What has been the effect of COVID-19 on business?
The impact has been unprecedented. The occupancies are in single digit numbers. March proved to be promising going by business on books. However, a spate of cancellations that followed washed away most of the business. The total value of cancellations across our hotels runs into several crores.Â
We expect the pickup to be moderate if not slow for the coming few months, even after the lockdown is lifted. It is natural for people to continue exercising caution until the crisis is truly behind us. F&B sales may also continue to be impacted should the restrictions on MICE and banquet events continue for some more time. Almost every hotel, without exception is bearing the brunt.
Do you think the domestic market will be able to shore you up once the crisis blows over?
We do expect domestic business to first bounce back, albeit cautiously, considering that international markets may take a while to regain confidence in trans-border travel. It is likely to be the rooms and related services that will revive first, followed by MICE & banquets.
What do you think will be the long-term effect of COVID-19 on the industry?
COVID 19 will leave a lasting impression. While it may take us rest of the year and maybe a part of next year before we start seeing a turnaround in business, it has also given us valuable lessons that are going to change the way we work in future.
What will be your strategy to garner business once you open?
We would like to revive our corporate and contracted business, followed by a thrust on garnering volume business through MICE and banquet events depending on the situation. A separate focus on F&B revenues will also be our priority.   Â
Where do they think the next demand will come from?
We expect the demand to pick up in the order of business first, followed by leisure. Domestic demand should pick up first followed by international; we expect some hesitation before global travel picks up speed.
Is it finally time for India to focus on domestic tourism?
Certainly! This is true with or without COVID 19. There is a huge pent-up demand in domestic tourism that has been waiting to be exploited, and this is the time to do so. India has so much to offer and I strongly believe that our industry must work hand-in-hand (pun unintended) to promote domestic tourism.
There are areas where the government needs to also improve the infrastructure and last-mile connectivity to open up many more destinations. Domestic tourism alone is worth billions in potential revenues and we must not waste this opportunity.
What have your hotels done to support the community within which the hotel is located and your employees?
Our employees, their safety and wellbeing have been our topmost priority. We have ensured they receive the required training and support during the lockdown period.
As a group, we have been providing rations to construction workers stuck at various sites in Bangalore and have also sponsored thousands of free meals for the poor and needy through Akshaya Patra.
Have you done any retrenchments yet?
Retrenching people will be our last option and we would not want to exercise that option unless compelled. However, considering that revenues have dropped to near zeroes while the fixed overheads have remained the same, it has become necessary for us to look at an all-round tightening of belts so that we are able to collectively tide over the crisis. This includes temporary ‘grade-wise’ rationalisation of salaries and perks.
Every crisis has its learnings for the industry. What are yours?
We have seen a sudden collapse of business; the challenges before us is dealing with compromised experience for guests and managing the expectations of the associates in these uncertain times.
The bright side is you look at better ways of running the business. Like leaner operations to maximise profit and improved operating standards, to name of few.
What measures have you taken to cut cost of operations?
We have undertaken several:
- Requesting employees to use their accumulated leaves during the lean period. All-round trimming of costs without compromising quality.
- Based on the occupancy, we have restricted our operations to limited number of floors thereby reducing on the manpower required and reducing the HLP consumption.
- Since there is a total lockdown and there are only very few guests in house, we have closed down the restaurants and spa.
- The contractual services has been relooked into and have made considerable savings by carrying out the work in house where ever possible.
How are geared up to handle the situation if one of your guest ends up testing positive for Covid-19?
The staff is well-versed in hand hygiene, respiratory hygiene and protocols to be followed while handling a guest who is not well. They have been trained to advise and assist guests who develop symptoms, and to call control room/designated hospital to report. We are already disinfecting areas such as lifts, washrooms, telephones and lobby every six hours.
Personally, what have been your learnings from this crisis?
I am not sure if there are more than a handful of people across the world who may have witnessed a crisis of this magnitude in the lives. This is unprecedented!
Not just the coronavirus pandemic but the economic pandemic that has left a much larger impact on us. Businesses across the planet have literally shut down, leaving millions unemployed and the economy crippled. It is going to take some time and a humungous effort to get back our bearings.
There is also a flipside to the whole scenario. We have learnt to appreciate life more than what we used to. Our earth has become a lot cleaner with a noticeable improvement in air quality. One gets to actually see millions of stars in the sky. It has also brought us much closer as one world. Coronavirus has shown us that there are no borders and also that all are equal, be it a prince or a common man.
We have realised that not all chores that we so far deemed critical or important, really are so. The daily hustle and bustle in our lives has suddenly been filtered out, giving us time to introspect if most of the errands that we were so hopelessly drowned in were really necessary. We have realised that we can achieve a lot more by doing a lot less. It’s just that we need to filter out the chaff from real grain.
