Expect normalcy in second quarter
Suhail Kannampilly, CEO, The Fern Hotels & Resorts, shares why the situation looks better in the second quarter of the financial year and how industry is getting impacted with this unprecedented crisis
Suhail Kannampilly, CEO, The Fern Hotels & Resor ts, shares why the situation looks better in the second quar ter.
HT Bureau
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Hospitality industry is facing an unprecedented crisis. This is probably one of the worst phases for the hospitality and travel industry worldwide. There have been no instances where entire countries have been locked down. Due to this pandemic the entire world economy has taken a massive beating. Though things have started easing out a bit in China, other world powers such as US, UK, Germany etc. are still fighting COVID-19 and it is going to take a long time to get back to some semblance of normalcy.
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As far as Indian hospitality industry is concerned, it has suffered massively due to the complete lockdown. It is going to take a while for the industry to recover. In the short-term, the first quarter of the new financial year will be hit the hardest as things stand. The situation should hopefully become better in the second quarter. However, it depends on how soon this virus is contained. We expect some bounce back on the domestic business front. International business will show recovery in the third quarter of the financial year.
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This is a crisis which is not confined to just the hospitality industry. It is spread across nations, hurting all the industries. I feel by end of May we will start seeing the virus impact diminishing across the world and it will bounce back to ‘pre-corona’ numbers within six months.
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Once the situation starts getting normal, our first focus would be on the domestic business movement as companies would be itching to get back to work. The next step would focus on ‘domestic leisure’ followed by international travellers. We already have started to get queries for business from China for the month of November.
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Patience and belief are the two most important words at this point of time. India has taken the strongest steps compared to any other country to mitigate the damage
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This fiscal year is very challenging for the industry. The growth patterns are going to be shaken up. The occupancies will take a massive hit. The impact will be across all the categories, however the luxury properties, I believe, will witness the hardest hit. We have informed our staff that any subsidy or benefit given by the government will be used to regularise salaries. I have also suggested to our staff that they must be in touch with our guests; enquire about their well-being; be there for them if they need us; and finally use this opportunity to re-analyse the business. We need to run through the P&L/trial balance with a fine-tooth comb and see how we can make this a healthier and more profitable business once the situation reverses.
International business will show recovery in the third quarter of the financial year”