South Strategy

Expanding client base

Karan Berry, the new GM of Courtyard by Marriott in Chennai, says that the hotel's strategy this season is to increase the client base by approaching different segments. By Hazel Jain

The hospitality industry is a part of the travel and tourism industry and like any other big hotel chain, Marriott too has felt the affects of the economic slowdown. According to Karan Berry, the new GM of the country's first Courtyard by Marriott in Chennai, what has really challenged the occupancy and room rates is not the IT slump as much as the Mumbai terror attacks and recession. "I don't think the shift of Chennai airport will have any significant impact on us, as Courtyard by Marriott is strategically located in the business hub of Chennai. The benefit of our location has helped us become the most favoured hotel for conferences and luncheon meetings," he says.

Speaking about the hotel's performance in the first quarter of 2009, he says that they have maintained occupancies at 60 per cent. "We want to maintain this across all Marriott properties. The situation has started improving since February 2009 and the overall dip will only be 10 per cent by the end of this year," he adds. To do this, the hotel will concentrate on expanding its customer base by approaching different segments. Berry gives an example: to celebrate its tenth anniversary in India, Marriott has announced packages for marrying couples to tie the knot at any of the Marriott properties in India and get a complimentary honeymoon package (a five-day stay in hotels across Phuket, Paris, Malaysia, Hawaii, Australia, London, Switzerland, Dubai, New York or Sydney).

Market in Chennai

Chennai is evolving into a competitive market; the city will soon add 13 hotels and more than 4,000 rooms. Chennai has also been a potential market for Marriott and it will be introducing its luxury brand JW Marriott in Chennai by the end of 2010.

Berry feels that India has moved from being only a tourist destination to a business and MICE destination. "Corporate travel is inevitable in all circumstances, be it an international conference, a meeting for delegates or a product launch. Recession does not have much impact on MICE; instead it is an opportunity for companies to hold successful events," he feels.

To increase revenues, the hotel has taken steps to control waste without cutting costs and without compromising service quality. "To tide over the slowdown, hotels are sweetening the pot with tariff cuts and promotional offers that appeal to the epicure. We have expanded our revenue streams to include F&B, spa and health club," he reveals, adding that the hotel has tie-ups with airlines, tourism department, and affiliations with its clientele that helps it tap both the markets.

He claims the hotel has received tremendous support from the associations to give a boost to MICE tourism. The Government of India has decided to extend the benefits under Market Development Assistance (MDA) Scheme, administered by the Ministry of Tourism, to 'Active Members' of India Convention Promotion Bureau (ICPB) towards bidding for international conferences /conventions, thereby bringing more MICE business. "India has already started the 'Incredible India' campaign and the 'Atithi Devo Bhava' campaign will help us tap the full potential of tourism," Berry says, adding that Tamil Nadu Tourism is now trying out a new marketing strategy to promote the recently launched Chennai Mamallapuram hop-on hop-off tours. The department has decided to tie-up with corporate companies to ensure regular tourists.

"Domestically our source markets have been the business travellers, tourists from Mumbai and Delhi and we are looking at expanding and strengthening our base in these cities. Internationally our source markets have been South East Asia, France and US and we are gradually moving and tapping the European markets," Berry says.

Its HR initiatives

Discussing the chain's HR strategies, Berry says that the hotel has regular activities like training programmes, recognition awards and performance management which help it develop and retain talent. "We recently concluded our 'Associate Appreciation Week' which is a complete de-stress for all employees and makes them feel involved in the hotel. To sharpen the skills of managers we have regular workshop on stress management, leadership skills and personality development," he says. Employee satisfaction is the key to retaining employees and Berry achieves it by:

• Communicating with employees
• Employee engagement
• Taking care of employee needs
• Training and coaching
• Developing individual career plans for employees
• Recognising and celebrating individual and team achievements.

The future, Berry feels, lies in the mid-market hotel segment. "This segment is rapidly expanding in tier I and II cities; they have gone through tremendous change in lifestyle and are developing as business hubs. There is remarkable business potential in these cities, which has caught the attention of international market. They are soon evolving into favorable destinations for business travel, conferences and meetings," he emphasises

The way ahead? According to Berry, major hotel companies are venturing into service apartments (both of budget and high-end), which are touted to be the most preferred segment to attract long-stay business travellers. Speaking about the wellness segment, he says that spas and gymnasiums are becoming a way of life in hotels. "Like any business, successful hotel spas are identifying opportunities to market their spa to stand out from the rest. Some emerging trends include hotel accommodations with spa services and yoga," he says.

Another trend he identifies is in the F&B segment. "From concerns of the environment to the concerns of the waistline, food enthusiasts want to know more about what they are eating. All strive to divulge the most original trend and consistent in every trend is one overriding element - simplicity. Competing flavours with a litany of unrecognisable ingredients have made way for honest cooking, sensible restraint and balanced innovation," he adds.