DIGITAL TRANSFORMATION LANDSCAPE OF HOTEL SECTOR - OFFICIAL PUBLICATION OF HOTEL & RESTAURANT ASSOCIATION (WESTERN INDIA)
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Oct - Nov 2021 Vol: 3 Issue 3 Pages 44 `20 OFFICIAL PUBLICATION OF HOTEL & RESTAURANT ASSOCIATION (WESTERN INDIA) FOR PRIVATE CIRCULATION ONLY DIGITAL TRANSFORMATION LANDSCAPE OF HOTEL SECTOR October - November 2021 HRA Today 1
Oct - Nov 2021 Contents PRINTER, EDITOR & PUBLISHER Siji Nair* sijicn@gmail.com SECRETARY GENERAL Mr. Kunal Gujral EXECUTIVE EDITOR Prasad M. ASSOCIATE EDITOR N. Vijayagopalan MANAGER-MARKETING Sreekanth K.S. ASST MANAGER-MARKETING Sibu Nair DESIGN Kiran Mohan National Representatives Mail: today.hra@gmail.com Mumbai : Raveendran 10 Kolkata : Priya Kundu Chennai : Subramaniam Bangalore : Hans Injackel International Representatives Mail: today.hra@gmail.com Muscat, Oman : Dr. Sanjaiyan 06 Digital Transformation Dubai, UAE Abu Dhabi, UAE : Binoy Syama Krishna : Sabari R Nair Landscape of Hotel Sector London, United Kingdom : Narendra Shah Zurich, Switzerland KL, Malaysia : Johnson Pereira : Sudarshan 14 Ecotourism and Singapore Seattle, USA : Roshan Fernandez : Pramod Manjali Environmental Kuwait Doha, Qatar : Jayashree Ganga Prasad : Raghesh Sustainability Düsseldorf, Germany : Abraham George Sydney, Australia Christchurch, New Zealand : Rakesh Devadas : Sony Jose 18 Is vegan food Canada : Shinto Mathew successfully penetrating the Indian market? This issue of HRA Today contains 32+4 pages cover All information in the HRA Today is derived from sources, which we consider reliable and a sincere effort is made to report accurate information. It is passed on to our readers without any responsibility on our part. The 20 Hotel industry recovers publisher regrets that he cannot accept liability for errors and omissions contained in this publication, however caused. Similarly, opinions/views expressed by third parties in abstract and/or in interviews are not necessarily faster than expected post shared by HRA Today. However, we wish to advice our readers that one or more recognised authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific advice before acting on information contained in this publication which is provided for general use, and may not be appropriate for the readers’ particular circumstances. Covid 2.0: ICRA Contents of this publication are copyright. No part of HRA Today or any part 24 News of the contents thereof may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing. The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extracts used for 58 Product Launches the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publications reproducing material either in part or in whole, without permission could face legal action. The publisher assumes no responsibility for returning any material solicited or unsolicited nor is he responsible for material lost or damaged. This publication is not meant to 66 Appointments be an endorsement of any specific product or services offered. The publisher reserves the right to refuse, withdraw, amend or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian and International Advertisements Code. The publisher will not be 56 The Last Leaf liable for any damage or loss caused by delayed publication, error or failure of an advertisement to appear. HRA Today monthly is Edited, Printed and Published by Siji Nair, R M Nivas, TMRA F 6 Pangappara (PO) Thiruvananthapuram Pin 695 581. Published from Thiruvananthapuram, Printed at Akshara Offset TC 25/3230(1), Vanchiyoor, Thiruvananthapuram 695 035. Owned by Hotels and Restaurants Association (WI), Editor- Siji Nair RNI No. DELENG/2018/76917 * Responsible for selection of news 4 under HRA Act. October - November 2021 Today the PRB
Mr Sherry Bhatia President, HRAWI My Dear Members, FHRAI & HRAWI have launched a scholarship program for students interested Greetings in the 71st year of the Hotel and in pursuing a 3-year B.Sc. in Hospitality Restaurant Association of Western India! and Hotel Administration from the FHRAI Let me begin this message on a positive Institute of Hospitality Management note. Your Association has become the first (FHRAI-IHM), Greater Noida. Children of Indian Hospitality Association to be awarded employees of member establishment of the ISO 9001:2015 and ISO 27001:2013 FHRAI and HRAWI will be offered 50 per certifications. These internationally cent waiver in the admission, enrolment, recognized standards ensure organizations tuition and examination fees. Other than for meet with the needs of members through members, 20 per cent waiver will be offered an effective Quality Management System to children from the families of hospitality (QMS) which is the foundation of quality patrons or employees. In solidarity with the assurance activities and Information Security plights of the workers who lost their jobs Management System (ISMS) which aims during pandemic, as a special case, the to protect the confidentiality, integrity and scholarship will be provided to the children availability of members’ information and data. of hospitality sector employees who were I congratulate and thank everyone in our working in the member establishments and office for their efforts towards making this lost their jobs during pandemic, based on a possible. I also wish to take this opportunity certification by the member establishment to welcome Mr Kunal Gujral to the HRAWI and the Regional Association. We urge all family. Mr. Gujral, who comes with over two our members to kindly spread the word and decades of industry experience, will serve as help aspiring hospitality students to take HRAWI’s new Secretary General. benefit of this opportunity. Moving on, after two painful years of Lastly and more recently, the HRAWI has lockdowns and restrictions, things are looking appealed to the Hon’ble Prime Minster up for the country and for our industry too. – Shri Narendra Modi ji for urgent relief As of mid-November, nearly 80 per cent of for restaurants from the recent abnormal India’s eligible adult population had been increase in the cost of Liquid Petroleum Gas administered the first dose of COVID-19 (L.P.G). It has become extremely difficult vaccine while 38 per cent had been fully especially, for standalone restaurants to vaccinated and the number of new cases is absorb this exponential increase in the steadily on the decline. We’ve requested the cost. To continue to remain affordable, the State Govt. to restore the operation timings HRAWI has requested that the rate of tax on of restaurants as per the license held by LPG for standalone restaurants be reduced establishments, on all days of the week from to 5 per cent from the current 18 per cent. Monday through Sunday. - Sherry Bhatia, President, HRAWI October - November 2021 HRA Today 5
DIGITAL TRANSFORMATION LANDSCAPE OF HOTEL SECTOR N.Vijayagopalan C urrently, the hoteliers, mid cap and and chatbots. In addition to these tools, above, are forced to face the digital there are other concepts such as artificial transformation of their hotels and intelligence and big data that are already on realize it is here to stay. However, it everyone’s radar, but there could be many appears that not everyone is ready. In fact, to know what they are or how they are used. even though the use of technological tools When we talk about technological has exploded since the COVID-19 pandemic advancement in hotel sector, we have to broke out, many hotels are betting on a look at two concepts - Digitization and comprehensive digital transformation. Hotel Digital Transformation. Digitization is Among the many changes that the sector turning traditional operational systems into is experiencing, we have seen how, as a digital ones. Digitization has been around result of the coronavirus crisis, many hotels for a long time, for example, when a hotel have implemented contactless solutions goes from paper posters to screens in public that include apps for guests, online areas this is the digitization of its posters. check-in, smart upselling, electronic locks, October - November 2021 HRA Today 7
Hotel digital transformation is the demands. Big data would be the volume of use and integration of different data collected by the PMS or CRM When we ponder on these two technologies in all areas of the hotel, of a large hotel chain. It is very things, it seems that the hotel procedures, products, and even the difficult for an independent hotel to sector is still not betting on a building itself to improve efficiency generate Big data by itself so it must transformation that helps them and guest satisfaction while solving resort to specialized software. improve retention, loyalty and current and future problems. Digital acquisition, or if it does so with a 2. Artificial intelligence in the hotel transformation can even open up digitization that improves guest industry is a type of technology that new opportunities to generate satisfaction and their personal is automatically capable of thinking more revenues or increase the security. and drawing conclusions like RevPar of your hotel. Digitalization humans. This technology analyzes is part of the path towards digital There are a few technologies in Big Data to identify patterns and transformation. which hotels across the world trends among our data. have been increasingly investing in We already know that independent even during the pandemic as they By combining your hotel’s historical of the COVID19 crisis, in the hotel want to get on the bandwagon of data with artificial intelligence you sector there is a clear need for technological transformation and could know if there is a rising or digital transformation to be able not end up being invisible or slaves falling pattern of reservations if, for to address some of the challenges of the big online Travel Agencies example, rain is announced, and that all hotels share. Two of these (OTAs). more specifically, you could know it challenges are : (1) increase direct according to nationality. bookings or growth of the direct 1. Big data in hotels refers to a channel and (2) meeting the level large volume of data, ordered as 3. Machine Learning is a type of of customization that the market well as unordered. An example of Artificial Intelligence that, in addition 8 HRA Today October - November 2021
to thinking like humans, also learns information. ‘Big Data for CEOs and Directors’ by like humans. Learning in this area Isaas Gonzalez is a good read for Thanks to hotel business means that you autonomously beginners as it explains everything intelligence, revenue managers can analyze and study new data without you need to know to understand now predict whether the pick-up will stopping, thus identifying new Big Data in an easy to understand, go up or down and make business patterns. This technology is essential ordered schematic format. decisions based on this information. to making predictions. It is not based solely on historical If hotels want to increase direct Using the previous example, data or the manager’s own hunch. bookings and reduce the dominance machine learning would be able of the large OTAS, among many The long-term digital transformation to extract new patterns of ups or other things, the hotel digital of your hotel must have as its downs from your pick-up if now transformation must help the sector objective to be able to make suddenly people change their to answer the following questions in decisions with real and reliable reservation behaviors as a result of any scenario: data. This will augment the hotel’s some specific factors. strategic vision. This transformation Observe : What is happening? 4. Business Intelligence (BI) links will mean going from being a hotel Understand : Why does it happen? this concept to all the previous ones, that makes decisions based entirely BI is the practice of transforming on historical data to one who makes Predict : What would happen? Big Data into usable information. In them based on detailed data-driven Collaborate : What should the team other words, it refers to the use of predictions of the future. If you do? artificial intelligence and machine do not have access to Business learning to translate your hotel’s Big Intelligence, you only have one Decide : Which way to go? Data into reliable and manageable opinion. October - November 2021 HRA Today 9
Tourism International Tourism Mart North East region is endowed with diverse tourist attractions International Tourism Mart highlights the tourism potential of the region in the domestic and international markets The delegation includes students from across the country as part of a study tour under Ek Bharat Shreshtha Bharat Presentation by State Governments and discussions on several aspects of tourism and unique tourism products in the North East Region and their potential as part of the Mart M inister of State for Tourism, Government of Nagaland Speaking on the second day of the Tourism & Defence Shri. H Khehovi Yeputhomi, 9th International Tourism Mart in Shri Ajay Bhatt Secretary Tourism, GoI Shri Arvind Kohima Shri Ajay Bhatt said that addressed the opening Singh, ADG Tourism, GoI Smt. the North East region is endowed session of the second day of the Rupinder Brar and other dignitaries with diverse tourist attractions 9th International Tourism Mart for of the Central government and and each State has its own distinct the North East Region at Kohima, the North Eastern States were also features. The attractions are Nagaland today. MLA & Advisor present on the occasion. scattered over the entire region 10 HRA Today October - November 2021
and are largely located in remote international markets. The coffee areas within a highly fragile table book on Nagaland was also environment. These attractions launched on this occasion. The and the people of the Region event was attended by over 300 constitute rich tourism resources. delegates including government Shri Bhatt said that North East has officials, industry stakeholders, a huge potential for adventure and and local participants. The eco-tourism. event was attended by the High Commissioner, Brunei On the second day of the Mart Darussalam, High Commissioner, State Tourism Departments of Malaysia, Ambassador Extra Nagaland, Arunachal Pradesh, Ordinary, Republic of the Union Assam, Manipur, Meghalaya, of Myanmar, Ambassador, The Mizoram, Sikkim, and Tripura gave Socialist Republic of Vietnam, presentations on their tourism amongst others attending potential and products. After that dignitaries and diplomats. discussions on several aspects Other high-ranking officials of tourism and unique tourism from participating Ministries/ products started and experts Government bodies are also highlighted the Rafting, Trekking going to be part of the event. and Road Expeditions, Potential In line with the Prime Minister’s of Fairs and Festivals for Tourism vision of ‘Ek Bharat Shreshtha in NER, and Potential of Food and Bharat’, the delegation also Wine Tourism in North East. includes students from across The objective of the event is to the country who, as part of a highlight the tourism potential of study tour, will be interacting the region in the domestic and with local students and October - November 2021 HRA Today 11
immersing themselves in the region’s rich heritage and culture. The event has been planned and scheduled to facilitate interaction “While we saw between buyers, sellers, media, a demand for government agencies, and other stakeholders. Around 50 buyers such homestays from different regions of the country just before the participated in the Mart and engaged in one-on-one meetings with 75 pandemic, now it sellers from the North East Region. is through the roof. This will enable the tourism product We are tailoring suppliers from the region to reach out to domestic buyers, to promote our promotional tourism. Domestic Buyers will be campaigns engaging in business-to-business meetings with sellers from the North to promote Eastern Region as well. homestays. Tourists To further enrich the experience of don’t want big the participants, the Ministry has organized a visit to Kisama Heritage hotels anymore. Village, Kisama War Museum and They want big open Morungs, Khonoma Village, and Kohima World War II War Cemetery. spaces, personalized The visiting delegation will be care, and want familiarised with the local community, local art and culture, and the rich to experience the heritage of Nagaland. local flavor. We are The International Tourism Marts also promoting are organized in the North Eastern States on a rotation basis. Nagaland staycations, is hosting this Mart for the first time. Homestays have The earlier editions of this mart have been held in Guwahati (Assam), emerged as a very Tawang (Arunachal Pradesh), Shillong strong vertical and (Meghalaya), Gangtok (Sikkim), Agartala (Tripura), and Imphal we are focused on (Manipur). it. In February, we held a workshop on homestays in Darjeeling where 500 owners had registered. As many as 725 came for the workshop ” Rupinder Brar Additional Director General in the Tourism Ministry 12 HRA Today October - November 2021
October - November 2021 HRA Today 13
ECOTOURISM 14 HRA Today October - November 2021
ECOTOURISM AND ENVIRONMENTAL SUSTAINABILITY V.R. Nair E cotourism is a new approach in tourism, which has gained grounds in the recent times. Ecotourism refers to travel to natural areas to appreciate the cultural and natural history of the environment, taking care not to disturb the integrity of the ecosystem, while creating economic opportunities that make conservation and protection of natural resources advantageous to the local people. Fundamentally, ecotourism means making as little environmental impact as possible and helping to sustain the indigenous populace, thereby encouraging the preservation of wildlife and habitats when visiting a place. According to The International Ecotourism Society (TIES), ecotourism can be defined as “responsible travel to natural areas that conserve the environment, sustains the well- being of the local people, and involves interpretation and education”. October - November 2021 HRA Today 15
Ecotourism is derived from two conditions - ‘Global Warming’ and The continuos denuding of words - ‘Ecosystem’ and ‘Tourism’. ‘Greenhouse Effects’, both of which forest reserves has led to Global Ecosystem is the system in which will lead to the total destruction Warming and Greenhouse Effects. we live - the system which include of the Planet Earth. It is now high Fortunately, this has led to some the earth, the water, the sky and time, we should (the entire Human realisation, and now the world ofcourse the living and the non- Community) start our bit of job has awakened for new beginnings living objects in all these systems. to save our Earth from complete about human responsibility towards It is a dynamic complex of plant, destruction. It is now every man’s nature. animal and micro-organism duty to do as much possible to communities and their non-living save our Planet Earth. environment interacting as a Today, there are “Green Laws” of Ecotourism in India functional unit. But, there is no such specific and particular spatial unit or conservation, which are making India, the land of varied geography scale to measure an Ecosystem. people aware of how man and the offers several tourist destinations environment can live beneficially for that not just de-stress but also And, tourism means - ‘the practice more time to come and Ecotourism rejuvenate you. There are several of traveling for pleasure.’ Thus, a is one way to maximise the ways to enjoy Mother Nature in tourism which contains a visit to an environmental and social benefits most pristine way. The few places Ecosystem is known as Ecotourism. of tourism, not forgetting the like the Himalayan Region, Kerala, But, that is not all. Ecotourism economic developments. the northeast India, Andaman is not only travelling to such and Nicobar Islands and the Ecosystems, but also conserving Everyone is a stakeholder in the process and we clearly need to Lakshdweep islands are some of them. Basically Ecotourism means the places where you can enjoy - “Tourism involving travel to areas avoid our past shortcomings in taking care of nature and the treasured wealth of the Mother of natural or ecological interest, environment. In India too the Nature. Thenmala in Kerala is the typically under the guidance of movement is gathering momentum first planned ecotourism destination a naturalist, for the purpose of with more and more travel and in India created to cater to the Eco- observing wildlife and learning travel related organisations tourists and nature lovers. about the environment and at the same time focus on wildlife addressing the needs of the The Indian topography boasts of and promotion of understanding ecotourists and promoting an abundant source of flora and and conservation of the ecotourism in the country. fauna. India has numerous rare environment.” In short, ecotourism and endangered species in its can be categorised as a tourism surroundings. The declaration of programme that is nature based The concern for and ecologically sustainable. Ecotourism This is a conscientious form of Since ages, nature worship and the tourism and tourism development, conservation ethics have been an which encourages going back to natural products in every aspect inseparable part of Indian thought of life and helps preserve nature. and traditions. Traces go back It is also the key to sustainable to ancient civilisations of India, Everyone is a ecological development. Simply when people used to nurture the put, eco-tourism is tourism with an philosophy of the oneness of life. ecological conscience. The Indian tradition has always taught that humankind is a part of stakeholder in nature and one should look upon the process and We and our we clearly need all creation with the eyes of a love and respect. environment It is tragic that since last few to avoid our past The race for becoming the most decades, the mad quest for the material end and economical shortcomings in taking care advanced and most developed state in the world, has led man progress in India and abroad of nature and to destruct the natural resource has become identical with the in our stock and our biosphere. exploitation of nature in all its Today, most of the underground and above the ground resources appearances. Today, the entire world is facing a deep crisis and is environment. are on the verge of finish, resulting in the danger of being doomed. in abrupt climate, natural disaster The rich forest areas and biological and more. Now, man is facing diversities have been relentlessly two very extreme dangerous divested to erect concrete walls. 16 HRA Today October - November 2021
several wildlife areas and national following are some Dos and Don’ts n Do not use pollutants such as parks has encouraged the growth which a responsible traveller needs detergents, in streams or springs of the wildlife resources, which got to take care. while washing and bathing. reduced due to the wildlife hunt n Do not use wood as fuel to cook by several kings in the past. Today, food at the campsite. India has many wildlife sanctuaries Dos and protection laws. Currently, there n Do not leave cigarettes butts or are about 80 national parks and 441 n Carry back all non-degradable make open fires in the forests. sanctuaries in India, which work for litter such as empty bottles, tins, plastic bags etc. These must n Do not consume aerated the protection and conservation of not litter the environment or be drinks, alcohol, drugs or any other wildlife resource in India. buried. They must be disposed in intoxicant and throw bottles in the There are numerous Botanical municipal dustbins only. wild. and Zoological Gardens in India, n Observe the sanctity of holy n Do not use Polythene which are working towards the sites, temples and local cultures. and plastics which are non- enhancement of the Ecosystem. biodegradable and unhealthy for Poaching has stopped to a n Cut noise pollution. Do not the environment. large extent. There are severe blare aloud radios, tape recorders punishments for poachers, hunters or other electronic entertainment Ecotourism is flourishing at a and illegal traders of animals and equipment in nature resorts, tremendous pace in India. The trees. Tree plantation is taking sanctuaries and wildlife parks. government of India has formed place in several places. There are a 13-member community, called several animal and plant rights n In case temporary toilets are set- Ecotourism Society of India, which organisations, which fight for the up near campsites, after defecation, focuses on creating awareness rights of the animals and plants. cover with mud or sand. Make sure about ecotourism and helps in Numerous organisations and that the spot is at least 30 meters framing guidelines. NGOs are coming forward to away from the water source. What we in India can do is to provide environmental education promote ecotourism as much to the common people at the grass root level. Don’ts as possible. If you ever have an interaction with tourists, tell them It’s high time one needs to be n Do not take away flora and how diverse our country is. India conscious towards the environment fauna in the forms of cuttings, has a lot to offer, especially in and make sure that his recreational seeds or roots as it is illegal and terms of terms of wildlife, flora and activities don’t adversely affect the the biodiversity of a region has to fauna, which is why ecotourism is natural beauty of the place. The be protected at all costs. growing so popular. October - November 2021 HRA Today 17
LIFESTYLE IS VEGAN FOOD SUCCESSFULLY PENETRATING THE INDIAN MARKET? N.Vijayagopalan 18 HRA Today October - November 2021
T he word ‘vegan’ was decade, Takia is set to launch a coined in 1944 by Donald vegan food company called Plant. Watson, the co-founder Celebrity couple Ritesh Deshmukh of the Vegan Society. The and Genelia D’Souza, too, is Today, people term was initially used to describe launching their vegan initiative ‘non-dairy vegetarians’, the Vegan Imagine Meats, presumably have a variety of Society updated the definition inspired by the multi-billion dollar to: “…exclude all forms of animal success of US giant Beyond Meat. exploitation…” in 1951. On screen, powerful documentaries plant-based food options that are No longer a novel concept, such as Cowspiracy, What the Veganism is evolving from a fringe Health, Dominion, and most both healthy and movement to a mainstream choice recently, The Game Changers, have associated with health, ethics, and been inspiring people across the tasty. And more eco-sustainability. The meteoric spectrum to adopt a plant-based rise of plant-based diets around lifestyle. In covering a range of the world is proof that more than ever before, we’re living in the age topics from the atrocities of factory farming to its damaging effects and more of them of Veganism. on climate change, these thought- are now preferring vegan diet and How did we get here? A rising provoking films have successfully educated middle-class, increased converted a niche campaign into a thus catering to awareness of global trends, a popular cause. Opinions of these growing focus on personal and films and all aspects of veganism this increasing planetary health, and the appeal of are able to spread rapidly across a greener, cleaner way of life. social media through Twitter and Although veganism spans across Instagram. number becomes an important task. generations and cultures, it’s a The popularity of vegan food has lifestyle choice led by the youth. been slowly gaining momentum With veganism skyrocketing in India. Over the last few years, around the world, India, as a not only have people started young country with almost half its to appreciate the concept of population under the age of thirty, veganism but have adopted it in is keen to follow. their lives too. According to a UN FAO report, India has the lowest Instrumental in the rise of rate of meat consumption in the veganism are influencers who world due to 44 per cent of the 1.3 restaurants are getting increasingly have tapped the young, tech- billion population being Hindus. ready to cater to vegan customers savvy generation by increasing According to rough estimates, and the market is ready to take up awareness of the cause through there were around 500 million the challenge of providing more social media. Hundreds of vloggers vegetarians in India in 2020 and plant-based food options. sharing wellness guides, nutritional of these, only one per cent are The vegan customers in India, advice, and vegan recipes can be strict vegans. So, the total number although small currently, are followed on YouTube. of vegans in India is around five growing rapidly. The product Dr Nandita Shah, Founder of million. offerings, however, are quite Sharan, is one of the many Today, people have a variety of limited, especially when customers nutritionists who have been plant-based food options that are looking for a replacement of catalysts for the vegan movement are both healthy and tasty. And a meat-based product. Achieving at home. Athletes like Virat Kohli more and more of them are the same meat-like taste, texture and actors like Aamir Khan and now preferring vegan diet and and aroma, using only plant-based Ayesha Takia have also brought thus catering to this increasing ingredients being a difficult task, awareness of veganism’s health number becomes an important market players are understood to and performance benefits to task. According to market reports, use innovations to attract more the masses. Vegan for almost a Indian food producers and meat-eaters into their vegan food. October - November 2021 HRA Today 19
HOTEL INDUSTRY HOTEL INDUSTRY RECOVERS FASTER THAN EXPECTED POST COVID 2.0: ICRA T Our Bureau he hotel industry demand seen ARRs return to pre-Covid and sustenance of demand will has recovered at a sharper levels in Aug-21/Sep-21. Travel depend on efficacy of vaccines pace post Covid 2.0 during the festive season travel will and a potential third Covid wave. compared to last year’s act as a key demand booster for The industry is currently cautiously lockdown, aided by the easing the industry in Q3 FY2022. optimistic.” of restrictions in Q2 FY2022. Vinutaa S, assistant vice president Most markets reported over 50% Partial lockdown as well as travel and sector head, ICRA Limited, said, occupancy in Jul-21 and Aug-21, restrictions in many states in April “While the first few months were the key markets - Jaipur, Goa, and May 2021 post the onset of impacted, the industry witnessed Delhi, Mumbai and Hyderabad Covid 2.0 resulted in the ICRA displayed healthy occupancies faster-than-expected ramp up sample of companies reporting whereas Bangalore and Pune in Q2 FY2021, because of lower a 56% decline in revenues on a lagged behind. The ARRs in leisure restrictions, high vaccination pace QoQ basis, in line with the ratings destinations were above pre-Covid and pent-up demand, which resulted agency’s estimates. However, the levels in Jul-21 and Aug-21. Going in revenge travel. Demand in the revenues are expected to improve by forward, ARRs will be a function of last few months has come from 85-90% sequentially in Q2 FY2022. sustenance of demand. staycations, weddings and travel Occupancy has picked up, with to driveable leisure destinations, The demand recovery pattern has the August-21 Pan-India premium and from special purpose groups. different from other crises, with hotel occupancy at 44-46%. For There is the new trend of biscations properties with affiliated strong 5M FY2022, the same is estimated (which is working from a resort) brands and in the luxury segment to be 32-34% (up from 13-15% in that is picking up. Business travel standing to benefit, as trust and 5M FY2021), vis-à-vis 46-48% in pickup has been mainly to project safety are paramount. Drive-to Q4 FY2021. The Pan-India ARRs sites/manufacturing locations from leisure, staycations, social MICE/ are estimated at Rs 3,850-3,950 for specific sectors. The Covid-related weddings and special purpose 5M FY2022 and still remain at a 25- demand which was prevalent April groups are expected to drive 30% discount to pre-Covid levels, mid to June mid, waned from July revenues for hotels for the next one although some high-end hotels and we are seeing real demand year at least. International traffic and leisure destinations have even pick up. The situation is evolving, arrivals will take time to pick-up and 20 HRA Today October - November 2021
Nevertheless, the situation is still monetization to support capital evolving and as the estimates are structure improvement going contingent on timelines tied to the forward. However, debt metrics are pandemic,” added Vinutaa. expected to return to pre-Covid levels only over the medium term, Moratorium and ECLGS provided while RoCE is expected to remain the much-needed financial sub cost-of capital at least for the support during Covid-19. About next few years. 70% entities in ICRA’s hospitality portfolio availed moratorium ICRA continues to have a negative during the first wave, though it outlook on the Indian hotel was only 39% of rated debt. Some industry, as the sustenance of companies also raised funding the demand pickup in the recent through equity and debt tie-ups months remains to be seen. A before ECLGS announcement. potential third wave and its impact The industry has raised about on travel and hotel occupancies Rs. 660 crore of equity in FY2021 cannot be ruled out. Further, the and has announced Rs. 3,300 RevPAR is still significantly lower crore of equity/fund raising than pre-Covid levels. About plans in FY2022. ICRA expects 63% of ICRA’s ratings are also on further equity fund raising/asset negative outlook currently. in the intervening period, demand will be supported by domestic travel. Hotels/cities dependent on business travel/foreign tourist arrivals (FTAs), will also take considerable time to recover. In terms of supply, in the immediate term, temporary shutdowns are possible in affected regions, if there is a third wave. Acquisitions and industry consolidation are the way forward, and rebranding in the midscale and upscale segments will add to share of organised supply. Over the medium term, a part of pre-Covid supply may be permanently shelved, while there could be new properties coming up in leisure destinations. “The hotel industry is expected to clock at least 45-50% of pre- Covid revenues in FY2022. Further operating profits in the current fiscal will be aided by improved operating leverage and sustenance of some of the cost-optimization measures undertaken last fiscal. However, pre-Covid revenues and profits are likely only by FY2024. As a result of sustenance of some cost-saving measures, the breakeven is expected to reduce and hotels are likely to report pre-Covid margins of 85- 90% of revenues going forward. October - November 2021 HRA Today 21
INTERVIEW INVESTMENT IN TECHNOLOGY ENHANCING GUEST EXPERIENCE Amruda Nair is Founder & Director, Araiya Hotels & Resorts. Ms. Nair has a global perspective on hospitality, backed by her experience with leading international brands. She is the granddaughter of the late Captain C.P. Krishnan Nair, the iconic businessman who founded the Leela Group. Amruda Nair shares her views on hotel industry scenario with HRA Today. N.Vijayagopalan What are the major challenges the Indian hotel back to hospitality. This resonates strongly with our guests industry is facing at this juncture? who are seeking brands that are independent and not part of the mega consolidation in the industry that they The hospitality industry continues to struggle with view as commodification. Our guests love that we are muted demand for corporate room inventory, delays in boutique, female-owned, community focused and built on supply of goods, higher operating costs, restriction on inclusiveness and transparency. trading hours and reduced capacities. The resumption of inbound international tourists and the complete What new trends are getting established in the hotel re-opening of borders to foreign travel are the critical industry after the pandemic has eased and normalcy turning points that the industry is looking for. Hotel is back? room demand is recovering quicker than expected and, The expectations of guests have changed forever and as a result, service levels are suffering. While we knew we are seeing a normalisation of contactless, digital there would be an erratic recovery curve, prolonged transactions that are hassle free and allow for more labour issues have intensified the challenge to meet the genuine human interactions. The pandemic allowed hotel expectations of returning guests who expect a return to brands to connect with their guests through social media normal, even if it’s not yet economically viable. and enhance the engagement in future with the use of data analytics. At Araiya we chose to invest in technology According to you, what is the emerging landscape of so that we could leverage our systems to enhance the hotels in India? quality of our guests’ stay experience through preference There has been a clear shift in the willingness of the tracking, personalisation and customisation. domestic traveler to explore the country and seek new What is your take on the role of online retail experiences within a drivable or single flight radius. companies in the resurgence of the hotel industry? Indian guests are also showing openness to boutique properties with unique features or undiscovered We have a lot to learn from online retail companies who locations. Trust and safety remain the key currency and were adept in bridging the gap between physical and brands that establish clear communication through digital and transformed the buying experience through digital channels will have a clear advantage. data analytics and personalisation. Using past purchases to design future offers to guests is something hotels Launching a new, independent brand just before the are only beginning to tap into. The same goes for de- pandemic hit was a big leap but one that has been well packaging the offerings beyond bed and breakfast to received as it is exactly what guests today are looking include other enhancements such as excursions, special for. Araiya which means eternal beauty to me means meals, spa and sports features based on preferences. constant evolution - the ability to adapt, change and stay relevant. The only way to achieve this agility is What are the strategies of your brand to augment to be young and fearless. As a new brand we have the business in the post pandemic scenario? ability to make quick decisions and respond to the The pandemic allowed us to engage further, build trust constantly evolving environment. and establish more regular and relevant communication Our vision today is to bring the joy of travel and discovery channels with our guests. Our investment in technology 22 HRA Today October - November 2021
has not only helped drive direct bookings but also enhanced the guests’ stay experience. We have been able to incorporate contactless and self-service technologies into our service offering to provide a more customer-centric experience that replaces administrative convenience with genuine engagement. What is the support that you look forward from the government for a smooth sail ahead? While domestic tourism is booming, the complexity of regulations that change from state to state has made travel expensive and cumbersome hence stifling demand particularly for business travelers. Liquidity remains a key concern for both existing hotels with subdued cash flows as well as projects under development that require fresh funding. As the largest generator of employment in the country, tourism has vast potential to contribute to the economic recovery and the industry has been lobbying for infrastructure status that will encourage investment and growth in the sector. How do you envision the position of your brand five years down the time line? We plan to grow in a sustained manner, focused on expanding in geographies such as Himachal Pradesh, Kerala and Gujarat where we already have a presence. We will also seek new destinations in wellness, spa and activity-led space to leverage our existing portfolio of golf, spa and mountain resorts. We will continue to add more properties under the Araiya flag to appeal to our existing guest database and will also be opening flagship properties under the luxury ‘Essence by Araiya’ and mid scale ‘Soul by Araiya’ brands to expand our offering in multiple segments and markets. October - November 2021 HRA Today 23
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NEW MEMBERS T he Hotel and Restaurant Association of Western India (HRAWI) continues to expand its membership base across the western reaches of India. In the recent past, the Association has added hotels, restaurants, and other affiliates from Goa, Maharashtra, Gujarat and Madhya Pradesh among other states. The Association’s continued efforts and support for the hospitality industry in the regions under its ambit have helped its membership base grow exponentially. HOTELS 2 Kapila Garden 174, Dhole Patil Rd, next to Ruby hall Restaurant Clinic Gate, Sangamvadi, Pune - 411001 Sr. No Name of the Address Establishment 3 Thambbi Veg 15, Runwal Heights, Nirmal Lifestyle Restaurant Mall, Lal Bahadur Shastri Rd, Salpa Devi 1 Sardar Sarovar Kevadia, Garudeshwar (Taluka), Opp. Pada, Mulund (W) - 400080 Holiday Resorts LLP Kevadiya Railway Station, Narmada, Gujarat - 393151 4 The Café Bistro Shop No. 5/6 Sumeru Arc, Ghogha Rd, near Roopani Circle, Bhavnagar, Gujarat 2 Hotel Ginger Highway No. 06, Village Baradiya, - 364001 Dwarka Taluka Okha, Dwarka, Gujarat - 361335 5 Subway Bio Green Acres Bungalows CHS, DIN 3 Mayfair Lake Sector 24 , Atal Nagar , Raipur -492018 Quary Road, Chembeur (E) - 400088 Resort 6 Ruka Luxury 462, AB Nair Rd, Juhu, 4 Grand Vicotria The Panchgani, Plot no 555, Narayan Lodge, Restaurant Fern Panchgani Mahabaleshwar Road, 412805, 7 Circle of Crust Phoenix Market City, 2nd Floor, Nagar Road, Viman Nagar, Pune - 411014 5 Silver Estate Resort Tikamgarh, Jhansi Road, Alampura, Madhya Pradesh 472001 8 Circle of Crust Shop No BG, 8, DC Rd, Magarpatta, Hadapsar, Pune, Maharashtra 411013 6 Hotel Ranjeet 870/7 Lane No. 10, Bhandarkar Road, Gymkhana, Pune - 411014 9 Swig Bar & Eatery Shop No. 05, Balewadi High St, Laxman Restaurant Nagar, Baner, Pune, Maharashtra 7 Radisson Hotel, Plot No - 19, 21 & 27-29, Gold Valley 411045 Resort & Spa Sector D, Tungarli, Lonavla 10 Shahi Haveli 238 A, M. P. Nagar Zonel 1, Bhopal, 8 Singhania Srovar Great Eastern Rd, near AIIMS Hospital, Restaurant and Madhya Pradesh - 462011 Portico Sarvodaya Nagar, Tatibandh, Raipur, Bar Chhattisgarh 492099 9 Binori Hotel Opp. New York tower, near Thaltej ASSOCIATES Cross Rd, Sarkhej - Gandhinagar Hwy, Bhaikakanagar, Thaltej, Ahmedabad, Sr. No. Name of the Address Gujarat 380054 Establishment 10 The Fern Residency JCR Cinema Pvt Ltd, Survey no.612 1 Poona Hoteliers 13, Wilson Garden, Motilal Talera Marg, Jamnagar Theba Cross Road, Jamnagar Dwarka Association Opp. Pune Railway Station, Pune - Bypass Road, Gujarat - 361120 411001 2 Broadway 8th Floor, Muttha Chamber II, Senapati RESTAURANTS Integrated Park Bapat Road, Pune - 411016 Sr. No Name of the Address LLP Establishment 3 Spartan 111, New Tejpal Industrial Estate, 1 Feelings Little Italy Shop No. 21, Balewadi High Street Park, Engineering Andheri - Kurla Rd, Saki Naka, Mumbai Foods LLP Near Express Highway, Pune - 411045 Industries Pvt. Ltd. - October - November 2021 HRA Today 25
NEWS FSSAI introduces new logo for ‘vegan’ The Food Safety and Standards Authority (FSSAI) of India has introduced a new logo to identify vegan products in the country on Tuesday. Green in colour, it has a V inscribed in the middle with a small plant on top of it and Vegan written at the bottom. The food regulator informed that the design resonates with the current logo, which is a green and brown dot in the middle of a square, respectively, for vegetarian and non-vegetarian products. FSSAI. The logo has been developed by Kruti Manish Rathore of Mount Caramel College, Bangalore, pursuing Masters in Food Science and Nutrition, under the guidance of Sangeeta Pandey. Fortune Park Hotels to add five hotels in India by December 2022 Fortune Park Hotels, a member of ITC’s hotel group, will be opening five properties with over 375 rooms in India by the end of 2022, as part of its robust expansion plans in the country. The company has 38 operating hotels with around 2,900 rooms across 34 cities of India. Apart from opening 5 hotels with over 375 rooms across 4 cities of India from our active pipeline by the end of December 2022, they are understood to be also in advanced negotiations for a few more projects, some of which are anticipated to open before the end of next year. These five hotels will be -- Fortune Resort Benaulim Goa, Fortune Park in Hoshiarpur (Punjab), Fortune Park in Tirupur (Tamil Nadu), Fortune Select in Goa and a Fortune Inn in Haldwani (Uttarakhand), he added. It has clearly defined sub-brands -- Fortune Select, Fortune Park, Fortune Inn and Fortune Resort -- under which the hotels are being operated by the chain. Lords Hotels and Resorts expands its footprints in Panchgani Lords Hotels and Resorts announced the sign-up of its forty third hotel at Panchgani, a serene hill station near Mahableshwar. Deriving its name from the five hills surrounding it, Panchgani is known for offering breathtaking views of wonderful valleys, forts, hills and dams. This hotel is situated in the best part of the city, with easy access to the major sightseeing attractions and rooms overlooking the infinity pool and the valley beyond it. It will offer forty well-appointed rooms & suites with a fascinating view of the valley and also feature a conference hall, game zone, infinity pool and multi-cuisine restaurant. Pushpendra Bansal, COO, Lords Hotels and Resorts stated “We are delighted to mark our presence in one of the most popular hill stations of Maharashtra and the strawberry garden of India. We aim to deliver highest level of comfort to our esteemed guests with our True Value services”. Rishi Puri, Sr. Vice President, Lords Hotels and Resorts further added “This hotel will also be a perfect destination for work and pleasure. This would surely be a Strawberry (Berry) on the cake on existing portfolio of Lords Hotels and be a boutique unit” he jested in lighter vein. 26 HRA Today October - November 2021
India’s Hotel Industry Continues to Regain Occupancy have seen a different trend in where the country is regaining occupancy. Whereas India’s first recovery earlier this year was concentrated in leisure destinations, such as Goa, heavily populated markets such as New Delhi and Mumbai have seen improvement in this latest rebound.” Mumbai’s daily occupancy reached as high as 77.9% on 26 June. New Delhi occupancy improved to as high as 79.7% on 17 July. Those were each market’s highest daily levels in 2021. STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate After a rapid decline due to a second of 50.5% on 26 June. In July, the North American headquarters COVID-19 wave, India’s hotel industry country took another step forward in Hendersonville, Tennessee, has seen a continued increase in with most days in the 40-60% range an international headquarters occupancy due to the progressive and a peak of 63.2% on 17 July. in London, and an Asia Pacific approach to vaccinations in key “The progressive approach to headquarters in Singapore. STR markets across the country, according vaccinations has led to an increase in was acquired in October 2019 by to preliminary data and analysis from travelers and hotel demand—leisure CoStar Group, Inc. (NASDAQ: CSGP), STR. demand continues to drive this the leading provider of commercial India’s daily occupancy sat in the 20- growth,” said Vidhi Godiawala, STR’s real estate information, analytics 30% range in early June but improved business development manager for and online marketplaces. For more by the end of the month with several Central and South Asia. “Beyond information, please visit str.com and days closer to 35% and an outlier the noticeable improvement, we costargroup.com. The Leela Palaces, Hotels And Resorts announced the opening of The Leela Gandhinagar The Leela Palaces, Hotels and Located near the Dandi Kutir complex. The hotel houses 318 Resorts owned by Brookfield Asset museum, The Leela Gandhinagar spacious rooms and suites, with Management-sponsored private real provides spectacular views of the contemporary interiors seamlessly estate fund, announced the opening Central Vista. The hotel’s lavish blending grandeur, comfort, and of The Leela Gandhinagar, in Gujarat’s interiors draw influence from the modern sophistication. The bevy of capital city. The hotel is built on the rich archaeological and architectural suites also consists of Royal and 4 airspace of a conventional railway antiquity of Gujarat. The flooring is Presidential Suites each offering a station, 22 meters above ground and inspired by the Adalaj Stepwell and distinct magnitude of unparalleled is the tallest building and the largest features elements like the famous opulence, ultra-modern facilities, hotel in the city. The Gandhinagar Tree of Life at Sidi Saiyyed Mosque, and luxurious amenities. The Leela capital railway station has been traditional glass beadwork, textile Gandhinagar delivers a rich culinary redeveloped along with the 318 craftsmanship of Bandhej, Ajrakh experience with dining venues room 5-star hotel atop the tracks, the and Batik, among various other spanning across a host of cuisines country’s first such project. art inspirations embellishing the served in picturesque environs. October - November 2021 HRA Today 27
Hotel Industry Witnesses Growth in Revenue Per Room in second quarter The hospitality industry in India Demand and supply of operational segment performing notably well. witnessed a growth of 84.7% in inventory in six major cities Guest preferences have changed revenue per available room (RevPAR) increased by 186% and 14% significantly, and people are during the second quarter of 2021 respectively in the second quarter preferring to stay at secluded low- (April-June) as compared to Q2 2020, of 2021 as compared to the same density properties. according to property consultant JLL period last year. JLL said that it expects the India. According to JLL’s Hotel Momentum leisure and wedding segments However, on a pan India level, there India (HMI) Q2 2021, a quarterly to continue to drive the sector has been a decline by 53.9% in Q2 hospitality sector monitor, y-o-y in the short to medium term. As 2021 RevPAR as compared to Q1 growth witnessed in the sector offices open and travel restrictions 2021, because of the restrictions during Q2 2021 is primarily due ease further, along with the imposed due to the second wave of to the low base effect of the rise in the pace of vaccination, the pandemic. complete nation-wide lockdown corporate travel is expected to in Q2 2020. During the months of gain momentum towards the end Goa emerged as the RevPAR leader April and May this year, the country of the year. in absolute terms in Q2 2021 with witnessed the imposition of full and a growth of 360% as compared In terms of hotel signings, a total partial lockdowns as well as travel to the very low base of Q2 2020. of 20 hotels comprising 2,100 restrictions in many states. Additionally, Mumbai witnessed the keys were signed in Q2 of 2021, highest growth in occupancy level However, as restrictions were eased which is three times the number registering 17.7% increase in Q2 between the end of May and June, a of rooms signed in Q2 2020. 2021 over the same period last year. sharper recovery in leisure demand Furthermore, domestic operators Chennai witnessed 99.6% growth in was seen in comparison to the same dominated signings over RevPAR followed by Hyderabad with period last year. The recovery of international operators with the 89.6% increase compared to the same the sector has been primarily driven ratio of 60:40 in terms of inventory period of the previous year. by branded chains in the leisure volume. The Fern Hotels & Resorts ties up with SpiceJet’s IFE platform SpiceScreen The Fern Hotels & Resorts, India’s leading environmentally sensitive hotel chain has partnered with SpiceJet’s inflight entertainment platform, SpiceScreen, to showcase its selected properties on the platform. SpiceScreen gives access to an amazing collection of unlimited entertainment, podcasts, magazines, and games along with an exclusive travel section that highlights hotels, vacations, and mid-air cab bookings. SpiceJet guests would be able to make their hotel bookings on our brand website booking engine. All 55 participating hotels will offer SpiceJet guests booking their hotel rooms through this platform a flat 20 % off on the hotel’s BAR rates. The guests will also get a 20% discount on food and beverages and complimentary room upgrades & late check-out till 4 pm, both subject to availability. This is a promo offer. 28 HRA Today October - November 2021
FHRAI-IHM Gets Affiliated With NCHMCT, Noida Restaurant Associations of India 3rd largest Hospitality Association. (FHRAI) to be affiliated with the FHRAI-IHM offers the best-in-class NCHMCT. FHRAI-IHM will offer training infrastructure backed by a 3-year B.Sc. in Hospitality and experienced and learned faculty Hotel Administration, 18-month for carving out a great future for Diploma in Food Production, students in Hospitality. 18-month Diploma in Bakery and FHRAI-IHM is fully equipped to Confectionary and 18-month provide students with all necessary Diploma in Food & Beverages inputs in the area of aptitude Service. formation, personality development The FHRAI-Institute of Hospitality India’s only private Hospitality and brings the right value-add for Management (FHRAI-IHM) is now Institute that’s run by the country’s building careers in the hospitality affiliated with the National Council apex Hospitality Association is now domain. We are also updating and of Hotel Management & Catering also affiliated with NCHMCT, Noida incorporating the technologically Technology (NCHMCT), Noida an organisation of the Ministry advanced practices prevalent in an organisation of the Ministry of Tourism, Government of India. Hospitality Industry. Hopefully, we of Tourism, Government of India. This development reinforces our will soon have put this phase of NCHMCT, Noida presently has over commitment to offer students the lockdowns and restrictions behind us seventyfive affiliated Central, State best in Hospitality Management and pray that tourism bounces back and private Hotel Management education.FHRAI-IHM is founded to health. Hospitality has and will institutes in the country. FHRAI-IHM by FHRAI comprising of its four continue to play a major role in the becomes the first private institution regional hotel and restaurant progress of education and continue that is run by India’s apex Hospitality Associations in the North, East, West to be a great avenue for students Association – Federation of Hotel & and South. FHRAI is the world’s aspiring to make a career in the field. Second Covid-19 wave hit BMC’s khau galli plan 2021. According BMC officials said after initial to BMC officials, discussion in January, a policy was to a policy for khau be formulated wherein 10-12 trucks, gallis was to be selling different cuisines, will come framed but there and park trucks between 6pm and is no development 11pm. For this, several wards in the on the same as the city are looking at small streets which plan is on hold for BMC can afford to shut between now. 6pm and 11pm and divert traffic to alternative routes. The idea of food trucks was pushed Meanwhile, the hospitality industry by state tourism feels they should be consulted before minister Aaditya such a policy is implemented. Pradeep Thackeray who Shetty, senior vice-president of Hotel announced having and Restaurant Association of Western food trucks across India (HRAWI), said, “Our industry is the city to boost the most impacted due to the Covid tourism. In the lockdown, and business has been hit The plan was to set up khau gallis 2021-22 budget, BMC reserved for hotel industry since the past 15 in all 24 administrative wards of the `200 crore for creating food months. We expect that such a policy city. However, the city was hit with hubs including beautification of is drafted after taking suggestion from second wave days later with cases footpaths, beautifying space below hospitality industry to ensure there is starting to increase from February flyovers etc. level playing ground. October - November 2021 HRA Today 29
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