Neeraj Govil

Marriott International typically opens 10 to 15 hotels in India annually, and its target in 2020 was to announce nine properties across the country. However, it recalibrated its approach as travel and business came to a standstill following the pandemic.

“It was unrealistic to not expect a slowdown in new launches,” said Neeraj Govil, SVP Operations-APEC, Marriott International. “Developers were looking to conserve cashflows, there was unavailability of construction labour and delay in product deliveries due to supply chain breakdown coupled with lower demand than previously expected in most locations.”

Despite this uncertainty and operational challenges, it opened the Courtyard by Marriott Nashik and its second Courtyard by Marriott in Ahmedabad. It now aims to close 2021 with six new hotels joining its existing portfolio of 126 properties in India.

Govil maintained that the pace of new signings has picked up considerably over the past few months and he expects more activity on the conversion front, both in managed and franchised agreements. “It is logical to expect standalone hotel owners to consider switching to available flags of established operators to leverage the reputation of their brands, distribution channels and loyalty programme,” he noted.

QUICK CHANGE
COVIC-19 gave Marriott an opportunity to explore newer business avenues in a bid to maximise revenues with minimum resources. This included adopting options like staycations, food delivery platforms or limited time offers.

According to Govil, the contemporary business demands that one take decisions as a leader with a precision of a soothsayer. “Due to the flux, it is challenging to steer an organisation while focusing on revenue goals, maintaining service standards and maintain the physical and mental health of associates. Indulging in long-range planning is next to impossible,” he emphasised.

While industry stakeholders found themselves in a vulnerable position with impending risks last year, they are better prepared this time around with greater confidence to combat unravelling situations. In the absence of a playbook, they had to rely on instincts, something that Govil has been doing to power this new way of functioning.

The company adopted astutely a multi-pronged approach, getting its SOPs right and leveraging the power of Marriott Bonvoy. “Our focus in the last 15 months has primarily been on the safety and security of our associates and guests, the ability to move from ‘cosmetically clean to clinically clean’, innovate ways to conserve costs without compromising on quality, thereby preserving the financial health of our company,” Govil elaborated.

In the backdrop of multiple waves, the biggest challenge is operating in the short term with a large degree of uncertainty. Marriott reviews all variable cost heads at regular intervals to ensure there is financial prudence which it can extend to its ownership groups and support the overall business without compromising on service quality and safety of its guests and associates.