BUZZ IN HOSPITALITY
THE ELECTIONS WILL CERTAINLY AFFECT THE ECONOMY TO A LARGE EXTENT, IN SPITE OF THE FACT THAT THE UPA GOVERNMENT IS TRYING TO EXPEDITE THE APPROVAL OF LONG PENDING REFORMS TO IMPROVE ITS IMAGE. OBVIOUSLY, WE EXPECT A VERY LEAN PERIOD FOR THE HOSPITALITY SECTOR TILL THE OUTCOME OF GENERAL ELECTIONS, HOPEFULLY BY MAY, 2014. IN SPITE OF ALL THESE FACTORS, I PERSONALLY FEEL THAT FOUR AND FIVE STAR HOTELS WILL BE ABLE TO RETAIN 55-60 PERCENT OCCUPANCY DURING THIS PERIOD PRIMARILY DUE TO THE LONG TERM INTEREST OF MULTINATIONALS AS ALSO THEIR CONVICTION ABOUT THE BASIC LONG TERM STRENGTH OF THE INDIAN ECONOMY.
Dr. Ramesh Kapur,
Chairman & Managing Director, Radisson Blu Plaza Delhi
Expectations for hospitality in the election year
There is a lot of uncertainty in the outcome of the election, especially because of new angle of the AAP entering the ring with lot of positive public response and enthusiasm. Obviously, we expect a very lean period for the hospitality sector till the outcome of general elections, hopefully by May, 2014. In spite of all these factors, I feel that four and five Star hotels will be able to retain 55-60 percent occupancy during this period due to the long term interest of multinationals as also their conviction about the basic long term strength of the Indian economy.
Plans to encounter such turbulent times:
We strongly feel that during the last 15 years of our operations, we have been able to establish a good brand equity. Realising the future threat from new hotels, our decision to renovate the whole property bringing them up to contemporary, luxury standards during the extended period of 2004-2011 ends in a running hotel has paid rich dividends. In spite of the growing competition from 2009 onwards, with the opening of number of three, four and five Star hotels in Gurgaon and recently three hotels in Aerocity, we have been successful in retaining our market share because of hundred percent Guest Satisfaction Guarantee and the ‘Yes I Can!’ spirit complimented with a well appreciated product. Our timely focus on adopting dynamic marketing strategies and innovations to create additional values to our customers has helped us in retaining customer loyalty.
K.B. Kachru,
Executive Vice President, South Asia, Carlson Rezidor Hotel Group
Expectations for hospitality in the election year
Pre-election uncertainty will generally impact business growth, particularly from the corporate segment. However this should improve after elections. A stable government will instill confidence in the market and accelerate India’s economy, which will greatly benefit the hospitality industry as it is a significant contributor to India’s GDP. In 2014, we are looking forward to opening 11 hotels in India.
Plans to encounter such turbulent times
We have been successfully operating hotels over the past 15 years and have witnessed challenges that are part of the business cycles. We are confident that our hotels have the right fundamentals and are focused on capturing a strong market share. Our Radisson Blu hotels with their competitive business offerings such as free internet and business class rooms are fast becoming the preference of business travellers. In many cities, we are the only international branded hotel and that puts us in a good position to capture the business travel segment. ■ compiled by NIKITA CHOPRA
February 2014 • HOTELSCAPES 13