By BW Hotelier THOMAS COOK (India) Ltd (TCIL) has declared its consolidated financial results for the quarter ended December 31, 2015 with an increase in consolidated Income from Operations of 41 per cent (Rs 7.4 Bn. to Rs 10.4 Bn.), consolidated pre- exceptional Profit Before Tax, a de-growth of 73 per cent (Rs 314 Mn. to Rs 84 Mn.) as compared to the corresponding period of 2014. The Company’s sustained focus on cash flow management resulted in improved cash flows from Rs 2044 Mn. to 2096 Mn., driven largely by better working capital management. Sterling Holiday Resorts Limited witnessed a growth in total Operating Income for Q3 at Rs 534.7 Mn. as compared to Rs 456.7 Mn. in the corresponding period of the previous year, representing an increase of 17 per cent. The company reported a pre- exceptional loss of Rs 15.1 Mn. Vs a profit of Rs 8.2 Mn. for the corresponding period. Quess Corp Ltd (’Quess’) filed its Draft Red Herring Prospectus (DRHP) on February 1, 2016 proposing to raise up to Rs 400 Cr. through an IPO. Post the filing of DRHP, Quess and Thomas Cook (India) Ltd have now entered into a ’silent period’ as regards the operating results of Quess. The quarter saw Thomas Cook India make a series of strategic acquisitions, with an eye on the larger Asia growth opportunity ’ which resulted in a corresponding cost impact of Rs 55 Mn. in the quarterly results. These acquisitions should see benefits accrue from Q4 of the current financial year. The acquisitions included Luxe Asia (a premium destination management company in Sri Lanka), Kuoni India (including the brands SOTC and SITA - the leading India inbound travel company) and Kuoni Hong Kong. The newly announced regulations around statutory bonus payment with retrospective effect from April 2014, also resulted in a significant impact on profitability for the quarter, with a provision of Rs. 62 Mn. At a market level, the quarter was set against the growing spectre of global terrorism and a highly volatile foreign exchange environment which witnessed significant fluctuations in the Rupee movement that resulted in negative consumer sentiment and a cascading dampener to travel demand. Commenting on the results, Madhavan Menon, Chairman & Managing Director, Thomas Cook (India) Ltd., (see photo) said, ’With an eye on the bigger Asia growth opportunity, we made a series of strategic acquisitions in the last quarter - including Luxe Asia, Kuoni India and Hong Kong. The cost of these acquisitions obviously impacted profitability in Q3 on a TCIL standalone basis, with expected benefits accruing from Q4 of the current fiscal as we focus on synergies and volume advantages.’
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By BW Hotelier REZNEXT HAS announced the launch of its rate shopper solution designed to meet the industry needs on pricing intelligence. Available through RezNext’s enterprise platform, RezRate, the rate shopper product has been tailored to meet the needs of hoteliers to view competitor pricing at a granular level while comparing it with their own rates. According to Mike Kistner, CEO, RezNext Global Solutions (see photo), ’Hoteliers need to take decisions on their pricing based on their own distribution performance as well as their competitions’. Mid-market hotels are challenged with limited resources and cannot dedicate them completely to such manual tasks. We believe this bespoke solution, now available at no additional cost to hoteliers, will help bridge the gap in real-time information on market pricing.’ Another important feature of RezRate is its ability to provide a price comparison of an offering against an exact similar product from competition. ’Several times we see hoteliers take their competition pricing at face value. They do not analyse if the rate being offered is the bar rate, a promotional rate or package rate. RezRate allows hoteliers to drill-down into competitor price by room type and meal plan. They can compare, BAR rates and promotional rates through the solution every day or for a defined period of time. Such rate intelligence will help hoteliers price their product competitively and yet be profitable,’ said Kevin Dcosta, Senior Vice President, Product Development, RezNext Global Solutions. RezRate is a SAAS based solution and is integrated with RezNext’s distribution intelligence application allowing existing customers to access a single application for all distribution related functions. RezNext will also soon offer an advanced version of RezRate with more functionality and tighter integration with the distribution platform to facilitate dynamic rate updates on the move. This solution, to be available on a subscription model, will also integrate with the hotel’s PMS, revenue and reputation management solutions to provide a holistic view of pricing powered by smart analytics.
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By Rashmi Pradhan SPREAD ACROSS 15-acre of lush green surroundings, Novotel Hyderabad Convention Centre is connected to one of Southeast Asia’s biggest Convention Centres, Hyderabad International Convention Centre. Neil Paterson, General Manager, Novotel Hyderabad Convention Centre and Hyderabad International Convention Centre talks to BW Hotelier about ten successful years of operations of the hotel Telling us about the unique features of Novotel Hyderabad Convention Centre (NHCC) and Hyderabad International Convention Centre (HICC), Paterson said, ’NHCC is centrally located in the IT and financial district of the city of pearls and is Hyderabad's most preferred convention hotel. HICC offers state-of-the-art exhibition, meeting and convention services, which makes for a convenient choice while planning a wedding or a world-class conference. HICC is the first purpose-built convention centre, which has a capacity ranging from 50 to 6500 delegates and features 37 breakout rooms. The pillar-less internal hall of net 6,480 sq. meters that can hold a 5,000-delegate plenary and can be partitioned into six halls. NHCC features 287 rooms tailor-made for business and leisure travelers.’ NHCC and HICC are a perfect destination for MICE and leisure travelers. The hotel witnesses a mix of 65 per cent domestic and 35 per cent international travelers. NHCC and HICC have been participating in international and domestic trade fairs and will continue to do the same. Paterson informed, ’We are looking at significantly boosting our presence in the US market as most of the movement is from that sector, thanks to the growth in IT.’ He further added, ’We actively market Destination Hyderabad and seek to bring in a major chunk of MICE business to HICC, as this not only benefits the convention centre and the hotel, but also significantly benefits the local economy. We are also working on leveraging the online space for driving growth through various modern digital tools. Engaging with our audiences on social media platforms has also helped strengthen our brand reach and awareness. We will be focusing on organizing group and community events to sensitize them to our range of products and services. Well-planned weekend stay offers and deals will be leveraged through the year as well.’ Highlighting the future trends, Paterson said, ’While the past years have focused on the domestic market, the next few years will be outbound ruled. Increasing e-Visa facilities, establishing cross-cultural links, will help smoothen the process. Exciting food and beverage trends and the authenticity of foods will also play a major role as people will like to go back to the basics. Providing a non-alienating and unique guest experience by customizing requirements will also be appreciated. Hotels will become more tech-friendly and will take to digital platforms for check-ins, customer redressals and more.’ Speaking on the challenges of operating one of the largest convention centres, Paterson said, ’NHCC and HICC attracts a large number of MICE and business travelers. Employee turnover is the biggest challenge that the industry faces today. The industry is facing a mismatch between demand and supply of manpower. In the hotel industry, staff turnover is as high as 25 per cent per month. The retention of manpower and training them to a certain caliber is important for a multinational. The resource needs to be trained as per the corporate DNA and handle large numbers with panache and hence staffing is crucial in such situations.’ The Author is Assistant Editor, BW Hotelier.-
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By BW Hotelier THE PRIDE Group of Hotels has launched their first upscale hotel, the Pride Plaza Hotel at Aerocity, New Delhi. Nitin Gadkari, Minister of Road Transport Highways and Shipping and Vijay Sampla, Minister of State for Social Justice and Empowerment marked his-presence and inaugurated the hotel. Commenting on the grand opening, SP Jain, Managing Director, The Pride Group of Hotels, said, ’With our in-depth experience and knowledge in the hospitality sector, we at the Pride Group of Hotels are pleased to venture into a new hospitality segment. This segment is positioned as an upscale brand for business and leisure travelers. We have launched our upscale hotel, The Pride Plaza Hotel at Aerocity and by the end of 2016 we are looking at expanding the Pride Plaza brand to Ahmedabad and Kolkata. Located in Aerocity and in close proximity to Delhi and Gurgaon, the hotel is one of the most accessible destinations one can choose for lavish amenities & facilities for memorable stays, vacations and meetings.’ Photo: Nitin Gadkari, Minister of Road Transport Highways and Shipping inaugurating the hotel as S P Jain- MD, The Pride Hotels and Satyen Jain, CEO, The Pride Hotels look on.
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By BW Hotelier HILTON WORLDWIDE has unveiled Tru by Hilton, a brand that is simplified, spirited and grounded in value, filling a massive void in the midscale category. Built from a belief that being cost conscious and having a great stay don't have to be mutually exclusive, Tru by Hilton offers an experience unlike anything in its space, consistently delivered in a surprisingly affordable way. Demonstrating owners’ desire for a forward-thinking and innovative midscale brand with a strong value proposition, Hilton Worldwide already has 102 hotels signed and an additional 30 hotels in various stages of approval in cities including Atlanta, Dallas, Houston, Chicago, Denver, Portland and Nashville. Christopher J Nassetta, President and CEO, Hilton Worldwide, (see photo) said, ’We are incredibly excited to be launching Tru by Hilton, which will serve the largest segment of the hotel market, but a segment where no brand is meeting guests’ current needs. Tru will provide guests with a high-quality, contemporary, consistent and fresh experience at a great value for customers, while at the same time delivering strong returns to our owners." Pairing a stringent focus on operational efficiency with thoughtful innovation, Tru by Hilton is more than just a place to sleep, it's a true travel experience designed to deliver a strong value proposition for owners and guests. The brand will appeal to a broad range of travelers who span generations but think alike; they are united by a millennial mind set - a youthful energy, a zest for life and a desire for human connection. No brand is meeting their needs in their price point today. ’More than 40 per cent of all the US hotel stays are within the midscale and economy sectors and Tru by Hilton addresses a gap in the marketplace by appealing to the youthful mindset demographic, pushing the industry to marry quality and value,’ said Jim Holthouser, Executive Vice President, Global Brands, Hilton Worldwide. ’We’re breaking through the clutter of undistinguished offerings to capture the hearts of today's travelers and anticipating the needs of tomorrow's guests, while delivering a hotel that's a place travelers will want to go to rather than just through.’ Tru by Hilton’s prototype was designed to be easily scalable to fit urban, suburban, highway and airport adjacent locations. The prototype is also adaptable to dual-branded hotels. The first Tru by Hilton hotel is expected to open by the end of 2016 in the US. Tru by Hilton joins Hilton Worldwide, the global hospitality company, which recently entered its 100th country. Tru by Hilton follows a tradition of developing brands that challenge consumer mind-sets and industry standards, and joins a portfolio of what is now 13 independent yet complementary hotel brands addressing the varying needs of guests and owners across price points.
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By BW Hotelier SHANGRI-LA HOTEL, Bengaluru, developed by Adarsh Realty & Hotel Pvt Ltd, was recently certified with a gold rating by LEED India New Construction, Indian Green Building Council (IGBC). The self-sustaining campus spread over 2.2 acres is equipped with energy-efficient mechanical and electrical fixtures, maximised day lighting and passive environmental controls. Jens Corder, General Manager, Shangri-La Hotel Bengaluru, said, ’We are honored to receive the LEED Gold Certification from IGBC. From conception, Adarsh Developers, the owners of Shangri-La Hotel, Bengaluru have set about designing a building that best contributes to good environmental practices. Areas that were a focus were; water and energy efficiencies, atmospheric discharge controls, the use of certified materials, improved indoor air quality and innovation in environmental design.’ The IGBC, part of the Confederation of Indian Industry (CII), offers a wide array of services, which include developing new green building rating programmes, certification services and green building training programmes. Shangri-La Hotel, Bengaluru successfully achieved the Green Building Standards required for IGBC’s LEED level of certification under the leadership of Energy and Environment Design for India Green Building Rating System. The LEED certificate officially recognizes Shangri-La Hotel, Bengaluru as a leader in luxury hotels that blends superior design with the ultimate in guest comfort and quality with an approach that is energy efficient, environmentally friendly and ecologically sustainable.
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By BW Hotelier TRIPADVISOR HAS launched a new Windows 10 app across desktop, tablet and mobile. The TripAdvisor app for Windows 10 will be available in 47 markets and will be pre-loaded on millions of Windows 10 compatible devices in 2016. The app also showcases more than 290 million user reviews and opinions of hotels, restaurants and attractions, and over 46 million candid traveler photos, covering destinations around the globe. Additional features include Near Me Now, a tool that navigates travelers to nearby points of interest using their phone’s GPS. Rory Kenny, Director of Mobile Partnerships, TripAdvisor, (see photo) said, ’The new TripAdvisor Windows 10 app offers users a comprehensive resource to help them plan and book their trips. Mobile continues to be a huge driver of traffic to TripAdvisor, in fact half of our traffic now comes via mobile. We are excited that Windows Phone users will now be able to plan, compare and book hotels, restaurants and attractions within the TripAdvisor app.’ ’Microsoft is excited with TripAdvisor’s continued commitment to Windows 10 with the release of their new app built on the Universal Windows Platform,’ said Steve Guggenheimer, Corporate Vice President of Developer Platform & Evangelism and Chief Evangelist for Microsoft Corp. ’With Windows 10 running on over 200 million devices worldwide, we’re excited to provide our fans great experiences such as TripAdvisor’s comprehensive booking tools, user reviews and travel photos from around the globe, on any Windows 10 device.’
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By BW Hotelier ICRA ESTIMATES pan India Average Room Rates (ARR) to remain flat for 2015-16, nevertheless occupancy improvements of 6-7 per cent supports Revenue per available room (RevPAR) growth of 7 per cent. Room inventory in the premium category is estimated to increase by 8 per cent for 2015-16 as compared to 4 per cent during 2014-15. With deferment in construction, supply addition would be lower than earlier estimates at 7.7-8 per cent for 2016-17. Foreign Tourist Arrivals (FTAs) slowed down to 4.4 per cent during calendar year 2015 (7.1 per cent during 2014); the FTA segment continues to remain far below its true potential. Further, per capita dollar spend by tourists declined sharply in 2015 after remaining stagnant for three years. Given the muted global economic outlook, FTA growth for CY 2016 is also expected to be subdued. Domestic travel, going by domestic airline Revenue Passenger Kilometre (RPKM) trends exhibited strong growth during the past 12 months indicating improving consumer confidence. ICRA estimates the top line growth for the industry to be 8 per cent during 2015-16, with operating margins expanding by 100-150 bps. Growth would improve in 2016-17 to 9-10 per cent aided by pick up in occupancies and ARR traction in a few markets like Mumbai. While improving consumer confidence has supported growth in occupancies, ARRs also appear to have bottomed out and was marginally down during YTD December 2015. Revenues for the industry sample grew by 7 per cent during Q2, 2015-16 majorly due to occupancy driven RevPAR growth, while cost control measures bumped up operating margin by 250 bps to 8.8 per cent.
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