Doing Checks & Balances and Taking Stock of the Hospitality Industry with Gautam Anand!
Adversity, they say, is a bigger and stronger teacher than the good times. And the Pandemic has served its purpose towards this quite well.
As we continue to attune ourselves to the various mutations of the virus and to the undulating nature of the pandemic, we as organizations, industries and people are learning to adapt and adjust, learn and re-learn, rebuild or start afresh with renewed zeal, zest and determination.
Well! That’s the thing with the human spirit. It knows how to be resilient and how to evolve. It knows how to innovate and spring back. But what is also imperative is to introspect and to look closely at the mistakes we have made, especially vis-à-vis the environment and the nature, because that is where lies our exposed Achilles’ heel.
The Hospitality Industry has been one of the most severely challenged in the present Pandemic.
In order to take stock of where we are and how far we have travelled in terms of reshaping and reemerging, I decided to have a detailed conversation with Diwan Gautam Anand.
Gautam Anand is a seasoned hotelier and a name to reckon with in the Hospitality Industry. With four decades of experience, in India, South-east Asia and America, Anand is today considered to be one of the finest Industry mavens in Project management, pre-opening operations and quality benchmarking.
An ITC and Sheraton Hotels veteran, Anand is today engaged in developing a luxury home stay experience.
With enviable nous and admirable experience under his belt, Gautam Anand offered profound wisdom and insight in his conversation with me.
Do tune in below -
L. Aruna Dhir - As a quintessential hotelier of repute and long standing; how have you perceived the impact of COVID-19 on the Industry?
Gautam Anand - In retrospect, COVID-19 or living with COVID has and shall become a way of life. That is the uncomfortable and unfortunate truth.
As an Industry we have overcome several disruptions over the years - Wars, Nuclear threats (I was a GM at that point), Security and terrorism. We overcame the fear and insecurity with resolve, technology and the three rings of security. Similarly the post COVID workplace is a far more low touch, high tech and superiorly sanitized environment.
Overall, I believe that while the industry’s losses are an open secret and run into many, many millions, it’s time to look ahead and build on the positives. If I talk about India, the recovery in the first financial quarter of this year has already been very promising, some reporting growths of 20% and more over 2019-20 levels and that speaks volumes of the fight back the industry has shown.
Looking back to these two years, what’s good for the long run is that the pandemic has been a wake-up call for the industry in a big way. It allowed everyone to step back and analyze every aspect of the business which they otherwise hadn’t and had taken for granted in some form.
As a result, hotels are more agile and more aware. Many new streams of revenue opened up out of necessity and are now here to stay.
L. Aruna Dhir - Can you please give a few examples of the new streams?
Gautam Anand – Well! At the height of the Pandemic, Uber Luxury delivery was touted as a knight in shining armour. Recognizing the opportunity, most major players seem to have risen to the occasion with a guarantee of immaculate, flawless hygiene and safety packaging. Gourmet Couch from the ITC Hotels. Marriott Bonvoy on wheels, and the Taj introduced Q min are fine examples.
Some chains went the extra length and offered to send a RTPCR enabled, vaccinated chef along with the mise en place.
Cuisine Classica, by a well-known chain, inaugurated a charming offer with their top chefs facilitating step by step Cuisine lessons (for a small fee of course). Volumes were no longer discounted, in fact they were monetized. Thus hotel buy outs are at a premium. Years ago, volume or bulk entailed discounts.
Housekeeping services, Laundry and several allied services were offered to the regular guests.
L. Aruna Dhir - As someone who wears multiple hats and works integrally with several international travel bodies as well as the Government, what do you think should be the appreciable support from them to the industry in order to make it profitable once again?
Gautam Anand – “Ask not what your country can do for you – ask what you can do for your country”- JFK.
It does sound a trifle pompous but it’s the truth. The reality is that if you look around your immediate universe, it is almost impossible to get a room or lodging in most of civilized India.
Rev pars are higher, Food and Beverage is doing well, banquets are booked out. Therefore, self help and service-before-self has paid dividends. Any subsidies would have made the industry subsidies dependent and weak.
What the Government should do or can do is to provide incentives for performance and Human Resource development.
Recognition of Food as an integral part of culture and recognizing the Hotel industry as a core business of Derived demand of an Economic revival, would be great ways to boost the industry. Some hotels are a destination, I understand; but most of the Industry is a barometer of the economy.
To quote the Indian Prime Minister, the need of the hour is “Minimum Government and maximum governance.”
Rebates, relaxation of certain fees and relief schemes are all important ways for the government to help hotels, specially the unorganized sector to stay afloat. While domestic tourism has been supported under the umbrella campaign of “Dekho Apna Desh” (see your own country), there is a lot more to do.
To give you an example, to assist hospitality businesses in Singapore, the government helped the sector by taking care of a portion of the professional’s salary while the remainder was paid by the employer. Such schemes go a long way in not only helping in an obvious way but also giving the industry the respect and recognition it deserves.
L. Aruna Dhir - Has the Hotel Industry in India and internationally learnt valuable lessons from the harsh impact of the Pandemic? Can you enumerate the key lessons?
Gautam Anand – Like I briefly mentioned earlier, lessons learnt are immense. Chiefly they have been -
- Agility to make and accept change
- Creative thinking for various new revenue streams - delivery of food, salon & laundry at home are some examples
- Emergency SOPs for a lifetime
- Easier online payment mechanisms have come into the mainstream now at hotels
- Staffing efficiency, and reliance on seasonal staff-load through semi-skilled part time worker
Time is not linear, explained our ancient sages. It is a circle.
A lot of wisdom held in our scriptures can smoothen our way forward. For instance, the core concept of Karma is that what goes around comes around. So we must perform the right Karma – mindfully, responsibly as the species sitting on top of the food chain – for it all to come back to us and the generations to follow kindly, gently, benevolently.
The old African Proverb, “The axe forgets, but the tree remembers,” impresses upon us the imperativeness of gathering and implementing all the right lessons from this monumental health crisis.
The generous tenet of Indian philosophy from the Maha Upanishad, ‘Vasudhaiva Kutumbakam’ – the World is one Family – suddenly becomes hugely significant, as we realize that we all are in it together.
The biggest lesson, however, must be that ‘Nothing is forever.’ We must be prepared for many more challenges and disruptions.
My big hope is that this time we will be!
L. Aruna Dhir - Which tier of hotels – Starred, Chains or Independent – will have a faster recovery and why?
Gautam Anand – Perhaps I’m a trifle biased, but in our context public limited companies, with ethical standards and exacting stakeholder scrutiny and reviews are in a far better position to respond, and by God, they have.
As charged as the development of the COVID vaccine has been, hotel chains like ITC responded with a scrutable “We Assure” programme. I am pleased to note that so did some of the other Public players.
Besides World Health Organization guidelines, Food Safety and Standards Authority of India protocols and State and Central government-mandated standard operating procedures, top hotel chains such as The Oberoi Group, Accor and Leela Palaces, Hotels & Resorts have worked on their own safety and sanitization programmes through partnerships with external inspection and certification service providers such as Bureau Veritas to reassure guests.
Hilton had announced the global rollout of its CleanStay programme, created in collaboration with Lysol and Dettol maker Reckitt Benckiser and Mayo Clinic.
COVID washing is no longer good enough. We have had a tardy response, generically, on Green Washing by smaller independent players. A similar approach to the new sanitization stipulations will not do, as the guest has to be assured and made comfortable with the hotel protocols.
I think established chains have an advantage of a) Distribution and b) Trust and brand recognition which is most important after the priority now becoming hygiene and security. Early signs on GDS also point towards this.
However, it’s important to understand that the domestic traveler would continue to stay at all tiers of hotels based on pocket size and preference.
As a true hotelier, I sincerely hope that all sectors of the industry benefit from the return of travel and that tourism boosts the sluggish economy in some small way.
L. Aruna Dhir - What do you mean by COVID washing & Green washing?
Gautam Anand – Well, COVID washing is a loanword from the expression whitewashing, which in turn seeks to falsify the inherent deficiency of an institution by packaging or dressing up the exteriors.
These are rituals done mechanically, oftentimes superficially; and not beliefs that must come from a deep-rooted comprehension and practice that starts at the core.
Hotels that do Green washing, similarly, create an impression of being socially responsible and climate friendly, but in reality they are not.
Now, more than ever, is the time to bring about well thought out changes at the heart of the operations, as also in all guest contact spaces, and implement them consistently, diligently!
L. Aruna Dhir - Is Home Stays the next big thing on the hospitality landscape? What locations do you feel are going to be hotbeds for the Home stay experience?
Gautam Anand – Well! They certainly are much more than only disruptors as they were once tipped to be.
The service designs at some home stays today are more luxurious and elaborate than some hotels. India has a rich geography and I feel Home Stays are generally better in the hills, beaches, river side and may be forest locations. I doubt if they have the same popularity in the business locations owing to the overall convenience hotels offer.
The Home Stay Experience is a leisure activity, locally and globally. Visionary owners enact an experience, especially if there is heritage appended to their destination, intrinsic quality, atmosphere, plus an interesting cast of characters.
L. Aruna Dhir - Are Home stays big, even, internationally? Can you cite some examples and case studies?
Gautam Anand – The entire curious case of Air BnB is centered on the home stay experience. From luxury houses to condos to simple rooms in a modest house, Air BnBs opened up possibilities for the industry worldwide.
Travelers with all budgets use them and if you read up on Air BnB’s growth and challenges, you will understand both sides of the coin well.
Onefinestay, with its inventory of beautiful home stays in destinations such as London, Los Angeles, Turks and Caicos, St. Barts, Cabo San Lucas, Ibiza, is perhaps the King of residential stays globally, but my impression is that it is leisure seekers who are its customer base.
L. Aruna Dhir - According to you what are the key parameters that define quality in the product, the brand profile, staff and overall experience for the guests?
Gautam Anand – I will try and answer this in parts for you:-
Quality in the Product should be inherent in Design, Offerings, Upkeep, Hygiene and Maintenance.
Brand Profile ethos will be depicted in the Core Values and how they are felt by guests. How well the values align with the target audience determines perceived quality.
Staff – the right impetus on Training and Motivation Levels is what ensures that the staff is well-tuned in at all times. Ultimately staff members are the ones who determine the character of a brand.
Overall Guest Experience – The endeavour should always be to stay superlative within one’s Brand definition and to continually raise the bar. Variety in Offering, value for money and a combination of all things mentioned in the first three points determine quality for guests.
L. Aruna Dhir - A lot of weightage is given to experiential stays and immersive hospitality today. How do you define it and what is your take on the subject?
Gautam Anand – Indigenous experiences and responsible tourism have to be at the heart of hospitality. What’s happening the world over with climate change is testimony to that.
So the closer the experiences are to the locale, the longer the business can be sustained.
I cannot stress enough on the importance for hotels to build a harmonious cohesiveness with nature and the environment. That is truly the way forward.
ITC Hotels have been the first of their kind and leaders in this segment, with Responsible Luxury being the main stay of all that they do.
With emphasis on carbon reduction, adherence to the global and national green building standards at the design stage itself in order to ensure that energy, water and solid waste efficiencies are maximized, optimizing of the use of natural light, reaping of wind and solar energy, water conservation through rainwater harvesting and treatment and recycling of grey water, and a goal to attain zero waste-generation status by reducing, reusing, recycling the solid waste, the Responsible Luxury mandate at ITC Hotels aims to preserve the ecosystem in which the properties exist.
Responsible Luxury-led ITC Hotels also lay equal emphasis on sustainable sourcing – from building materials to edible produce, a sizeable portion of which is locally sourced.
Responsible Luxury has set new benchmarks in responsible hoteliering, not only ensuring that all of ITC’s super-premium luxury hotels are LEED® Platinum rated - making it the greenest luxury hotel chain in the world; but also setting an example that luxury hotels can adopt sustainable practices effectively and can be eco-conscious in the truest sense of the word.
For a fine example of immersive experience, I quite like how the independent Nordic hotels have upped the quotient and are promoting Glamping as a concept in the wilderness.
L. Aruna Dhir - What does the immediate future of the Travel and Hospitality Industry look like?
Gautam Anand – Bright and booming; talking from the Indian perspective! Travel and restaurants are back in a big way after the pandemic.
Yet one must cautiously keep a keen eye on inflation, power crisis and global climate change as all will impact the business in ways we never thought were possible.
L. Aruna Dhir - You are a Fellow at the International Institute of Hotel Management. What contribution do you and your colleagues make or would like to make to the Industry?
Gautam Anand – My job is to help young people perform better, through mentoring and visitations plus tasting. India is the emperor of taste and I would like to unravel its magnificence, layer by layer, to the world.
L. Aruna Dhir - What is your advice to the aspiring young hoteliers and travel professionals?
Gautam Anand – Work hard, hang in there, the worst is over and the best is yet to come.
L. Aruna Dhir - International Hospitality Council, London has just conferred upon you the Lifetime Achievement Award. What do you think have been your outstanding contributions to the hospitality industry?
Gautam Anand – I am grateful to Dr. Suborno Bose, the Chairman and Founder of IIHM and to the International Hospitality Council for being so generous.
They have helped me to be a mentor to young people at the graduate level, walk through with them to key food and beverage destinations, uncover the wonders of India’s culinary trysts with her past, present and future and be a catalyst in fast forwarding their exposure.
I am also blessed that ITC hotels allows me to continue to contribute to their endeavours.
I think my exertion was and is to incubate Made in India brands and create a conducive environment such that they grow globally and locally.
Fabelle chocolates, Sunbean Coffee, The India Room, Grand Market Pavilion, Royal Vega, among others, are some good examples.
L. Aruna Dhir – What are your final thoughts on what is shaping the future of the Hospitality Industry?
Gautam Anand - The coronavirus pandemic will remain in our collective memory for generations to come due to its devastating impact at different levels on the global economy.
Explicit actions are underway by Governments, Financial Institutions and much more….
However, there is another important element that all companies, in particular those linked to the service sector, will need to manage as business and commerce deal with the post-COVID world - the social aspect. We must all now adapt to new rules, standards and values which have and will continue to influence our social behaviour, and hence our behaviour as consumers, especially as consumers of travel and tourism services.
The social impact is clear to us all and has forced changes in the way we live. Daily routines such as working practices, shopping habits and even interpersonal relationships have been altered, influencing and changing our behaviour.
The hospitality industry will need to bear these new trends in mind if it is to experience a renaissance and continue to thrive. Projects under development will also need to reconsider their space planning and business models and adjust to the new needs and demands of consumers.
