The dynamics of the hospitality industry in 2020
In 2019, the overall market saw a drastic change with respect to mid segment hotel chain, wherein, be it business hotels or leisure destinations, their average occupancies took a hit as well as their demographics saw a change in client mix. This year 2020, it would be similar to 2019, where the industry would be more occupancy driven than ADR driven. City hotels may want to hit better numbers considering an extra day this year, plus given the fact that there are more competitions, more international brands as well as domestic brands making way in tier A-B-C cities.
Your insights on the ARRs in the city
The entire country saw extended monsoons. Even October as an auspicious banqueting month was badly hit since venues weren’t entirely available. Due to the fact that all hotels had to achieve their topline, most of the hotels within the city had to compromise on their premium ARRs and concentrate on the occupancies. Hopefully this should not be a trend to be set for the coming years. Vis-à-vis last year data, this year the city ARRs saw a dip of seven per cent and the statistics also derive that the occupancies were same. A core insight is required to ensure that in coming years, not only is the occupancy increased, but also the ADR is
Your management mantra
By all means, be needy and not greedy, everyone works for their topline, but with an ethical approach each player would get their fair market share.