With the industry gradually emerging from recession, business hotels are hoping to ring in the good times with more travellers demanding “smart hotels” with prompt service and good communication systems, sans the luxury frills.
“The forecast is very encouraging. We can expect a steady increase in occupancy level for the year ahead and can see a 20 per cent growth from the third quarter. Business travellers are looking for smart hotels with prompt service standard and good communication levels. Luxury is not the major concern for a large number of travellers”, Rupam of Radha Regency says.
Prakash Ryon, corporate general manager, Nandhana Grand Koramangala and Nadhana Hometel, which runs a chain of business hotels, agrees, saying: “We are seeing an uptake of 15 per cent in occupancy compared to last year.” He said there has been a lot of corporate movement, with recession receding and recovery of the market. “The luxury market and increase in domestic travellers in December also added to numbers,” he said.
“We are seeing corporate negotiations from existing firms which use our hotel for middle management and senior management executives. These corporates are negotiating for our high end suites now,” he said, while explaining the flow of senior management from five star hotels to business hotels.
Prakash said business hotels make sense to companies as they have begun offering good facilities minus huge cost tags, which include complimentary wi-fi facilities, dinner coupons, free pick up and drop to airports and a more elaborate breakfast spread.
“The price difference between the upper end and mid-market segment is around 50 per cent,” he said.
Explaining the move towards business hotels, S Raghunath, who handles marketing for India for Electra Polymers (UK) and a frequent business traveller, said, “Most travellers are middle management. Hence, business hotels suit our requirements”.
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“Nobody has time to go around for a spa or sauna. Basically, most businessmen are off for their business meeting by 8 am and return late. What they look for is basically the bed and breakfast concept, which is what these hotels offer,” he said.
“Moreover, hotels in India are overpriced with average pricing being around $200, while in Thailand the best hotel room comes at an average of $80,” he said. Company guest houses have their own maintenance issues, says Raj Rajkumar, managing director, ADC, whose firm has turned to business hotels to lodge overseas customers.
“Company guest houses also means hiring personnel. Keeping such guest houses no longer makes sense on account of high rents, power bills and housekeeping tabs,” he said.