Check In, Check Out

EVERY HOTEL HAS a story—or many stories for that matter. Hotels fascinate guests and visitors as much as they entice hoteliers. But, not all tales are romantic or have happy endings. Behind the glamour and glitz of the front-office and charming restaurants lie dusty chronicles of struggles and ups and downs.

There is also a larger narrative written on the facades of hotels. The state of the hospitality industry reflects the economic landscape. But its fortunes are also linked to geo-political factors—such as war, insurgency, social unrest and natural calamity.

Chitra Narayanan’s book is a pioneering effort to demystify the Indian hotel industry. As she writes in the preface, ‘I have attempted to write a business book, but there is also the emotional, experiential and non-business side.’ So she has expertly woven in anecdotes, interviews, stories of doyens who have shaped the industry.

It is lifting the veil, as it were, from the cross-currents working beneath the lobby and the changes sweeping the back-offices that makes the book engaging. Even the casual tourist or business traveller understands the days of stand-alone properties are all but over. They have seen how the ‘big three’ (or ‘Badshahs’) of the Indian hotel industry—namely The Taj, Oberois and ITC Hotels no longer command ‘the premium and undying loyalty’ they once used to. These Groups had to reinvent their marketing strategy and create sub-brands for different customer segments. Many smaller hotels began to hook up with international referral organisations and carry their endorsement.

However, what the lay traveller may not easily figure out is the frequent decoupling of ownership and operations. ‘At a time when customer loyalty is at its lowest, the branding strategy of a hotel has immense significance,’ explains Narayanan. ‘There are several layers of complexity to the hotel business and different kinds of partnerships,’ she says, elaborating on the ‘five-and-a-half hotel models—OLMFD (Owned, Leased, Managed, Franchised or Distributed)’ and the hybrid ‘Manchises’—which are managed franchises.

These details might appear trivial for guests and would be of greater interest to individual hotel owners or those exploring entry into the trade. But, the type of ownership or franchise might influence the selection of a hotel by discerning customers. For instance, those looking for a more standardised experience may prefer a leased or managed branded property to a pure-play franchise. Still, others might go for boutique properties with a personal touch compared to the monotonous look and feel of large chains.

Narayanan points out that the economic liberalisation of the ’90s was, perhaps, when the hotel industry in India came of age. But, the real take-off happened only in the 21st century. Apart from becoming an important global business destination, India began to be noticed on the international tourist map—despite the odds and bad press—thanks to a few ‘Incredible’ marketing campaigns. Another important factor contributing to the growth of the hotel industry is the emergence of the affluent Indian domestic traveller.

Two decades down there are lakhs of rooms of global standards at various price-points. While that is the front the customers see, the interesting action is happening behind the scenes. Here, Narayanan brings to the table her years of experience in covering the hospitality sector—which gave her unparalleled access to the insiders and an ‘outside-in’ view of what has worked, what didn’t and what is likely to work in future. These are valuable insights for people in the trade—entrepreneurs and professionals—or, for that matter, any student of business. At the same time, it would be fascinating for those inveterate travellers who spend a large part of their working life in hotel rooms.

Those from a business background would enjoy reading about the cast of characters, be it the Global Goliaths, Professionals Turned Entrepreneurs, The HNW Hotel Owners, the Unhoteliers or the Canny Consultants—as Narayanan has christened them. But, she reserves the best for the ‘Digital Disruptors’—who, in many ways, are the stars of the book.

The third chapter of the book devoted to history and nostalgia is the most interesting. It contains several archival gems such as the story of the Imperial in Delhi—where legend has it Jawaharlal Nehru, Mahatma Gandhi, Muhammad Ali Jinnah and Lord Mountbatten met to discuss ‘the partition of India and creation of Pakistan’. Apparently, ‘Lady Willingdon personally supervised the interiors, deciding things like carpets, cutlery, chandeliers and even the lion insignia of the hotel. The hotel was inaugurated in 1936 by Lady Willingdon in the presence of 15,000 guests at a grand ball.’

Probably, the first-ever hotel in India, maybe in Asia as well, was the Spence’s in Kolkata which was opened in 1830 by John Spence. The Spence’s Hotel received many famous guests—among them was Jules Verne, the author of 20,000 Leagues under the Sea. Verne wrote about the hotel in his book The Steam House (1880). Then there is the chequered life of The Great Eastern, Kolkata, described by Mark Twain as the ‘Jewel of the East’. After changing several hands over the years, it has been given a new life by Jyotsna Suri of The LaLit Group.

The book comes into its element in the chapter ‘The Big Disruptor’. The chapter opens with a Seth Godin quote, ‘Play the new game, not the older game, but faster.’ It could be Narayanan’s subliminal response to the Indian hoteliers’ disdain towards the disruptors. Globally, she thinks, the big chains understood the threat faster and began doing different things. But in India, the industry took timeshares, home-stays, service apartments less seriously. Indian hotel owners and managers refused to acknowledge, ‘Airbnb had the same target customers.’ Or that the young tech-enabled players like OYO or Treebo could impact their business. She feels that is changing now as, ‘there is no choice really; it’s adapt or perish’.

Equally interesting is the chapter on OTAs—The Online Travel Agencies, such as Make My Trip, Cleartrip, et cetera. Narayanan calls them ‘Frenemies’—tongue firmly in cheek. ‘I heard tirades about them,’ she writes about the love-hate relationship hotels have with OTAs and also the existential challenges being faced by the OTAs themselves. While 500 million Indians have some Internet access, only a minuscule number of these—less than 50 million—transact on OTAs. This leaves headroom for growth. But, new technology like Blockchain pose threat of further disruption that could put OTAs out of business.

The book focuses largely on ownership and business models. Towards the end, Narayanan does touch upon new growth strategies through product differentiation—from luxury experiences, wellness and spas to night clubs and social zones. But, she reserves the most audacious question for the end—What will travel and hospitality in 2030 be like?

Surely, there are no easy answers. She ends the book with Frits van Paaschen (former head of Starwood Hotel)’s advice to hoteliers—keep a strong watch on trend lines. Automation, growing inequity, rising nationalism, protectionism and climate change all have a bearing on the hotel business. A sustainable hotel, for instance, will do far better in the future.

From Oberoi to Oyo is neither Arthur Hailey’s Hotel nor a primer for the hospitality industry. The author packs in a lot of valuable research into the book. As a consummate journalist telling stories of real people and their businesses in a disarming style—she has struck a wonderful balance between making it an enthralling yet educative read.

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