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“In Q2, we performed better than expected, net profits rose 423.08%”
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Monday, 30 January, 2023, 08 : 00 AM [IST]
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Royal Orchid & Regenta Hotels is one of India's fastest growing hospitality brands, managing a portfolio of 75+ hotels across 48+ locations in India. Founded in 2001, the brand caters to business and leisure travellers who value comfort, great cuisine, reliable service and value for money.
Chander K Baljee, chairman and managing director, Regenta & Royal Orchid Hotels, shares his views on Indian hospitality industry in 2030, post-pandemic industry growth, medical tourism and eco- tourism, Government policies and schemes that are attracting inbound tourism, and more, in an email interview with KimberleyAlmeida. Excerpts:
What are your future predictions for India's hotel industry in 2030? The Indian hospitality industry in 2030 will continue to be one of the leading industries in the country. In fact, it is predicted that by 2030, the Indian hospitality industry will be worth $500 billion; employing more than seven million people.
In terms of human resources, there are a number of factors that will influence this growth. For example, there will be an increased demand for more skilled labour with advancing technologies such as AI, VR are changing the landscape of the industry.
Digitalisation is the next segment wherein the use of technology will push automation across different sections of the business. This will be done to enhance efficiency. This is already being witnessed across several industries but is particularly prevalent in the hospitality industry. It has helped in areas such as boosting sales or customer service engagements.
The focus on sustainability standards wherein factors would be put in place to monitor energy usage as well as waste management procedures. The latter is particularly important due to rising levels of plastic pollution throughout Indian cities that can lead to health problems, if not managed in the right way.
Finally, Indian Government projects will play an important role in shaping how our future economy develops over time. This will be by investing heavily in infrastructure projects such as airports and highways that will help drive growth across industries especially hospitality.
How would you describe the current scenario of the hotel industry? The last two years were a dark phase for the hospitality industry, but there were industries that had a fruitful phase. Currently, the hospitality industry is in revival mode and is looking at the coming year positively. Statistics will show that every hotel is looking to take a quick jump into the recovery phase. At ROHL, we are marching steadily toward increased profitability and exponential growth. The last couple of months were proof that there is a lot of demand across our hotels for leisure travel. We are optimistic that all inbound and outbound travel will get into normal mode.
Indian hotel chains are showing better growth post-pandemic. Comment. The Indian hospitality industry is definitely witnessing better growth. There is enough in the Indian tourism pie for all. The hospitality sector has seen a remarkable recovery and revival, functioning at pre-pandemic levels and in some cases even better than pre-pandemic levels. We have seen a V- shaped recovery ever-since the pandemic with even over-booking across the country and in some properties 100% bookings.
How is the Indian hospitality industry transforming through innovation and technology? Technology has transformed every industry and hospitality is no different. Today, the buzzwords are AI and IoT across different spheres of the hospitality industry. These technologies will pave the way for a different hotel experience. At ROHL, we are adopting advanced technologies with properties to make our guests’ stay seamless. Plans are also underway to explore the new universe of the metaverse.
How is revenge tourism boosting prospects for India’s hotel industry, post-Covid? The numbers are doing fantastic and we are experiencing good demand for our leisure properties. With the festive period and year-end celebrations round the corner, our properties in Goa, Hampi and Kabini are witnessing strong demand. Travellers today are looking for more impact and purpose-driven holidays wherein they can immerse themselves in the local culture. People in a post-pandemic world want to have a balanced life and are looking for options such as hill stations or beach properties.
Our numbers are a testament to the growth wherein we witnessed a very high growth rate this year. In Q2, we performed better than expected. Our net profits rose by 423.08% and sales by 82.69%. This showed that performance and recovery are better than pre-Covid levels and we expect it to grow further.
Medical tourism and ecotourism are growing in India and opening new prospects for the business. One of the rapidly growing industries in India, medical tourism has grown exponentially in the past few years reaching a valuation of $6 billion and the numbers are expected to grow monumentally in the coming years. Gaining a strong foothold worldwide as the ‘global medical destination’, India is garnering much interest and trust in the global health care service industry because of its cost efficiency as compared to the other nations, highly skilled medical fraternity and minimal language barriers with fluency in English being commonplace in the country.
Ecotourism space is gaining momentum in India. It lies in tandem to the vision of sustainability your country is trying to harness, owing to the conservation initiatives it fosters. Eco-tourism is non-extractive and non-consumptive in nature. Steadfastly supported in the Indian ecosystem to preserve wildlife and an animal’s natural habitat, it also helps local indigenous communities to gain some revenue in this symbiotic relationship. According to numerous research, revenue garnered via ecotourism ventures have the potential to improve and streamline the long-term economic prospects of India.
Give us your thoughts on different Government policies and schemes that are attracting inbound tourism. In order to enhance India’s share of foreign tourist arrivals vis-à-vis World Tourist Arrivals, the Ministry of Tourism (MoT), Government of India proposes to diversify its focus on the promotion of India in short, medium, and long haul countries to tap the immense potential of these markets in augmenting high-end tourist traffic to India and to encourage the tour operators from these countries to sell India tour programmes vigorously.
The Ministry of Tourism under the CSSS Scheme of ‘Incentive to tour operators for enhancing Tourist Arrivals to India’ will extend financial incentives to Foreign Tour Operators (FTOs) of the countries tabulated / Inbound Tour Operators approved by the Ministry of Tourism, Government of India, on a pilot basis.
What is the company’s long-term plan for sustainability? In addition to creating sustainable value, Royal Orchid Hotels contribute actively to the environment and the community. In order to achieve our group objectives, we work closely with our teams, involve our clients, partner with our partners, and engage our local communities.
What are the key factors that would differentiate your brand from the existing brands in the market? The key factor for Royal Orchid & Regenta Hotels is our culture and service for our guests. We believe that every guest who visits our properties be it for leisure or business should be given the luxuries and care that will be etched in their memories. Today’s consumers are far less loyal to a brand than they were 30 years ago. This means working harder to earn their trust and keep them coming back for more. Our mantra to stay relevant and ahead is simply keeping pace with the customers, tuning in to their needs, customising offerings based on demands, and analysing competitors. We also add a personal touch with clients, in many cases, this is followed up with a handwritten personal card, which generally goes a long way. This focus on customer service gives a memorable experience to customers, and empowers employees to create experiences. `
What are the company’s plans for future collaborations? Our development results in India for 2022 have been very positive. The last three years have been filled with challenges as we navigated the pandemic, adapted quickly, and grew with our owners. With plans to open its 100th property in the region by the financial year 2023 -24, it is now time to further expand our portfolio across India. The company anticipates that nearly 10+ properties will be opened in the region this financial year. The Royal Orchid & Regenta Hotels is committed to providing guests, owners, and communities in India with exceptional and distinctive travel experiences.
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