South Strategy

Aiming high

E M Najeeb, chairman and MD of Kerala-based Airtravel Enterprises that has hospitality interests, believes availability of varied inventory in the state would catapult tourism inflow to bigger dimensions. By Chetan Kapoor

There is no doubt that Kerala attracts one of the highest inbound traffic into the country. With this, the ‘God's own country’ saw a number of properties being developed across its hill stations and backwaters, each to get its share of the pie. But that was the story until the slowdown began. "Earlier if it was the dearth of rooms that stood in the way of tourism development in the state, now the scenario has changed and our task is to fill the rooms," opines E M Najeeb, CMD of Airtravel Enterprises (ATE), the parent company of Green Gateway Leisure and Great India Holidays that have hospitality interests.

He adds, "The main strategy to counter the economic downturn was turning to the domestic market and to sustain the channels of business we have always been having. We have also tailored some special programmes and packages throwing in value additions. As our prices were not too high, we did not have much price correction either." In the first quarter of this year, the group's two properties - Tea Valley Resort in Munnar and Geeth International, a city hotel in Trivandrum - did about 70 per cent occupancy.

Further, with an increase in the hospitality inventory and moving beyond the conventional to provide a wholesome experience, an array of serviced apartments and home-stays have come up on the rich landscape of Kerala. The industry expects this to catapult tourism inflow to Kerala.

The ATE way

In addition to its two existing properties, ATE has embarked on a 160 keys five-star deluxe beach and backwater resort and spa project in 45 acres of land at Bekal, Kasargode district at the northernmost end of Kerala. In spite of the challenges of the financial slowdown, which largely caused the IT sector to shy away from travelling, Najeeb expects the ARRs and occupancies to increase in the coming months, owing to the new financial year and the new government.

For cost control of its purchasing decisions, the group has adopted strategies such as price contracting, smart sourcing, identifying alternatives, efficient use of manpower, energy conservation, eco-friendly practices, training and upgradation of resources. Consequently, in order to maximise business yield and revenues it

has developed innovative packages, offering value additions, ensuring personalised services, leading to enhancement of customer experience. In terms of other equipments, the group is open to sourcing it from all over. "For almost all requirements of construction, interior décor, soft furnishing, etc India is a superb source of materials but for wooden furniture and fixtures, spa equipment, battery-operated carts, game equipments and the like we turn to overseas sources even now," in informs.

Diversification also pays and the group is aiming to create alternative revenue steams like conferences, spa, micro-shopping, entertainment points, discotheques, beauty saloons, gymnasia, round-the-clock coffee shops, etc as "a hotel unit cannot cast its weight on rooms and F&B revenue alone". In terms of source markets, the group is aiming further and targeting the upmarket segment of businessmen, corporate executives, IT professionals, DINKs and young families with double income residing in metros, celebrities and domestic tourists. Internationally its focus markets include the European long-haul travellers, tourists from Middle East, East-Europe, Russia, China, Australia, Korea and Japan.

At a time when companies are looking at curbing, especially its manpower requirements, to cut extra costs, Najeeb is of the opinion that rewarding staff indeed helps. He says, "Any industry has to reduce flab by streamlining, upgrading and developing its human resources. The industry faces seasonality in business and the human resource should be a right combination of permanent, contractual and temporary staffing. Salary cuts and freezes are not appropriate as you might tamper with the enthusiasm and goodwill of the staff who deliver services. Instead we could think of incentivising them for higher results, that way better results also could be ensured."

The way forward

Having one of the most proactive state tourism boards in the country, the Kerala tourism industry is a benchmark when it comes to showcasing the efforts of public-private partnership in the sector. Even associations like the IATO, FICCI and ASSOCHAM are making demands and recommendations of the government on various issues. The tourism industry in India works with solidarity and co-operation. "What is lacking though is inter-departmental coordination in the government that affects tourism activities. Coordination bodies and single window clearance agencies and systems could save this to a great extent. We need to join hands with them to achieve the results," he feels.

Also, he places his bets on the mid-market and luxury segments with Kerala attracting quality tourists, who spend more, stay longer, and respect and value the location. In terms of destinations, Najeeb is of the opinion that the southern states of Tamil Nadu, Karnataka and Andhra Pradesh have potential to grow given their aggression in promoting tourism in those states. He concludes, "We need to wait and see which region will stand out as a destination in the future. I would say that any destination that has enough infrastructure, good accessibility and connectivity, good roads, excellent hotels, developed tourist locations and a serious approach to tourism promotion supported with close public and private partnership will develop as a great tourist destination."