Constantly Setting New Benchmarks
His journey with the Radisson Hotel Group (RHG) started in 1998 with the first hotel, AB Hotels, at Mahipalpur in the National Capital with a well-defined goal – think local but be global. It set the wheels rolling for the Carlson Group as it was known on its arrival in India back then. The idea was to position Indian hospitality in the international arena and also position individually owned hotels by standardising and branding them, thus creating assurance of guest expectations. A strategic partnership and master agreement were forged between the Group and Chanakya Hotels Pvt Ltd in the same year to grow and develop the upper mid-market brand, Country Inn & Suites.
“During the 1990s, India was going through a transformational phase in terms of consumer behaviour, with a growing middle-class and rising disposable incomes. The Group understood the potential of this market segment early on and simultaneously recognised the potential of India’s robust domestic tourism. We were the first international chain to pioneer growth and expansion in state capitals, key Tier 2 and 3 locations in India as no one had dared to enter such markets. This gave us results and today, as much as 50 per cent of our business originates from Tier 2 and 3 cities,” shares KB Kachru, Chairman Emeritus and Principal Advisor, South Asia at Radisson Hotel Group.
Another critical aspect of early success, cites Kachru, was their strong relationship with the partners and owners. “Identifying the right partners and driving value for them resulted in sustained favourable outcomes for more than 20 years. Further expanding our brand proposition, we signed a strategic alliance with Bestech Group to develop a network of Park Inn by Radisson and Radisson RED hotels,” says the veteran hotelier.
It was in 2018 that the rebranding happened as Radisson Hotel Group to leverage the brand equity of the Radisson name and increase marketing efficiency across the global portfolio. “In the last two years, 2020 and 2021, though among the most challenging years for hospitality industry, our focus has been on augmenting the strength of our brands. By mapping out clear positioning and identifiable value proposition for guests and owners, we have been able to grow our brands strategically,” he says.
Since inception, the key focus has been to understand the market, forge appropriate partnerships and deliver on guest expectations and a vision of being the preferred choice for guests, investors and employees. “Radisson Hotel Group has delivered that it set out to achieve and we are constantly setting new benchmarks as we move ahead in this journey,” he avers.
Early on, being an asset-light company, Radisson Hotel Group worked towards having multiple mid-sized hotels at the same location, ensuring better viability for owners and improving brand visibility. This improved both the reach and perception and helped them realise the vision of being the strongest international hotel brand with the most widely connected domestic network in India. Radisson Hotel Group now has 100 hotels with presence in over 60 locations throughout India across seven distinct brands in key business, leisure and gateway centres.
Talking about his association with the Hotel Association of India (HAI) as its current Vice President, Kachru has us know soon after having taken over the new role, the Covid-19 pandemic struck, and the industry faced a crisis, resulting in one of the worst recessions ever. “The circumstances called for a change in the way HAI operated. The body worked relentlessly during the first wave of the pandemic to impress upon the Government to allow hotels to resume operations as the country unlocked. It also took several strategic initiatives to communicate the pain of the industry to the policymakers at all levels,” he shares.
The industry veteran puts in that the future of this industry, in large parts, will be defined by how the brands and the professionals attached with them address the evolving consumer needs arising in these times. “It’s important to acknowledge that the potential of the Indian domestic travel market is unmatched, and the current times will make it even more important for every player to have a strong domestic business. Leveraging and propagating the benefits of India’s natural environment, its wellness system, naturopathy, Ayurveda, the practice of yoga, meditation and promoting Indian traditional cuisine, will be an asset in this journey towards recovery. Hotels must efficiently develop models that will place sustainability, safety, hygiene and technology at the heart of their business. As guest behaviours and needs evolve and bring permanent changes to business environments, we must be prepared to exceed their expectations,” he explains.
For youngsters planning to pursue a career in hospitality, especially in the backdrop of what happened in 2020-21, Kachru advises, “Though the profession demands long hours and time commitment, one is appropriately compensated for the hard work as the career progresses. Stay grounded, stay agile and create healthy relationships as ‘people’ really are at the centre of hospitality.”
With over four decades of experience in the industry, one of the doyens of Indian hospitality says he believes persistence leads to greatness. “Persistently chasing a vision is what made my journey fruitful and noteworthy. Be it a global crisis or an operational glitch in business, the secret to handle any situation is the right mindset and being future-ready. What made a difference was our past investment in digitisation and swift implementation of strategies that were structured for future enactment. Businesses that have had a focus on domestic expansion, automation and technology and sustainable practices are better prepared to mitigate the impact of this tragedy. Hence, the biggest lesson for the hospitality industry is to invest today for a possible crisis of tomorrow,” he says.
Another important lesson, he adds, is the balance between leading from the heart even as your head remains focussed on meeting the objectives. “Past crises have made it imperative for the leaders to step into the shoes of their staff, guests and stakeholders at large yet take a hard and rational approach to safeguarde the share of the market and the revival of the business. Successful businesses have taken decisive actions in an extremely fluid environments, sometimes even with less than full information but with courage and foresight,” he shares.
In the past two decades, many facets of the hotel industry have shifted to adapt new technology and changing consumer behaviour which have, in turn, changed how hoteliers conduct business. “The dot-com boom was the first aggregator in this transformation,” feels Kachru. “At the turn of this century, planning a holiday might have entailed a visit to the local travel agent. Internet bypassed this significant intervention, at one point, and led to an array of breakthroughs by taking everything online. Today, the end-to-end journey of a guest is managed online. Early 2000s also marked the inception of Online Travel Agencies (OTAs), which not only reduced the turnaround time to plan and execute a trip but made travel accessible to the masses. This ultimately encouraged more and more people to undertake travel,” he feels.
“The growth of telecom and simultaneous expansion of marketing avenues made a commendable difference on how guests approach today,” says Kachru, adding, “When I started out, it was difficult to gauge what the consumer exactly wanted, unless he physically made a demand at the hotel. Today, consumer behaviour is trackable online to an extent that their services can be tailored even before their check-in. The contribution of technology to every sector is unbeatable.”
An interesting development took place in the beginning of the 21st century that can be easily called the turning point in the history of the hotel industry in India, recalls Kachru.
“It was during this period that some renowned international chains entered the field and many big Indian players subsequently upped the ante sensing competition. This led to shift from the focus on luxury hospitality at select destinations to the surge in affordable travel with wide offerings in many Tier 2 and 3 cities.
The growth of the MICE segment has become a major game changer over the years. The Indian hospitality industry has taken several strides towards developing a robust MICE facility and today its contribution reflects heavily in the bottom line. Lastly, the shift in the mindset of Indian audience to immerse themselves in the culture, traditions, and language of a place. Today, guests want to see the “real” side of the destinations they visit.
