2009 has been a difficult year for the Indian hotel industry; hurt by the worst-ever economic crisis and the unfortunate terror strike on Mumbai, the industry was brought to a grinding halt. This article seeks to ‘look back’ at the year gone by.
The growth in the Indian economy and the hotel industry has resulted in a clutter of new Hotel Management software companies vying to increase their footprint in the Indian market. This has not only started a price and promise war amongst the new entrants, but has also been creating immense doubt and confusion in the minds of the IT Managers and decision makers in order to differentiate between many. Besides this, the assumption that the value of a Hotel Management Software is obvious and can be rarely defined either in abstract or practical terms fuels the confusion further.
As Indian hotels smarten up for business this winter, we look at some pricing trends that can be put to practice to allow recovery in business volumes and improved occupancy performance. The cliché phrase "Global meltdown" is a convenient reference to describe the slow and low performance of the hotels in India in the first half of the current fiscal year. The months of September and October have traditionally been eyed by the hotel Sales teams as the best time to relook pricing structures and in the last five years the trend has always seen an upward revision in published room rates as well as negotiated corporate rates.
Five years ago, Project Manager (Patrick Chen) approached Pertlink to be IT Consultants for a hotel he was building in Shanghai, its projected launch was 2007. After an interminable long wait, this urban resort nestled between Jing An Park and the elevated Yan An highway in bustling Shanghai threw open its doors to the public just a few weeks ago. And first impression is…the delayed launch was well worth it! What was initially designed as an "Exclusive" property with club-like access to its F&B outlets solely by residents was altered to welcome non-residents as well. Some of that feel still filters through with the walled garden environment surrounding the hotel and Club floors between levels 20 and 26 that suggest you are part of a select crowd.
It’s a hotel company owned by a family that dates 1,500 years, whose oldest property was built five centuries ago and whose managing director, Princess Padmaja Kumari Mewar, recently turned 29. Now HRH Group of Hotels wants to create a higher profile in North America and perhaps expand its reach through development and marketing partnerships.
Long taxi rides are a fact of life in Shanghai so arriving at one’s destination is often something to be eagerly awaited – even if the trip entails travelling a short distance - from my flat to the four-day old Peninsula Shanghai. Or perhaps amid the hype, one should approach the end of this journey with breathless anticipation, traffic notwithstanding.
If there is one thing you won"t be short of when you check into a room at the newly opened Peninsula Shanghai, it"s a button to press. There is a myriad of them to choose from! In my standard room #723 (if such a thing exists at this luxurious establishment) there are no less that 29 panels containing various buttons, displays and sockets that you can press, read or plug things into.
Sweat is building on the brows of general managers in Singapore because revenue per available room has declined 31.7 percent in the first half of 2009, according to STR Global. The Singapore market’s performance, however, reflects regional and global trends, and as such, there’s no need for panic at the year’s half-way mark. Let’s hope it’s just the chilli padi that’s loosening collars and causing uncomfortable shifting in chairs and not a harbinger of a return to a discount mentality.
I recently attended a lecture given by Elisa Backer of Ballarat University presenting on VFR (Visiting Friends and Relatives) travel as part of Victoria University of Wellington Tourism Futures Series. In Australia, this form of tourism makes up more than half of Australia’s domestic travel. VFR travel will become increasingly important based on forecasting of demographics. Research shows that the percentage of VFR single-person travel parties to be significantly greater than non-VFR single travel parties. Single females that live alone could represent 19% of UK households in 2030 (Yeoman, 2008), which could lead to a growing VFR market for single young females. Many people do not like to travel alone; as such VFR gives them a reason to travel. Changes in family’s structures and demography will facilitate the importance of VFR Travel in the future.
Travel & Tourism, of which Hospitality is a part, is acknowledged to Alleviate poverty. This article summarises its scope and factors facilitating growth of hospitality in India under the acronym ABCD i.e., Built-up area/FSI, Certificates, Duties. The ABCDs of the Indian Hospitality sector are: Alleviating Poverty - Hospitality is an integral part of tourism as tourists form the common denominator for both. Tourism is one of the world’s largest and fastest-growing industries and its importance for economic development is widely acknowledged.
Hospitality India is no stranger to this maxim and now finds itself in the midst of yet another change as the hands of time whirl on. As the sector transits from a period widely accepted as the ‘Golden Age of the Indian Hospitality Sector’ to one that could well be known as that of the ‘Golden Handshake’. The challenge for the Hotel Human Resource (HR) department in the year 2009 would, thus, be in keeping the employees motivated as well as informed about the fall out of the global meltdown, which could impinge on the work environment in terms of job security, reduced growth avenues, and compensation. It will not be easy for employees to rein in their needs and aspirations and changing their mindsets will be the next challenge for HR. The scenario requires precise and timely communication with employees apprising them of the situation.