Hilton Chennai has two reasons to celebrate 2021 – it completed 10 years of operations and managed to stay open throughout 2020, when the rest of India was battling the pandemic-induced lockdown. What is even more laudable is that it registered operating loss for only two months – April and May – posting profits throughout the calendar year.
However, don’t let this fool you into thinking that it was easy going for Hilton Chennai. Corporate travellers from the US and Europe comprised 65% of its business. The suspension of international flights following the virus outbreak completely decimated this revenue stream.
Moreover, as an international business hotel, Hilton Chennai’s Average Daily Rate (ADR) always remained approximately INR 1250 above that of its competition. Selling rooms at this rate during the pandemic was nigh impossible in the face of non-existent demand.
That is when Ruban Das, General Manager of Hilton Chennai decided to opt for the volume business through the government’s Vande Bharat Mission. Many hoteliers were reluctant to take this route, worried whether their corporate clientele would patronise their properties if it became quarantine centers for international fliers and frontline workers. Das, however, was willing to take this chance. Thankfully, he received the support of Empee Group, who own the property as well as Hilton’s management. He only had to prove his stance by putting his money where his mouth was, figuratively speaking.
GETTING DOWN TO BRASS TACKS
Das met the Chennai Municipal commissioner last March, along with general managers of few other hotels, to discuss the process of accommodating passengers flying in under the Vande Bharat initiative. Adding to the apprehension amongst hospitality professionals, some hotel owners, too, declined to be affiliated with this programme, he recalled.
This story is from the April 2021 edition of Hotelier India.
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This story is from the April 2021 edition of Hotelier India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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