The next three years are essential for InterGlobe Hotels from an expansion point of view as it plans to roll out five thoughtfully designed ibis hotels with over 800 keys. Currently present in 13 cities, ibis has 20 operating hotels and the upcoming ones include ibis Styles in Goa and an upscale hotel in Bengaluru.
“We plan to open ibis in Hebbal, Bengaluru and Thane in 2022–23, followed by ibis Styles in Goa in early 2023-24,” revealed JB Singh, President and CEO, InterGlobe Hotels. While his immediate focus is to operationalize this current pipeline of over 4,000 keys, he remains committed to increasing the brand’s footprint. This will be done by targeting new investments in key tier–I cities and strategic investments in growing tier-II markets.
TEAM PLAYER
Singh claimed that the culture of collaboration is the bedrock of InterGlobe’s growth. It closely coordinated with the labour contractor to ensure labour availability during the lockdown. “We provided food and living space to labourers even when work stopped to ensure availability and continuity when operations resume,” Singh stated. Adopted a flexible approach to manpower, the company adjusts workforce requirements at various sites depending on the stage of development. It has also created talent pools specialising in multiple aspects of construction, which are revolved around various sites.
Team members were encouraged to develop new skills to contribute to changing business scenarios, and they came up with several revenue-generating ideas. While not all made the final cut, InterGlobe tested them and even implemented some. “Ancillary revenues today contribute around 13% to the airline industry, while it remains in lower single digits in the hotel sector. The industry has to revisit its business model, and operating structures and pandemic helped the industry realize that,” Singh emphasized.
BANKING ON TECH
With an eye on innovation, Inter- Globe Hotels is persistent about asset upgradation. During construction, it relies on technology to bring down costs and improve the time to build.
Singh cited the example of building information modelling, which brings efficiencies in engineering coordination. “We are also exploring a new Energy Control Building Management System, which will identify operational energy conservation methods based on data analytics,” he added.
InterGlobe has been focusing on tech integration in numerous operational aspects, right from cloud based property management systems, e-audits and advanced revenue management tools to centralized finance processes. Singh now intends to overhaul the revenue management system with a single comprehensive platform with a dynamic pricing solution for room rates, additional sales channels, credit management, and price listing across different OTAs.
