The hotel industry's success in the next five years of this new decade will be dictated by how well the Government accelerates infrastructure development and removes obstacles in conducting business

WITH THE turnaround in the economy, increased movement among domestic travellers and growing demand from emerging markets, particularly Asia, the Indian travel industry has experienced significant growth. Policy reforms like a reduction in corporate tax and an improved GST make us feel further optimistic, albeit cautiously, about forecasting the near future. Undoubtedly, hotel demand will strengthen as we approach the summer of 2020.

THE BIGGEST CHALLENGES SO FAR

Sarovar Hotels & Resorts, a leading hotel management company and one of the fastest growing chains of hotels in India, manages 86 operational hotels in 55 destinations in India and overseas. As we expand our presence in the Tier II and Tier III cities of India, the two major challenges we are facing are regarding infrastructure and lack of skilled manpower in those cities.

In contrast to technology progressing by leaps and bounds, infrastructure continues to make headway at very slow pace. On the other hand, persuading skilled personnel to leave big cities and work in small towns is no easy task.

Many regions across India continue to have inadequate connectivity in terms of road, rail and air. This, naturally, has a negative impact on the development of hotels in Tier II and Tier III markets. Therefore, in addition to better road and rail networks, a strong impetus must be laid on the development of more international airports, to augment the tourist flow to the hotels.

Finally, only if businesses have ease in getting licenses and permissions, can the hospitality industry prosper.

THE NEW DISRUPTORS AND THEIR IMPACT

The hotel industry is ever evolving, not because of its inherent nature but due to its potential to adapt to a highly dynamic scenario. Today, many new and progressive hotel concepts have emerged - like boutique hotels, service apartments, homestays and resort hotels. There's even been the entrance of multinational companies (MNCs) in this space which was not there even some years ago. The resultant competition among players in the market is a force to reckon with.

A twin challenge is to ensure customer satisfaction and customer retention. The services offered by hotels today need to be much more than just good - they need to be personalised, which calls for individual attention to be paid to each customer, finding out their preferences and what makes them tick, without being too intrusive. Here, technology is a big help. Only such multi-pronged efforts will help hotel brands create customer loyalty, the ultimate driving force for any hotel.

THE EMERGENCE OF SMART HOTELS

Ever since the hospitality industry jumped on to the digital platform, the dynamics of the industry have undergone a sea change. Leveraging of technology has helped simplify customer-centric business. Now, booking rooms using technology is not the only objective, hotels also succeed in increasing profits by making their internal processes more efficient, understanding guests' changing preferences better and targetting widespread audiences using different platforms.

With technology becoming a critical tool for hotels to attract and retain guests today, investing in technology has become imperative. It helps create immediate and personal engagement with guests, who today comprise mostly Millennials, who believe in doing everything instantly, online and by themselves (the DIY or Do It Yourself concept). This has resulted in the hospitality industry developing responsive websites and mobile-based apps.

As distribution, channel and content management become more complex, ensuring tight integration between these core systems has become an even higher priority for hotels. Applications, databases and networks must integrate more easily with each other as well as with third-party systems to facilitate collaborations with partners.

The growing importance of the mobile channel cannot be over emphasised. Mobile apps are helping achieve better customer relations, while presence on social platforms like Twitter, FB, Instagram, LinkedIn and Google+ have become vital.

THE NEXT FIVE YEARS

I can visualise the Indian economy emerging stronger because its fundamentals have always been firm. Other factors contributing to this growth will be a rise in the purchasing power of the domestic traveller, an upsurge in the commercial movement, the arrival of foreign tourists in greater numbers, and growth of the airline industry.

The Tier II and Tier III cities, therefore, hold a lot of growth potential - which has been acknowledged by various hotel brands that have begun exploring and expanding their presence in these new geographies.

Majority of the bookings will take place online as is the practice in more mature global markets. Technology will be a key element in booking hotel rooms, with increasing use of smartphones for and during travel.

Domestic travellers will continue to be the bed-rock of demand. MICE business, collaborating with short-stay business travel, will drive the demand for rooms. We will see new and unexplored leisure destinations opening up, as the young and trendy look for uncommon experiences. Food & Beverages (F&B) offerings will continue to play a crucial role in choice of leisure destinations as consumers travel more and gain greater awareness.

India has witnessed an exciting growth in the tourism sector in the last decade. By 2025, foreign tourist arrivals in India is expected to touch 15.3 million according to the World Tourism Organisation. This projected growth, coupled with the growth in domestic travel, will be reflected in a highly evolved hospitality business as well.

I see hoteliers offering enhanced products to attract more guests, thereby creating fresh opportunities for expansion. New facets of the hotel industry would be adapting to new technology to match changing consumer behaviour. 

SAROVAR'S STRATEGY

By 2025, I see the Sarovar chain of hotels directly connecting with all B2B and B2C channels through the Central Reservation System (CRS). Plans are already underway for building our own business intelligence tool, which will enhance Sarovar’s strategic skills in its business.

This article was published in BW hotelier issue dated '' with cover story titled '5 Years Young & Just Begun'