Indian Hospitality Industry 14

ALL WHAT I WROTE IN MY EARLIER BLOGS WAS ALMOST NEARLY PROPHETIC! 

Today we are going through an unprecedented boom in the hotel and restaurant industry and surprisingly enough without the contribution of international corporate business or In-bound tourism. Hotels are posting peak level performance and business is all time high. All Hotels within the city limits are doing exceptionally well because of high revenue from food and beverage business, high occupancy rate and especially residential weddings. Apparently they are out to make up for the three years of low business in next six months and most probably they will. 

I like to contradict those reputed ‘Financial Pundits’ who were busy forecasting the ‘Financial Doom’ for our country in next few months or maybe even worse than the present disaster  of Sri Lanka or Pakistan. I guess the Indian economy is back on track of recovery. Today our outbound tourism in India might be one of the highest in the world travel despite the obnoxious prices. 

As a part of the new post COVID TREND majority of business is being generated by Grand Banquets Business which is the most lucrative segment for hotels today, and for next one year this business slot will not only decide food rates, but room rates as well. On an average, in North India before COVID, the Hotels were selling rooms for banquets at Rs.4000-6000 are today they are demanding anywhere from Rs. 8000 to 17000 and are being booked at this price. Similarly the banquet rates which were Rs. 2000 plus/per head, are now charging anywhere between Rs. 3500 to Rs 4500 per person, thereby posting 100% growth in selling price. 

At this rate, do we start wondering that? 

·       What will happen to our Hotel industry when International inbound traffic starts with same volume as I t was during the Pre COVID 19 era?

·       Will Hotels consider improvement of their deteriorating food and service issues?

·       Airports both domestic and International in all major cities are already having problems managing the daily traffic  and are almost chocked, what lies  in store for country's arrival/ departure which is already has low reputation, will the Government do something to improve the service remains to be seen.

·       How long it will last? Is there possibility of a new COVID-19 revival? Or a new Pandemic? 

With little experience I have about the hotel Industry, the boom will escalate in days to come. But taking into account the deteriorating service standards, poor quality of food due to shortage of good chefs and higher charges, even in top hotels, it is just a matter of time when few smart Hotel Chains and independent banquet halls including free standing restaurants are likely to steal  the opportunity and take away the lion’s share of this boom. To prove my point, I will site few examples/ experiences; 

1.         Top International Hotelier stayed in a Leela Chanakyapuri upmarket Hotel property in Delhi had horrific experience in this very expensive Hotel and when he tried to contact GM and Director to his shock they attitude was take it or leave it.

2.        We along with six friends went to The Oberoi Hotel, Delhi for coffee and bakery in their famous Pastry Shop. They refuse to accommodate six people together on one table and we had to go to 360 for Tea/Coffee. Although staff though scanty was polite but very poor service and too many apologies by the manager, to me this was a shocking experience in one of the most prestige’s restaurant in Delhi.

3.        In 5 Star Hotel chains, use of disposable cutlery on regular basis for Rs. 750/- coffee cup or Buffet Lunch priced at Rs.2000 ++, was a disgraceful sight.

4.        Most of the Hotels are short of trained staff and that shows in every Coffee shop, room service, housekeeping service. There is total lack of coordination which you notice from F&B outlets, room related Services, check in- check out and so on. The problem has been noticing in nearly all Hotels and sad part is no one is doing anything about it.

5.        Went for meeting at Max Hospital. They ordered sandwiches and beverages from canteen, the sandwiches served were soft moist and very tasty, Fresh lime soda very refreshing. Then they took us out for buffet lunch to ITC Sheraton Saket and that was an eye opener, poor buffet menu, substandard quality of very limited food on the buffet table rather rude kitchen staff, when we asked for something to make fresh, they firmly said not possible. ITC’s Sheraton Hotel’s overpriced buffet spread  was substandard in quality, taste, presentation and service. 

6.        I am sure all of you must be having similar stories of worsening food and service standards in over priced Hotels-post COVID 19   

 I can say without any hesitation, that as an hotelier or even as a person regularly frequenting quality Hotels and Restaurants, I have been experiencing the worsening standards of hotel industry services. Isn’t this a uniquely discordant situation? That on one side, after a long time we are about to witness one of the most unprecedented boom in Indian Hospitality Industry and  on the other we have gone complacent and are not enthusiastic enough or are ready to receive it in a manner it should be welcomed – what a mentality. Although, I am happy for the Industry, but with kind of infrastructure and services we are providing! The question is, will we be able to sustain the boom time and make profit, when it finally descends on the Indian market? And that’s the question I want my hotelier friends to answer.

In my opinion, first we need to appreciate the fact that there are issues and problems, and the business will be generated, not because of what you will provide,  but because of the fact that the dormant market demand  is about to be unleashed after Corona-19 despite  the high cost of domestic and international travel. This new found market condition will require much more than just available resource with the hotels, care-a-damn attitude towards the guest will neither yield long term results nor add to the credibility.

I feel that the ownership and the hotel chains must learn from the present situation and I can bet, whoever corrects the situation fast will become the new leader in their segment.

My recommendations are: 

·        Get honest feedback about shortcomings of your Hotel through internal/ external sources or mystery customer program. 

·           Hire best trainers to prepare a strong training schedule and follow them strictly. 

·           Review your service standards as per your Rates and implement them without fail 24x7xc365 

·           Hire more trained staff and train them again, and again them to suit your requirement and then only put them in operation under supervision. 

·           Quality of food needs a thorough a major overhaul. Menus planning needs revamping. 

·           Need to bring genuine quality in food and service to justify high charges. 

·           Bring back a sense of belonging among staff – Remember that the most important tool with any management is, ‘The Manpower’.  

WRITTEN BY ANIL CHAK & VIRAT VARMA