‘Marketing Is The Key To Success In A Long-Term Strategy’

From a humble beginning in 2000, to a strong resort management company in just two years, Trails has come a long way feels Cherian T Ramapuram, director sales and marketing, as he discusses his company’s project management and marketing strategies in an exclusive interview with Lakshman V

EH&C: What are some of the major trends in project management and consultancy services in Karnataka?
CHERIAN T RAMAPURAM: Karnataka is at present witnessing a surge in interest in its tourism sector. An increasing number of promoters are looking at Karnataka seriously in terms of projects and are in the initial stages of finalising plans. Projects being capital intensive, the recent efforts of the department of tourism are likely to bear fruit in the coming two to three years only. These resorts will be the back bone of tourism in Karnataka.

Optimising the Return on Investment (ROI) seems to be the catchword for promoters of new properties. As a management company, what are your views on the subject?
It is every promoters’ dream to start making profits at the earliest. However, from our experience the promoters should accept the fact that they have to bring in additional funds during the first and second years to cover operational losses.

In such as situation, marketing is the key to success. Sadly, marketing expenses is a cost head that is not taken seriously by promoters. They believe that their job is over once the project phase is completed. Promoters should keep aside a substantial marketing budget. This is not an industry where you start making profits overnight. It takes a resort at least four to five years to break even.

Being a new entrant in the business, how has the response been so far for your management and consultancy services?
The management and consultancy services have fared very well. In the first full year of operations, from a turnover of Rs 5.25 crore in 2001-02, we expect to grow to a turnover of Rs 8.50 crore for the year 2002-03. The company has its inherent strengths in all aspects of resort management and its allied services, be it opening up resorts, operations or sales and marketing activities. We hope to cash in on our core competencies in these specialised areas to come up as a premier management and consultancy provider in the country.

This apart, the company has already entered in to an exclusive marketing agreements with high-end resorts like Kadavu (Calicut), besides handling the operations and marketing and sales activities of the renowned Orange County Resort in Coorg, Karnataka.

Please highlight the innovative management practices adopted by Trails? How will you leverage them to suit the local market requirements?
Trails is very customer-focused and believes in going an extra mile for the customer. At Orange County we use the motto ‘We welcome a guest and send back a friend’. We also believe that the customer is always right, even when he is wrong. Trails believes in delighting its customers through ‘Consistently delivering more that expectations’.

What are your growth plans? Is diversification on the cards?
Orange County has finalised designs for a resort at Kabini which would be implemented fully through Trails in the next two years or so. The first phase is expected to open by October 2003. We have also identified Hampi as a location we would look at after Kabini.

In reply to your other question, Trails specialises in project, operations and marketing in the hospitality industry, as of now we have no intention of moving away from our core competency.