Indian tourism industry, he informed the gathering that tourism accounted for almost ten percent of the global GDP. “One out of every eleven job created worldwide comes from the tourism industry. It accounts for one and a half trillion

the need to have a more profound focus on tourism. Talking on the state of tourism in India, Manav Thadani observed that tourism accounted for 6.3 percent of India’s GDP in 2015. “It translates to 8309.4 billion rupees. It is expected

☛ Over a billion people are moving around in India. We must have an enhanced focus on domestic travel segment. It is a trend happening everywhere in the region. What are we doing to tap it. dollars in terms of export value,” Manav Thadani added. Referring to the above stated figures, he stressed that tourism was a vital cog in the wheel in the world economy and showcased

to account for 7.2 percent of India’s GDP in 2026,” he informed. Taking a stock of inputs from leisure and business sectors, he stated that leisure segment was the prime mover in India. “As much as

83.2 percent of travel and tourism emanates from the leisure segment. It is a lion’s share but the cause of concern is that it has not gone up too much in the recent past,” he added. He further elaborated that due to the re-invigorated focus on investments and business in India by the present government, the business segment was actually faring better in the recent past. Dissecting the trends in domestic and international footfalls in India, he said that domestic travel was, indeed, the key area to remain focused on. “Over a billion people are moving around in India. We must have an enhanced focus on domestic travel segment. It is a trend happening everywhere in the region. What are we doing to tap it,” he asked. Manav Thadani touched upon some other pertinent issues facing the hospitality industry. One of

the major developments in the recent years has been the growth of aggregators who have changed the dynamics of the hospitality industry. But instead of evaluating one side of the coin, he put forth the good, the bad and the ugly side of their bursting onto the scene. “Are OTAs friends or foes of the hospitality industry,” he asked. He noted that it was true that on one hand they were helping create more market exposure, especially for unbranded hotels which had very little recognition or the marketing muscle to reach out to a larger audience. “OTAs also help bundle up the rate. There are cases when we have unused inventory, and OTAs help in filling up that inventory through discounts and promotional deals. But, on the flip side, a high commission rate is also a reality which often ranges

from 15-30 percent. Interestingly, stand-alone hotels provide higher commission than hotel chains,” he detailed. He also rued the fact that a large consumer base allowed aggregators to arm-twist hotels. He said that, these days, OTAs had begun rolling out their own loyalty programs resulting in hotels losing their key USP. “OTAs insist on the best price guarantee and rate parity with hotel websites which allows lesser room for hotel brands to make their prices more attractive,” he said. He also touched upon the advent of aggregators stating that they too had many sides to their operation. First highlighting beneficial aspects of aggregators, he said they had helped in ramping up demand. “It helps in making hotels within the reach of a larger set of clientele. Another tremendous achievement of aggregators has been their putting together unbranded hotels under one roof,” he explained. He further added that it had guaranteed a steady stream of income. On the bad side, he argued that aggregators seriously diluted the brand identity. “There is a serious mismatch between positioning and clientele profile. The hotel somewhat loses its control over the quality of guests,” he explained. Then there was an ugly side to it, too. He said that many aggregators were using the money pumped in by investors to provide heavy discounts to consumers which was not possible for hotels to do. “Aggregators confuse the term operator by functioning as an OTA,” he argued. Sharing his understanding of the current state of hotel business, he told us that asset valuation correction was resulting in more buyout of hotels. “It is a trend which has picked up off late,” he said.

The next period of cyclic growth in hospitality has just begun: Achin Khanna Hospitality industry is bound by cyclic growth. The good news is that the next cycle has already commenced, feels Achin Khanna. By Shashank shekhar

chin Khanna believed that hospitality sector was beginning to witness first signs of green shoots after a period of inertia. Talking about the big picture of the India hospitality, he believed that the industry was on the cusp of a cyclic growth. “An up cycle has just begun. Inherently,

was a down cycle from 2009 to 2014. Everything was down and out. Also, coincidentally, all the supply that was announced in the up cycle came into operations during the period of lull,” he elaborated on the cyclic nature of growth in hospitality. “2015 is the first year we saw a glimmer of improvement. This year, we believe will be the first full year

☛ 2015 is the first year we saw a glimmer of improvement. This year, we believe will be the first full year where we will see improvement across the board, and I am saying this for the entire segment of hotels in India. business in hotels in cyclical in nature; if you were to go back twenty years, from 1997 until 2001, we were in the midst of an up cycle which was halted after the 9/11 attacks,” he explained. Adding that the next cycle came about in 2004-05 when India’s GDP took off with 8 percent growth, he told us that it continued all the way until 2008. “There was a market crash in 2008, also the terror attacks happened in Mumbai. There

where we will see improvement across the board, and I am saying this for the entire segment of hotels in India,” he asserted. He argued that right from this year up to 2020 in his view was going to be an up cycle for a couple of reasons. “First is the simple fact that we just had five years of down cycle where nobody started new projects. So the supply coming in over the next five year will be almost nomi-

nal,” he decoded the trend. Noting that India had one hundred and twenty five thousand branded rooms which was at best going to reach a figure of hundred and fifty thousand, he opined “Twenty-five thousand rooms in five years is not a lot of supply whereas demand side is going to grow by at least 15-16 percent every year.” It is a given fact that when demand outpaces supply, occupancy

rates go up. When occupancy goes up, brands would have the strength to increase room rates resulting in higher revenues and profitability. Sharing his understanding of it meant for investors, he said that “it means that if you are a savvy investor, you will buy now. One cannot start building now because by the time you are done with your property and your hotel opens for guests, you will be staring at the

next low cycle.” Adding that if one had already invested and gone through the rough patch, one had to resist the temptation of selling, he explained “a seller should not be selling and a buyer should be buying. That’s where we are in the market overall.” In terms of specific markets, he shared that four major markets were Delhi, Mumbai, Bengaluru and Chennai. “Chennai is now getting into a good shape because supply is drying up, whereas Mumbai, Delhi and Bengaluru are in great shape. It is true, though, that Chennai will not see value appreciation like the other three cities I have mentioned, but it not see value depreciation either,” he said. Noting that Hyderabad was poised for a serious up cycle because it had gone through the doldrums of political uncertainty, he said that he did not share the same enthusiasm for Kolkata. “Kolkata will see a serious downside because the stream of supply coming in is just tremendous. To illustrate, what Pune went through in the last five years, Kolkata is likely to go through for the next five years. Demand will grow but the pace of supply will make them fight harder,” he said.

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Sustainable tourism can abridge social disparity; East-Asia a great example for India’s way forward, notes Nakul Anand Nakul Anand believes that tourism has to be sustainable. He bats for transforming India into a year-round destination by leveraging the plethora of offerings that remains untapped. He cites the example of East Asia which can be emulated. By shashank shekhar

alling tourism a way forward to deal with challenges grappling the nation, Nakul Anand, Executive Director, ITC Limited pointed towards the massive scale of jobs and economic growth that tourism brought itself with. He, however, lamented the prevalent notion that tourism was being labeled as an elitist activity. “It is still being taken as an elitist activity, even as many nations in the world have successfully demonstrated

bigger threat than terrorism, he informed the gathering that global consumption had grown to five times in the last fifty years. “Asia has the dubious distinction of being the chief Carbon emitter, accounting for over 35 percent of global emission. It is also not a co-incidence that 2015 was the hottest year in the recorded history,” he said. Pointing towards a systematic loss of flora and fauna, he noted that over 52 percent of the entire wildlife was lost in the last 40 years, making a case for why sustainable tourism was the need of the hour.

☛ Our challenge will be to move forward from being a seasonal destination to become a full-fledged year-round destination. Seasonality has been one of our biggest problems. Few people, however, realize that with the abundance of products and diversity of natural settings, the opportunity that India has to make itself a 365 day destination is phenomenal. the power of tourism in creating economic growth and prosperity for their people,” he reasoned. But instead of senseless development that ravaged natural resources, he batted for sustainable model of tourism. “Tourism should, aptly, be described in one word: sustainability,” he said. He further added that assimilating sustainability into the tourism model provided with an opportunity to use the push to create a pull for India as a destination. Noting that threats posed by climate change loomed large and many believed that it was even a

“India is the hotspot of climate change. Almost 70 percent of India’s entire land was prone to draught,” he noted. Making a pitch for tourism as the one-stop solution to India’s woes in creating sufficient meaningful employment for its large workforce, he informed that it had the potential of bringing in big bucks for the nation. “Tourism is the third largest foreign exchange earner for India. An investment of one million creates 78 jobs in tourism while only 45 jobs in agriculture. India needs to create as many as 12 million jobs each year

to keep up with the growing numbers of aspirants,” he detailed. He also said that through creating employment in the tourism sector, much of the economic disparity could be addressed – which, to his understanding, remained one of the major challenges of the nation. “What makes tourism unique is the power of wealth distribution it brings on the table. It is a redistributor of income,” he said. He informed that India was placed at 52nd position out of 141 countries in the travel and tourism competitive index. “This is where I see a great opportunity to move up the ladder to say seventh or eighth position, leveraging through our diverse offerings,” he said, stating that he saw an opportunity in every adversity. “Our challenge will be to move forward from being a seasonal destination to become a full-fledged 365 day destination. Seasonality has been one of our biggest problems. Few people, however, realize that

with the abundance of products and diversity of natural settings, the opportunity that India has to make itself a 365 day destination is phenomenal. Given that we such a diverse set of offerings, there is no reason why we cannot achieve this,” he outlined the way forward. He had a word of advice for the hospitality industry. He said that now the focus needed to be on creating demand. “There is enough supply in the market. It is the opportune time to look at augmenting demand, at least for the next 2-3 years,” he said. He believed that for tourism to flourish, we needed to look at how East Asia had been able to create a conducive environment. “India needs to shift its focus to East Asia. Compare your fares, taxes, products and policies to East Asia. They earned 150 Billion dollars through tourism. Even if we are able to tap ten percent of what they get, we would have added a hefty 15 Billion

dollars to foreign exchange earnings,” Nakul Anand shared. He quipped that India did not need to sell beaches in Maldives. What India needed to do was to sell focused products in specific markets. “All eyes today are on India as we have a government with a majority after over two decades. It is India’s time for business induced growth. But we have to make sure that the growth is sustainable. As India shifts its outlook from redtape to red-carpet, opportunities are opening up every day through a plethora of new measures like the ‘Make in India’ program, regulatory framework, ‘Digital India’, and construction of ‘Smart Cities’ etc,” he noted. Adding that it was possible that India could deliver two-thirds of the world economic growth in the next four years, he stressed that “this growth will bring itself with challenges which can only be tackled if we are able to take the sustainable route.”

ROCA right and ready to cater to wide spectrum of hotels, asserts Sandeep Sharma S andeep Sharma, National head of hospitality and business development, ROCA sounded optimistic as he shared his understanding of the future of hospitality industry and its rub-off effect onto suppliers. \ He said that given that the industry was witnessing improved businesses and revenues, ROCA had ample opportunities to increase its market presence as a supplier. “There is no doubt that the market has improved which has opened up more avenues for us. As new hotels come up in different parts of the country, it gives us the opportunity to engage with larger industry to

work together in creating exquisite facilities of guests,” he opined. sandeep sharma national head of hospitality and business development, ROCA

For private bathroom space in hotels, ROCA caters to a wide variety of hotels. Urban and cosmopolitan, country and rustic, contemporary, renovated and even budget hotels, we have solutions for the entire spectrum of hotels, making us an ideal choice for any type of hotel operator – be it standalone or a major luxury chain.

editor:

Noting that ROCA had incorporated some of the best designs that kept in mind the need for energy and water consumption in the age of sustainable and responsible hotel operations, he informed that products like duel flush WCs, water saving faucets, energy saving faucets and low consumption urinals were designed to stay ahead of the curve. “For private bathroom space in hotels, ROCA caters to a wide variety of hotels. Urban and

cosmopolitan, country and rustic, contemporary, renovated and even budget hotels, we have solutions for the entire spectrum of hotels, making us an ideal choice for any type of hotel operator – be it stand-alone or a major luxury chain,” he added. ROCA, as a major supplier, manufactures basins, faucets, shower area, accessories, bathtubs and WCs which makes it an ideal solution for hotels looking to give their guests a world-class experience.

Navin Berry navin@tourismfirst.org contributing editor: ritwik sinha ritwik@tourismfirst.org features editor: Priyaanka Berry priyaanka@tourismfirst.org senior writer: Shashank Shekhar shashank@tourismfirst.org

Tourismfirst is owned, published and printed by Navin Berry and printed at Anupam Art Printers. B-52, Naraina Phase II, New Delhi. It is published from 36-37, 3rd Floor, Indra Palace, H-Block, Connaught Place, New Delhi – 110 001. Tel: 011-43784444. Total pages 32

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Grand Hyatt Mumbai

Hyatt Hotels stay steady, on course, not chasing numbers and delivering quality TourismFirst interviewed Peter Fulton, Group President, EAME & SW Asia, Hyatt Hotels and Arun Saraf, owner of Grand Hyatt Mumbai and several other properties operating exclusively with Hyatt. Responses below are featured combined between the two, except for specific questions asked of Arun Saraf at the end of the interview. By navin berry So how do you see Hyatt Hotels building value for your owners and your customers in an environment that is appearing more and more competitive and complex as we go further? Hyatt is a very unique company. It is not going for numbers. It is not counting the number of hotels. It is bringing in quality rooms and quality products into the market where a discerning traveler at every price point can find his Hyatt; the lowest price point of Hyatt Place or the highest of Andaz or a Park Hyatt. We are not in the numbers game. It is about putting brands together that satisfy every person or every traveler looking for a certain experience. Such as the Hyatt Centric for those who want to be downtown or the Hyatt Zilara or Hyatt Ziva in the resorts portfolio because there is a market out there for people who want to be with the family, or travel with couples.

A lot of these new brands which you are talking about, have yet to enter the Indian market?

They will, they are yet new. For example, we just launched the Unbound Collection and we did that last month in the US. Now that was to pick up the opportunity for our loyal customers who want to go experience a castle that has been converted into a hotel in France. It is for unique experiences. We are developing hotels based on experiences rather than this is the size of the room etc.

When you launch brands such as Andaz, would you call it a Hyatt Andaz, or only as Andaz? Does it have a prefix, or stand alone? Andaz is one of the few brands we have that does not have Hyatt in its name. But that’s our luxury lifestyle unique experience brand.

But does it help to put a Hyatt pre-fix to it?

to understand what Andaz is? In recent times, one has seen totally new bands open, and soon close for lack of awareness of what they stood for!

Better still, I think we need to ask yourself why it is not working. If it is a fantastic hotel, that is in the right location for the right person it would work. So you can go put 2-3 million dollars putting up billboards, and yet fail, because the product was either not right, or not in the right location - it all needs to be right! Yes it is about brand awareness, but what does that mean. How does it come about? The customer has to first stay there, then understands what it means. But first and foremost, how do you get customers to go in. It also demands that the brand needs to be well defined. We want to talk to you but how do we reach out to you? An OTA gives us no information about you as an individual. But once we have you in the hotel, we know who you are, and we give you the experiences that makes you feel comfortable, you will come back.

Where do you position an Andaz in relation to say, a JW Marriott?

So Andaz is luxury, it’s a bit below the Park Hyatt. It is breaking the mould of luxury hotels in this country. Because you will not have… Andaz is a very specialized, super luxury product. So a person who has seen everything is the person who goes beyond that. So at JW, or Grand Hyatt that experience and look and feel is different. People who have experienced this and they want more. Andaz is for that breed of customer.

Is there a common thread in Andaz? Or is each different?

Each Andaz is different. For instance, if you go to the Andaz in Maui or the Andaz in Amsterdam, these I mean these really reflect where they are. At Aerocity, all the rooms have different artworks that reflect Delhi.

I don’t think you would book it because it’s a Hyatt. You will book it because you know what Andaz stands for. Some lifestyle brands actually benefit from a Hyatt suffix but some do not. But all of them have a similar Hyatt top management quality at every price point. So when you say Andaz, it doesn’t matter. The Andaz customer is not looking for the Hyatt prefix, he is looking for that experience.

Is this quite different from a Grand Hyatt?

So would you spend that much more resource in making the customers in India, for them

It is a good opportunity for us. Marriott and Starwood combining together will definitely become a large

Yes, very. It’s the architecture and the interiors. You walk in and you experience something totally different. You won’t find the lobby!

With this forthcoming almost done deal of Starwood and Marriott creating the merger of the loyalty programs and the total room inventory, is Hyatt getting smaller?

company but they will lose their soul. Hyatt being small is still going to be specialized and caring, because the customer needs more. We have 600+ plus hotels worldwide.

in first quarter of 2017, will change Lucknow, just as the Ahmedabad one changed Ahmedabad which opened April last year. Lucknow is 210 rooms and it is a Hyatt Regency.

Would you say you are taking more a boutique approach?

What news on the Park Hyatt in Goa?

We do not want to be the largest hotel chain. We are the smallest large hotel chain. This is not a numbers game. This is building experiences. We want to be where our customers want to go. And we want to be at those customer price points.

How is your growth happening in India? Are you happy?

Our growth mirrors everyone else’s growth in India. Last 4 years have been very difficult; you are now starting to witness a resurgence of interest in developing hotels. Hyatt has 4 projects in development.

Arun, you are the owner of one of the few iconic properties in the country, The Grand Hyatt remains literally at the top of the pack, in Mumbai? How do you intend to keep this image going? The Lucknow hotel to be opened

They won their court case, they now expect the bank to go appeal to the Supreme Court.

What does this mean, what the courts are saying? It means that the courts are saying that the process of sale was not done correctly. In the meantime, the hotel continues to operate and keeps going from strength to strength.

The big talk now is of budget hotels and what’s Hyatt’s plan to become a bigger player in the budget category?

So we are not in the budget category. Hyatt Place is also not budget. You as an individual and as a traveler when you talk about budget, is it just about the price? People pay Rs3000 for a hotel room, and at Trident Gurgaon you pay Rs1100 for club sandwich, so tell me the logic. Is budget Rs1000 a room?

When I say budget, my understanding is let’s say about Rs 4000?

So there are five star hotels in this city selling rooms at 4000 bucks. It is about the experience. So at Hyatt Place you don’t have bell-boy, you don’t have room service. The rooms are at about 5000/6000. It is a limited service brand, an entry level to the Hyatt experience. We are not operating at any lower level.

Arun, how do you see the launch of Andaz? What does it mean to you and your family?

We opened the Hyatt Regency brand in India and it was a sterling success. We launched the Grand Hyatt in India with our Mumbai product, and it has remained iconic. We shall now do the same with Andaz in Aerocity.

And you, Arun, remain a staunch Hyatt man, from one brand to another, without ever a thought of having hotels operating under different brands?

Why should I? Happy to be with one brand, and remain steady with them, and grow with them, and they grow with me.

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The power of branding and the Marriott advantage across all brands On the opening day, on the sidelines of the HOSI Summit, TourismFirst caught up with Rajeev Menon, who is now based in Singapore and looks after Asiapac region outside of China, Hong Kong, Macau and Taiwan. How does he see the growth of Marriott in present times and how do challenges in hospitality differ between India and the rest of Asia? By navin berry

o Indian leisure market per se, I see immense value in it over the long term – why, because looking at the demographics of the country, look at how busy the working population is, and as wealth improves, we have seen this across the world, that people want to get away. They will try and get away for short periods of time which makes a perfect opportunity for Indians to take 3-4 day short breaks. When you look at the success of our JW Marriott Mussoorie it has been driven because of that. They are willing to pay high rates if they get good quality. And as more and more resorts come about, infrastructure improves, I see immense potential in growth of leisure tourism driven by Indians within India. What is the learning from Marriott Jaipur, as this is another leisure market, too, to consider? So Marriott Jaipur over the years

for the country, now you are saying your footprints into the leisure market are growing, so is there anything specifically you want to say for the future as for the present or expanded Marriott - what role you can play, a group with the largest group inventory in the country. See as a company even today we stay very focused on developing leisure travel as we grow hotels in markets around the country. We are also looking at a Fairfield Amritsar this year, a city that has so much religious tourism to boost. So I genuinely see a lot of opportunity, a lot of it is driven by our own internal push through promotions and rewards. Globally, we have 54 million members on our loyalty programme. As foreigners come into India and want to go to Chandigarh or Amritsar and if there is a Marriott branded hotel, they will typically choose that hotel. Is there any statistics to show that once there is Marriott flag in the city what kind of travel and

☛ Regarding the Starwood-Marriott merger, Menon shared that presently the boards of the two companies would meet later this week and take a final call. Subsequently, they would have to wait for regulatory approvals from governments, some have come and some are yet to. Only after then, will Marriott be in a position to talk. has done quite well, from the point of view that it is the one hotel in Jaipur that when it opened it was really catering to three different segments. One, the convention facilities that we built in the hotel made it a great convention hotel, it also served as a destination wedding hotel and Jaipur is home for weddings. The location of the hotel also gives us a good advantage, that part of Jaipur is starting to become very active in the corporate community. And then the main play is the leisure, both domestic and international travel. So all three combined have helped the hotel – weddings, and MICE, but let me say that most of it is Indian. And when you look at a hotel like in Jaisalmer, again the profile… We expect to open a hotel by the end of the year in Jaisalmer. My sense is sometime over September, that market is going to be a little more seasonal, with a higher concentration of foreign travelers. The mainstay would also be driven by destination weddings. And some MICE. It’s got great outdoor spaces and should prove to be a good hotel for weddings So looking at tourism as a whole

tourism you draw additionally to that city? I will have to look at soma data to know that. But what we typically do is to measure is one, we have done studies to show that a Marriott reward customer typically travels further to stay at a Marriott hotel as compared to other branded hotels. We have seen where we have Marriott hotels, and well run Marriott hotels, we get higher premiums against our competitors but that’s based on us pulling a bigger share of the market. What you have to remember is we get big global brands like Marriott, Starwood or Hyatt opening up in a market that also gives the consumer the comfort. So that’s the drive one can say helps drive people. Consider the case of Mussourie, a hill station that we all grew around as kids, eventually lost its shine and when you talk about opening a hotel, you worry that you are opening a hotel in market that doesn’t have any quality product and the customer base is really not that of a luxury traveler - so what we saw…about 5 km away from the Mall Road, the hotel today drives one of the highest rates in the country. It is consistently the num-

We have seen where we have Marriott hotels, and well run Marriott hotels, we get higher premiums against our competitors but that’s based on us pulling a bigger share of the market. What you have to remember is we get big global brands like Marriott. ber 1 hotel when it comes to guest satisfaction in our Asia system. That tells me the success and potential of leisure travel. 90% plus of our base is Indian travellers. It also tells us about the power of the Marriott drive to drive business. You talked about your Marriott rewards. Hypothetically, once you have your alliance in place with Starwood, then your rewards combined with SPG, will there be any loyalty progamme that can even come close to that? Globally, Marriott is 54 million and from what I know, Starwood is about 21 million. We have almost 4400 hotels in the world and Starwood has 1250 hotels - that’s the difference. They are two very strong loyalty programmes and if everything falls in place then eventually this will be a great competitive advantage for us. How is the overall economic environment in your area as far as hospitality is concerned ? So it is interesting, there are three markets for us that are doing quite well. One being Japan, it is very strong, the growth in Chinese tourism into Japan has been phenomenal. Japan will host the Olympics in 2020, so Japan’s travel business is thriving. The second market is Thailand which is doing reasonably well. Thailand has been prone to some or the other challenge almost every year but over the course of last year and this year it is doing well. India has been a star performer for us over the last couple of years. As the Indian economy is starting to improve, the sentiment for business in improving, we are seeing very strong growth. Our Indian portfolio is quire big now. So these are strong markets, markets where we have challenges are Indonesia and Malaysia because of the commodities issues, these economies were heavily based on oil and commodities. So the economies have slowed down and they are showing not as

robust a growth as other markets. My expectation is that by the end of the year, we remain focused to getting a double digit rev par growth in my part of the world. Tell me typically when you look across markets, how is the challenge in terms of general operations of hotels different or same? So in some cases there is uniqueness to the markets. In other cases, there is a lot of commonality. While India is at the forefront for the rise of domestic tourism we are seeing improvement in domestic tourism in places like Indonesia,

Philippines, Thailand where hotels in the past that were only catering to international travelers, today the number of Thai or Indonesian travelers has increased dramatically. I am talking 30-40% within their own country. Low cost airline carriers have helped in this regard. Another commonality, in terms of challenges, what we experienced in India a few years ago with slowing down of the economy, a lot of supply in the market, issues with bank loans, now we are starting to see similar issues in places like Indonesia. They have a bigger challenge, in the short term, that many of the loans that were taken in that market were taken in US currency, so as the currency depreciates, that burden gets bigger. So if you successfully learn in one market, you can apply that in other markets and create efficiencies in how we do business. However, what works in one country, may not work in another. But you can figure out ways of driving efficiencies based on your learnings in other markets. What is the one big learning that you have acquired from India? I always say that India taught me genuine hospitality. India as a country, as a culture and as a business, has had a legacy of genuine hospitality. And for that I remain indebted to India!

Roca spells luxury and supports hospitality

leading partner at HICSA is Roca, a brand that has captured the imagination of interior designers and architects when it comes to creating luxury in hotel rooms. A strong team from Roca is here at HICSA to meet with existing clients and also to make new clients from hospitality. The Spanish major has found ready acceptance with brands such as JW Marriott, Radisson, Radisson Blu and ITC, among others. From the economy model to the high-end, Roca offers more than 15 choices to pick. Of special interest would be the advanced technology water saving products, specially suited for green hotels.

LIVE at HICSA In-between stimulating sessions, there is that pang of hunger! Light refreshments prove adequate chargers for delegates to soon return, for some more animated discussion.

Networking breaks that provide nourishment for body and mind

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Left: Maharana of Mewar browses through the TourismFirst Day 1 issue. Right: Sunil Ghadioke (left) shares details on the HICSA programme.

Left: Much to read among delegates. Right: SP Jain with Sudeep Jain and Naveen Jain.

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Hospitality leaders vote for India, confident of growth momentum in the coming years With growth parameters not being in the fine fettle in other parts of the world, Indian market is consolidating its position as a favourite turf for the global hospitality majors. By ritwik sinha

kapil chopra President, the oberoi group

ith the economic fortune of the developed markets continuing to stay in a sluggish mode and some of the major pillars of the emerging economies club (Brazil and Russia) not exactly firing on all cylinders, the leading players of the hospitality industry are looking at India (alongwith China) as the favourite growth turf for a mid-run horizon. At the leaders panel discussion at HICSA convention yesterday, the senior representatives of the leading global hospitality brands exuded confidence that the growth momentum for their business would intensify in India in the coming years. The hour long deliberation began with the basic question - two years after the NDA government came into the saddle with the promises of transforming Indian economy and its various sunrise sectors, has it done something to enthuse the global leaders? “This new government is now two years old.

GDP is growing by over 7 percent. But the moot point is: has the scene got better for the hospitality industry?

jan smits CEO - amea, intercontinental hotels & restaurants international

We have looked at this opportunity in India a few times since we have successfully created such properties in the US market. We will have to look at market conditions here more closely. airports in India in the past and how they have changed,” responded Criag Smith, President (Asia Pacific), Marriott International. Thorsten Kirschike, President (Asia Pacific), Carlson Rezidor spoke no differently. “Two years is too short a period to make a judgement. The overall sentiment, however, is positive. The

☛ The discussion by the hotel industry

leaders also captured other interesting subplots which may be added to the growth story of Indian hospitality. For instance, branded residences - a segment which is being pushed by many hospitality majors in the developed markets. “Will it also take off in India in a big way in the coming years? And if we look at macro-economic parameters, GDP is growing by over 7 percent. But the moot point is: has the scene got better for the hospitality industry?,” asked Kapil Chopra, President, The Oberoi Group, also the moderator of the session. “Things are looking great for India. The forecast for India for the next ten years is that it will fast outstrip China in terms of GDP growth. Modi government has certainly created a positive environment. We are certainly looking forward to open more hotels in India. You need to have some patience to see the actual result of this positive mood. Just remember, the condition of

real challenge going ahead would be to see the pace at which projects are executed,” he observed. Ratnesh Verma, President & MD, Whitbreads Hotels, however, issued a cautionary note. “We have always believed that India is a long-term story. The issue is: when will it become the now story? Does it have depth in the market beyond 5-6 cities? And there are plenty of regulatory and taxation issues for the hospitality industry. I would like to see some decisive movement towards the now story,” he opined. His company (operating 750 hotels in the UK alone), however, is opening two new units in India in the next six months – in

Craig Smith President - Asia Pacific, Marriott international

You need to have some patience to see the actual result of this positive mood. Just remember, the condition of airports in India in the past and how they have changed.

peter fulton group president - EAME & SW Asia, Hyatt Hotels Corporation

Branded residences could be an exciting opportunity. thorsten kirschke president - asia pacific, carlson rezidor hotel group

Branded Residences have posed some serious challenge in many countries. And it primary because of its basic structure – there are multiple owners. And in India where we need more than 100 permits for a hotel project, we would opt to wait for better regulatory environment.

Goa and Chennai. According to Thorsten, the Carlson Rezidor group which is considered to the fastest growing MNC hospitality firm in India, the company is now reaching out to the tier 2 & 3 markets. “We almost have a presence in every state capital. And now we have identified

the vibrant tier 2 & 3 destinations for our future moves. We are entering in these places on the basis of our analysis (demand and sales equation) of these markets.” The discussion by the hotel industry leaders also captured other interesting sub-plots which may be added to the growth story of Indian hospitality. For instance, branded residences – a segment which is being pushed by many hospitality majors in the developed markets. “Will it also take off in India in a big way in the coming years?,” asked Chopra. “We have looked at this opportunity in India a few times since we have successfully created such properties in the US market. We will have to look at market conditions here more closely,” said Jan Smits, CEO (AMEA), InterContinental Hotels Group. “Branded residences could be an exciting opportunity,” added Peter Fulton, Group President ( EAME and SW Asia). But according to Thorsten, developing branded residences does not seem to be easy at this stage. “Branded Residences have posed some serious challenge in many countries. And it primary because of its basic structure – there are multiple owners. And in India where we need more than 100 permits for a hotel project, we would opt to wait for better regulatory environment.” The criticality of manpower issue in the Indian hospitality sector again found prominence in the discussion with the industry lead-

ratnesh verma president & Md, whitbread hotels & restaurants international

The real challenge going ahead would be to see the pace at which projects are executed.

ers venting out different solutions even as they were unanimous in their voice that the players themselves need to do more. “If we look at a country like India, there is no dearth of talent. The responsibility lies with us. We have to create a robust home-grown talent pool. We have to see that our eco-system offers right work balance to them and we are compatible with their requirements,” said Fulton. The concluding part of the discussion probably raised the most pertinent point of the day – how does hotel industry combat the OTA threat? And industry captains emphasised that while the online players have become an integrated part of the business value chain, there is scope of better equation between the two sides. “I don’t think they are bad. The problem is they are becoming too demanding,” observed Craig Smith. “The consumers need comparison and we hoteliers need to be represented on all channels available. Travel agents have always been there. With OTAs, we need a more healthy association,” added Fulton.

Kapil Chopra

Craig Smith

Jan Smits

Peter Fulton

Thorsten Kirschke

Ratnesh Verma

Andreas Flaig EVP, Development t: +65 6511 9290 aflaig@carlsonrezidor.com

Zubin Saxena VP, Development t: +91 124 4723 312 zubin.saxena@carlsonrezidor.com

Day

what’s AA trending

Park Inn by Radisson and Radisson RED, a new wave of hospitality branding Addressing complex aspirations of aware consumers is a challenge that Carlson Rezidor intends to take head-on through innovation and careful positioning, says Andrew Flaig. He backs his assertion by stating that the new wave of hospitality branding in India will be led by their latest entrant – Radisson Red.

e are in the business of curating guest experiences and creating memories that solidify into guest loyalty. Guests come back to stay at our hotels repeatedly because we have successfully delivered compelling propositions. In a crowded market, we interest and engage increasingly sophisticated consumers through innovation and careful positioning. Today’s travelers have complex expectations and as the guardians of a differentiated brand portfolio spanning all major segments, we recognize the need to have the right brand, addressing the right audience, in the right place. In anticipation of the rise of the millennial segment, Carlson Rezidor developed the upscale, lifestyle select brand, Radisson RED, which appeals to millennial-minded travelers, across age groups. Following the signing of the world’s first Radisson RED hotel, Radisson RED Shenyang Hunnan, in 2014, we signed four more Radisson RED hotels last year in Asia Pacific, in top destinations across China, India and Indonesia. By 2020, Carlson Rezidor expects to have 60 Radisson RED hotels worldwide. About half of these hotels will be in Asia Pacific and many will be located in India, where the growing millennial population is one of the largest segments in the country.

Radisson RED is an innovative hospitality concept with a focus on design and the technologies of tomorrow. It addresses changing consumer behavior and delivers a hotel experience that is enhanced by art, music and fashion. We are confident that Radisson RED’s positioning and lifestyle appeal make it the right brand for India’s tech-savvy, adventurous and price-conscious younger generation. The brand is a great fit for high-traffic urban markets such as Delhi, Mumbai, Bengaluru, Pune, Hyderabad, Kolkata and Chennai, where demand is well supported by demographics. And for property owners, Radisson RED offers a lower per-key construction cost than traditional upscale hotels. Radisson RED can be developed as a standalone hotel or as part of a mixed-use development, where the hotel can be synergized with the office and retail components. The return per square foot on a Radisson Red is expected to be strong in a mixed-use development. In addition, the brand’s multi-functional approach and efficient use of space also reduce operating cost significantly, driving higher margins. It will not be long before we unveil India’s very first Radisson RED hotel, now under development, as part of our collaboration with Bestech Hospitalities. We

expect to open Radisson RED Chandigarh Mohali, located in the northern Indian state of Punjab, in 2018. We also see great development potential in India for our midscale Park Inn® by Radisson brand, across primary, secondary and tertiary markets. Given the brand’s construction cost and development specifications, it is a particularly good fit for secondary and tertiary markets where an infrastructural renaissance is currently taking place. Accessible and inclusive, Park Inn by Radisson is a bright, bold, fresh, uncomplicated and friendly brand, with unexpected touches of contemporary design. To cater to the preferences of the Indian market, we have fine-tuned the specifics of this otherwise limited-services brand to include an all-day dining restaurant, banqueting options and room service as well. At the moment, we have five Park Inn by Radisson hotels under development in India. We also have six that are already in operation, including Park Inn by Radisson Bilaspur and the newly opened Park Inn by Radisson Amritsar. With Park Inn by Radisson and Radisson RED, Carlson Rezidor is well positioned to meet the changing expectations of the Indian market and to fuel the Group’s continued expansion in India.

Andreas Flaig Executive vice president, Development, Asia Pacific, Carlson Rezidor

We are confident that Radisson RED’s positioning and lifestyle appeal make it the right brand for India’s tech-savvy, adventurous and price-conscious younger generation. The brand is a great fit for high-traffic urban markets such as Delhi, Mumbai, Bengaluru, Pune, Hyderabad, Kolkata and Chennai, where demand is well supported by demographics.

Paradox of Wi-Fi in Indian Hotels

e live in the “NOW” era – need food? Order online NOW! Need to talk to a friend, family member, or co-worker? Skype, FaceTime, Whatsapp NOW! Need information of practically any kind? Google NOW! The point being, internet is now just another basic requirement for our day to day functioning and not a luxury service. Nevertheless, most branded hotels in India charge exorbitant rates for the same. Many hotel brands across the globe claim to provide complimentary Wi-Fi; however, in India, these policies seem to alter across positioning. The common justification offered is that hotels usually charge for this service in order to make up for the expense of providing it, especially considering that the relative cost of installing the same in a country like India is extremely high. Nonetheless, it is ironic that Wi-Fi is one of the most prevalent upcharge across the upscale and luxury hotel market space in the country, even as mid market, budget and economy hotels have made it a complimentary service. How does this work? The answer is quite simple. Luxury and upscale hotels assume that their client base has not only the potential to pay these rates, but the willingness to

Diksha Chopra, Analyst, Consulting & Valuation, HVS

do so too. These assumptions stem from the ability of these guests to pay more for their rooms and other hotel services. Unfortunately, they miss a critical point. Most guests putting up at these hotels are business travelers whose companies pay for the stay. Guests paying out of their own pockets tend to be price-sensitive, and in recent times have frequently sought accommodation at hotels of lower positioning.

It has become a trend for big hotel chains to offer Wi-Fi as a loyalty benefit. Marriott offers free basic Wi-Fi to guests who book directly with the company and enroll in its Marriott Rewards loyalty program, which is free to join... In a world where a day without internet access is referred to as a “getaway”, hotels need to understand the importance and necessity of this service to guests.

Moreover, the issue of Wi-Fi has often been looked at from a customer’s point of view, and hence, it is only fair to address it from the owners’/hotels’ viewpoint as well. While customers rave about complimentary internet access in

Carlson Rezidor is among the few hotel companies that has made high-speed internet complimentary for all its users

unbranded or lower-positioned hotels, the majority of these properties are unable to keep up with the latest technology and bandwidth. On the other hand, luxury hotels strive to offer the best across services, including Wi-Fi, and thus, charging for the same is perhaps the only way to ensure reliable and secure high-speed connectivity. This paradox has left most of the hotel companies not only in India, but across the globe in a fix. In order to counter the same, many have resorted to offering complimentary basic internet access even as they

charge a certain fee for premium access. In addition, it has become a trend for big hotel chains to offer Wi-Fi as a loyalty benefit. Marriott offers free basic Wi-Fi to guests who book directly with the company and enroll in its Marriott Rewards loyalty program, which is free to join. Also, Marriott Platinum and Gold loyalty levels get complimentary high-speed service. Similarly, Starwood has free Wi-Fi for all its loyalty club members and it provides free premium service to guests in the top tiers of its program

if they book online directly with Starwood. Furthermore, InterContinental Hotels Group, which includes Crowne Plaza, Holiday Inn and other brands, initially offered free Wi-Fi services only for its elite loyalty program members, subsequently making it complimentary for all its members. On the other hand, Hyatt and Carlson Rezidor are among the few hotel companies that have made high-speed internet complimentary for all their users. Meanwhile, there are brands like Taj, Hilton and Lemon Tree, which also provide complimentary internet; however, don’t miss the little asterisk in the corner that indicates the provision of a 512-Kbps bandwidth only, which is barely sufficient for emails. In conclusion, in a world where a day without internet access is referred to as a “getaway”, hotels need to understand the importance and necessity of this service to guests. Wi-Fi should not be used as a perk, trading tool or priced at half of one’s monthly home internet charges. Instead, it is time that this service becomes a given in a hotel just like television, concierge or a fitness centre, among others. We, therefore, remain optimistic that hotels will address this issue in the near term – hopefully, before the next time any one of us here is checking in!

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HVS report

Owners bullish on mid-segment; high investment and lack of skilled manpower major hurdles, outlines HVS survey ‘The Indian Owner Speaks’ stakeholder sentiment survey conducted by HVS has revealed some fascinating trends in Indian hospitality. After years of lull, there seems to a palpable buzz for more investments. Another striking takeaway is the fact that majority of participants have shown preference to managing a property, rather than engaging through a franchise. Some key excerpts follow:

VS India shared the interesting results of the second edition of its pioneering owner's survey, which like in the past highlighted the opinions, perceptions and concerns of Indian hotel owners. Although some of these remained unchanged since the last survey conducted in 2013, several new challenges, demands and preferences of this important industry stakeholder seemed to emerge this year.

The sample set

Data collection for the survey commenced in March 2016,marked by the dispatch of a self-reporting survey format (online)to all owners in the HVS India database. Responses were received from a diverse sample set collectively owning 30,000 hotel rooms– 9,000 more than the previous edition – representative of around 26% of the country's branded room inventory, across varied market positioning and locations The majority of the owner’s sample set represented branded rooms in downtown (city-centre) location, with nearly half of them had an upscale positioning. Furthermore, in contrast to the last edition wherein the average age of most hotels was less than three years, this year almost two-third of the hotels represented had been open for at least four years or longer, and

they were the top 10 international and top 10 domestic brands in India by existing inventory as of August 2015. Although Starwood and IHG maintained their third and fourth ranks, respectively, the gap between the two had narrowed down substantially. As per the survey, all the other international brands considered herein had maintained their rankings over the two editions of the survey. Base fee, performance clause and owner's priority stay were the three most important areas for negotiations when evaluating a management contract with a brand. Management contracts continued to remain the more popular form of engagement with a brand in comparison to franchising.

Green shoots emerge after years of lull

Looking ahead, greater numbers of owners in the sample set anticipated hotel revenues, as well as hotel development and operating costs to rise in the next couple of years. They expected lending interest rates to remain stable, while nearly an equal number of owners believed that hotel values would either increase or remain steady. Notwithstanding the above, 86% of them were keen to invest further in this sector, focusing on the upscale and mid market segments, with the sample set almost equally split

☛ Despite the overwhelming anticipation of rising operational costs in the coming years, a high number of hoteliers are keen on further investing in the sector ☛ Private equity has become the most preferred source of funding for hotel assets displacing debt - which was preferred in the last survey nearly half of these were renovated in the recent past (46%, in the last three years). Investment-friendly taxation policies (including the introduction of a single tax), infrastructure status for the hotel industry, and improving the ease of establishing and doing business came up as fresh demands of hotel owners from the government of India.

International brands gaining traction as better operators

As per the result, international brands appeared to earn more patronage since the last survey (2016 – 73%; 2013 – 55%) with higher number of owners finding them to be better operators than their domestic counterparts. Furthermore, greater numbers of owners were satisfied with the performance of their current hotel brands than in 2013. Remarkably, Marriott and Oberoi have surpassed Hyatt and Taj to become the most preferred international and domestic brands (overall), respectively. Interestingly, rankings for the Most Preferred F&B Operator have remained unchanged from the last survey, except for the inclusion of The LaLit. The brands featuring herein were provided as options for the ranking exercise in the survey, as

between owners opting to build and those opting to buy their next hotels – a deviation from the previous edition of the survey wherein most owners wanted to build their future assets investing in the mid market segment. Private equity surpassed debt to become the most popular source of funding future hotel developments, with personal funds and investment from brands losing traction between the two editions of the survey. Furthermore, a large majority of the owners surveyed preferred signing up with just one/two brands to develop several hotels as against staying independent, joining an aggregator or engaging a thirdparty management company. Yet another interesting finding was that 64% of the sample set were willing to access foreign funds via External Commercial Borrowing (ECB), which was not surprising given that close to half of them found the lending environment for hotel projects in India to be negative. Interest to invest further in the hotel sector was as strong as in the past, although keenness to buy hotel assets had significantly increased since 2013 (2016 – 47%; 2013– 30%). In terms of destinations, Goa, which had maintained an upbeat Rev PAR performance for five years

in a row, emerged as the top destination where owners wanted to either build or buy hotels. Mumbai, too, secured a substantial number of votes depicting owners' keenness to build hotels in the city, while in Delhi and Gurgaon, they preferred to buy hotel assets. Meanwhile, Bengaluru market conditions have led owners to adopt a cautious wait-and watch attitude, whereas in Jaipur,

Hyderabad, Chennai and Pune, the owner community was keen to sell their hotel assets.

Still, challenges remain

The survey brought out some of the major challenges facing the industry. As per the findings, cumbersome regulatory compliance and high taxes, inability to increase room rates owing to market

conditions, scarcity of quality manpower adversely affecting the overall quality of operations, alignment of owner and operator expectations and high cost of capital were some of the prominent issues that hotel owners felt needed addressal. Another catch-22 situation facing them was their inability to increase room rates owing to market conditions.

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Welcome to BITB. India's time has come. Presenting for the first time the big mega show on the region's travel and tourism vertical! Bringing together uniquely India, connectivity, big ticket infra developments, hospitality, global exchange and world connect on culture, holidays and business. At the heart of it, is the resilience, the robust growth, and power of the Indian Traveller! Bringing a sharp focus on traditional heritage and culture tourism, but equally on new emerging streams like MICE, weddings, Luxury, Golf and other sports and events, Technology in Travel, the show will be the first of its kind, powered by the world’s biggest player in the business, ITB Berlin! Strong B2B, alongside stronger partnerships that build conferences and side bar activities, supported by mainstream media in print and television. Each segment will be supported by leading players in their niche from around the world, bringing strong content, buying and selling, and B2B business of every kind.

The Best of ‘Glocal’ is Here! Global player ITB Berlin, the world’s biggest tourism fair, comes together with the most experienced local in India!

28-30 september, 2016 hall 18, pragati maidan new delhi www.bitb.org For more information connect@bitb.org

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Ease of Travel: Infrastructure and Facilitation SMART Cities, big ticket highways and new road, rail and river connectivity is ushering new destinations and helping tourists experience with local flavour, full of surprises. Road travel is emerging as the new big segment, particularly to near-by destinations outside of metro cities. Inland rivers are a great mode to discover any hinterland, as in almost all of Europe, and also as on the Nile in Egypt. India is opening its waterways for travel and tourism. Hospitality is witnessing big time branding, and availability on technology driven platforms, giving unbranded accommodation a never before reach. Destinations, States and Countries The first word in travel and tourism! Where does anybody want to travel? Obviously, to cities and countries around the globe, tourism is always destination oriented. From established cities and destinations to relatively lesser known, BITB is promoting city awareness, for their product uniqueness and variety. Discover what is new and happening all over India and around the world.

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Heritage, Leisure and Group Tourism The traditional base of tourism, and much of Indian travel, domestic, inbound and outbound – driven around culture and heritage, is a major focus. Whether visiting monuments, or for pilgrimage, it is cultural heritage that has driven much of Indian tourism. World over, this is a strong segment and continues to grow, common to both inbound into India and also overseas travel out of India. The entry level segment for travel and tourism that attracts group movement buyers, is also witnessing innovation in that it is growing niche as well, with adventure, shopping and other activities driving it.

Uniquely Indian Products: Heritage, Rural and others This one is a first time for any tourism event in India, to bring sharp focus to little nuggets tucked away far and wide across the country. These are small products that provide unique experiences built around their individual milieu and local conditions. In the heart of Ladakh up in the north, to tree top houses in Kerala in the south. In every part of India, there is a local tradition, a folk story and an experience to savour. This segment brings together experiences that are unique to India. Wellness, Yoga and Ayurveda A relatively new element to tourism promotion, Yoga is now proving to become a binding force among nations where people want to stay fit and healthy. There is the age-old tradition of Indian medicine, Ayurveda, which is being promoted – down south, and also along the Himalayas, in Rishikesh and Haridwar. AYUSH, the Indian government initiative has spearheaded the message of Indian schools of medicine. Both Indians and foreigners are fast taking on to organic foods, vegetarian diets and yoga! Spas are the ‘in’ thing as more and more resorts open around the world. Indians have started taking spa vacations to destinations overseas.

Technology and Online Technology is driving new age travel and also fast expanding the traditional business, creating new ease in travelling, from choosing, booking and experiencing every facet of the business. Online travel agents have increasingly improved their market penetration, providing destinations and facilities neverbefore reach to markets across the globe. First it was only with airline tickets, and then also with hotel bookings, car hires, movie and theatre tickets – some portals could be called end-to-end concierge services. Then there are simple booking engines, other sites are exclusive to hotel chains that bring some of their best offers. Back end technology is equally driving the business – to make for more efficient and effective delivery and at the best price points. MICE and Weddings The Meetings industry has grown phenomenally and has become a major stand-alone segment on its own. Combine them with W, the world of weddings and the package is complete. Indians splurge on weddings, in India or at select destinations around the world – the more exotic the city or location, the more the charm. Destination weddings are becoming ever more popular and Indians are driving much of it. It is not just the hotel, but also the airlines, PCOs and weddings planners, the facilitators who are eyeing this business. Luxury: Indian cities are vying Golf, with foreign ones, Cruises and it has become Second Homes a very Whether it is for a competitive game of golf, or looking world out for second homes, within there! India or overseas, some destinations are becoming very popular, indeed. Buying a second home in London, Dubai and Thailand is a growing segment, for example, or playing golf around Sydney! All over India, tourists want a piece of the sky for a second home! Wine holiday retreats are another growing favourite. Cruises are favourites, too, with more and more Indians looking for never before itineraries.

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Aviation: Airlines and Airports Aviation attracts big attention for India’s travel and tourism. Most of our inbound movements are by air. Air connectivity on regional routes promises to be another big ticket change, given India’s size and also some hard terrain on the ground, in areas like the North East, for example. Metro connectivity to niche tourist segments like wildlife resorts will bring ease of travel. Internationally, new routes have brought one-stop outreach to numerous new destinations around the globe, equally for inbound as much as outbound travel and tourism. Airports are getting upgraded; in some cities like Mumbai and New Delhi, second and third airports are being discussed. Discarded landing strips are being activated.

Hospitality: Hotels, Resorts and Cuisine India’s hospitality industry has witnessed a sea change over the last decade. At the top end is luxury, but there are now layers and layers of established brands selling from budget to mid-market and up-scale. Almost every city in the country is seeing more demand, and supply is not being left behind. Across the world, Indians are looking for appropriate lodging, with an eye for detail, and overall comfort. BITB is an ideal format for brand development and promotion, selling rooms and weddings and also for MICE. The world of cuisines is undergoing equal revolution – Indian food is getting more exotic and world cuisines are entering the Indian market. Investments: Developers and Promotors Tourism worldwide is attracting new investment, from within India and also from overseas. New opportunities unfold in destination development, hospitality and tourism related infrastructure. Whether it be roadside amenities on India’s growing highway space, or in tourism zones development such as the recent example of Aerocity in New Delhi. When the tourism product is on full display, what better than to also bring possible investors, engage them in a meaningful way to identify where they wish to invest. Event Based Tourism: Cultural, Arts, Literary and Sports First, there are the traditional fairs and festivals, coming down generations. Some of them have become important reasons for people to travel, and building longer holidays around them. Like, the Pushkar Fair in Rajasthan, for example. Of late, new kinds of events have grown around India, leading among them would be events like the Jaipur Literary Festival, and the Kasauli Literary Festival, among others. In the sporting world, there is the F1 in motor sports, and also IPL and T20 in cricket. Shopping festivals are proving popular. While Indians have started looking outside of the country, more and more foreigners are looking to attending events in India. A film industry event like IFA has grown into a great annual coming together of Indian cinema on the world stage. Strong media partnerships have contributed immensely to their popularity.

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what’s AA trending Guest Column

Upscale hotels in Goa are tapping new avenues to shore up their business

My Fortune Bengaluru

Let Fortune take you places T

By sunder g. advani chairman & Managing director, Advani Hotels & Resorts (india) Limited

ne of the fastest growing hotel chains in the country, Fortune Hotels with 72 signed properties, more than 5000 rooms spread across 54 cities in India, is operating 48 hotels at present. While providing business and leisure travellers a comfortable sojourn, it has won several accolades for being the best ‘first class full service business hotel’ chain. A wholly-owned subsidiary of ITC Ltd, a conglomerate that has a well-established presence in the Indian hospitality sector, Fortune Hotels was created to cater to the mid-market to upscale segment. Today, the brand has made its presence felt across the length and breadth of the country and is widely recognized for the quality of its service. Its unique “value driven" philosophy and contemporary product/service positioning has made it carve a strong niche for the brand in this segment. The chain operates through five clearly defined sub-brands, My Fortune, Fortune Select, Fortune Park, Fortune Inn and Fortune Resort. ‘My Fortune’, the latest addition to the Fortune brand portfolio, is positioned in the upscale segment at the high end of the brand pyramid. The brand represents best in class full service stylish hotels with young, vibrant and tech-enabled features. The first hotel under the new brand was flagged off in Chennai in 2011 and the second hotel was launched in 2014 in the garden city of Bengaluru. The ‘Fortune Select’ are upscale hotels offering contemporary product and services, located at business locations in metros and mini metros, in addition to the key strong markets like Gurgaon, Lavasa, Jaipur, Goa etc. The ‘Fortune Park’ hotels are ‘mid-scale’ business hotels located in metro/ non-metro cities. The ‘Fortune Inn’ are full service business hotels with 30 to 50 rooms. The ‘Fortune Resort’ properties are located at popular holiday and leisure destinations like Mussoorie, Goa, Port Blair and Ooty, and offer excellent holiday getaways for families and cater to both the ‘mid-market and upscale segment’. From capitals of various states, big and small metros to bustling business towns, Fortune has mapped out a growth plan to cut a wide swathe across the country. As it continues its sweeping growth across through its various subbrands, the focus of Fortune Hotels is holistic in its development. Each hotel is created to suit the business needs of a particular environment leading to a perfect economic fit, and with each property taking its roots in one location it opens up the possibilities at another level in a neighbouring hub of development. Fortune plans to maintain

its leadership position by following a balanced approach towards growth, expansion, brand extensions and providing the same assured quality of product and service across the country. The chain’s strategy rests on competitive pricing and full-service without compromising on quality. Giving a boost to its appeal are accessible locations, well-appointed rooms that are tastefully designed, modern décor, excellent cuisine, efficient service and state-ofthe-art facilities. Its advantage over standalone hotels in the several locations is quite clearly the synergy derived from being a chain: distribution network, central reservation systems, pan-India sales, marketing infrastructure and operations support. Fortune, member ITC’s hotel group, has been the winner of numerous awards – PATWA International Award 2016 for the “Best First Class Hotel Chain in India”, CNBC-Awaaz Travel Award 2015 for the ‘Best Hospitality Group’, Today’s Traveller Award and Safari India Award for the ‘Best First Class Business Hotel Chain 2015’, Hospitality India Award for the ‘Best First Class Hotel Chain 2014’,Travel & Hospitality Award for the ‘Most Outstanding Mid-Market Hotel Chain 2014’, Hotel Build Award 2014 for “Best MidMarket Hotel Chain” and SATTE Award for ‘Leading Mid-Market Chain 2012’.

hese are the interesting times for the hospitality industry in Goa. The hotel units, especially those in the upper scale segment, are making suitable adjustments to the changes in the business environment which presents a mixed picture. On the one hand, there has been a decline in the foreign tourists arrivals particularly from Goa’s main source market Russia, a perceptible surge in the domestic tourists footfall is the saving grace to a considerable extent. As per the statistics issued by the Tourism Department of the Government of Goa, about 540,000 foreign tourists visited Goa in the calendar year 2015. Moreover according to them ,there has been no drop in the number of foreign tourists visiting Goa over last year. The availability of e-tourist visas at Goa airport has helped in the foreign arrivals. The tourism department figures also show a commendable increase of 34% in domestic tourists visiting Goa. The number of domestic tourists is estimated to be in the range of 4700000. However, it must be understood that these are provisional figures and the real picture in terms of the actual arrival in Goa last year will only emerge after the final figures are released. But the organised hotel industry in Goa will vouch that domestic tourism segment is somewhat offsetting the decline in foreign tourists. At our own Ramada Caravela Beach Resort in Varca, we have seen the ratio of foreign tourists to domestic tourists changing significantly in the recent months. It used to be 60:40 in favour of the foreign tourists last year but now the equation has reversed. Our occupancy rate for the year ending 31st March 2015 was a little over 72%. This financial year the occupancy to date was slightly lower but due to the recently held DefExpo , we were totally sold out and the year round occupancy will be the same as the last financial year. The average room rates are up by almost 10%. The number of room nights sold to foreign charters primarily from Russia, and to a smaller extent from UK has declined by about 27% during

the current financial year. The drop in Russian charter business is partially due to the fact that Russians find it expensive to stay at upmarket hotels due to the dollar becoming more expensive and hence are going to cheaper destinations such as Vietnam or going to cheaper hotels in Goa itself. The number of Russian charter flights to Goa has also decreased because many Russian tour operators went bankrupt and the Russian consumer was afraid to book through a tour operator who may go bankrupt. There was little change in the number of UK charter arrivals as the flights operated by UK carrier Monarch were more than made up by UK based Thomas Cook Airline. More tourists are coming directly to Goa by scheduled airlines such as Qatar or via Mumbai through Jet. Considering the volatility in the foreign tourists arrival dynamics, the upmarket hotels have swiftly shifted gears and are looking to ways and means to consolidate their offerings for the domestic segment. The upscale hotels in Goa today are not only holding more weddings ( a trend which began about three years ago) but also having more conferences during the busy winter season as rooms were available this year at almost all hotels due to the drop in foreign charters. The occupancy during the shoulder and rainy season has also increased for the upmarket hotels as they have large banquet halls to take weddings etc. during these months. The smaller hotels cannot cater to this traffic and have been adversely affected. The icing on the cake is: there has been a decrease in airfares to Goa due to competition and also in the number of flights to Goa which has added to the increase in domestic traffic. More tourists are driving to Goa as roads are improving. Very few new hotels have come up in Goa over the last few years which has led to improved financial performance of hotels. This entails the pricing in the upmarket segment will remain stable and hotel units will increasingly attune themselves to cater to the domestic tourists.

Facebook outlines measures to enhance revenue and clientele for wider stakeholders Facebook mooted ways and means to enhance revenue and clientèle base of the larger tourism industry through targeted and scientific use of its massive outreach. Given that almost fifty percent of total travel related bookings are expected to go online by 2020, innovation and targeted intervention are key to success. By shashank shekhar

acebook recently held a discussion on technology and how its platform could be used to better enhance the business prospects of larger constituents of travel and tourism fraternity. The discussion that touched upon some of the crucial aspects for augmenting business, revealed some of the major transformations in the industry – which was being driven by increasing dose of technology in the decision making process of travelers in choosing their destinations, itineraries and medium of travel. Arjun Kolady, Business head, E-commerce, Facebook, in fact, believed that the underlying theme of travel and tourism was change itself. He felt that there were 3-4 inflection points of the dramatic shift. “About a year ago, there was a raging

discussion on how every business was moving on to Smartphones. It is not an ongoing process anymore. It is over. That shift has already happened in India. There has been a 50 percent growth in Smartphone users on a year-on-year basis,” he revealed. He further said that 140 million Smartphone users were regularly using mobile data services, and he hoped the numbers to grow to 220 million by 2016 – which reinforced his argument on the finality of the shift of businesses into the realm of Smartphones. Arjun Kolady noted that there was a profound transformation in the way businesses looked at the market, too. “There is a shift from just crunching bigger numbers and, now, focus is on customer retention driven behavior,” he added. Some of the important indicators of the clout of online bookings in the overall businesses can be grasped by

the enormity of numbers. There has been a doubling of hotels bookings conducted online in 2015, whereas the y-o-y growth expected for 2016 is an impressive 25 percent. “We envisage a whopping fifty percent of the entire travel business to move online by 2020 in India,” he claimed. Some of the key factors that are supplementing this trend have been an explosion of the travel and tourism emanating from tier-2 and tier-3 cities, and e-visa scheme which has made travel a more convenient undertaking. For the hospitality industry, the major challenge has consistently been low volume. FBs strategy to counter this was to drive bookings for high margin hotels, using custom audience during flash sales. It is true that happens, mostly, on the back of seasonality and showcases extremely low consumer loyalty – after all the temptation of a bargain is difficult to resist, even for consumers who otherwise demonstrate a strong sense of brand loyalty. The official said “hotels can make use of our carousel advertisements to showcase their properties and create an interest. Our clients would

basically want maximum booking and high sale of room-night. It can happen if they activate dormant users by up-selling and cross-selling holiday packages.” Another challenge for hospitality outlined by Facebook was finding buyers in their ‘last-minute’ sale. FB argued that it could be addressed through building awareness about their sale through a step-by-step process. In the first phase that spans to 48-72 hours before the actual sale, a teaser campaign on FB could create a buzz which was to be followed by a more targeted campaign, focusing on, at least, 50 percent of potential buyers. It was to be led by a more powerful campaign in the last 24 hours to build momentum heading towards the actual day of the sale. Looking forward, Instagram could be dubbed as the new Facebook. Experts felt that, although, it was early days for Instagram, as it had much lesser number of users, but it was exhibiting FB like behavior, felt industry insiders. They felt that it was primarily due to the fact that the audience profile was very similar.

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online

“ MakeMyTrip is aggressively tapping into the hotel booking segment” Indian online major MakeMyTrip’s recently launched television campaign is being viewed by many as company’s attempt to send the message that it is repositioning itself and will be treating hotel vertical as its mainstay in the future. In an exclusive conversation with TourismFirst, Ritwik Khare, Senior Vice President & Head (Business Development) – Hotels, MakeMyTrip responds to this assumption while also sharing the details of the company’s strategy to strengthen the hotel vertical. Edited excerpts: By Ritwik Sinha You have recently kickstarted an aggressive television campaign featuring two current Bollywood heart-throbs for selling hotels. A popular reaction to this campaign is that MakeMyTrip has decided to position itself more as a hotel selling platform in the future than any other segment including aviation with which your growth story had begun about 15 years back. Is it the right assumption? While the theme of the campaign is hotels and the TVCs focus on the same, MakeMyTrip remains to be a one stop destination for a consumers’ travel needs – hotels included. The campaign is in line with the company’s aggressive efforts to tap into the hotel bookings segment and further build on its leadership position, and it also aims to drive consumers to shift from offline to online for hotel bookings.

I am quite curious to understand, at what stage the company had decided to build a large portfolio in hospitality?

From the very inception of MakeMyTrip, hotels has been a very important segment. The company enjoys a 25 per cent share in the Indian online hotel booking business, according to a recent report by Millward Brown and we are focused to growing it as fast as possible. There is significant headroom to grow, as only about one-fifth of all hotel bookings is estimated to be taking place online at present.

What is the criterion you are using to select a hotel unit to be part of your inventory?

We have a strong screening process before we decide to partner with a hotel. Some of the criteria include location, amenities, customer service, etc.

Some big hotel groups are quite fond of saying that they will be developing their own

robust online platforms. Are they in a denial mode of the rising might of the vibrant hotel online platforms?

and mobile apps becoming the 'new way' of doing things- be it search, communication, buying or commuting, they are changing the way people shop and share experiences. At MakeMyTrip, we are

There is enough and more space in the market for both players to co-exist. However, one can plan the whole itinerary and look for comparative deal, even between two hotels at the same time when on an OTA which possibly makes the experience and the number of options much wider for the user. We could always look at cross leveraging offers and discounts as being run on the pages of both. While OTA’s can highlight the discounts as being offered by hotel properties, hotel pages can possibly Ritwik Khare look at leveraging Senior VP & Head (Business discounts available on Development) – Hotels, MakeMyTrip travel , food and other amenities that could We have made concerted efforts be developed into a to increase our revenue share full-fledged travel deal from non-air products (Hotels and as provided by the Holidays. Reported as H&P (Hotels OTAs. and Packages), this revenue-line has

been a strategic focus area for us. We strengthened our portfolio of Do you think the Hotel offerings in the South-East Asia mobile booking region through two key acquisitions will be the next in 2013. big wave in the online hospitality booking in the country? What are keenly watching this space and the current trends and what changes you expect in the next are coming up with services that are available to mobile only users. two years?

The future of the online travel industry is Mobile. Today, it is a lot more convenient to book over the phone. We are confident that online penetration in hotel bookings will improve from 20 per cent to 40-50 per cent in next three or four years. Growth of mobile internet and app-adoption in India as well as the world has revolutionized the e-commerce space. With smartphones becoming more affordable

On our booking apps, we have mobile-only features like the offline e-tickets and hotels near you as a result of which we see more than 50% of hotel-transactions from mobile now. We currently have over 15 million mobile app downloads to date, up from 5.5 million a year ago. The team at MakeMyTrip continues to innovate, improve our apps, and create attractive promotions like AppFest also known as the Great Indian Getaway which

were a set of app only offers run for a set of consecutive days. Our quarterly repeat rate on the mobile has improved by about 30% over year ago and is about 1.5 times the repeat rate on Desktop. Put simply, there are more people using our apps for the first time; and more of those people are coming back for subsequent transactions than ever before. In summary, the underlying mobile metrics are exceeding the expectations we set just a few quarters ago. And, we think the best is yet to come which could include path breaking things such as virtual reality, usage of bit coin currency etc.

Speaking at a seminar recently, you had pointed out some content specific problems vis-à-vis online booking on smartphones. Please share some details on that and do you believe they will be expeditiously sorted out considering the growth volume?

Limited space on the mobile screen is the big challenge and the hotel display on the mobile has to change as compared to the desktop. For example, the customer reviews for the mobile display will need to be treated differently as compared to the desktop.

How do you analyse the sudden emergence of small unit or even hotel room aggregators in the country? Are they a disruptive force in a positive sense or a negative sense?

Any competition is healthy competition. The emergence of small units or budget hotel aggregators has helped open up the online hotels market in the country. We recently introduced Value+ Hotels which is a new product offering that marked the company’s foray into the quality budget hotels category. With Value+, MakeMyTrip intends to change the game by giving Make My Trip Brand assurance to the Budget Segment Consumer, and hence catalyze offline to online shift for hotel bookings.

Meta-search engines are believed to be the next big game changer in the online booking space. Have you begun partnering with them too?

We have been partnering meta search engines to ensure customers at the source of the search funnel are exposed to MakeMytrip rates. However, it is important to point out that the bulk of the demand for us comes organically and direct to our mobile app and site.

Finally, what scale you can imagine for MakeMyTrip hospitality vertical in the next two years? What more valueaddition you can make to your hotel sales segment?

The hotels segment in India is underpenetrated and highly fragmented. As the largest player in the online hotel-booking segment, we have seen the market explode thanks to increasing mobile penetration and adoption, especially for last-minute hotel bookings. MakeMyTrip has made aggressive efforts to tap into this segment. We offer the largest domestic hotel inventory with over 27,500 domestic hotels and 255,000 international hotels. We have made concerted efforts to increase our revenue share from non-air products (Hotels and Holidays. Reported as H&P (Hotels and Packages), this revenue-line has been a strategic focus area for us. We strengthened our portfolio of Hotel offerings in the South-East Asia region through two key acquisitions in 2013 - Hotel Travel Group and the ITC Group in Thailand. With the acquisition of Easytobook. com in 2014, we expanded our presence beyond South-East Asia. More recently, we bought a 25% stake in Bangalore based digital hotel marketing solutions firm Simplotel. The company recently launched Value+ that marks the company’s foray into the quality budget hotels category. Our value proposition is that whatever be the customer need, they can find a hotel on MakeMyTrip – quicker and cheaper.

Small unit aggregation is a typical Indian innovation

ithin the Indian hospitality circle, the confusion still remains if the new age small unit aggregators are adding value to the business. In the views of many, they are disruptive forces and many hospitality majors are now talking of revamping their own online platforms as part of the counter strategy. But according to Vikas Bhola, there is no merit in staying in a denial mode on the rising influence of small hotel aggregators. “There was a distressed inventory about which nobody was aware, nor did the promoters of these units had the wherewithal to promote themselves. These units are increasingly becoming part of the mainstream inventory. In Europe and the US, we have seen aggregators in villas and resort segments. But what has happened here in terms of brining small units on online platform is a typical Indian innovation. In fact, following its success in India, many such tech outfits are popping up in Southeast Asian markets now,” Bhola pointed out. Booking. com itself has forged strategic partnerships with small unit Indian aggregators like Oyo, Stayzilla and Vista Rooms promoting the properties in their inventory which are in sync with its own standard specifications. Bhola, however, pointed out that while these aggregators are poised for a long inning, they will have to significantly improve their quality services. “Merely expanding numerically is not going to help. At some state and that will come soon, they will have to bring in strict vikas bhola checks and balances in ensuring that the properties proArea manager (India subcontinent), moted on their platform offer quality services. But even Booking.com as a disruptive force, they are making their contribution,” he emphasized.

Unforgettable

Weddings

A union for seven lifetimes should have memories that last just as long.

Each moment leading to that grand day is special, we leave no stone unturned to translate your every desire and wish into a dreamy reality.

Weddings by Marriott – They’re unforgettable.

Explore our specially curated online platform by visiting marriottindiaweddings.com

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Weddings at Marriott Hotels: Introduces the Certified Wedding Planner Marriott Hotels have identified weddings as as important segment of the hospitality business.

ndian weddings have always been a grand affair and one always strives to make it as large as possible in their capacity. Indian weddings comprise of an elaborate array of rituals and functions like the roka, mehendi, haldi, sangeet, cocktail, reception etc. And with the advancement of technology and innovation; weddings have moved beyond the usual and everything from décor, cuisine to theme, destination is far more evolved. Marriott India envisions to be a one-stop destination for all wedding needs wherein all your requirements are taken care of under one roof and that’s what we foresee as the ‘Future of Weddings’. Marriott India puts forth a plethora of offerings to be the perfect companion to create your dream wedding. They have been a vanguard in creating new benchmarks in contemporary weddings with a traditional touch. With an elaborate brand portfolio ranging from Courtyard by Marriott and Fairfield By Marriott, to the JW Marriott and Ritz Carlton; Marriott India is ready to give you an absolute luxury experience, whilst working perfectly within your budget. Marriott India allows your dreams to come true with the grandest venues and beautiful romantic indoor and outdoor banquets customized as per your bespoke needs. A wedding that will bring alive all the joys of celebrating love, while taking your vows together. With the most skilled partners on board , across wedding planners, florists, bridal designers, make-up artists, photographers, world cuisines, stylish set-ups along with personalized services make your wedding experience a memorable day for you and your guests. Weddings being an integral part of our society and a customary tradition, with the ever evolving trends and patterns, there is a lot more going behind the scenes, apart from just tying the knot. The trends for weddings can be associated with ‘individualism and uniqueness’ which can symbolize the wedding couple in the best possible way. The new-gen couples want to make a statement, their wedding must enfold like a beautiful story, that tells the world who they are and the relationship they share with each other. Gone are the days when a wedding was just about the overall decor, a buffet and a standard photographer. Modern couples now want customisation in each element of their affair and make sure that the minutest things from the napkin and cutlery arrangements to how the guests will be seated is to their liking. So, this season, think customized food items on your platter, detailed gift bags for guests, themed invitations and a lot more. There are many different trends to report, but all of the responses can be categorized into “glamorous” trend, a “do-it-yourself” trend, or a “natural” trend.

Let’s look at the trends that would be the focus for all matrimonial: Theme One of the key trends for the future would be wedding theme trends. The most popular theme trends can be broken down into a “1920s” theme, a “glamorous” theme, a “vintage” theme, and a “modern” theme. The most popular trend up north is the Bollywood theme weddings. The “glamorous” theme consisted of details like gold accents, neutrals, and simple elegance. The “vintage” theme consisted of details like smaller intimate gatherings, outdoor ceremonies, simple elegance, and antiques. The “1920s” theme consisted of details like jazz music, pearls and lace, and a Great Gatsby reference. Lastly, the “modern” theme consisted of details like bright colors, a focus on music, personality, and metallic colors. Location Getting married in an AC hall is out! The location and the background are the deciding factors. People are opting for venues which define the couple’s individualistic nature. The hottest trend being the concept of destination weddings and giving a luxury experience to ones guests. The unique locale provides a beautiful backdrop to the wedding set up. Decoration All of the planners suggested many different trends like patterned table runners, interesting lighting techniques, antique décor, and colorful décor, long tables with runners and different lighting features like candles and projection as a future décor trend, along with chandelier lighting as being a future décor trend. The mix of bold and soft is in. Weddings this season will see both the elements incorporated in the decor. You will be able to see a colour scheme which has a purple and gold, or pastel pink and bright orange, and so on. Flowers and floral decor are an important part of both types of weddings, and in the coming year, weddings will also incorporate floral bouquets in a big way. The exquisite banqueting spaces offered by Marriott India is ideal for a set-up that can be transformed to reflect the mood of each and every event keeping in mind the colour selection, embellishments and seating layouts. Floral Planners spoke about floral trends they could see being popular in the next five years. The most common floral trends suggested were arrangements using orchids, wildflowers, mixed materials, and a minimalist technique.. They also thought that multiple, small arrangements would become popular. Planners who suggested a mixed materials trend stated that arrangements with flowers and other items like jewels and brooches would become popular. Cuisine Food, being a major attraction at weddings, is always talked about a

lot and planned quite in advance. Your wedding menu needs to show off your tastes and style. While you must consider some of the guests’ needs by having dishes for vegetarians and pickier eaters, it’s equally important to make sure you love, and don’t just like, the foods your caterer serves. A marriage of traditional Indian Cuisine and World Cuisine is de rigueur among the hippest brides this year. With increasingly sophisticated guests arriving at the celebration, a majority of brides chose to present their favourite dishes from a multitude of ethnicities for the wedding feast. Marriott’s expertise in multiple cuisines ensure that your guests indulge in food from all over the world. Whats more you can request for a specific Chef from any of the Marriott properties to be flown to your location to prepare their speciality. Wedding cakes The wedding cake choice is rooted in the couple’s favourite moments shared together, the cake they ate together when they were dating, their favourite tea flavour or their favourite fragrance etc. The biggest trend that’s catching up in this scenario are wedding lace and metallic’s being used in the cakes, across all our Marriott India properties we have pastry chefs whose artistic minds and crafty hands give you the most innovative weddings cakes customised to your needs. Technology With technology becoming an essential part of our lives today, trends say that technology would take over & re-define the concept of a wedding in a phenomenal way in the years to come. Using some of the most popular trends in technology has made collecting wedding photos from Instagram just a hashtag away; keeping the guests’ phones juiced up with real time updates with photos & videos all night long. The most recent introduction to the wedding scenario are the drones making the lives of the photographer and videographer simple and to capture never-beforepossible shots and the most candid moments adding to the charm. Involve technology and make your extravagant wedding affair hi-tech!

All under one roof

arriott India envisions to be a one-stop destination for all wedding needs wherein all your requirements are taken care of under one roof and that’s what we foresee as the ‘Future of Weddings’. As the scale of the weddings is increasing, it is very important that someone helps them flesh out the wedding structure and curate the vendors so as to transform the wedding ‘vision’ into a ‘reality’. Marriott India helps with unforgettable location, brilliant venue, impeccable service and exquisite cuisines, all under one roof. Marriott India trains and certifies the Wedding Planners to handle all requisites of the wedding. After completing a demanding coursework, each Marriott Certified Wedding Planner is qualified to coordinate weddings of all types, including ethnic and big fat weddings. Relying on their experience, training, tradition and old-fashioned intuition, they help you determine an overall vision for your wedding and help you execute each detail.

The Marriott Wedding Website: an overview.. Virtual wedding planner tool – allows the user to actually plan a detailed wedding function and connect with the venue and / wedding planners of their choice based on their unique requirements – also a great way to visualize your ideal wedding and also share this with the hotels to make this a reality! Explore Marriott India hotels, customs, ceremonies, cuisines, venues, wedding packages, testimonials etc. Digital wedding album creator – create your own personal digital wedding album (free of cost) with upto 20 photos – works for guests who’re already married and want to relive their memories and share their experiences – there by creating visual testimonials. Integrated with all major social media platforms – allows the user to connect, search, share wedding ideas, plans and much more. Log on to www.marriottindiaweddings.com

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Guest Column

Let’s start with a story. By mansi bhatnagar Managing director, HVS & Templatolio technologies

t is about a man who inherits a copious reserve of gold right beside his house. He sometimes finds some gold dust scattered above the ground. So, this man does a strange thing – he collects the gold dust, sells it and earns enough money to buy a few small luxuries, like a new TV, for which he feels extremely lucky! I know what you must be thinking that, this man must be blind! However, if you knew this man, you would probably pity him or laugh at him. But, would you ever fathom that this person could be you? How can we be so blind? If there is gold dust that’s surfacing from the ground, one can only imagine the riches under! All we need to do is mine it, and probably get featured in Forbes for discovering it! What if I were to tell you that you may very well be the blind one; that you may be the man who looks at the gold dust and is

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happy to seek profit, however little, from this? As hoteliers, we probably have more data today about our guests than Amazon did when they were trying to become the giants that they are at present. If only we hoteliers had the foresight to mine this massive amount of data and use it smartly for revenue generation – we would be the Amazon of the hospitality industry. In fact, after the spouse and Google, we are probably the third to really know our guests. Sometimes, we even know more about their eccentricities that the other two might be aware of. Still not convinced? Consider this – What is it about a customer that we, as hoteliers, don't know? We know what he is called, where he lives, how old he is, how often he travels, what he likes to eat and when, what he likes to drink, how he likes his coffee, if he needs an alarm

to wake him up, what kind of bed he likes, his favourite mode of transport, whether he gets upsold easily (this last one can come in so handy, isn't it?). The list can go on and on… Just sprinkle basic data enrichment and connect social information to what we already know, and all of a sudden we’ve opened a whole new Pandora ’s Box (the good variety!)… from then on there is literally no limit. Now maybe we agree, maybe we give a small nod, but the next obvious question remains – how and where to start? Every story has a beginning, so let's just start from there! Study your data first. Some obvious insights will pop out. Mostly it will be guests who came once but never booked again, repeat frequency, channel loyalty, F&B visits, etc. These

are obvious commonalities that will be easily visible to any hotelier. The upsell, cross-sell and repeat revenue is all hidden in this data, so let’s continue with this. Next, bring in your brand and communication. Make it a story that connects with the guest, speaks their language and not that of the hotel. Ask yourself, what will make the customer interested in my hotel, my brand. What’s in it for him? Go beyond plain discounts. Anyone can outbid a discount. Sell the experience that is in store for guest and leverage your unique positioning. Then use the magic of digital by adding a touch of personalisation in all guest interfacing communication. Start with the name. Did you know that 99% of email communication is not personalised? Be the 1% that stands out! Now, comes the magic of marketing and communication automation. Marketing works only if it integrated. Silos in communication is so 2015! In 2016, communication needs to be consistent, seamless, real time and highly personalised across platforms – offline and online. Marketing automation takes the whole process of continuous communication across various mediums in its various flows and puts it in an algorithm (IF this, then THAT) that runs it automatically. And the best thing about automation is that you

don’t need a large marketing team either! The best campaigns can be handled by one capable person in the corporate office working with a competent digital agency. So, invest in good brains within your team and ensure that the agency understand the hospitality industry and can give a strategic, consistent marketing integrated support across channels of communication. All of this will take barely a quarter of the dedicated effort. See the revenue, which is the whole aim, jump up by a few percentage points. Reap the benefits for the rest of the year and beyond – Pure profit! The good news is that this is just the beginning. And what you have invested in above, is all that you need to scale up to your ambition of becoming the Amazon of hospitality. What's next? Create a customer life cycle model and map out the various guest touch points. Start connecting the dots and create more. After that, start in depth personalisation across all touch points including offline. Enable technology including IoT (internet of things) with your ground staff, connect them to a grid and prompt them to say different things to different guests. We love being recognised and pampered. I am hoping that you now get the idea of how we can start mining the hospitality gold quarry.

Param Kannampilly

Leisure is myth, focus on ‘business’ and ‘cruise’ opportunity, Kannampilly By shayan mallick

ith over 80 million foreign arrivals, France is today the top tourism destination in the world. Major parts of this arrival come from the neighbouring countries entering through its network of rail routes and roads. At 8 million a year, foreign arrivals in India is a meagre 10 per cent of what France gets annually! According to Concept Hospitality Managing Director & Chairman, Param Kannampilly, the biggest movement is by railways followed by roads and then air. “We have done nothing to remove theses barriers.” So where is the problem? Kannampilly says that there is need to better understand tourism. “Your neighbours are your biggest contributors to tourism. And the biggest movement of tourism is by train. That’s why China is putting in train into Russia, into Nepal and everywhere. They are building railroads for them (tourists). (Whereas) our neighbours are all poor so none of them are coming,” he says. This is where he says that India needs to develop new infrastructure in order to develop new opportunities. Cruise tourism, he says, is one such sector that has hitherto been ignored. And given India’s vast coastline there is huge opportunity to develop this segment of travel. Besides ‘Leisure tourism’, he says, “is a myth in India.” Instead he says there needs to be increasing focus on business tourism. “Let us focus on what we are getting and develop that further,” he stressed. Kannampilly insists that there is potential to develop source markets for Indian cruise tourism products all over the world. “We need to develop lovely ports and jetties and the entire experience. We can make it (Cruise tourism) more attractive.” Arguing for the need to develop business tourism, Kannampilly says, “We have a lot of business travel coming in. Business arrival is huge in India. We (India) are in business tourism and the minute we stop talking ‘leisure’ and all these kind of things and focus on ‘business tourism’ and make it easier for the businessman to come in and do business with ease, it will do well.”

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LIVE at AAHICSA

Left: Kapil Chopra in conversation. Right: Vikram Oberoi with Sameer Kukreja and Rahul Pandit.

Left: Another theme setting, this time the boys are dressed in the colours of Rajasthan. Right: 3D perspectives on Radisson Red.

Integrate new technologies and improve the way we serve our guests is at the heart of our marketing and innovation strategy AccorHotels are expanding fast, growing across brands and across cities all over India. Of specific interest to our readers would be their strategy to be strong in markets with multi brands. In Aerocity alone they have three hotels with over a 1000 rooms.

More than a loyalty program, Le Club AccorHotels is about extending an experience to our guests while continuing to offer value for money. Arif Patel

VP - Sales, Marketing & Distribution, AccorHotels India

n any business, a solid marketing strategy is critical to building a formidable brand, attracting new customers and maintaining loyalty. The hospitality industry is no different, where the brand is our greatest asset as is the strong focus on ‘experiential’ because that’s what hotels at the end are all about. At AccorHotels, our marketing strategies are driven by the objective of providing world-class service and quality accommodation to our guests from around the world. Our ability to constantly integrate new technologies and improve the way we serve our guests is at the heart of our marketing and innovation strategy. Digital

technology plays an intricate role at every stage of the hotel experience – before, during and after the guests’ stay in order to provide an unparalleled experience for our guests as well as ensuring that we are ahead of the curve and ready for today’s mobile and connected guests. This is backed by a strategic digital transformation strategy as AccorHotels launched in 2015. ‘Leading Digital Hospitality’ sees the earmarking of a significant €225 million investment and includes the first-of-its-kind digital rollout, wherein we opened AccorHotels. com to independent hoteliers, thus converting the digital platform into an open marketplace, strengthening our foothold in B2B as well as

B2C segment. Loyalty is a strategic component and Le Club AccorHotels, our multi-brand, annual loyalty program offers members advantages and rewards across our Sofitel, Pullman, MGallery, Novotel, Suite Novotel, Mercure, ibis (only in India), ibis styles, Adagio, Adagio Access, The Sebel, Grand Mercure and Thalassa Sea & Spa hotels portfolio. With over 25 million members worldwide, the program has reinvented itself in the past two years by extending more benefits, more generosity and more member events to different travellers. A major differentiator of Le Club Accorhotels is its access to 3,000 hotels and resorts worldwide, with more than 600 hotel destinations in Asia Pacific alone, making earning and burning points easy. More than a loyalty program, Le Club AccorHotels is about extending an experience to our guests while continuing to offer value for money. In India our hotels are strategically positioned and across all our brands, are located in the heart of each city they operate in, providing our guests with easy access to commercial as well as entertainment hubs. Staying at any of our 36 hotels in India is a great proposition, irrespective of whether you are traveling for business or leisure. For example, in Hyderabad, India’s own Silicon Valley, we are strategically positioned at the new international airport (Hotel Novotel

Hyderabad Airport), Hitec City (Hotel Novotel Hyderabad Convention Centre and Hotel FORMULE1 Hyderabad Hitec City) and the popular Banjara Hills (Mercure Hyderabad KCP), allowing guests to experience everything the city has to offer without spending unnecessary time on commuting. As we continue to grow and expand, we seek out similar prime locations to cater to our guests. Speaking of expansion, we are tirelessly focusing on densifying our presence in preferred markets

Calangute, we plan to open three more addresses on the beaches of Goa in the near future, bringing new brands including ibis Styles to the tourist haven. In Delhi’s newest hospitality precinct - Aerocity, AccorHotels is already the largest hotel operator with collectively 1,115 rooms in Pullman New Delhi Aerocity, Novotel New Delhi Aerocity and ibis Delhi Airport. Similarly, in Chennai, we will have eight locations in the next couple of years. Distribution is important to our success in India, to strengthen our

☛ In Delhi’s newest hospitality precinct - Aerocity, AccorHotels is already the largest hotel operator with collectively 1,115 rooms in Pullman New Delhi Aerocity, Novotel New Delhi Aerocity and ibis Delhi Airport. Similarly, in Chennai, we will have eight locations in the next couple of years. – largely commercial and leisure hubs in the country. These markets offer lucrative opportunities with a significantly higher number of guests. To capitalise on this and at the same time, build a stronger brand network, we have a robust growth pipeline in these markets. Goa is a great case in point. In addition to Novotel Goa Resort and Spa, Novotel Goa Shrem and the soon-to-launch ibis Styles Goa

presence and capture meaningful market share. With a significant network of hotels in the country and around the world, AccorHotels’ sales network is located in all key feeder markets, driving business to all hotels across the country. The network is built on a strategy that gives each of the key markets its own hub to further enhance and strengthen the sales force, giving the network the strong presence it requires.

Day

LIVE at HICSA

HICSA Hotels of the Year Awards 2016

HICSA 2016 recognised new hotels that opened in the South Asian Region and commenced operation between November 2014 and December 2015 across different categories. The finalists under different award categories were decided by an independent panel of judges comprising key industry leaders and stakeholders.

Anantara Peace Haven Tangalle Resort

Best Luxury/Upper Upscale Resort

JW Marriott Mumbai Sahar Best Luxury/Upper Upscale Hotel

Courtyard by Marriott Bengaluru Best Upscale Hotel

Novotel Imagica Khopoli Best Upper Mid Market Hotel

Fairfield by Marriott Bengaluru Best Mid Market Hotel

Hotel Formule 1 gurgaon Best Budget/Economy Hotel

Day

LIVE at HICSA

Business cycle on an upswing, but financing scene still remains challenging Despite promises of an improved business cycle in the near to medium run, structural challenges on the financing front (for new as well as distressed projects) still remain a major concern for the hotel industry. By ritwik sinha

Neel raheja group president, k raheja corp.

hile on the one hand, leading hotel chains (domestic as well as international) are exuding confidence that better business climate awaits them in the near to medium run which would propel them to grow in size and scale in India, there is a paradoxical twist to the story underlining that hotel financing regime continues to remain challenged. And the problem gets more acute when the state of stressed properties are examined, when ideally in a healthy economic environment there should be a sound restructuring mechanism in place. During the previous cycle of the hospitality industry growth (pre- 2008), many players had jumped in the fray anticipating big-ticket growth in the coming years. But then a serious downswing jolted them leaving scores of properties in a stressed condition. While people in the hospitality industry believe

Many investors in the past did not get the returns projected to them. So they are hesitant. Gaurav bhushan global chief development officer, accorhotels

Land cost is still high and so is interest rate. If there are cost over-runs, it will destroy the valuation of the project.

Kavin c bloomer executive director, morgan stanley

options,” said Kevin C Bloomer, Executive Director, Morgan Stanely. Jonathan Vanica, MD (Asian Special Situations Group), Goldman Sachs too vouched that the hospitality business sentiment has turned positive which could propel more investment in the business. “We have been closely watching Indian

☛ The recent approval of Real Estate Investment Trusts (REITs) appear out to be an alternative financing panacea in the future for the hospitality industry too. But according to industry stakeholders, it will not happen immediately. that the low business cycle in the hospitality business is at its fag end, the question being asked is: will it bring back the investors in the ring? Will it ensure that some of the distressed properties which can be revived again will get the required financial support in the marketplace? A dedicated session at HICSA yesterday minutely examined various strands of this critical issue weighing different options. To begin with, for the private institutional majors, the prospects for investment in Indian hospitality looks better than ever before. “We have invested in Indian hospitality in the past and the economic condition seems to be favourable once again. We can look at various

economy after the last general elections. Last year, we also made investment in a hotel company in the country. Hotel industry in India is clearly out of the woods and there are better occupancy rate projections for the future.” According to Gaurav Bhushan, Global Chief Development Officer, Accor Hotels (both an operator and as investor in the hospitality business), financing options for the hospitality industry has improved in the marketplace. “Ten years ago, investment in hospitality was very limited. But now the options are open on both the equity and the debt sides. Plus, there is better realism in the market with lessons learnt from the past mistakes.” But positive signals from the

nipun sahni Partner and head of real estate india, apollo global management

The business downturn seems to be over. But has there been any improvement in the regulatory scene when it comes to financing of the hotel projects?

bharat anand sr. partner, Khaitan & Co.

Hotel projects should have been aligned to the infrastructure financing norms on a broader basis. This should have eased their debt burden.

jonathan vanica md, asian special situations group, goldman sachs

We have been closely watching Indian economy after the last general elections. Last year, we also made investment in a hotel company in the country. Hotel industry in India is clearly out of the woods and there are better occupancy rate projections for the future.

future may not result in investors loosening their purse strings just as yet. There are scores of challenges in the hand which may act as strong deterrents. “The business downturn seems to be over. But has there been any improvement in the regulatory scene when it comes to

financing of the hotel projects?” asked Nipun Sahni, Partner and Head of Real Estate (India), Apollo Global Management (he was also moderating the session). “Hotel projects should have been aligned to the infrastructure financing norms on a broader basis. This should have eased their debt burden,” Bharat Anand, Senior Partner, Khaitan & Company responded. Another critical issue is the lack of fire-power which domestic investors are showing for hospitality projects despite the promises of an improved business cycle. Neel Raheja, Group President, K Raheja Corp. provided the answer. “Many investors in the past did not get the returns projected to them. So they are hesitant.” According to Gaurav Bhushan, the project valuation is still remains a ticklish issue because of the structural bottlenecks. “Land cost is still high and so is interest rate. If there are cost over-runs, it will destroy the valuation of the project.” For the distressed hospitality projects, the general feeling within the industry is: the lenders (primarily banks) have not played a pro-active role. “Restructuring is imperative in the Indian market. Pace of consolidation in the Indian hospitality space would have been faster if the debt lenders had been more active,” opined Kevin C Bloomer. The complex legal process is also blamed for the slow pace of restructuring involving the banker and the promoter.

We have invested in Indian hospitality in the past and the economic condition seems to be favourable once again. We can look at various options.

There is another critical issue on distressed projects: can asset restructuring companies (ARCs) step in aggressively to salvage some projects which have fallen off the line? “ARCs can only work if the promoters and the lenders work in tandem. If they are opposed to each other, it will be difficult for ARCs to make a difference,” opined Bharat Anand. Amidst such a scenario, the recent approval of Real Estate Investment Trusts (REITs) appear out to be an alternative financing panacea in the future for the hospitality industry. But according to industry stakeholders, it will not happen immediately. “REIT is quite new in India. It may work for the hospitality industry as well but it is too early to say anything definitive at this stage,” observed Neel Raheja. “When REIT was introduced in Singapore, these trusts had seen their business growing from $ 2.5 billion to $12 billion in five years. For here, if REIT has to become a financing instrument for hospitality too, we will need hotel industry specific norms. Stable income and scale are the major draws to receive investment from them. We are not ready for it right now,” Gaurav Bhushan emphasised.

Nipun Sahni

Neel Raheja

Kavin C Bloomer

Jonathan Vanica

Gaurav Bhushan

Bharat Anand

Day

focus on starwood hotels

Tourism is expected to grow on all accounts and the present government has shown its keenness to develop the sector There is robust growth in the sector and outbound will also flourish and make our customers more aware of our brands.

With our growth and expansion in India, the Indian travelers are more aware of all our brands and seek to stay in those when they travel. Dhananjay Saliankar

Regional Director, Sales & Marketing & SSO, South Asia, Starwood Hotels & Resorts

Name some major trends in Indians going overseas, using your properties.

travel experiences have also radically changed. Not only are they travelling more, but Indians are also spending more when they travel. The Indian outbound market has been on an upswing. Over the past 5 years, the Indian outbound travel has increased by about 10.7

The Indian travellers today are much more knowledgeable, welltravelled and a lot more aware of international brands. As a result their their expectations of their

per cent. We see the sentiment remaining positive this year as well. Notably a few trends that have emerged are solo travel, especially single women travelers, the demand for unusual destinations and unique experiences (gourmet, wellness, historic, adventure, etc). The use of technology while booking and travelling (travel apps) is on the rise. Indian travelers are increasingly using loyalty programs and partnerships when they travel. All of these trends are positive for Starwood as we have 1300 hotels across 11 brands and an award winning loyalty program, SPG. With our growth and expansion in India, the Indian travelers are more aware of all our brands and seek to stay in those when they travel.

How do you see this growth happening, in relation to growth within the domestic market?

According to recent data released by the Ministry of Tourism, Government of India, the number of

Le Meridien New Delhi

foreign tourists arriving in India is 5.7 million, number of international trips planned by Indians travellers is 18 million and the number of domestic trips planned is 1290.1 million. These statistics are growing year on year and reflect the robust growth in India’s domestic market, amongst the fast-

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☛ The travel industry is expected to record healthy growth over the year, driven by a steady rise in tourist flows, outbound travel is predicted to generate especially strong performances. As domestic travel increases and Indian travellers continue to demand more sophistication in terms of both quality and experience, we have significant opportunity to grow our brands across the spectrum of markets. per capita income, and increased aspirational spending, the Indian hospitality sector is expected to grow faster than most countries around the world. There is a huge surge in the number of foreign investment and international brands entering the market. Most major international hotel brands, including us (Starwood), already have a strong presence in India and an equally robust pipeline. The focus on Tourism under the Modi Government has helped the sector. In addition, State Tourism Boards are actively developing new destinations and experiences and upgrading their infrastructure, all geared to the Indian traveler. Indians are travelling to unique destinations and seeking new experiences. They are now exploring beyond the traditional locations like ‘Golden Triangle’, or Kerala and Goa. They are going to national parks, gourmet trails, adventure tours and wellness resorts. The quest for variety and sophistication in experiences and lodging is a great opportunity.

How do you see this developing going forward?

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India

est growing in the world. The standards of facilities and services have evolved over the past decade towards the extensive use of technology, environmentfriendly practices, pricing, market segmentation, regional preferences, etc. With the continued growth in India’s GDP, improvement in the

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I am a firm believer that we will see more growth in the industry over the next few years. New destinations and investment opportunities will also continue to emerge as tourism becomes increasingly affordable across the developing world. The travel industry is expected to record healthy growth over the year, driven by a steady rise in tourist flows, outbound travel is predicted to generate especially strong performances. As domestic travel increases and Indian travellers continue to demand more sophistication in terms of both quality and experience, we have significant opportunity to grow our brands across the spectrum of markets.