Hilton Chennai has two reasons to celebrate 2021 – it completed 10 years of operations and managed to
stay open throughout 2020, when the rest of India was battling the pandemic-induced lockdown. What is even more laudable is that it registered operating loss for only two months – April and May – posting profits throughout the calendar year.
However, don’t let this fool you into thinking that it was easy going for Hilton Chennai. Corporate travellers from the US and Europe comprised 65% of its business. The suspension of international flights following the virus outbreak completely decimated this revenue stream.
Moreover, as an international business hotel, Hilton Chennai’s Average Daily Rate (ADR) always remained approximately INR 1250 above that of its competition. Selling rooms at this rate during the pandemic was nigh impossible in the face of non-existent demand.
Ruban Das, General Manager, Hilton Chennai
That is when Ruban Das, General Manager of Hilton Chennai decided to opt for the volume business through the government’s their corporate clientele would patronise their properties if it became quarantine centers for international fliers and frontline workers. Das, however, was willing to take this chance. Thankfully, he received the support of Empee Group, who own the property as well as Hilton’s management. He only had to prove his stance by putting his money where his mouth was, figuratively speaking.
GETTING DOWN TO BRASS TACKS
Das met the Chennai Municipal commissioner last March, along with general managers of few other hotels, to discuss the process of accommodating passengers flying in under the Vande Bharat initiative. Adding to the apprehension amongst hospitality professionals, some hotel owners, too, declined to be affiliated with this programme, he recalled.
“Some of Hilton’s hotels in Singapore, Malaysia and China were already converted to quarantine facilities. So, we knew we could use their knowledge to set up appropriate safety protocols,” Das stated.
Armed with this confidence, Hilton Chennai was amongst the first hotels in Chennai to become a quarantine center. The city’s Municipal Corporation regulated passenger traffic to hotels under the repatriation programme. Das claimed that from the first flight, which flew in from the Gulf on 8th May till the last one, Hilton Chennai remained the preferred choice for the Vande Bharat Mission. Gradually, other hotels participated in the initiative as the local government sought more rooms for accommodating passengers.
The Chennai Municipal Corporation acknowledged the hotel’s contribution to this programme and honoured it with a Certificate of Appreciation last October. This felicitation aside, Das has other reasons to be proud. While hotels across India registered single-digit occupancy rates in June, Hilton Chennai had close to 86% occupancy – all thanks to the foresight to take calculated risks.
STEP IN THE RIGHT DIRECTION
Around this time, Das noticed that the hotel’s Revenue Generation Index (RGI) in June 2020 was just shy of 1000. Typically, a RGI number higher than 100 denotes good performance by a hotel. “We use this metrics to measure our market share as compared to that of our competition,” he explained. “I realised that this high RGI was because we were amongst the first hotels to show solidarity with the medical fraternity, including doctors and other frontline workers.”
Many senior healthcare professionals came from all over Tamil Nadu to serve patients under the National Disaster Management Act. The government could not accommodate them in a medical hostel, given their extensive experience and expertise.
Once again, Hilton Chennai stepped up to the plate, and opened its doors to the healthcare community. “We still have doctors staying with us 10 months since we began in June 2020,” Das stated. Interestingly, a fear prevailed amongst hoteliers about accomodating doctors serving in COVID-19 facilities; they were worried about heightened risk of infection. However, Das preferred to look at things optimistically.
“Since these medical professionals were following strict hygiene and safety protocols in their hospitals, they shared several tips about navigating the pandemic without fearing the disease,” Das stated. Their presence also boosted the morale of hotel staffers, who felt they were serving humanity by serving the doctors. Moreover, Das organised town hall sessions where employees clarified their doubts about COVID-19 with the doctors; which allayed many fears.
A CLEAN SWEEP
Since Hilton Chennai’s major clientele last year comprised passengers of the Vande Bharat Mission and the medical community, it launched the company’s Cleanstay Program in May. Firstly, team members underwent hygiene and sanitisation training as per WHO standards. Next, a regimented workflow and communication process was built within the bubble that the hotel was operating under.
The third aspect of the Program involved using chemicals intelligently. “Before the pandemic, cleaning at the hotel was looked from an aesthetic perspective. Now, we have a clinical approach towards it, just like you see in hospitals,” Das explained.
At a global level, Hilton teamed up with Reckitt Benckiser (RB) for the Cleanstay Program. It also collaborated with the Mayo Clinic to introduce a strong cleaning strategy, which covers 10 high touch-points within guest rooms. These include the door handle, bathroom handle, toilet seat, vanity unit, telephone, remote, etc. All these touch-points are treated with UV and approved chemicals, like Dettol, from RB.
These initiatives gradually boosted guest confidence, which reflected in increasing occupancy rates from other guest segments. “Our lowest occupancy point was only in April 2020, when we did 20%. However, last year, we closed with 53% occupancy, which is like 25% above the city’s average,” Das claimed.
Fortunately, revenge tourism has started picking up in Chennai’s ECR region. Hilton Chennai is cashing in on this trend by introducing lucrative weekend and staycation offers. According to Das, these packages offer great value for money coupled with experiential offerings, rather than functional offerings, which the brand earlier extended to its business clientele.
Whether it is organising ice-cream making classes for children, yoga sessions for the entire family or letting guests create their own detox drink, he is pulling out all stops to ensure that Hilton Chennai pulls out of the pandemic, unscathed.
