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The business of hospitality

Ramesh Narayan

Five-star hotels are getting their act together, but room rates should get more rational.

INDIA is an amazingly hospitable place within the quiet, cool, swish environs of its five-star hotels. In fact, at a geographic level, India is probably where the real meaning of hospitality finds true expression. We seem to take the axiom athidhi devo bhava (a guest is God) as literally as we can.

Foreigners, and Indians who can afford the five-star comforts of Indian hotels, are in for a good experience. Actually, hotels and the effect they have on their clientele are a combination of a few important factors. At the macro level, the destination makes a huge difference to the impact a hotel can have. Places such as Rajasthan or Agra lend themselves to the really regal kind of five-star hotels that abound. Hotel chains like the Taj and the Oberoi have taken advantage of this. The Lake Palace Udaipur or the Taj Rambaug owe much of their appeal to the heritage properties they are ensconced in. The Oberoi Group has taken the difficult route of creating fine hotels in these destinations from scratch, but ensuring that the flavour of the place seeps right through. Their Vilas properties are nothing short of a labour of love. I remember wondering how a hotel like Udai Vilas would make money, considering the kind of investment that has been made to make it a great experience. Somehow, the question trailed off as irrelevant under the circumstances.

Then you have the beach properties in places such as Goa which vie with one another to offer a completely `fun' experience. The image of Goa and its laid back susegaad reputation and the genuinely warm people who make for fantastic resort staff make those hotels winners from the word go.

In a year where occupancy of most star hotel rooms has been very gratifying to the hoteliers and the Government, there is a need to step back from the tendency to get complacent.

It is very important to recall that about ten years ago, hotels in metros like Mumbai and Delhi suddenly decided they could charge the equivalent of $300 per room night. The demand seemed to justify those rates. Yet, the well-heeled traveller is a fickle fellow and the dynamics of international in-bound tourists are tricky to forecast at the best of times. An outbreak of SARS, fear of a non-existent plague, a downward swing in investor confidence, and suddenly the flow slows to a trickle. For the past decade, hotels in these metros have had rack rates that have been daunting only to walk-in customers. The rest of the guests have been paying greatly discounted rates. Bangalore, of course, is an exception where the demand over the last couple of years has been so overwhelming that one first talks about availability of rooms and not about rates at all.

Yet, I believe a high-growth centre should have more hotel rooms and reasonable rates. To sit back and milk the moment is short-sighted, to say the least. The news that at least three large hotel groups are building new hotels could be a case of too little too late.

On this note, I must say that Indian hotels have been rather expensive when compared to their South Asian counterparts. In most cities in South and South-East Asia, and the American continent (except Manhattan) one can get a perfectly good room for $150 round the year. Try getting an equivalent room in most Indian cities and tourist destinations, especially in season, and the search could be elusive. Yet, I should not digress from the fact that the large hotel groups in India have been getting their act together as far as properties and service are concerned.

The off-season packages of most tourist destinations, more so when they are bundled with airline tickets, are pretty attractive. The increase in inventory of airline seats could only make them more attractive. The challenge lies in the metro cities. Here too, most hotels are looking at very interesting innovations. One of the most sensible ones has been the move to woo female clientele.

I think it started off as a security measure. Some hotels realised that with changing demographics, the fairer sex is travelling alone on business and sometimes even on holiday. To give them a feeling of security, certain hotels began offering them an exclusive `ladies-only' floor with female room service attendants and enhanced security features in the room.

This welcome initiative is just the tip of the iceberg. Yes, ladies are travelling more, and alone. They hold responsible high paying positions that entitle them to stay in five-star hotels. Yet, the hotels are just waking up to this reality. Security is a fundamentally important aspect but there are other aspects too. Toiletries in bathrooms have been typically male-oriented. This too is changing. Far-thinking hotels are changing the soaps, shampoos and creams to make them more appealing to a discerning female user. They are adding other amenities women would need. The dreary heavy Turkish white bathrobe is giving way to a light silken robe. Some hotels are even changing colour schemes and soft furnishings in rooms to make them more attractive to women. I believe this is a very sensible investment to be making. Part of the mystique of five-star comfort is an effort to make you feel special. And these are all ways to make the new emerging female traveller feel special.

In any service industry, and more so in the hospitality industry, human capital is paramount. Qualified, trained human resources who can reflect the culture and character of the hotel will be the key differentiator between super luxury hotels. It is a well-known fact that a fine dining experience can be ruined by an inattentive or over-smart steward as much as a luxurious stay by a rude concierge.

Five-star hotels need to keep in mind that the affluent traveller is also a very demanding customer. And she, who pays the piper, calls the tune.

(The writer heads Canco Advertising.)

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