The dynamics of the hospitality industry in 2020
Historically, the hospitality industry has always treated leisure and business travellers as two different entities. However, millennials who are anticipated to account for almost all business travel spending by the year 2020 are expected to extend business trips into leisure. We as hotel operators need to target the millennials, this can be achieved by providing off-the-beaten-path opportunities and activities. This generation favour’s local produce, organic produce and use of sustainability. They prefer locally sourced menus compared to fancy ones. Also, they are consistently connected to technology, which influences how they pay and shop for travel. This means that conveniences like chat bots and mobile check-ins that offer instant replies to questions are increasingly crucial.
I think as hotel operator and as a tourism industry, we have to get out in front about sustainability. That’s single-use plastics, reducing our carbon footprint; it’s all about building with more sustainable materials and understanding your ongoing impact on the environment. I think government will legislate, but in fact businesses have to get out in front of it now. Another Major aspect to keep in mind is we as hoteliers cannot ignore Facebook posts, Instagram pictures, Google reviews and tweets. Today’s traveller is more and more dependent on the Online reviews and do not go by any personal recommendations. In the coming year holding a social media account and upholding the reputation online is going to be very crucial for our industry.
Your insights on the ARRs in the city
In the last three years, the city has seen a three per cent growth in ARRs year on year. The ARR’s in the city definitely to move north wards with the occupancy levels in the city stabilising all the hotel operators need move hand in hand and push the ARRs upwards. Pune as a city has seen Uber Luxury brands opening up in the city and the occupancy levels went up by four per cent over 2018 which is a very promising trend for the city.
Your management mantra
My management mantra is very simple:
Happy Employees=Happy Guests=Happy Management=Happy Share Holders. I work on the above mantra to keep my employees and team members happy such that the end result is always a win win situation for the company.