This article highlights some of the key trends that we expect to see in the Indian hospitality sector in 2021.
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.
Most hotels have implemented quick cost-saving changes to their largest cost components i.e. compensation and energy costs as they try to stay afloat during the pandemic. However, the industry needs to take a step further by evaluating and scrutinizing their cost structures even deeper to make some radical changes. Are we ready & is it time?
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.
Before investing millions of Rupees of expensive capital, it is prudent to spend an insignificant fraction of the sum on Feasibility and ROI Studies for a hotel and/or a mixed-use project to help determine the viability of the project. The rapidly evolving consumer behavior and demand fundamentals are expected to make a professionally prepared feasibility study even more critical than ever before.
In today’s world, it is essential for hotel investors and owners to consider all elements of design and efficiency which drive revenue per square foot. Ergonomically designed hotels with operational efficiencies and lean management is the ideal mix. The key here is to achieve a balanced-functional structure and marry operational efficiency with eye catching design, without compromising on class or style in any way. Read on to know more.
Hotels must consider outsourcing hotel outlets to standalone marquee restaurants that had made their mark in the pre-COVID era but are now facing an existential crisis. Read on to know more.