Preferred by billions
In spite of facing competition from OTAs and accommodation aggregators, Arpit Pant, Regional Director, South Asia & Middle East, Preferred Hotels and Resorts, is optimistic about the market.
Which new properties is the group coming up with?
In 2016, 55 hotels joined our worldwide network. In India, early this year, we announced our partnership with The Leela Ambience Convention Hotel, Delhi. This hotel comes in the Lux category. Seven new Fortune hotels joined us in Connect category. We added the Lebua Resort, Jaipur, which is a Lifestyle hotel. We also have the Express Inn-Nashik. So there are a total of 32 member hotels across India.
What do you offer to travel agents?
We offer a variety of hotels to choose from ranging from business to leisure. Through us, travel agents can connect to a larger portfolio, both inbound and outbound. If an agent wants to take a large group for a wedding, he/she can connect with us through our international sales team. As an agent, firstly, you get the choice of a large collection of hotels. Secondly, these collections have a preset menu, i.e., hotels specific for family travel or adventure, or those looking for just beach holidays, and so on. So the agent can book through this preset module, which saves time.
How much growth has the group registered? Last year, globally we did 1.5 billion reservations revenue for our hotels; this is for the first time that we crossed a billion mark. This year, month-tomonth trending YTD, we are already about 19 per cent up. In India we have done slightly better and we are about 22 per cent roughly versus last year figures. Also in India in 2015, after very long the collection of hotels, with data from reports available, closed at about 63 per cent occupancy. In 2014 it was about 59 per cent so, it's a 4 to 5 per cent increase. The need is for hotels and restaurants to start focusing on the ADRs. Since a very long time, hotels have gone into this price mode to get business, because business was sluggish. The domestic market continues to be strong in India. A lot of state tourism boards have become active promoting their states. The infrastructure has improved, because of the flight fares, domestic flight fares being capped at `2,500 for a one hour flight. With OTAs changing the market dynamics, how are you changing your marketing strategies?
We work in conjunction with our hotels, we provide international sales, international marketing; and distribution set-up for our hotels. We power the distribution engine for our hotels, whether it is a website booking engine, connecting them to preferred website as well as channel managers. Our international marketing team is coming up with a lot of consumer based programmes, which are assisting our hotels compete with OTAs. We have these independent folios targeting boutique hotels. Our booking agencies are becoming responsive, one can multi view the various rates through the website itself.
How do you see yourself competing with Airbnb?
Airbnb has its own target audience, at this point of time somebody looking at a hotel might not be looking at Airbnb. Companies are very particular about the security of their corporate travellers. Their time is important and also they require certain services. Also if someone is travelling to a place they do not know about, especially with family, they would feel more secure at a hotel. Many flat owners who put up their properties on Airbnb are not aware of their neighbours, so that can be a security issue.
Last year, globally we did 1.5 billion reservations revenue for our hotels; this is for the first time that we crossed a billion mark
The independent hotel space is gaining a lot, imagine a travellers whose using Airbnb, he's probably a traveller who is not bothered about brands. He visits a place where he wants to see the local culture and live where the locals live. But he is unsure of safety and security which comes with a hotel. An independent hotel gives you exactly the same. Independent space is very unique that way and is growing. We have seen a lot of deflags happening, hotels which were branded are going independent. They do so because they feel that they have invested a lot in their real estate.