Zubin Saxena, Managing Director and Senior Area VP, Radisson Hotel Group, envisions India’s hospitality industry as a vibrant sunrise, which will continue for the next 25 years due to domestic demand and infrastructural growth.
India is witnessing a sunrise when it comes to hospitality and the country will continue to shine on this front for the next 25 years, says Zubin Saxena, Managing Director and Senior Area VP, South Asia, Radisson Hotel Group. “The Indian hospitality industry is a rich domestically driven market, with the amount of infrastructural development happening in the country in the form of new highways and airports; it is creating an impact on how domestic tourism is moving,” he said. “India is poised to become world’s third largest economy in the next 5-7 years and that will position India enviably in the world as one of the largest tourism and hospitality markets. I think the fundamentals look strong and we are quite bullish about the future of India as a hospitality destination,” he added.
Highlighting Radisson’s plans to solidify its presence further, Saxena shared, “We currently have a portfolio of 170 hotels operating and under development, and we plan to develop the portfolio further in the next 3-5 years. We are opening 10-12 hotels every year, which is a part of our active strategy to target tier II, III, IV, and V cites within the Indian market. The strategic move is to tap the potential these cities have to offer and that is where we see the Indian domestic story really shining. Radisson is positioning itself to penetrate and thrive in these untapped markets.”
Over sustainability issue, Saxena said that it is not just a buzzword at Radisson, but a core principle that shapes every facet of operation. “Radisson is leading the sustainability efforts on a global level, there are many global sustainability initiatives going on, we call it sustainability basics and they start from everyday operational practices, such as rooms preparation and recycling of towels to larger-scale endeavours like installing electric chargers across all our hotels,” he said.
He said that Radisson’s commitment to sustainability extends from guest rooms to operations and both on the road and at their properties. “We are investing deeply in terms of energy efficiency, right from temperature controlling, the air conditioning in our hotel rooms to producing power by using solar panels and so on and so forth. So, sustainability is a way of life for us, and we are deeply engaged in initiating sustainability measure and ensure our hotels are really at the forefront of this cause,” he added.
The Indian hospitality business is expanding but guests are anxious about the rising hotel costs and want to know when will the costs stabilise. He said the dynamics of hotel room pricing is a complex interplay between supply and demand. “I think, we are at a point where demand for hotel rooms is very strong, and the supply for hotel rooms is somewhat stable, that is what is pushing the average rates up. Also, our industry has started focusing on price value proposition for our customers, and that is coming by the way of giving better services and after almost 2-3 years of down period due to COVID-19. I think, average rates are bound to grow and remain this way for the next 12-18 months.”
Group plans rapid expansion
- India is poised to become world’s third largest economy in the next 5-7 years
- Radisson Hotels currently have a portfolio of 170 hotels operating and under development
- Radisson Hotels opening 10-12 hotels every year
- Their active strategy is to target tier II, III, IV, and V cites within the Indian market
- Average room rates are bound to grow and remain this way for the next 12-18 months
- Radisson Hotel opening their best hotel in Srinagar in next 3-4 months