The pandemic and the influence of the nationwide lockdown have had a disastrous influence on the country’s hospitality business. However, the business is most likely to bounce back as there is big demand for company and leisure travel. The recovery, in reality, may well be in double digits as soon as the vaccine is freely obtainable, says Vibhas Prasad, Director, Leisure Hotels Group, which is a key player in Uttarakhand’s hospitality business with a lot more than 30 years of encounter, and also has strategic alliances with Taj Hotels & Resorts, Claridges Hotels, and Mahindra Holidays & Resorts India Ltd, amongst other folks.
In an exclusive interview with Sanjeev Sinha, Mr Prasad talks about the influence of Covid-19 on the nation’s hospitality business and shares his company outlook. Excerpts:
The pandemic becoming the final nail, lots of sectors and industries, which includes the nation’s genuine estate sector, are going by way of a downturn for some time now. What is the case with the Indian hospitality business? With the Unlock 5., what are your crucial challenges nowadays?
The COVID-19 pandemic and the influence of the lockdown have had a disastrous influence on the country’s hospitality business for now and possibly for ever. It will in all probability take one more 1-2 years to come back to pre-COVID levels or till the vaccine comes out.
The crucial challenges we are facing nowadays involve (a) sustaining present operational losses, (b) dealing with employee morale as most organizations are operating at present with paycuts and/or decreased manpower, (c) managing money flows to meet with statuary and economic labilities, (d) meeting customers’ expectations in becoming COVID-compliant, and (e) making sure that our associates and guests remain out of harm’s way till the vaccine comes out.
Which will be the key contributors to the development of the hospitality business in India henceforth and how will this sector contribute to the development of the Indian economy now?
We envisage recovery to be robust, especially on the domestic fore as at present the sector is as excellent as devastated. The business will bounce back as there is big demand for company and leisure travel and not to neglect the big social events and wedding business.
Already, some leisure markets are seeing a excellent recovery. The Indian aviation business has observed some bounce back and the transport sector like railways will come to be the catalyst for the recovery as and when they are permitted to open.
We anticipate the recovery to be in double digits as soon as the vaccine is freely obtainable. Inbound, exhibition sectors will also recover in a year or two.
Would you describe in short the most up-to-date trends becoming witnessed in this business? How will the shoppers see these treatments to preserve COVID away?
With social distancing becoming the require of the hour, we have tweaked the typical processes and activities to guarantee that least human speak to is necessary.
For instance, Digital Check-In & Check-Out and digital payments are currently a new standard. We have altered the seating style in lobbies, restaurants, banquets, producing fewer tables obtainable and are also serving only ala-carte menu.
What is the speciality of your hotels? What is your USP which aids your hotels stand out from the crowd?
At Leisure Hotels, we think that properly-planned, be concerned-no cost slices of time away from the routine are indispensable for sustenance in a tense city climate. Leisure Hotels is the only Hotel Chain Company operating in the state of Uttarakhand with a lot more than 30 years of hospitality encounter. We, as pioneers in the field, really feel it is our duty & duty in setting requirements & driving high quality by providing excellent facilities & solutions to our guests. The person resorts & camps generally give amongst twenty to fifty rooms, as a result assisting us in giving really warm & customized solutions.
“The essence of Hospitality” we think lies in the accurate Indian tradition of Atithi Devo Bhavo – “Guest is God”. It is such philosophy and even though that has inspired us to take into account guest satisfaction as supreme and has gone a extended way in shaping our motto.
So far as our USP is concerned, all our properties are situated in all-natural surroundings that blend in with the atmosphere and are ecologically sustainable. They are aesthetically pleasing and use nearby supplies to build a sense of spot & really feel that is nearby.
As we ourselves reside so significantly at the properties, we aspire to serve meals as it have been our personal house. The concentrate is on fresh components, nearby Indian and international cuisines.
It’s ingrained in our culture to go the added mile to bring a smile on our guests. We also offer worth for dollars offerings at each and every of our properties.
One peculiar factor about your hotels is that every single hotel of yours has got a distinct name and identity. Why so? Don’t you believe it may well at times confuse even your loyal shoppers?
We contact this nomenclature as “Named Collection” exactly where each and every home is a brand in itself. Each of the resorts is inspired by the kind of location/ culture/ heritage and therefore offered a separate name so that no two properties are the exact same. Keeping an independent home brand aids us provide the encounter.
Our corporate brandscape “By Leisure Hotels Group” ties in all the properties of the group collectively so that we are in a position to give special and memorable experiences/ holidays to guests. We are in a position to craft and curate experiences for each and every of the properties that whilst becoming special is so comparable.
What are your plans for the future? Would you like to expand in the hospitality segment itself or attempt out a thing new also?
We have a 3-pronged strategy towards company improvement. One is by way of developing our personal hotels and one more is by way of management contracts of properties in strategic areas. We at present have two properties with Club Mahindra and two with Taj Hotels as properly.
We want to consolidate the company at present below COVID and will get back on the development trajectory in the subsequent handful of months. We are also expanding the missed use (ResiTel) vertical wherein we make getaway properties and rent them back as component of the integrated hospitality estate.
The group also has other interests in sugar manufacturing, genuine estate & agriculture.
What will now drive the tariffs?
Customers are at present seeking for branded properties that they perceive will offer protected harbour. Properties are seeking for a lot more heads on beds and concentrate is on proving occupancies from close to “zero”.
The sweet spot will be for branded up-scale, upper upscale & luxury properties for now and these kind of properties can in all probability get away with larger yields, just so that they give security assurances to guests. Branded chains and independent resorts in the leisure segment are at present the flavour of the month.
Business hotels will take some time to choose up. Hence, their prices will be significantly decrease as will their occupancies.