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    Espire Hospitality Group celebrates ‘Founder’s Day’

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      ‘Prime AAA locations will remain central to our strategy’: JB Singh, President and CEO, InterGlobe Hotels

      April 3, 2025

      Breaking Barriers and Leading with Excellence: Women in Hospitality

      March 7, 2025

      Indian Hospitality Industry Poised for Continued Growth in 2025

      January 15, 2025

      ‘India’s non-metro cities are at the heart of the country’s hospitality growth, offering immense potential and untapped opportunities’

      October 8, 2024

      ‘We’re not just hosting events but also shaping Hyderabad’s reputation as India’s top MICE destination’ : Rubin Cherian

      April 21, 2025

      ‘Hotels blending local charm with sustainability to lead next phase’ : Jitendra Taak

      April 4, 2025

      Timbertales Coorg Aims to Become South India’s Top Luxury Resort

      March 6, 2025

      ‘We aim to expand our portfolio to 3,500 keys by 2035’

      March 4, 2025

      Luxury Whisky brand The Dalmore targets India’s growing market for single malts

      May 6, 2025

      ‘We’re not just hosting events but also shaping Hyderabad’s reputation as India’s top MICE destination’ : Rubin Cherian

      April 21, 2025

      ‘India plans to double foreign tourist arrivals to 25 million in the next five years’

      April 14, 2025

      ‘Prime AAA locations will remain central to our strategy’: JB Singh, President and CEO, InterGlobe Hotels

      April 3, 2025

      Culinary Art India 2025: A Celebration of India’s Evolving Hospitality Landscape

      March 7, 2025

      ProWine Mumbai 2024: A Toast to Excellence in Wine and Spirits

      December 4, 2024

      7th AHP Hospitality Excellence Awards Celebrating Innovation, Diversity, and the Future of Hospitality

      July 26, 2024

      IHC-IIHM International Hospitality Day Awards celebrates the Glamorous Hospitality Industry of Mumbai

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      ‘Guests today seek an overall experience rather than just good food or stay‘: Chef Satyakumar GV, Executive Chef, Sheraton Hyderabad Hotel

      January 28, 2025

      Young Chefs from 50 Nations to Compete at 11th International Chef Olympiad, Feb 2-8, 2025

      January 28, 2025

      IIHM and IHC Celebrates International Hospitality Day 2024

      April 29, 2024

      Food Trends Predictions for 2024

      November 24, 2023

      ‘We’re not just hosting events but also shaping Hyderabad’s reputation as India’s top MICE destination’ : Rubin Cherian

      April 21, 2025

      ‘Hotels blending local charm with sustainability to lead next phase’ : Jitendra Taak

      April 4, 2025

      ‘We plan to drive higher RevPAR and occupancy through dynamic pricing, targeted marketing campaigns, and expanding corporate tie-ups’: Manoj Jangid

      March 29, 2025

      ‘Weddings and Room Bookings Drive Significant Revenue Growth’: Anirban Sarkar, General Manager, Radisson Blu Greater Noida

      January 15, 2025

      ‘Weddings and Room Bookings Drive Significant Revenue Growth’: Anirban Sarkar, General Manager, Radisson Blu Greater Noida

      January 15, 2025

      Luxury Hospitality in India: A Market on the Rise

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      Redefining Indian hospitality, the TECH way

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      Lone Wolf beer announces major growth strategy, bolsters production capacity to enter new markets

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      The Cart or the Horse?

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      Culinary Tourism in India: A Global Perspective

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      M+A+S=H

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      What is the most important part of developing a risk management plan for a hotel?

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      HOTELS, HOSPITALS AND OPPORTUNITIES

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      Role of Facility Management in Experiential Tourism: Shaping Unforgettable Journeys in India

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      Occupancy Upsurge: Reinvigorating Business

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      Legal Obligations of Lost Properties – Infra Hospitium

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      SulaFest 2025 Kicks Off Its 14th Edition

      February 3, 2025

      Medusa Beverages and Warner Bros. Discovery Global Consumer Products launches the ‘House of the Dragon’ Exclusive Edition

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      Mehra Wines sets sights on leading India’s premium alcoholic beverage market

      April 24, 2024

      WIPS-Nashik revived by Govt of Mah, HRAWI applauds the move

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      Cellar 33 & Sonarys Celebrate Grower Champagne’s India Debut

      May 9, 2025

      India-UK FTA Spurs Premium Spirits Boom in Hospitality Sector

      May 9, 2025

      Luxury Whisky brand The Dalmore targets India’s growing market for single malts

      May 6, 2025

      Liquor Price Disparities Highlight Flaws in ‘One Nation, One Tax’ Vision

      May 6, 2025

      F&B major FSIPL announces 8 New Products

      October 19, 2022

      The Health Factory startup raised INR 2 crore expanded seed funding

      August 22, 2022

      Sattvik Certifies Indian Beverages Company VARAHI Pvt Ltd

      August 22, 2022

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      May 5, 2020

      ‘Our HoReCa clients have saved between INR 2 Lac and INR 15 Lac per year by using our products’ : Jesal Sampat, Executive Director, Pune Gas

      March 29, 2024

      UNESCO New Delhi seeks for expression of interest for catering services

      March 19, 2024

      ‘HoReCa Channel Contributes 80-85% of Real Good Chicken’s Revenue’ : Abhay Parnerkar, CEO, Godrej Tyson Foods

      August 30, 2023

      X Events Hospitality launches #chefstogether campaign to celebrate International Chefs Day

      August 25, 2022

      ‘We are planning to raise around INR 25 cr within 8-10 months’ : Krunal Oza, Founder & CEO of Hustlers Hospitality

      September 2, 2022

      A Feast for the Senses; Sheraton Hyderabad’s Culinary Gem

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      Roastery Coffee House : More than just a place to dine

      June 14, 2024

      Glocal Junction: Lifting modern Indian cuisine to new heights

      January 10, 2023

      Little Italy Hyderabad: An Italian gastronomic paradise nestled amidst Jubilee Hills

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      ‘Shoyu’ Brings Modern Asian Flavors to Hyderabad

      March 7, 2025

      A Feast for the Senses; Sheraton Hyderabad’s Culinary Gem

      February 2, 2025

      Firewater Neo Bar and Kitchen Sparks Culinary Magic in the Financial District

      February 2, 2025

      Roastery Coffee House : More than just a place to dine

      June 14, 2024

      Kolkata Orders Rooftop Restaurants Closed After Hotel Fire

      May 8, 2025

      Yi Jing at ITC Kohenur Offers a Culinary Escape with New Summer Menu

      May 7, 2025

      18% GST on Meals in Specified Hotels Elevates Dining and Event Costs

      April 14, 2025

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      Association of Hospitality Professionals Announces the Seventh Edition of Hospitality Challenge 2024

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      IIHM and Mayfair Hotels & Resorts Forge Strategic Partnership with MoU Signing

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      HPMF Inaugurates 14th Annual Convention with Grand Ceremony in Lucknow

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      ‘Our HoReCa clients have saved between INR 2 Lac and INR 15 Lac per year by using our products’ : Jesal Sampat, Executive Director, Pune Gas

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      Celebrated Chef Anton Mosimann Awarded with Swiss Culinary Merit of Honor

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      HPMF Signs Landmark MOU with WineGAI

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      HPMF and ICF Join Forces to Transform India’s Hospitality Sector

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      ‘Addressing the gap between industry demand and workforce skills is a critical challenge’

      May 14, 2024

      Global Revenue Forum 2023 to host Opportunity 2023

      January 12, 2023
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    Hospitality Biz India: Latest News & Analysis
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    Home » COVID-19 crisis: How to plan forward
    News

    COVID-19 crisis: How to plan forward

    HBI Staff | HyderabadBy HBI Staff | HyderabadJune 15, 2020No Comments6 Mins Read
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    By Siddharth Goenka, MD, Octave Hotels & Founder, Aiosell Technologies

    COVID Crisis has hit the hospitality & tourism industry the hardest and it will take a long time for the dust to settle. Leisure hotels will take the hardest beating as fear and panic will infect the itineraries of modern travellers. Business hotels may show some intermittent signs of recovery, but things will probably never be the same. Most companies (large and small) have tasted blood with video conferencing and universal acceptance of work from home model. The world seems to be preparing itself for the worst economic recession accompanied by unemployment levels not seen since the Great Depression. This will be further worsened by de-globalisation and change in geopolitical equations with countries turning more inwards and hostile, thereby further reducing demand for travel.

    How do hotel owners react to this impending tsunami? We can either choose to accept the doomsday scenario and surrender to the invisible enemy, or we can throw down the gauntlet and take the bull by the horns. If we do choose to fight, we must first need to find the courage and self-belief to reinvent ourselves and think outside the box. We may have to accept fundamental shifts and structural changes to the industry and question assumptions that defy conventional wisdom.

    With every calamity comes a moment of opportunity, and those who are able to swim against the tide will reach the shores safely. While I do not claim to be able to predict the future or provide a fool-proof playbook on how to get out of this crisis, but I will try to share some ideas on how hotel owners can weather the storm and try to keep their heads above water.

    The fundamental tectonic shift that will emerge for hotels out of this crisis will be around three pillars: efficiency, automation, & technology. One way to think of hotels is to compare them to large mega-factories with machines and workers- working tirelessly in shifts to produce output. Just like how concepts like ‘lean manufacturing’ and ‘just in time production’ fundamentally changed the manufacturing industry, hotels may soon have our own ‘Toyota’ moment. Hotels will need to adopt similar concepts that focus on revenue and cost efficiencies because profit can no longer be taken for granted. Fixed costs will need to be converted to variable costs to shed our extra flab thereby reducing spare inventory and wastages. We will need to use an ideal mix of machines, manpower, technology, and automation to maximize our output while minimizing input, without compromising on guest satisfaction. We will need to take hard decisions about which business units to continue and which ones to pull back from.

    Hotels will carefully need to plan their manpower strategy keeping in mind automation possibilities in every department. Staff to room ratios will see a downward trend and there will be an emphasis on achieving ‘more’ with ‘less’. Reservations and back-office teams that perform repetitive clerical tasks can be minimized by introducing automated reservation systems and chatbots that are linked to integrated PMS and marketing platforms. The large clunky IT departments can be replaced by centralized cloud-based PMS & CRS systems with a 2-way integration with marketing & distribution systems reducing the need for periodic backup and maintenance. Core functions like pricing, revenue management and online distribution can be centralized & automated using modern sophisticated systems, which will lead to an increase in productivity & yields, while the reduction in manual efforts. Large sales & marketing teams that service corporates and travel agents can be trimmed down by introducing B2B booking platforms where suppliers and customers can transact directly.

    Many hotels may need to revaluate ancillary business units like restaurant, bar, spa, and gym which have a high operating cost and fail the profitability litmus test. It may be prudent to either outsource these areas or completely remove them from the product portfolio. Guest enhancement functions like room service, concierge services, travel desk and check in-checkout can be automated using smartphones, tablets, and AI-based technology to increase efficiency. Energy costs like electricity and water can be minimized using IOT devices and energy-saving instruments that run on ‘use as you need’ basis instead of large centralized units with high fixed costs. Hotels will need to differentiate from their competition by incentivizing their staff to maximize reviews & ratings on online platforms, by using modern tools of reviews & reputation management.

    The increase in online business will continue to be beneficial for hotels because it will replace fixed acquisition costs (large sales teams) with variable costs like digital marketing. Even though OTAs will continue to command a lion’s share of the business, hotels should focus their efforts on direct booking channels including own websites and booking engine to reduce their distribution costs. Incessant discounting schemes introduced by some OTAs to grab market share may reduce because short term valuation boost will no longer be considered a metric for success. This may bring about some maturity and fair distribution of market share across online channels. The new emerging funded aggregators who have recently shot to limelight will have to make a hard choice to either grow sustainably by reducing unnecessary expenses (large teams and minimum guarantees) or be relegated to obscurity because of lack of funding options that keep them afloat.

    Banks, PE and VC funds may chase projects that are more sustainable, scalable, and profitable rather than outlandish bets that follow a herd mentality of super-natural growth. Asset light models like revenue share & management contracts will be more popular for new projects than outright purchase or lease models. Due to the reduction of profitability in the industry, supply will not flood the market as new projects will either be shelved or be converted to other less risky asset classes. Hotels that are able to survive the crisis may come out as winners because they will be the last men standing when the crisis is over and demand returns.

    COVID-19 will be a watershed moment for the hospitality industry. Instead of writing our own obituaries, we should use this opportunity to regroup, rethink, and reset. There are always winners that emerge out of every crisis, and it is our time to ‘cross the rubicon’ and script our own futures. Our spirit, thoughts and actions will determine whether the darkest hour is behind us and whether we can emerge out of this crisis fully shattered or just bruised, ready to pick up the arms again.

    Author

    • HBI Staff | Hyderabad
      HBI Staff | Hyderabad

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    Aiosell Technologies COVID-19 crisis Siddharth Goenka MD Octave Hotels & Founder
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    HBI Staff | Hyderabad

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