we are not rattling off names of some quixotic food ingredients

IIPM’s 36th Glorious Year of Academic Excellence

Chalet, Cabana, Mews, Ginger, Lemon Tree, Peppermint, Berggruen… hey wait, we are not rattling off names of some quixotic food ingredients; instead these are innovative brand names for some equally innovative hospitality ideas at work. By Neha Sariya

When Roots Corporation – a subsidiary of Indian Hotels Limited (which also runs the Taj Group of hotels) ventured into a new concept of self-help hotels called Ginger in 2004, trade pundits were skeptical about its success. After all, whoever heard of a hotel, where you’d have to do everything yourself: from checking in to ironing your clothes. Ginger had no liveried bellhops asking for tips, instead guests were met by baggage carts with help-yourself signs; ATM style self check-in counters replaced the traditional receptionist; even the mustachioed gatekeeper was missing in action! However, the strategy was perfectly timed. Ginger’s low cost and Rs.999 tariff plans created a rage among budget travellers, who were in any case reeling under the demand-supply gap in the budget hotels segment. Today, with 14 properties across India, this one’s all gingered up for the future riding on its early mover’s advantage. Predictably, Ginger’s success prompted a host of me-too’s in the segment and a slew of budget hotels started popping out of the woodwork, including Lemon Tree, Peppermint and global players like Berggruen and Best Western.

But hey, they missed the bus! Analysts claim that as opposed to 5-Star hotels, which witnessed 100% occupancy in 2007, budget hotels did not share similar occupancy rates, largely because a large chunk of travellers to India were either business travellers or international tourists. Little surprise that now, everyone – from local tycoons like Anand Mahindra and K.P. Singh to global biggies like Hilton and Mariott, everyone is focused on pioneering alternative luxury hospitality concepts to set cash registers ringing.

The race is to dominate new luxury hospitality segments, ranging from residential hotels or service apartments, destination resorts, condo hotels, vacation ownership and private resident’s clubs. For instance, Taj Wellington Mews and Lakeside Chalet Marriott Executive Apartments are already luring a spate of global professionals to their swank service apartments in the financial capital’s suburbs. Companies like RCI (Resort Condominiums International) are thinking differently, and filling in the gap for vacation ownership and time sharing concepts in India, where a group of vacationers pay in a lump sum for spending a specific time period in any resort. The vacation ownership industry is growing at a CAGR of 20% today.

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An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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