South Strategy

MICE on track

Ty Collins, general manager of Hyderabad Marriott Hotel & Convention Centre gives his insight on the Hyderabad market and its future. By Sayoni Bhaduri

The year began on a sad note with the continuing economic slowdown and the after effects of the Mumbai terror attacks. The repercussions were felt by all including the city of Hyderabad. Ty Collins, GM of Hyderabad Marriott Hotel & Convention Centre says, "We had a challenging first quarter which was in-line with the industry. There were three key factors that contributed to the slow down in the first quarter. First, the global slowdown was heavily affecting travel. Second, the anticipation of the elections slowed much progress in most sectors. Finally, most organisations were taking a conservative approach to the end of the fiscal year in order to improve profitability from significantly reduced revenues." The Marriott has also bore the brunt with both ARRs and occupancies down by 30 per cent as compared to last year.

But the silver lining for the city is the number of properties that are being developed. Fortunately, all developments have not been stalled but have progressed, "This has led us to believe that owners are looking at this time period as an opportunity," he adds.

Hyderabad is a growing hub for the IT industry, and the current recession has had its impact on the city's overall business growth. Collins agrees to this but adds that the industry has stabilised now and slow and consistent growth can be expected by the third quarter of this year. "The shift in the airport location has affected the city hotels because of the time taken to reach the city, but it has not reduced the number of flights or traffic," he adds.

Also the city has had a first-mover advantage when it comes to being a MICE friendly city. Collins refers to the recently held convention by the India Convention Promotion Bureau (ICPB) proving Hyderabad's caliber to host both international and domestic large and medium conferences and events. He says, "Even though corporate travel is down for the moment, we see growth in the MICE segment through 2011 and expect an increased development." He is equally confident of the rate rationalisation in the city, "The rates are at a good value for customers and very competitive compared to most other destinations," he states.

The Marriott Hyderabad way

So, where does Collins see the business coming from? He says that there is great potential from companies, associations and foreign direct investment coming from the US, Europe, Asia, and the Middle East. While for the domestic market, he says "Our focus is to continue developing our domestic presence in most metros such as Pune, Gurgaon, Ahmedabad, Hyderabad, Bengaluru, Chennai and Mumbai." To further help in the market penetration and create more businesses, Collins says, "Most of our focus is on our core businesses through continued development of the MICE business and partnering with our customers to find solutions that will make them more effective in their own business." Yet he is also looking at other options like local catering. He humbly states, "The catering business has continued to grow for us when all other segments have been down." In fact, optimising of the catering business is a clear example of the policy Collins follows - maximising profits and reducing costs. A great help in this is the design concept of the hotel which allows a great mix of local culture purchases and modern day requirements- hence a mix of India and overseas.

Hyderabad Marriott Hotel & Convention Centre's human resource plan is based on increasing the amount of training that associates are able to attend and complete. "We feel that this is an excellent opportunity to re-evaluate all of our resources and make sure that we are properly prepared as the market gradually improves," he says.

The way ahead

"I am a strong supporter of Hyderabad and Andhra Pradesh," says a proud Collins. India, as a whole, has a bright future, and with the stable government, areas such as Vishakhapatnam, and Hyderabad will continue on their growth path. Infrastructure improvements together with new ports, new energy sources, a new US Consulate, strong financial institutions, great airport, and convention centers will definitely interest more businesses including hospitality to enter the region. The Hotels and Restaurants Association of Andhra Pradesh (HRAAP) is working together to develop strategies along with other partners such as CII and FICCI to continue the development of tourism in Andhra Pradesh. "We have been very lucky to have strong support and leadership of the Andhra Pradesh government to continue developing both business travel and leisure tourism," he adds.

Expressing his view on the future of Indian hospitality, Collin concludes, "The way ahead is through consistency of services, partnership with industry and government, and taking responsibility to grow business in a way which allows improvement of our communities and have less impact on the environment around us."