How To Cope With The Economic Slowdown

The hotels let us listen in on their survival strategies and come up with some interesting solutions to stay profitable.

At a high-profile marketing event, in a small break between all the buzz that is part and parcel of such ventures in the hospitality industry, a marketing associate of a luxury hotel told me, “The auto industry is really down an now we expect the domino effect to singe the hospitality industry. Ultimately, when people get tight-fisted about spending the two industries that take the hit is auto and hotels.”

While this doomsday prophecy may be a bit exaggerated, the general economic slowdown and the collapse of Jet Airways has resulted in chaos in India’s buzzing airspace. Among the domestic hospitality chains, Indian Hotels Company (IHCL) reported INR 571 crore revenue from operations for the quarter ended June, as against INR 564 crore a year ago, posting a 1% rise in its standalone results. The Oberoi Group suffered a 14 per cent decline in revenue from operations to INR 289.63 crore during the quarter under review from INR 334.96 crore in the previous corresponding period on a standalone basis. ITC Hotel’s chief executive Dipak Haksar claimed that the first quarter has seen the softening of demand in the MICE business, mainly due to elections, but claimed that August showed promise. In Kerala, hotels have reported losses due to the fear created by the flood situation, while Jean-Michel Cassé, CEO for India and South Asia at AccorHotels has blamed the Indian elections and the closure of Jet Airways for the decline.

General managers, hotel managers and directors – sales and marketing across different brands tell us how they are coping.

Sushma Khichar, Hotel Manager, Aloft Bengaluru Cessna Business Park