TravTalk India Online Magazine
The South India Hotels & Restaurants Association (SIHRA) organises its annual convention in Bengaluru from 18 November to 20 November 2022, even as the hospitality industry grapples with the challenges of manpower and infrastructure. A few patrons of the hospitality industry share their views on how the industry has changed in 2022.
Janice Alyosius
The year 2022 witnessed both the worst and the best. “We were in the third phase of a partial lockdown when the Omicron struck again in January. The recovery began in February, and it’s been a rollercoaster ride since then. Most of the hospitality industry is almost at 2019 levels, but the industry is still facing issues with meeting the guests’ expectations keeping other factors at bay,” shares M. R. Narayanan, MD, Poovar Island Resort. “People are not looking; instead, they are more selective. They want to have a different experience whenever they go on vacation. So, it is important for us to fulfill their demands in order to be successful. After the pandemic I believe you can’t have your run-of-the-mill hotel or resort any longer,” he adds.
Not only is there a shift in what guests and travellers want, but also how a hotel operates. “It is must to control the operating expenses, which is the name of the game going forward because all costs have increased, the infrastructure for a resort or hotel has increased significantly, and there is competition in the market. As a result, the initial capital investment itself is high now and because of the competition in the market, you cannot demand a high Average Guest Per Room (APR) and Average Daily Rate (ADR). As a result, it is critical that we reduce our operating costs. The main operating costs and the most expensive is the labour costs. The second is power, utility, and energy charges. So, these two must be reduced, and the best way to do so is to introduce numerous new technologies,” he further adds.
Following the pandemic, hotels are facing significant challenges in managing their daily operations while keeping costs under control and providing the best possible experience to their guests. On the other hand, many hotels are back into business after the pandemic, and some are doing better than ever. George Ramapuram, MD, Evolve Back Resorts, states about the challenges that resorts are facing. “Now that business is nearly restored, more hotels have begun to open, and they are giving numerous offers to the workers. As a result of this churning, retaining manpower becomes a challenge. So, that is the challenge that we face in the hospitality industry, but for the guests, there has not been much of a difference except for the fact that there may be a slight change in service standards as a result of the new hires. The fact that when new people or employees arrive, it takes some time for them to adjust to any particular property. I’m confident that in another 3-4 months, that will also be resolved, and that we will be more settled,” he shares.
Hotels are experiencing MICE and corporates coming back. Rakesh Sethi, General Manager, Shangri-la, Bengaluru, says, “We are seeing a lot of pent-up demand that people are now acting on. As a result, travel has undoubtedly increased. Previously, it was primarily domestic, but we are also seeing a significant rise in international travel. In November, international arrivals exceeded those in 2019. And I believe that is a very positive sign.”
