2020 has been an unprecedented year with significant disruptions for the Indian hotels sector. The crisis compelled hotels to think unconventionally. As occupancy and RevPAR reached an all-time low, hotels were forced to implement cost optimization techniques and find innovative ways to utilize their assets. The onset of the festive season brought some much-needed cheer towards the end of the year, as people started travelling again, indicating the first signs of a gradual recovery in the sector
The growth of the Indian hospitality sector, a key contributor to GDP and employment, will fuel the economy in the post-COVID world, making a compelling case for the sector being granted infrastructure status – a long-pending request by key stakeholders – and the next frontier in the sector’s growth path.
Hotels need to come together and align themselves to the common goal of reviving the growth in the industry. They should think ‘long-term’ by promoting value-added services, targeting new customer segments or markets, and implementing cost optimization strategies instead of indulging in price wars, which can be detrimental for the growth of the sector. Brands can also play a crucial role in this by pushing the envelope on driving better revenue and rate management strategies.
In the last few weeks, demand for domestic leisure tourism has improved in India, which is a silver lining for the distressed and vulnerable Indian hotels sector. However, sudden changes in regulations are adding to the sector’s woes and may dampen the spirits going forward.
The Indian hospitality sector should adopt a collaborative approach as it embarks on the long road to recovery. Hoteliers should collaborate & integrate their efforts to find innovative solutions to the challenges in the sector and share best practices & learnings with the entire fraternity to not only help rebuild traveler trust but also to help the sector thrive in the future.
HVS compiled the Q3 2020 performance statistics of brands reported by public companies. The data reflect the gains made during the post-lockdown summer months versus a very low Q2; however, with leisure travel slowing in the current and coming quarter, coupled with the increasing COVID-related restrictions, this trend may be short lived.
Hala Matar Choufany is discussing with Khalid Anib, Bani Haddad and Christophe Landais at AHIC on the Road, about the evolution of different type of hotel agreements as well as the journey to the alternative management.
Strictly implementing SOPs with 100% accuracy and training our associates to live by those SOPs is the need of the hour. ‘Safety’ should be built into our hospitality DNA as that alone can help us rebuild trust and customer confidence.