With issues such as the rupee value depreciation and the turbulence in the aviation industry, the tourism scenario has been less sunny in the recent past than in the previous years. However, the hospitality industry has managed to hold its own all year long, and expects a fruitful season in the Q4 of 2012 as well. According to Thomas Guss, General Manager, JW Marriott Mumbai, Q4 every year has always been a high demand period for the hotel. “The overall revenue growth has been higher compared to last year. This is due to the growth in the average room rate (ARR). The second largest contributor has been the growth in average per cover in catering as the hotel has been successful in elevating its positioning as the preferred wedding destination in Mumbai,” he stated.
JW Marriott has been successful in achieving a healthy occupancy percentage year to date in the early 78 per cent range, Guss added. Abhishek Pasricha, General Manager, Optus Sarovar Premiere, Gurgaon revealed that the property enjoyed 66 per cent occupancy at this time last year. As far as Q4 2012 is concerned, though, he believes that despite an increased occupancy, the ARR will drop drastically due to added inventory in the market. “We are trying to create the balance between our occupancy and ARR, with a focus to attain better RevPar. The decline in ARR is due to overall rationalisation the market is facing,” he opined.
Speaking about the source of these issues, Andrew Harrison, General Manager, Four Seasons Mumbai accepted that the aviation crisis plaguing India has had a negative impact on business. “The rupee depreciation has not had a direct impact on our occupancy levels; the international end user is getting a better deal. However the aviation problems are causing prices to rise and forcing companies to consider and manage their travel costs in a tighter manner which does have a cascading affect on the entire hospitality industry and its stake holders,” he informed.
Despite this opinion, Harrison is expecting a good season this year. “We expect the season to be busy. The business is driven by volume not by the rate. However it is certainly busier than it has been so far this year. We are positioned as a premium luxury brand aimed at the discerning corporate traveller and as a venue of choice for meeting requirements of our clients. By ensuring that we are increasing our conversion rates on generated queries and optimising on our inventory and allocations, we are optimistic about the season ahead,” he added.
Echoing his sentiments, Guss said, “More than 70 per cent of our business is international, meaning that due to the depreciation of the rupee, India has become cheaper for them. In our Food and Beverage destination restaurants and bars we have decreased our prices to help the local market overcome this challenge. Our strategy has always been to see challenges as opportunities for growth and add more value to our guests to exceed their dreams and hopes.”
Highlighting the advantages of being a leisure property, Guss stated that the coming season looks promising as JW Marriott Mumbai has always had demand from the leisure segment during Q4. Pasricha concluded that the supply is increasing with new inventories getting added and hence the fair market share is getting divided. Overall, he opined, the business will grow in occupancy but ARR decline would impact revenue penetration.
