K B Kachru, Chairman Emeritus & Principal Advisor, South Asia, Radisson Hotel Group – an experienced Asia hand – not just brought and built the global group to India but also spearheaded its foray into Tier II and III market, which, he contends, they pioneered. He looks back at the journey over the last 20 years and enumerates on his vision.
Can you rewind to the days when you brought Radisson Group into India? What was the vision?
KB Kachru: Radisson Hotels Asia, the development arm of Carlson Rezidor Hotel Group—as it was previously known—set up its operations in India in the late-1990s. The first hotel, Radisson Blu Plaza Delhi Airport, which remains our flagship property for the brand till date, came into operation in 1998.
During the 1990s, most international brands were looking for a piece of ‘The India Opportunity’, which manifested itself in the growing middle class and rising disposable incomes. Many hospitality brands entered the market and experimented with different strategies, but only a select few survived. In contrast, Radisson Hotel Group achieved success by pioneering growth and expansion in key metro cities and was the first to venture in Tier II and III locations in India. We recognized the potential of India’s robust domestic tourism early on and focused on establishing a first-mover advantage in strategic cities across the country.
The other critical component of our success was that we prioritized our relationships with owners and partners. We identified the right partners and worked on driving value for them. It is this mindset that has yielded continuous opportunities for us.
Over our 20+ years in the country, our partners have grown with us and we have managed to maintain nearly 100% renewal rate. I attribute the company’s success primarily to its deep understanding of the market, partner and guest expectations, which enabled us to position each brand in our portfolio appropriately. All our brands have a strong connect and loyalists in each segment that they operate in.
When you look back, how much of that vision has been achieved?
KB Kachru: The group has delivered on the vision that it set out to achieve. In the early days, there were not many opportunities to get large hotels because of the FSI related norms. Being an asset-light company, we worked towards having multiple mid-sized hotels at the same location, ensuring better viability for owners and improving brand visibility.
As an example, we have 25 hotels with over 3000 rooms just in Delhi NCR. This improved both our reach and perception and helped us realize our vision of being the strongest international hotel brand with the most widely connected domestic network in India.
Today, we are present across almost 60 cities in India, including major metro cities and Tier II and III locations with good connectivity, trade and tourist interests. We have stayed focused on expanding our domestic footprint with as much as 50% of our business currently originating from Tier II and III cities. We have 94 operational hotels currently and plan to have 60 new hotels opening up in the next three to five years.
What would you consider as the milestones in Radisson’s journey in India?
KB Kachru: Our first hotel in India, Radisson Blu Plaza Delhi Airport, opened in 1998. The same year, we forged a strategic partnership and master agreement with Chanakya Hotels Pvt Ltd to grow and develop our brand Country Inn & Suites by Radisson.
Some milestones include:
- The formation of an India-based management company to service hotels with Carlson Rezidor Hotel Group in 2005.
- We introduced famous restaurant brands, TGI Friday and Italianni to India in 2010.
- We signed a strategic alliance with Bestech Hospitalities to develop a network of Park Inn by Radisson and Radisson RED hotels in 2012. We have already signed 19 hotels under this JV.
- Carlson entered a joint venture with Delhi-based Talent Marketing for sales, marketing and reservation support to Carlson Hotel brands in 2013.
- The same year, we became the largest international hotel brand in India by virtue of the number of hotels.
- We rebranded as Radisson Hotel Group to leverage the brand equity of the Radisson name and increase marketing efficiency across the global portfolio in 2018.
- We have now defined a five-year operating plan that includes initiatives that redefine our value proposition, optimize the strength of our portfolio, streamline operations, invest in new technology systems and align team members to deliver on our global proposition—‘Every Moment Matters’.
Throughout the past decade, our focus has been on augmenting the strength of our brands. By mapping out clear positioning and identifiable value proposition for guests and owners, we have been able to grow our brands strategically.
For instance, our mid-scale brands Country Inn & Suites by Radisson and Park Inn by Radisson have rapid expansion potential in Tier II and III cities and state capitals as connectivity and infrastructure in such centres continues to improve.
What have been your milestones with Radisson?
KB Kachru: In 1991, I moved to Singapore to set up Radisson’s presence in Asia. I subsequently worked on launching the group in Indonesia, Malaysia, Thailand, Bangladesh, Nepal and India. We managed to enter and sign hotels in each of these markets within three years of setting up an office in Singapore.
Personally, it has been a greatly satisfying journey, one that leaves me excited for whatever is the next big frontier for the industry. I have had the honour of being appointed on various state government bodies and being recognized with most prestigious awards by the industry. I have also experienced some difficult situations and biggest ‘uncertainties’ in my career during this period, such as approaching closed markets which had no international tie-ups, the economic recession, SARS virus, terrorist attacks and the ongoing pandemic that has gripped the sector.
All these experiences have changed me for the better, not just as a professional but also personally. The biggest lesson in my career has been to believe in the power of creating relationships with trust. I follow this with all stakeholders including owners, franchisees, executives as well as employees. While I enjoy being part of the success, I equally feel their pain.
What sort of imprint do you think Radisson has left on India’s hospitality sector?
KB Kachru: The Radisson Hotel Group has created an unparalleled legacy in the industry as one of the first international hospitality brands to enter India and successfully create a robust footprint. With our deep understanding of the Indian market and knowledge from our global operations, we have managed to create a strong recall for the brand.
We have represented the industry’s interest at the most strategic levels and helped shape the future of hospitality throughout our journey. We have been fortunate to receive support from trade and government alike, who trust us with our views and insights and provide us with an opportunity to work with them closely.
What is your vision for Radisson?
KB Kachru:We are closely aligned to our global vision of being one of the top three hotel companies in the world and the company of choice for owners, guests and talent. We are steering our India business in this direction and have infused strength in our business in the past few years by focusing on our brands and offering them the right positioning.
I have immense faith in Zubin Saxena and his leadership. His vision and direction have held the company in good stead through one of the worst disruptions that the industry has faced. Radisson Hotel Group is proud to be one of the largest international hotel players in India today, continuing to grow and provide value for our owners, partners and employees.
Zubin Saxena, Managing Director and Vice President Operations, South Asia, Radisson Hotel Group
How do you see the hospitality industry evolve in a post-COVID? What would constitute the new normal for hotels?
Zubin Saxena: Several months into the crisis, the industry seeks to reshape itself and make some positive permanent changes. Across the industry, business models have shifted and alternate revenue generation streams have sprung up, which are likely to outlast the crisis.
The need for prioritising safety for all—employees and guests—have been at the heart of all business decisions. At Radisson Hotel Group, we have pivoted all our efforts to maximise owner value proposition, which is the key objective of our operations blueprint, the India Unification Plan. With a strong plan and vision in place, we are optimistic about the future.
In the past, you have identified a future strategy based on five points: People, procurement, food and beverage, operations and commercial. How does this strategy hold up in a world still in the throes of a pandemic?
Zubin Saxena:We have a strong strategy in our India Unification Plan, the master blueprint guiding our long-term planning as well as day-to-day decision-making at Radisson Hotel Group. The India Unification Plan leverages the collective strength of our network across 24 strategic initiatives under five key pillars—People, Procurement, Food and Beverage (F&B), Operations and Commercial. During the pandemic, we put this plan on a fast track to deliver value for all our stakeholders.
We have developed a New Manning Blueprint for a future-ready organization to deliver greater efficiencies led by a quality-driven mindset. We are witnessing positive feedback for this plan as we begin our recovery from the crisis and strongly believe that we are on the right path for building a stronger business operation.
Some of the initiatives we have undertaken during the past six months:
- Introduction of the epicentre hotel concept where a large cluster of hotels are supported by epicentres (or base hotels) to enable efficiencies through centralized production hubs.
- ‘Owners for Owners’ Procurement Program (OOPP)’ leverages various parallel business lines owned by our partners for the collective savings across our portfolio, as well as passing on the benefits to our owners.
- We have introduced a ‘Cluster General Manager Program’ to harness top-performing GMs to share their talent and enhance results across several units, even as they manage their career aspirations and we provide them enriched job content.
- We have launched the Expanded Cross-Selling Incentive Program (CSIP) that will span our pan-India network. The program is powered by over 500 sales associates across our network, enabling robust hotel discovery and bookings for existing guests in any part of the country.
- We have launched ‘India Road Trips’—a curation of potential routes across the popular road trip circuits in the country within a drivable distance from major cities, with safe, comfortable meals.
- A reimagined concierge program delivers services such as housekeeping, home catering, salon and fitness training to our guests within the comfort of their homes.
The India Unification Plan, a master blueprint, guides long-term planning and day-to-day decision-making at the Radisson Hotel Group
They say only the sharpest and fittest will survive, or bounce back sooner. What do you think the industry’s comeback strategy should be like?
Zubin Saxena:The only way to look at this disruption is to view at it as an opportunity. The comeback strategy must focus on inherent strengths of the business and then scale them up. This should be supported by ancillary revenue streams, which can potentially become a permanent part of the business when the next normal arrives.
What should hotels be thinking beyond health and hygiene to attract guests?
Zubin Saxena:Businesses should look at re-evaluating commercial strategies based on the new hyper-local consumer trends that have emerged, such as short distance road trips to city outskirts and curate distinctive and compelling offerings to capture this demand. The industry needs bold, creative and future-proof innovative ways of providing the same warmth of hospitality at the doorstep of their guests.
F&B and concierge services such as catering, and housekeeping can be extended to homes. Leaders ought to be thinking about large-scale adoption of contactless technologies that elevate guest experience and assure guests of safety benefits.
Radisson works with at least 300 owners across the country. Have there been any points of conflict over the last six months and how has the resolution been brought to those conflicts?
Zubin Saxena: Since the emergence of the crisis, we have fast-tracked The India Unification Plan to a 12-week action plan. It has strongly guided us in these tough times and we have not only been able to sustain our business, but also unlock new opportunities.
Our owners have appreciated many initiatives such as Owners for Owners program, Cross-Selling Incentive Program and our enhanced F&B outlook that have opened by alternate revenue channels and leveraged on the strength of our network. We all have to work together in the current times and support each other. Survival and business continuity have been the topmost concerns for the entire industry through these times.
Radisson is re-evaluating their commercial strategies on the basis of the new hyper-local consumer trends that have emerged . PHOTOGRAPH: RADISSON CHANDIGARH ZIRAKPUR
In the pre-COVID era, you had plans to go from 100 hotels to 400 hotels.What is happening with your expansion plan?
Zubin Saxena:Our plans to open 60 new hotels in the next three to five years are on track. We have stayed focused on expanding our domestic footprint with as much as 50% of our business currently originating from Tier II and III cities. We have started seeing some green shoots of recovery as markets open partially and with strict protocols.
We signed four new hotels in Q1 2020—Radisson Blu Jaipur Malviya Nagar, Radisson Dehradun, Park Inn by Radisson Mashobra Resort and Park Inn by Radisson Jabalpur, and have sealed two more deals recently.
Can you tell us what are your occupancy rates right now and how do you see the situation evolving?
Zubin Saxena:There has been a gradual but steady uptake in our business, with occupancy marginally improving month-on-month. Overall, Tier I cities have shown better pick up, but Tier-II cities are leading the trend on social events and F&B-related revenue, with weddings being hosted place under strict protocols and necessary precautions. Leisure demand has also found its way back as people start venturing out for staycations and road trips. Growth in business travel is being led by guests opting for longer-term stays.
In a post-COVID world, how do you intend to leverage your strengths in the F&B segment?
Zubin Saxena:Food and Beverage (F&B) is a strategic pillar of our 24-step India Unification Plan. Much before the pandemic, we had started working on expanding and enhancing our F&B portfolio to not just monetise alternate revenue streams, but delight our guests in new ways. We have rolled out new concepts such as signature dishes, outdoor catering vertical and home deliveries in partnership with EazyDiner. Our offering ‘Take Home a Chef’ allows guests to book from a range of professional F&B services such as cookery lessons, catering for special occasions and expert guidance on preparing healthy meals at home, delivered by the group’s expert chefs.
‘Meetha’ is another exciting new launch by Radisson Hotels with which we are introducing timeless and traditional Indian sweets to suit every occasion including festivals, weddings and corporate events. With this initiative, we aim to capture a sizeable share of the premium mithai industry in India.
Most hotels are leveraging F&B and staycations to attract the locals, particularly in tough times like these when global travel is hitting a slowdown. What is Radisson’s strategy on this front?
Zubin Saxena:The leisure segment has seen a slow but positive uptake as people start venturing out for weekend staycations and road trips. With our staycation offers, guests enjoy perks such as early check-in and free breakfast each morning. We have rolled out India Road Trip packages that feature our hotels within drivable distance from major cities, assure our guests on safety and hygiene, and promote our staycation packages in various cities. This includes our cancellation policy that is constantly updated, offering both leisure and business guest utmost flexibility and peace of mind.
The group plans to open 60 new hotels in the next three to five years, with 50% in Tier II and III cities. PHOTOGRAPH: RADISSON BLU HOTEL GUWAHATI.
Can you elaborate on Radisson’s tech-infusion programme? How important a role will technology play in the hotels of the future?
Zubin Saxena:Technology will take centre-stage to provide solutions as guests will avoid using hands for any access control. As an effort to offer safety within the ‘new normal’, a 20-step protocol for hotels and a 10-step protocol for meeting and event spaces has been introduced at all our hotels. Use of technology and the digital interface is imperative to these protocols.
Apart from facilitating ‘touchless everything’, technology will play a vital role in enhancing the experience of new hybrid solutions designed to better meet the rapid lifestyle changes of today’s travellers and their evolving expectations when they stay, work and meet in our hotels.
We are well-equipped to handle this transformative time in our business with the help of technology enabled services—whether they are apps to check-in and check-out to minimize contact or equipping our
meeting rooms with latest video conferencing facilities.
Increasingly, hotels are connecting with their guests on social media.What are your social media and online marketing strategies and how well has that worked?
Zubin Saxena:Our marketing strategy has remained centered around transparency, agility and empathy. Social media and digital marketing have helped us stay close to our guests and deliver our brand promise in times when they could not stay or dine with us.
At the beginning of the lockdown, several of our hotels in India came together to light up their facades in creative displays such as heart shapes, letters L-O-V-E and face masks as part of #RadissonCares initiative to show our love for the guests we miss and look forward to welcoming again. This was widely amplified through our social media channels and was well-received by our guests.
Under #RadissonCares, we reached out to our guests to offer tips and insights in the areas of housekeeping, F&B, elderly care, and health and wellness from our well-regarded and globally recognized service professionals via emails and social media. We leveraged our expertise across a range of service areas to help make a positive difference in their lives.
Recently, we launched the ‘Radisson Thanks You’ campaign to thank our team members for their service during the crisis. Globally, we are running #TakeMeThere campaign that aims to transport our guests and members to mesmerizing views from Radisson Hotels in different parts of the world, keeping the love for wanderlust alive.
There has been a gradual but steady uptake in business with occupancy marginally improving month-on-month. PHOTOGRAPH: RADISSON MUMBAI ANDHERI
You had planned to launch the Radisson Collection, your brand of luxury hotels in India. What happens to the plan?
Zubin Saxena:Radisson Collection is a premium lifestyle collection of exceptional hotels located in unique locations and is an important part of our plan for India. We are in active discussions for the development of the brand and focused on the right opportunity and fitment to introduce it in the market.
With a firm entry-level positioning in the luxury segment, the brand is a collection of exceptional hotels, with no two being the same. Each has a unique character authentic to its locality. Radisson Collection hotels are situated in prestigious locations, close to prime leisure attractions. Modern design blends elegance in form and function, making our hotels the ultimate destination for those who value a vibrant and upscale lifestyle.
With more than 20 years of operations backing them, the Radisson Hotel Group is one of the oldest and largest international hotel operators in India. PHOTOGRAPH: RADISSON BLU PLAZA HOTEL BANJARA HILLS HYDERABAD.
Radisson seems to be doing both management contracts and limited franchising agreements. Can you tell us the pro and cons of both? What has worked best for you?
Zubin Saxena:We are a hotel management company with decades of operations experience and legacy of building and running successful brands. Our development strategy ensures that our brands are relevant to owners, creating compelling revenue and cost advantages in each situation. With a robust operations blueprint in action, we firmly believe the benefits of management contracts with us are endless. However, we remain open to selective franchising.
Reflecting on your journey in India, what has the evolution been like?
Zubin Saxena:With more than 20 years of operations in India, the Radisson Hotel Group is one of the oldest and largest international hotel operators in the country. Our business operations are evolving in stealth mode, with the trust we have gained from our owners and partners and the loyalty of our guests, supported by exceptionally talented team members. With 94 hotels in operation and 60 new hotels opening up in the next three-to-five years, we have managed to build a deep bond with our guests and members.
What have been the crucial lessons learnt and how has that helped changed your strategy?
Zubin Saxena: As a company, the COVID crisis has reaffirmed our faith in our business strategy which is at the heart of our move forward plans. Many other strategic imperatives that we had initiated ahead of the crisis, such as ramping up our focus on F&B, investment in technology and managing hotel flow-through have been of tremendous value in our journey to recover from the crisis.
Can you tell us a bit about diversity in your hotels? How many of your employees are women? How many of them are on top management levels?
Zubin Saxena:We are committed to a healthy gender diversity and have started actively reviewing our hiring plans with this lens. To support women employees adequately and develop women leaders, we have various initiatives in place. Women constitute 57% of our current batch of management trainees in India.
We offer flexible working arrangements, work from home options to women employees returning from maternity breaks, and extended leave periods and other benefits to support women staff with dependents.
Tier I cities have shown better pick up, but Tier II cities are leading the trend on social events and F&B-related revenue as India opens. PHOTOGRAPH: Radisson Gwalior.
With rising environment consciousness, how is your group doing things differently to ensure as lower a carbon impact as possible?
Zubin Saxena:‘Responsible Business’ has always been part of Radisson Hotel Group’s DNA. We emphasize on an informed management plan at our hotels, with latest technology upgrades, and train our employees to ensure efficient use of resources. We believe the travel and hospitality industries can be a force for good.
Our hotels are adopting water-saving technology and engaging guests and employees in activities to shrink water consumption by considerable margins. We routinely use sprinklers and pipe dripping system in gardens to minimize water consumption, practice servicing and recharging of rainwater harvesting pits every year, and take active measures to prevent water leakage in all areas.
We have implemented linen and towel exchange programs for guests staying for one night to cut down on water consumption. The Radisson Hotel Group has been a pioneer adopting industry leading practices in the area of F&B. Practices such as re-purposing of used cooking oil (RUCO), as per FSSAI norms, are in place. For every kitchen using more than 50 litres of oil per day, leftover used oil is given to the authorized vendor who collects used oil for making bio-diesel.
As part of the company’s strategic plan, we have rolled out our new global ‘Responsible Business’ training program, Living and Leading Responsible Business. This program provides our employees with knowledge and information on sustainable living. With these steps, we are determined to help build a better planet for all.
