30 Minute Interview

"We are not trying to be the biggest, but the best"

Michael H Hobson, chief marketing officer, Mandarin Oriental Hotel Group, visiting the country for a two-city road show speaks of India's relevance in the group's growth plans. By Neeti Mehra

Michael H Hobson Chief Marketing Officer Mandarin Oriental Hotel Group

It had been reported that the first Mandarin Oriental would be set up in Mumbai. What has happened since?

We hope to announce a project in India soon. Our discussions are ongoing and fluid. We want to be present in Mumbai and Delhi, but there are certain factors where there cannot be a trade-off, primarily in terms of the location and the size of rooms.

Is the group furthering growth through the management route or through equity?

Our portfolio is balanced with both owned and managed properties. Our growth strategy is opportunistic. Depending on what development options are available, we are also prepared to invest to further growth. Today we have 39 properties under operations and 18 are under development; both put together amount to 10,000 rooms across the world.

What is your strategy for the Indian marketplace to tap the outbound traveller?

India is one of the hardest markets to lure. The Indian traveller instead frequents our properties in Asia, such as Kuala Lumpur, Singapore, Bangkok, and gateway cities like London and New York. We are working closely with agents and soon will unveil an online strategy, roping in online partners. The latter attracts a premium. Infact, 12 per cent of our transient revenue comes from the online business. Overall, approximately 65 per cent of our clientele is the corporate traveller and the rest constitutes the leisure traffic.

Mandarin Oriental does not have a guest loyalty program. How do you ensure loyalty without it?

There is little value-add provided by a plastic card with a name and number. We can surprise and delight customers even without it. Apart from an extremely extensive database of customers, we have a director of consumer marketing who oversees guest relations. Our premise is that people become loyal to points and prizes in the programs, rather than to a brand or a property, which is what we ensure through our attention to detail and exceptional service.

With the luxury travel segment becoming increasingly environmentally conscious, what is the group's stand?

We approach the environment from a commercial standpoint. Implementing environmentally friendly practices saves resources and also appeals to customers, but we have no plan to become an environmental destination. Having said that, we will continue to play a role and there is a conscious need to do so.

What trends have you noticed in the luxury hotel segment?

There is a demand for technology that is simple and elegant. The F&B experience should be exciting. Spas are a necessity today in the luxury segment, and we have invested a lot in this area. People today want more space in their bedrooms. There is an emphasis on bathrooms, as people spend more waking time there. Our brand has a heart and soul where people can draw energy from and escape from the stress of life. But there is a thin line between the axis of relevance and irrelevance with respect to services offered. Once a brand stops adding to the guest experience, people will focus on the price and then the brand will become a commodity.

Are there any other brands under development to cater to different segments?

We have no plans to develop other brands; we will stick to the knitting, so to speak. All our resources committed to the Mandarin Oriental brand. We will focus on brand recognition. This is our single-minded strategy.