Transforming hospitality: How Ranju Alex is shaping Marriott's future in South Asia

Stepping into the role of Area Vice President for South Asia in 2022 at Marriott International has marked a pivotal chapter for Ranju Alex. “This period has been extraordinary, offering a front row seat to an unprecedented era in India’s hospitality sector,” she reflects, adding, “Navigating this dynamic landscape has been profoundly rewarding. In hindsight, there could hardly have been a better moment to embark on this journey. When I took over this role, I was asked what ‘legacy’ did I want to leave behind and I said, ‘the only legacy I want to leave behind is that she touched the lights’.”  

Under her leadership, Marriott has achieved notable milestones, including the opening of the Katra Marriott Resort and Spa, the brand’s 150th hotel in South Asia. This landmark is significant as it comes exactly 25 years after the debut of the Goa Marriott Resort and Spa. “We now manage 165 hotels across the region, with plans to introduce 13 to 15 new properties annually,” Alex adds.  

Though Marriott has 31 brands globally, only 17 are in India presently. “The most important factor is to remain true to the Marriott brand within the country. Even in a select-service hotel, guests often expect the same service levels as a luxury hotel, without recognising the difference. Educating guests is an essential part of their experience,” she says.

Moxy Bengaluru Airport Prestige Tech Cloud

The industry’s performance metrics are equally impressive. “ADRs and RevPAR in India are at an all-time high. While we once compared ourselves to Western standards, we’ve made significant strides and narrowed the gap considerably,” she observes. A notable achievement during her tenure has been the expansion to 27,000 associates in India.  

With 17 brands in India, including the recently launched Moxy, she is enthusiastic about future expansions. “We’re excited about opening our second Moxy in Mumbai soon. Our resort offerings have also grown, with new properties in Katra, Sonmarg and upcoming hotels in Shimla, Udaipur, Ranthambore and Pahalgaon,” she adds.

The first woman to head a region at Marriott shares the company’s strategy has shifted, from city hotels to a more balanced portfolio including resorts. “The multiple hotel options in each city offer travellers a diverse range of choices and the faith our existing partners show by continuing to sign new deals is a testament to our brand’s strength,” she explains.

Recalling her meeting with Prime Minister Narendra Modi over a year ago, Alex seems optimistic about future. “Hearing his vision for the tourism and hospitality sectors was inspiring. We are on the cusp of something very significant and I’m thrilled to be part of this transformative journey,” she says.

Navigating India’s aspirational market

With the market sentiment evolving in India, driven increasingly by aspiration and opportunity, Alex offers a keen perspective on this dynamic shift, “Today, 55 per cent of India’s population is between 30 and 60 years – an aspirational demographic with growing disposable income. The rise of double income families has significantly boosted spending power and the recent shift towards remote work has further transformed travel and lifestyle trends.”  

The work-from-home culture has catalysed the rise of staycations, a trend that has persisted beyond the pandemic. “Staycations were a response to Covid19, but they’ve evolved into a lasting preference. People now seek unique experiences rather than conventional hotel stays,” she observes.

According to the Area Vice President - South Asia, Marriott International, the hospitality industry has adapted to these changing demands. “We’ve moved from a model where we dictated what guests received to one where we curate experiences based on their desires,” she explains, adding, “There’s a notable surge in resort hotels as consumers show a willingness to invest in memorable getaways. Combining resort and city hotels in our portfolio ensures resilience against global economic fluctuations.”

She highlights a long-awaited shift in the industry – a newfound respect for talent. “Talent is finally getting the respect it deserves, which is crucial for the industry’s future success,” Alex emphasises. “At Marriott, we’re committed to nurturing our associates, ensuring they have opportunities for growth and recognition. This shift is not just a corporate policy; it’s a cultural transformation that will drive the hospitality sector forward,” she adds.

The 150th Marriott hotel in India - Katra Marriott Resort & Spa

Exploring opportunities in Tier II-III cities

Another key opportunity the hospitality industry has witnessed and experienced growth are the Tier II and Tier III cities, particularly in the F&B sector. Sharing insights into this trend, she adds, “The absence of high-quality standalone establishments in these cities has allowed F&B to flourish. Five-star hotels hold significant aspirational value, and these cities have shown remarkable resilience during the pandemic, maintaining stability in average daily rates (ADRs) and pricing.”

The pandemic, she observes, highlighted the strength of Tier II and III cities where local businesses and unorganised sectors contributed to steady occupancy rates. “The ADRs have been promising, but it’s the F&B sector, especially social functions, that witnessed considerable growth. Social respect and significance drive demand in these regions, further boosting the sector,” she notes.  

Despite these opportunities, she acknowledges challenges such as talent acquisition. “One of the major hurdles is attracting skilled professionals to these cities. While metros like Mumbai, Delhi, and Bengaluru remain crowded with aspirational migrants, it’s crucial to recognise and develop talent in Tier II and III cities,” she adds.

Recognising this growth in emerging cities, she says, “There is still potential in the metros, but Tier II, III, and IV cities offer exciting prospects. Single-window licensing and state government incentives for infrastructure development could significantly aid this growth. Improved connectivity, such as the expansion of airports, has already started to enhance these regions.”

As India’s economic landscape continues to evolve, she underscores that the country’s growth story remains robust, even amid global uncertainties. “While the world faces challenges, the opportunities in Tier II and III cities are a testament to the country’s dynamic potential,” she shares.

The St Regis Mumbai

Adapting strategies for a changing landscape

As India readies to become the third largest global economy, its youthful population is set to shape its economic trajectory for decades to come. Reflecting on how this demographic shift influences strategic decisions within the hospitality industry, she says, “Focussing solely on luxury or premium segments is insufficient. The eager and dynamic younger generation is crucial to our long-term business strategy,” says Alex, adding the entry of brands like Moxy appeal to a young, lively audience and has thrived due to its energetic and eclectic design. “Conversely, traditional luxury brands continue to excel, meeting the needs of families and those seeking a more opulent experience,” she opines.

This dual approach acknowledges that individual preferences can vary greatly. “A single traveller might choose Moxy for an experiential stay and a luxury brand for family vacations. “Understanding and catering to these diverse preferences is essential,” she points out.

The focus on design and service is a significant part of this strategy. “With nearly every Indian now using a mobile device, we’re working to enhance our digital presence, including launching websites in Hindi to reach a broader audience,” she shares. From design elements to service delivery, Alex emphasises that the industry must evolve in tandem with the changing requirements of its guests. “Our approach integrates modern design and digital innovation to cater to the growing and diverse segments of the population. This ensures we remain relevant and appealing across the spectrum of guest preferences,” she says.

Four Points by Sheraton Sonmarg

Rise of spiritual tourism

As spiritual tourism flourishes in the country, the development of high-quality accommodations will be crucial in meeting the demand. “The potential for growth in this sector is immense and we’re committed to supporting it through our strategic investments and offerings,” she says.

Recalling PM Modi sharing a revealing statistic that Kashi attracted more visitors than Goa on December 31, 2022, she remarks, “It was an eye-opener and underscored India’s profound spiritual and religious fervour, transcending all walks of life and economic strata. The passion for spirituality is universal here and this segment is poised for significant growth.”

Marriott’s properties in Amritsar, Katra and Mahabalipuram are thriving, reflecting this burgeoning trend, she discloses, adding, “As infrastructure improves and new hotels emerge, we see a growing number of travellers from various economic backgrounds seeking spiritual experiences.”

Elevating women in hospitality  

Drawing attention towards diversity that has become a key focus in the hospitality world, she highlights the invaluable contributions of women and the natural advantages they bring to the field, “They possess a unique blend of grace, hospitality and emotional intelligence, which makes them exceptionally suited for roles in this industry. In India, their innate qualities align perfectly with the demands of hospitality,” she says.

However, the Area Vice President for South Asia at Marriott International acknowledges that the path for women in hospitality has not always been straightforward. “When I first entered the industry, there were concerns within my family about the unconventional career choice. The prevailing notion was that respectable families did not pursue careers in hotels, a sentiment still prevalent in parts of northern India,” she recounts.

Despite such challenges, Marriott has been a pioneer in championing diversity, long before it became a widespread corporate trend. “While many companies have recently embraced the idea of diversity, Marriott was among the first to demonstrate its commitment and make it a core value. Our approach is not just about making headlines but about building a sustainable and inclusive environment,” she notes.

By focussing on internal development and supporting women throughout their careers, Marriott aims to build a more robust and diverse leadership team. “Our goal is to cultivate a strong foundation that allows women to progress and succeed within the company. This is how we ensure that diversity is not just a buzzword but a fundamental aspect of our corporate culture,” adds Alex whose personal punchline for women in hospitality is ‘breaking the glass ceiling and dancing on the faces very clearly’.  

Westin Himalayas Resort & Spa

Exploring new revenue streams  

Moving beyond traditional models to embrace innovative opportunities, Marriott is redefining its approach to revenue generation. Sharing insights on these new revenue streams, she says, “What we once considered ancillary revenue has now become a core part of our business strategy. Despite the emergence of new restaurants, Marriott Bonvoy on Wheels continues to gain traction and strengthen each year. We’ve also introduced a new IP, Diwali with Marriott, which has proven to be incredibly popular. We’re planning to expand it into a new intellectual property,” she informs.  

Highlighting the expanding role of wellness revenue which has taken on new significance post-pandemic, the Area VP - South Asia, says, “Wellness offerings have evolved dramatically since Covid19, becoming a major revenue driver for our hotels.”  

Outdoor catering is another area where Alex sees immense potential. “With India’s burgeoning IT and manufacturing sectors, and events like IPLs and World Cups drawing large crowds, outdoor catering presents a significant opportunity,” she observes, adding, “We’re poised to leverage these events to extend our culinary experiences beyond hotel premises.”

Savor Series by Marriott Bonvoy

Expanding business segments

Marriott is making significant strides in India’s hospitality sector, with a promising new venture into residential properties. Reflecting on this exciting development, Alex says, “Our entry into the residential market with Whiteland marks a major milestone for us. Although this project doesn’t include a hotel, the interest we’ve seen suggests this segment is set for strong growth.”

She also highlights a nuanced view of revenue distribution. “Our city hotels have a slight edge in room revenue as compared to F&B. Rooms often outnumber restaurants, which typically range from two to five in any given hotel. With room counts reaching up to 800, they account for a larger share of revenue, especially as ADRs increase.”

But she doesn’t discount some Marriott’s properties have a stronger focus on F&B. “While a few of our hotels generate more revenue from F&B than from rooms, this is not too common. Overall, room revenue remains more profitable, but F&B plays a crucial role in enhancing our market positioning,” she adds.

She next talks about Shaadi with Marriott. “The humongous leads we get from the website is encouraging, especially with the Government declaring that we should endeavour to have more weddings in the country. We have witnessed a huge spike and it’s not just weddings but related events too. It’s huge revenue and it’ll only continue to grow. Also, it is recession-proof and never goes out of fashion,” she says.  

Landscape of business travel  

Shedding light on how the industry is adapting to the transformations related to business travel, Alex observes, “Corporate travel has seen a notable uptick, driven largely by the domestic market. India’s emphasis on Atmanirbhar Bharat and the rise of numerous start-ups have fuelled internal travel, reducing dependence on international routes.” The pandemic initially dampened international travel, but India’s robust domestic business landscape has proven to be a significant advantage. “This shift has been a huge boon for our industry. It’s reassuring to know that our business can thrive despite global uncertainties,” she notes.

Marriott has observed a decrease in booking windows, with travellers making decisions at the last minute. “Despite this, corporate support has been exceptionally strong. When we implemented significant rate increases in 2022, the corporate world responded positively, exceeding our expectations,” she explains.

Another key trend, she notes, is the growing importance of loyalty programmes. “Marriott Bonvoy now boasts 6.6 million members in India. Travellers are increasingly choosing hotels where they can earn and redeem loyalty points, reinforcing the value of these programmes,” she says.

JW Marriott Goa

Aligning stakeholders, ensuring sustainability

By 2050, Marriott aims to achieve the Net Zero target. Elaborating on how the hospitality giant is aligning stakeholders to meet this ambitious goal, Alex shares, “Our commitment to sustainability is unwavering. In fact, many corporate travellers now consider sustainability a key factor in their RFPs. If we’re not compliant, we risk losing their business.”

She also highlights the growing importance of sustainability among younger travellers. “Today’s youth are highly conscious of environmental issues. In response, we’ve implemented a range of initiatives, from using cage-free eggs to establishing water bottling plants and conducting energy audits. We even integrate energy efficiency into the design phase of new hotels,” notes Alex, adding Marriott’s vendor partners are increasingly presenting us with sustainable products. “We’re keenly interested in those that align with our goals,” she avers.

Marriott Bonvoy & Ed Sheeran Mathematics + - ÷ x Tour in India

Approach to opulence

Luxury is another aspect Marriott aims to concentrate on. “When it comes to defining luxury, it transcends beyond material details such as elegant carpets or plush bedsheets. It’s about evoking a unique feeling, a distinct vibe that envelops you the moment you experience it. Luxury is more than just physical attributes; it’s about the ambience and the emotions it stirs,” says Alex.

Marriott, with its deep commitment to luxury, ensures every aspect of its offerings reflects this philosophy. “We are exceptionally discerning about how we present luxury across our portfolio. From the location and design of our hotels to the uniforms and overall guest experience, every detail is meticulously curated,” she explains.

This rigorous attention to detail has yielded impressive results. “Our luxury segment consistently excels in financial performance, brand positioning and guest satisfaction. By harmoniously blending every element of its luxury offerings, Marriott continues to set a high standard in the hospitality industry,” she informs.

Cultivating strong ties

Marriott’s success in the hospitality world is a testament to the invaluable partnerships with its owners and investors. “Our achievements are deeply rooted in the support and trust of our owners. Their satisfaction and faith in our operations are the true measures of our success,” says Alex.

She also emphasises on the impact of enduring relationships with hotel owners. “There’s nothing more gratifying than seeing a long-standing owner partner reaffirm their commitment to us. This level of confidence and trust is far more significant than any financial contribution. It’s a reflection of the mutual respect and loyalty that define our relationships,” she notes, adding Marriott’s relationship with owners is a two-way street, built on unwavering trust and shared values. It not only strengthens Marriott’s position in the market but also underscores the essence of its enduring success.

Balancing ambition and family  

Reflecting on her journey with a deep sense of gratitude and personal insight, Alex says, “I consider myself fortunate to have been raised by parents who believed in my potential beyond traditional expectations. My mother, embodying the spirit of a typical Bihari parent, instilled in me the importance of self-sufficiency and hard work from a young age. She made it clear that earning a living, no matter what the circumstances, was essential,” she says.

Ranju Alex’s career, spanning over 30 years and 11 transfers, has been a testament to her resilience and dedication. “I come from a modest, academic background where my father worked hard for his salary. Those early lessons in valuing hard work have stayed with me throughout my career,” she says and credits much of her success to her supportive family, particularly her husband. “Each move, each change of schools for my children, was met with enthusiasm and support. Our family turned transitions into celebrations, eagerly embracing new beginnings,” she avers.

Taking pride in her professional achievements while celebrating the role her family has played in her journey, she says, “Both my children have followed similar career paths, and I’m immensely proud of our collective accomplishments.” 

Bhuvanesh Khanna

BW Reporters Bhuvanesh Khanna is the CEO, BW Communities