ISSUE OF DECEMBER 2003  
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Boom Time For Mumbai Hotels

The hotel scene in India's commercial capital is heating up considering the number of new properties and their offerings, says feBusiness Traveller

'City of Dreams', 'City of Gold', 'City That Never Sleeps' - Mumbai has been described by a number of sobriquets but the quintessential one remains 'the commercial capital of the country'. While a few challengers to its numero uno position, like Bangalore and Hyderabad, have come to the fore recently, Mumbai still reigns and this is attested by the boom in hospitality industry which is sweeping the city.

The hospitality sector in the city has witnessed a metamorphosis in the past decade and is a far cry from the days where Taj and Oberoi in South Mumbai were the only 'five-star' addresses for the business traveller arriving in the city. A staggering 1,200 rooms in the five-star category have sprung up in the last couple of years and that too just in the northern suburbs.

Five top hotels, Hyatt Regency, Intercontinental The Grand, Le Royal Meridien, ITC Grand Maratha Sheraton and The Leela are cluttered around the Chattrapati Shivaji International Airport at Sahar. J W Marriott, Taj Lands End, Tulip Star, Renaissance Mumbai Hotel and Convention Centre are the other major players in north Mumbai.

The emergence of the northern suburbs as the new hub of five-star properties can be ascribed to the change in the demographics of the city. Bandra, a northwestern suburb, with the development of Bandra-Kurla Complex with a mega convention centre underway, is the new business district and Andheri, another northwestern suburb has a concentration of small-scale industries and IT industry. Besides this a number of offices have relocated to the northern suburbs from South Mumbai thus giving them a perfect blend of business and residential areas.

After the blows of 9/11, the travel advisories and the SARS effect, hospitality industry in the city is bullish with the segment witnessing heavy investments in the past few years to the extent of supply outstripping demand for the moment. The situation has resulted in high competition and the hotels are going all out to lure the business travelers.

Airport pick-ups, express check-ins and checkouts, wireless internet connectivity, interactive televisions, smart meeting and conference facilities - hotels are packaging all this and much more in addition to attractive tariffs and special discounts for corporate clients. Most properties ensure that they have something unique to offer in order to stand out from the rest. The business traveller arriving in the city today is spoiled for choice.

Among the cluster of big brands around the international airport, Le Royal Meridien, which commenced operations three years ago is a good bet. One of the few boutique properties in the city, it combines an exceptionally distinctive style and quality of décor, facilities and service. Besides catering for all modern business services, the highlight of the 178 room five-star property is the Le Royal Club.

It is a dedicated floor, exclusively designed for the requirements of business and corporate travellers. The property has two such Royal Club floors with exclusive Royal Club lounge. Other in-room facilities on these floors include direct dial facility with two dedicated phone lines and fax machines, voice mail, electronic safe, mini-bar, 25 inch television, internet, VCD/DVD player, CD player with extensive library of titles, tea maker.

Among the other offerings of Le Royal Club are butler service, complimentary limousine pick up and drop from the airport, complimentary breakfast, cocktail hour with complimentary canapés and snacks. Exclusive check-in and check-out, exclusive meeting room available for four hours on complimentary basis subject to availability for up to 10 guests and complimentary first pressing of garments.

According to Julian R Groom, general manager, Le Royal Meridien and regional coordinator, West Asia, for the group, business and corporate travellers prefer rooms on this floor. "While the cost of using the executive floors is usually higher (on an average 20 per cent) than normal rooms, for those out on serious business, it's definitely worth the spend," informed Groom.

The frequency of the usage of Royal Club is higher than their deluxe category of rooms, according to Groom, though the facilities attached to Le Royal Clubrooms come at a difference of paying USD 25 over the Deluxe category. Apart from the facilities, the hotel has good options as far as food and beverage is concerned. Flames is the pick of the restaurants. The open-air ambience coupled with live entertainment often comprising acts from abroad and delectable Mediterranean cuisine is perfect for unwinding after a long hard day.

The Orchid-An Ecotel, Asia's first ecotel hotel is yet another property finding favour with business travellers. Besides its strategic location, two minutes from the domestic airport, it has carved a niche with discerning travellers due to its excellent service, facilities and wide range of accommodation. It was one of the first hotels in Mumbai to introduce interactive televisions in rooms. Guests of this 245-room five-star deluxe property can avail of the hotel's services at the click of a remote control.

Apart from this the hotel offers instant online reservations with great discounts and also has attractive deals for hosting conferences, events and intimate family occasions in the nine elegant function/meeting rooms. Besides a well-appointed business centre the additional facilities include a rooftop swimming pool, an extensive top of the line fitness club and spa and four innovative restaurants. Vindhyas, the peninsular cuisine specialty restaurant, which offers delicacies of nine Indian states, is the pick of the lot.

The pampering of the business traveller is not just a knee jerk response to rising competition in the industry but a well thought out strategy. The last decade has seen a major shift in the profile of hotel users in India from leisure to business travellers. In most leading hotel chains in the country over 85 per cent of usage is from business travelers and many hotel chains are totally dependent on this segment. A host of new properties (five- to three-star category) in the city have branded themselves business hotels and even established names are pushing themselves as corporate venues.

While business centres in hotels today offer facilities on par with any upscale corporate office, conference halls are also equipped with cutting-edge technology. After rooms, banqueting is an important revenue churner for hotels along with food and beverage. The sprawling J W Marriott, with 322 rooms and 36 suites and a dedicated executive floor is popular with business travellers and corporates as it provides an opportunity of mixing business and pleasure, all under one roof.

It is one of the few properties in the city designed on the lines of a resort. The property, located on the beachfront at Juhu, has a total of 15,689 square feet for meeting and conference/banqueting facilities with state-of-the-art equipment and a fully equipped business centre. The hotel has a plethora of options for after hours ranging from Enigma (discotheque), spa and health club, live entertainment lounge, three outdoor pools. Mezzo Mezzo, the Italian restaurant; Saffron, Indian restaurant; Spices, Thai restaurant; an European bakery and deli and 24-hour coffee shop ensure that you don't need to step out of the property for a good meal.

Apart from the standard facilities, one of the key new areas emerging in the hotel industry in making business easier and faster for the guests is the revolutionary broadband solution called Wireless Fidelity (WiFi). Most five-star and five-star deluxe properties in the city are offering this facility. WiFi allows guests to access high-speed internet from their laptop in any part of the hotel. Be it at the coffee shop, the poolside or the room, this new system allows the guest the convenience of moving from room to room without losing the internet connection.

As per a survey conducted by an international hospitality website, www.hotelresources.com, over 80 per cent of the respondents said that wireless internet connectivity was a factor which dominated their choice of a hotel. Though a common feature in hotels abroad, Indian hospitality woke up to the concept relatively late.

Anil Madhok, managing director of Sarovar Park Plaza Hotels and Resorts Pvt Ltd (SSHRPL), has finalised plans to have Wifi in the group's key properties in the country. "We have tied up with a Malaysian company to install this facility in our properties," he informed. Hotel Marine Plaza in South Mumbai, the forerunner of boutique hotels in the city, is the first property of the group to acquire this latest technology. While Taj and Oberoi are still first preference for most business travellers, this small boutique property has been attracting a steady and loyal clientele.

Marine Plaza, with 40 suites and 28 spacious rooms, is aesthetically designed with a luxurious décor. The rooms are equipped with electronic safes, mini-bars, direct dial telephones and additional outlets for fax/modem. Besides the well-equipped business centre has all modern amenities like fax, photocopier, multimedia workstation with internet and secretarial services and two conference rooms - Plaza Room and The Bayview. It is adequate to take care of any business requirements. But the hotel claims it is personalised service which makes this small property a value for money option. Allamanda Terrace, an open-air rooftop venue, accommodating 150-200 people, is a wonderful option to host parties.

Another facility yet to pick up with most Indian hotel chains is real time downloading of international newspapers in its original format. Only two hotel companies Taj Hotels Resorts and Palaces and The Park hotels offer this facility but at a cost. Most chains are likely to introduce this feature sooner and later.

Most five-star hotels in the city are laying out the red carpet with an array of services and prices to attract customers. As a result of intense competition room rates have tumbled to as low as US$ 100-120 for walk-ins in five-star properties. Rates for corporates were even lower. Apart from this loyalty programmes have become an important tool for hotels to woo guest, a significant marketing strategy to enhance business and compete with other hotels. Today, virtually every major hotel group has its own reward programme for frequent guests. The value-addition coupled with extra attention is meant to reinforce and increase brand loyalty among guests and attract new valuable customers. Loyalty rewards are an important factor that influences a business executive's choice of hotel. Members of such schemes receive priority booking, free upgrades subject to availability and early check-in or late checkouts - all of which enhance the business traveller's stay and, in turn, can save money. In addition, points can be collected and redeemed for free travel packages, specially selected branded merchandise, room upgrades, free weekend stays, fine dining and even free flights. Most hotels have roped in travel industry partners to offer value-add to their loyal guests. Airlines tie up with hotel chains for frequent flyer schemes. So do car rentals and banks.

Welcom group's The WelcomAward programme, Taj's Innercircle, Le Meridien's Moments, Six Continents' Priority Club, Marriott's Marriott Rewards - all come free. However, Oberoi's Top comes for a membership fee of Rs 575 for residents of India and USD 30 for others. All these programmes are valid for participating hotels worldwide, except for WelcomAward, which is only for ITC-Welcomgroup properties within the country and not for Sheraton (their exclusive partner) properties abroad. However, The Sheraton Plus membership is not a bad investment if you're frequently travelling abroad because it offers tempting savings. It entitles one to a reduction on room tariff ranging between 20-50 per cent at Sheraton hotels and resorts (that takes care of your vacation also) across the globe, 20-50 per cent off on food bills depending on how many people you are dining with (50 per cent off when two people dine), plus priority reservation.

Le Meridien Moments enables you to Moment points for whatever you spend on your room, bar and dinning bills and also entitle you to special benefits like redeeming your points for room upgrades, frequent flier miles and exclusive member offers throughout the year. There is no blackout dates so you can enjoy your rewards whenever you like. Preferred at The Park offers 50 per cent discount on room tariff, complimentary upgrade, gift voucher on food and wine while Marriott Rewards entitles members room upgrade, guaranteed room type, priority late checkout and weekend discount.

Loyalty programmes coupled with attractive rates offered by five star properties have to an extent dented the market for three- and four-star properties. However, with cost cutting becoming a major preoccupation with companies, there is a growing preference among walk-in business travellers for three- and four-star properties, which offer rates equal to or less than those offered by five-star properties to corporate clients. Properties in this segment have also enhanced their facilities and services to woo the business traveller community.

Best Western-The Emerald (Hotel & Executive Apartments) in Juhu, a northwestern suburb, has a special pre check-in facility. The hotel takes down a list of requirements of the guest and has them ready in their room on arrival. Since the property is an apartment hotel they keep an up to date guest history and offer a high degree of personalised service. Though located in an area with a lot of five-star properties, Best Western-The Emerald has managed to garner a lot of business clientele. The hotel offers a complete fat-free menu on request and this has been quite popular with the growing trend of health consciousness among corporates. A separate vegetarian kitchen has also given them a competitive edge. Like most five-star hotels the hotel also has its privilege card which imparts their regular clients a 20 per cent discount on F&B.

While three- and four star hotels take to technology and offer exemplary personalised service as a value add-on, they are also meeting another important business visitor requirement. Flexi time programmes such as eight-hour packages are fast catching on among the city's mid-sized hotels. West End in South Mumbai offers half-day rate for daytime guests who use the hotel between 10 am and 8 pm. In addition, managements have become lax on the 12 pm check-in, check out system. Some hotels now offer a six-hour grace period either side of this deadline free of cost, earning brownie points with business travellers.

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