The opportunity to profit exists

‘Total transformation is the key,’ says Steve Borgia, Creator, Mentor, Developer, INDeco Leisure Hotels and an exemplar of survival during crisis. He led the group towards profit in the month of June by cutting costs, offering innovative products to local guests as well as arranging weddings at his hotels. This is his story…

Nisha Verma

In a time when businesses are struggling to survive or even exist, INDeco Leisure Hotels managed to make profit in the month of June, despite the lockdown hitting them hard, too. “We were amidst the third failed tourism season and we have not seen a hit like this in the last several decades. It took us time to realise that everything will change, and we need to be ready to transform the product, ourselves and the way we work. However, it’s going to be tough because with nil revenue and hotels and establishments locked, we need to meet the payroll, maintenance and security costs. In most countries, the government has taken over the payroll. There is a lot of disappointment and hopelessness among stakeholders, and rightly so. Like most, we have gone back by almost 25 years,” shares Steve Borgia.

But, besides the hardships of an adversity, Borgia feels that one must look for opportunities. “Down from 120 employees, we ran our hotels only with 15 people. The government was coming down heavily with rules. The first step was to keep the hotel shut with minimal cost, with lean, efficient, multi-tasking staff,” shares Borgia, reminiscent of the hardship and adding that business had to be owner-driven.

How was this achieved?

Borgia shares that once they’d decided to create a team of ever-ready, multi-skilled, responsible and low cost staff, they focused on continuous visible cost control initiatives and increase in productivity. “We cut down frills in the rooms, enhanced tourist experiences while abiding to state and country laws, and delivered back-to-basic products. April and May were just to earn our salaries. June was for making small profits, and July was to get into the normal grind. We offered unimaginable discounts in tariff to attract the young and risk takers. Crowded city apartment dwellers wanted to escape to safe spaces. We reached out to them for long stays. Entire families moved in,” informs Borgia, adding that another timely move was to go for quick-to-yield farm products. In the end, he says, “Not very enviable, but our continuous cost control is what helped us.”

Borgia shares key to survival

“We had to creatively evolve products that were permissible. When there is no scope for revenue, profits are made by cutting down cost continuously. Total transformation was the key. Whatever we did, we were certain that all of it had to start with people who know us and people who lived around our hotel. We had cut room services, prevented staff from entering the rooms, etc. Then came a lot of understanding and achievable goals.”

Initiatives undertaken

• Love thy neighbour: Meant for the immediate neighbourhood, it provided rooms and takeaway food at enviable discounts.
• Pay as you like: Friends, clients and elite locals were invited to walk in, check-in, choose their room and enjoy the hospitality. At check out, guests paid whatever they liked.
• Long stays: COVID-safe programme for senior citizens. NRIs were contacted & offered safe, appropriate care of their parents in Tamil Nadu.