Foreign and local operators alike are eyeing India’s hospitality gold mine

The Westin Sohna Resort & Spa

Starwood Hotels & Resorts Worldwide, Inc

Who Starwood has 1,071 properties in 100 countries and territories across nine brands: St. Regis, The Luxury Collection, W Hotels, Westin, Le Méridien, Sheraton, Four Points by Sheraton, Aloft and Element.

In operation Starwood currently operates 33 hotels in India. The Luxury Collection is the largest Starwood brand in India, which is also the brand’s second-largest market after the US.

Under development There are over 20 hotels under development in India, all scheduled to open by 2015. In 2012, Starwood will open the ITC Grand Chola, Chennai, a Luxury Collection hotel; Westin Chennai; and two Aloft hotels. W Hotels (Mumbai, Goa, Delhi NCR) and St. Regis (Delhi NCR) will be introduced to the market in 2015 and 2016 respectively.

Investment Mostly management contracts. It has also franchised a part of its Luxury Collection to ITC Hotels such as ITC Maurya and ITC Grand Central.

Adapting to the market To meet the demand generated by the increasing number of Indian customers, Starwood opened its first Customer Contact Centre (CCC) for the market in Gurgaon earlier this year. This is Starwood’s ninth global CCC and its fourth in Asia-Pacific.

Average rate Rs8,000-20,000 (US$162-406) a night

Comment “Indian consumers continue to enjoy double-digit growth in per capita income, while the population of high net-worth individuals has grown over 80 per cent in the last five years…We have a significant opportunity to grow our luxury brands.” – Dilip Puri, managing director of India and regional vice president of South Asia

The Leela Palace Udaipur

The Leela Palaces, Hotels and Resorts

Who The Leela is a luxury hotel group with properties across India, including palace hotels in several cities. The chain exemplifies Indian hospitality and international standards of service excellence.

In operation The Leela has seven operating hotels throughout the country.

Under development Its eighth hotel is due to open in Chennai in March, while a ninth will open in Jaipur by year-end.

Investment Although the majority of its properties are built and owned, the group is now pursuing an asset-light strategy. Most of its hotels opening over the next few years will operate under management contracts.

Adapting to the market Indian business travellers need a more elaborate and efficient room service/in-room dining menu. For leisure, Indians take quicker and more frequent breaks; look for family and couple accommodation with more hotel activities; and have a lesser need for sightseeing. They sleep late, get up late, want to have late dinners and enjoy an overdose of service.

Average rate Rs15,000-25,000 a night

Comment “I am very bullish about the Indian hospitality industry as we have just scratched the surface. The government now understands the employment potential of this industry, and this is resulting in measures that will impact investment and make it easier for foreign nationals to visit India.” – Sanjoy Pasricha, vice president, sales and marketing

Sofitel Mumbai BKC

Accor

Who Accor is present in 90 countries with 4,200 hotels. Its broad portfolio of hotel brands include Sofitel, Pullman, MGallery, Novotel and Ibis, providing an extensive offer from luxury to budget.

In operation Accor has 10 hotels in India.

Under development Accor’s luxury brand debuted in India last year with the Sofitel Mumbai BKC. There are two more Sofitels committed for India. Accor has also reaffirmed plans to open around a dozen more hotels in India by the end of 2012 – double its current number – and remains on track to have 90 properties in the market by 2015.

Investment A mixture of owned and managed hotels.

Adapting to the market Guest services and F&B are designed with an accent on Indian travellers’ needs such as a suitable buffet spread, relevant TV channels and multilingual reception staff.

Average rate Rs7,000-18,000 a night

Comment “Accor is focused on India as a core growth market…While we are placing a significant emphasis on the mid- and economy sectors, we are also expanding in the upscale segments.” – Michael Issenberg, chairman and chief operating officer, Accor Asia-Pacific

CGH Earth’s Chittoor Kottaram

CGH Earth

Who CGH Earth develops and operates properties in India, with a strong focus on nature and the environment. A family-owned enterprise, CGH defines its properties as luxurious – both in comfort and experiences.

In operation CGH Earth has 12 resorts, heritage hotels and boutique hotels across southern India.

Under development There are plans for properties in the Andaman Islands, Puducherry and North Karnataka. CGH Earth’s properties will increasingly have fewer rooms, offering customised experiences for guests.

Investment All properties are owned and managed.

Adapting to the market Guests engage with the destination and the local communities. They are served fresh produce cooked in local flavours and styles. Core values such as sustainability and community involvement are promoted.

Average rate Rs10,000-12,000 a night (winter) Rs6,000-8,000 a night (summer)

Comment “Our customer is the ‘alert independent traveller’. He is on a voyage of discovery, and luxury is determined by the quality of his experience rather than ostentatious buildings. We expect growth to be much larger than our available capacity.” – Jose Dominic, managing director

This article was first published in TTG Asia, February 24 issue, on page 8. To read more, please view our digital edition or click here to subscribe.

Do travel marts – and the trade – still matter? NTOs weigh in

Singapore

Shrinking presence

THE National Association of Travel Agents Singapore intends to take over the lead in giving the country a face at some major travel trade shows, following the Singapore Tourism Board’s (STB) decision to skip events such as WTM and ATM.

According to STB, as of January, only five shows were confirmed for 2012. It exhibited in at least eight shows last year.

STB’s executive director, exhibitions & conferences and conventions & meetings, Jeannie Lim, said while trade shows were important marketing platforms, criteria such as industry interest and audience profile were key considerations too.

However, inbound operators, worry that this may be symptomatic of the NTO’s gradual withdrawal of local trade support. Said Tour East Group’s senior vice president of sales and marketing, Judy Lum: “STB is now overtly consumer-centric to the detriment of the trade.”

Malaysia

Becoming selective

TRADE show participation will continue to be a part of Tourism Malaysia’s marketing and promotion efforts, although the NTO is “becoming selective”.

Said its spokesperson: “We are certainly moving towards the direction of an industry which is driven by the private sector. Tourism Malaysia will then be able to focus more attention on exploring new markets.”

Acting director general Azizan Nordin outlined that plans for this year included participating in more consumer events to promote and ‘hard sell’ directly. However, Tourism Malaysia would also expand cooperation with the trade through joint tactical campaigns, highlighting both traditional and niche products, he said.

Indonesia

A strong anchor

SOME 90 per cent of the Ministry of Tourism and Creative Economy’s marketing programmes involve the trade, calling its strategy ‘below the line’.

The ministry’s deputy minister, Sapta Nirwandar, said a limited marketing budget meant that “supporting the trade in participation at travel marts and sales missions” was key as such platforms were well-targeted.

“We need to involve the private sector as much as possible to help them meet their counterparts as many times as possible,” he explained.

The ministry fully pays for the exhibition space, spending between 30-40 per cent of its yearly budget on this. “A number of trade members can afford to have their own booths at travel marts, but there are many more who cannot,” said Sapta.

He added that separate table tops were organised at marts to offer in-depth business talks, while such B2B sessions were also held during consumer events within the country.

Thailand

Trying out new methods

THE Tourism Authority of Thailand (TAT) will continue to embark on traditional marketing strategies involving the trade, such as having a prominent pavilion at major shows, said Juthaporn Rerngsonasa, TAT’s deputy governor of international marketing-Europe, Africa, Middle East and Americas. It will also organise road shows.

“We will kickstart our mart-within-a-mart at ITB Berlin, where niche market specialists will be hosted to participate in a special table top session. Sellers wanting to join will be charged an extra fee besides the normal participation cost,” she added.

The niche market is seen as resilient in the face of an anticipated slowdown in longhaul markets, Juthaporn explained.

Hong Kong

Maintaining focus

THE Hong Kong Tourism Board (HKTB) is sticking to the number of trade shows it is participating in for 2012/2013 (a dozen), although it is penetrating new markets such as the Netherlands (Vakantiebeurs), India (SATTE), Russia (MITT) and the Middle East (ATM).

Executive director, Anthony Lau, said the NTO had “always been participating actively at overseas trade shows” due to the networking and business opportunities offered.

He added that HKTB would co-organise more spin-off events, including on-stand activities with destination partners such as Macau and Hainan. It hopes to facilitate more multi-destination programmes and joint product creation.

Additional reporting from N. Nithiyananthan, Mimi Hudoyo, Prudence Lui

This article was first published in TTG Asia, February 24 issue, on page 2. To read more, please view our digital edition or click here to subscribe.