South Strategy

Abiding by the market

Positioned as a luxury resort, The Leela Kempinski Goa has survived the downturn by going according to market expectations. Pascal Dupuis, GM of Leela Kempinski Goa, gives his views on the Goa market. By Gayatri Vijaykumar

Contrary to what has been expected, the economic slowdown has not affected Goa much - so says Pascal Dupuis, GM of Leela Kempinski Goa. "The hotel has done extremely well in the first quarter. We continue to be the market leader in occupancy and rates in Goa. The good news is that we are even doing better than last year which is a sign that Goa has not been affected by the slowdown." Though the situation has led to a decline in international visitors, the positive side to the downfall has been the increase in domestic travel. According to Dupuis, the leisure market in Goa has seen a significant increase within the domestic market rather than the European market and overall, occupancy has remained the same if not better than last year. He adds that notwithstanding the increase in occupancies, the ARRs have remained the same as the hotel has continued with the same strategy as last year.

The Leela Goa way

Smart thinking and smart selling are vital to survive any crises. The Leela Kempinski Goa has managed to do so by offering packages and promotions in line with market demands. Strategies to control cost and maximise revenue have to be well thought of and purchase decisions should be made with utmost care without compromising on quality. Says Dupuis, "We have simply brought consciousness across all team members in the hotel but we have not compromised on anything. The saving measures have only taken place in energy consumption and a few back-of the-house control."

Nor should cost cutting measures led to large scale downsizing of the staff. For the Leela Kempinski Goa, staff cutting has not been a part of plans, although recruitments have been made only in dire situations. Though MICE has taken a slight beating since last year, it still makes up for a good part of business. The hotel has been witnessing a significant increase in leisure groups, especially for weddings.

According to Dupuis, room revenue has contributed to a major part of business but areas such as F&B and spa have also shown an increase from last year. He adds that the main focus will be on the existing markets in India, UK, France, Germany, Middle East and Russia.

The way ahead

Goa has always attracted a large number of tourists, both domestic and international into the state. For a state whose economy is largely driven by tourism, it becomes imperative to ensure that the government takes an active role in promoting it. Says Dupuis, "The Ministry of Tourism of Goa is actively promoting Goa as a destination and all hoteliers are participants." The way forward, according to Dupuis, is to continue to maintain high standards of business, being sensitive to the market with regard to pricing and making sure every business partners are well looked after.

Dupuis feels that the future lies in the luxury market and that is where the focus is. When asked about his views on the next big hospitality region in the country, Dupuis concludes, "Obviously with the Commonwealth Games, Delhi will be the next big thing."