SYMBIOSIS INSTITUTE OF MEDIA AND COMMUNICATION- BENGALURU

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Avneet Kaur Bindra Roll no. - 209 Harsha Thakur Roll no. 217 Juhi Uttamchandani--- 219 Naina Arun---227 Nikita Sharma---229 Swapnil Pandey---267

BLOG CONTENT

1. Home page A RAPIDLY EXPANDING INDUSTRY!

The world of hospitality offers a wide range of exciting careers in businesses related to travel and tourism, hotels and food & beverage, and events and leisure. It is also one of the worlds fastest growing and most dynamic fields of employment with positive trends forecasted for the coming years. According to the World Travel & Tourism Council (WTTC), the industry is promising more growth and a powerful economic influence in the next decade PREDICTIONS FOR 2012 Travel & Tourism's contribution to GDP is forecast to grow steadily by approximately 3.3% in 2012. In spite of the current global economic slow-down, Travel and Tourism results indicate that people are still travelling more, with the international air travel and hotel occupancy rates up. The latest research indicates: Global direct Travel & Tourism GDP is now expected to grow by 3.2% in 2011 and 3.3% in 2012 compared to WTTC s initial growth estimates (published in March 2011) of 4.5% and 5.1% respectively Global Travel & Tourism is expected to grow by an average 4% per year between 2011 and 2021. This is down marginally from the 4.3% for the same period that was forecast earlier in the year, with the decline due almost exclusively to the downward revisions in 2011 and 2012 Travel & Tourism is predicted to account for 69 million more jobs by 2021 almost 80% of which will be in Asia, Latin America, the Middle East and Africa. David Scowsill, WTTC President & CEO, said: Travel & Tourism is one of the world s great industries, providing 9% of global GDP and 260 million jobs; it drives economic growth, business relationships and social mobility. The industry is still growing strongly but growth is lower than we had previously expected for both 2011 and 2012 due to the prevailing economic conditions and the disruption to travel patterns caused by natural disasters and social upheaval during 2011. That said, growth of 3.2% during 2011 would still be a laudable achievement and would rank the Travel & Tourism industry ahead of world GDP growth, expected to be 2.8%, and most developed countries. The two big themes of 2012 are likely to be the rebound in tourism in the Middle East following the social upheaval of 2011 and the recovery of Japan, the world s third largest Travel & Tourism economy, following the earthquake and tsunami. Our latest report on Japan indicates that the recovery is occurring in line with our most optimistic scenario which states that the number of international tourist arrivals will recover by early 2012, along with a faster recovery in Japan s own Travel & Tourism demand. It is fitting that our 12th

Global Summit will bring the world s Travel & Tourism leaders to Tokyo and Sendai in April next year. In the long term the prospects for our industry are good and we maintain our ten year growth rate above 4%. Travel & Tourism is predicted to account for 69 million more jobs by 2021, stimulating employment arc.

2. New trends and insights Ten Trends Influencing Hospitality in India: How the Game is Changing | By Achin Khanna and Manav Thadani

This article addresses the ten "game changers that have influenced the Indian hospitality sector in the past decade and will continue to do so in the years ahead. The year 2000 was an important one for HVS India; we grew from a team of two members to four. The year 2010 is also an important one as we have grown ten-fold in as many years. Our growth story seems to mirror that of the Indian hospitality sector. It is only fair to assert that we had started from a very small base. The next decade will thus be even more pertinent as it helps the hospitality sector define its personality and carve its niche. As the Indian hospitality sector gears up to welcome an era of growth, there are several critical influencers or what we think of as game changers that will play a key role along the way. This article aims to touch upon the ten game changers that have facilitated the metamorphosis of the sector in the past decade and will continue to do so in the years ahead.
1. The Indian Economy

Not only is the elephant dancing today, but it's actually one of the only few circuses around. It has been a fantastic growth story for a country that in 1990 attracted only US$ 150 million of Foreign Direct Investments (FDIs), and then received US$ 4 billion in 2000 to over US$ 90 billion in just the past three years. The millennium year of 2000 was hyped to be doomsday for the computers of the world with Y2K. Well, 2000 came and went by and as we all know the computers did not collapse; instead, Indian technology companies grew considerably and allowed the emergence of the BPO and KPO sectors. This led to a rising middle class and an ever-growing service sector. The opening of the telecom sector a few years earlier also had its role to play. From the most expensive to the least expensive telephone systems in the world the Indian telecom story is certainly one for the books. India's GDP has grown at an impressive 8.5% during the six years spanning 2003/04-2008/09. The recent global financial crisis has only reduced the rate by 2-3 percentage points and even then the economy continues to grow at the annual rate of 6% following the three quarters after the meltdown. Several domestic and global agencies have recently applauded the Indian economy's resilience and have projected a growth rate of 7% in 2010 and 7.5% for 2011. India reduced its central fiscal deficit from 8% of the GDP in the early 1990s to 2.5% in early 2008. This gave the government ample breathing space to increase its

expenditure (the deficit subsequently rose to 7% of the GDP), and boost demand in the country which enabled the economy to sustain itself during the critical months of the crisis. Additionally, the Indian demographics continue to cater to the global audience very effectively. An enormous English speaking workforce that is highly educated (more college graduates than any other nation) and ingrained in a service culture that is touted as among the best in the world, makes the Indian employee a worthwhile investment. So while our friendly red neighbour to the north has its own growth story to boast of, we believe that the Indian economy has a lot more dancing left to do before the elephant finally settles down to some silent grazing. Key Game Changers:

India's exponential FDI growth likely to continue Indian demographics, the right fit for global business audiences Continued growth of projected GDP, at more than 7% in the years ahead Resilient economy, only marginally affected by the global financial crisis Exponential service sector growth, with emergence of BPO, Telecom and other sectors

2. The Maturing of Indian Hotel Markets

About a decade ago, there were really only a handful of major hotel markets in India, namely the four metros and possibly a Bangalore or a Goa, a result of businesses primarily being based in and needing hotel rooms in these cities. Thus, while visitors to these major cities had a choice of several luxury and upscale hotels, affiliated with both domestic and international brands, the availability and quality of hotels declined significantly when venturing to the smaller cities. In the last decade, as the major cities developed rapidly, real estate prices soared, and the cost of setting up and sustaining business operations in these cities became prohibitive. Companies, therefore, started looking at other cities in the country where costs were lower which resulted in the ascent of cities such as Hyderabad, Pune, Jaipur and Ahmedabad. As a result of these dynamics, there are currently about 10 to 12 main hotel markets in the country, all of which offer a variety of branded product offerings across different positionings. The emergence of these secondary and tertiary cities led to an aggressive increase in hotel development activity and provided avenues for expansion of hotel brands, which were previously dependent on new opportunities in just the five main cities. Another trend that has now emerged in the various major markets is the growth of micro-markets, especially in the primary cities. As commutes in larger cities are increasingly measured in amount of travel time rather than distance, people are choosing to stay at hotels that are located closer to their place of work, thereby saving crucial travel time that might otherwise have been wasted in traffic. Thus, while it might have been feasible previously to build only one Holiday Inn or one Marriott in the market, the presence of independent micro-markets now allows the existence of multiple hotels with the same brand affiliation without fears of cannibalization of demand. The Ministry of Tourism's 'Incredible India' campaign has started to strike a chord and will likely play its role in increasing visitations to India. That being said, the general sentiment is that although India has a varied bouquet of destinations to offer, relatively mediocre efforts have been made to market Brand India. The future of the Indian markets and their ability to mature into destinations relies on concerted efforts, both by

the relevant government bodies and the private sector players. Creativity will be of essence and perhaps it is time to start marketing Brand India under several subsets such as cultural tourism, eco-friendly vacationing, medical tourism, religious circuits, adventure sports tourism, wildlife safaris, beach destinations and wellness vacations. Additional influences that attract or deter foreign tourists and thus need to be addressed are the quality of infrastructure-related developments, ease of attaining a tourist visa for India, perhaps offering a visa on arrival option to nationals of certain countries, the country's image as a safe, secure and friendly destination, amongst others. Several Southeast Asian countries serve as prime examples of leisure destinations that managed to witness exponential growth in international visitations, primarily because of a well planned and effectively executed tourism strategy. India, too, will need to set clearly defined goals and work towards increasing foreign tourist arrivals if it aims to grow into a balanced, mature tourist destination. Key Game Changers:

Emergence of secondary and tertiary cities Emergence of micro-markets Continued marketing of Brand India Continued improvement of infrastructure in Indian cities and towns Ease of attaining Indian visas Development of India's image as a safe, secure and friendly destination Development and marketing of niche tourism like medical tourism, religious circuits, adventure tourism etc.

3. Hotel Brand Explosions in India

In the year 2000, hospitality in India was primarily dominated by the domestic players, namely Taj Group of Hotels, Oberoi Hotels & Resorts, ITC Hotels, and the government owned ITDC (The India Tourism Development Corporation Ltd) Hotels, with only a handful of international brands having a token presence in the form of marketing alliances in India. Also, while some of today's home-grown hotel chains like Leela, Bharat Hotels, Sarovar and Asian Hotels were around at that time, they were for the most part single-asset owners. There was a perception that India was a tough place for foreign companies to do business in and that a strong local presence with excellent contacts was required to be able to penetrate this market. Additionally, several businesses and consequently most international brands were more focused on fastgrowing markets in the Middle East and China, which offered more opportunities for growth at that time. The economic downturn, at the beginning of the decade, led to a paradigm shift among these businesses as they could no longer depend solely on the more mature economies and they started gauging the vast opportunities that a country like India had to offer. The fact that India was less impacted by the global downturns - one at the beginning of the decade and the other at the end of it - as compared to the rest of the world has emphatically proven the inherent strength of the Indian economy and its consumer base of over a billion people. As Indians travelled more frequently around the world, they experienced international hotel brands first-hand, as a result of which these brands enjoyed greater recognition and acceptance in India. Additionally, as international visitation to India increased, the foreign brands were better placed to attract these visitors due to their strong reservations networks around the world. With the continued growth in India's GDP, improvement in the per capita income, and increased aspirational spending, the

Indian hospitality sector is expected to grow faster than most countries around the world. Most major hotel brands such as Starwood, Hilton, Marriott, Hyatt and Accor already have a growing presence in India and they have an even stronger pipeline. Additionally, the emergence of a branded budget and economy segment presents tremendous opportunities and will attract many new players to an India going forward. Key Game Changers:

Entry of most major international brands Changing perception of Indian markets as a lucrative opportunity among international brands Growth of the Indian middle class offering a large consumer base of more than 1 billion people Educated and well exposed Indian audiences, likely to accept global brands wholeheartedly Expected emergence of branded budget and economy hotels

4. India The MICE Business Opportunity

In 2000, we had only 2.6 million international visitations. India played host to 5.13 million arrivals in 2009, slightly down from 5.37 in 2008, owing primarily to the contraction in the global economy. When compared to some of the other Asian countries this is still a sad story, but one with immense potential and a tremendous growth opportunity. While the state and central governments focus on 'Incredible India' to bring in tourists, we believe an equal interest needs to be adopted by them to attract and grow the MICE (Meetings, Incentive, Conventions and Exhibitions) segment as it has the potential to change the face of several upcoming Indian cities. The overall international visitations are likely to grow many fold due to MICE as it allows for the sale of several hundreds or even several thousands of room nights as opposed to the transient travellers who utilize only a few room nights at a time. Additionally, most delegates often travel before and after the event, thus adding to the overall growth of the hospitality industry. The MICE business is a key contributor to the overall hospitality industry in several nations across the globe and has the potential to add to the overall development of India as a destination. Till the late nineties, North America and Europe had dominated the conventions and conference markets. The US still holds the top spot for the highest number of meetings as a single country destination. However, several Asian countries have successfully captured a growing portion of MICE business in recent years. With the emergence of India as a key economic hotspot along with China, convention tourism has enormous possibilities in the country. India's growing strength in the Information Technology arena has prompted a few prominent international bodies to host trade shows and conventions in the country and similar prominence in bio-technology, pharmaceutical and manufacturing sectors is also expected to bring convention revenues to the country in the coming years. India, however, remains woefully inadequate in its abilities to attract large international conventions. One of the biggest reasons continues to be the lack of world class convention centres in India. The Hyderabad International Convention Centre (HICC) is India's only branded (Novotel), large scale convention facility something that we at HVS are very proud of as it's one of our success stories. While a few additional convention centres and large format conference facilities are in the pipeline (Bangalore and Mumbai), clearly the Indian hospitality industry needs to make several strides towards developing its MICE facilities if it has any hopes of becoming a contender for this lucrative business segment in the years ahead. Key Game Changers:

Growth of science and technology related industries like biotechnology and pharmaceuticals that then host large conferences Growth of the manufacturing sector Increased interest in India as a travel-worthy destination Successful and replicable model in HICC Expected emergence of dedicated convention centres in more cities

5. Hospitality Marketing Trends

Ten years ago, the marketing mantra that worked best for hotels was the creation of a brand; make it exclusive, market the experience as surreal and the customer's decision to purchase was expected to automatically follow suit. This worked at that time because there was a narrow playing field with few domestic and international hotel chains in the country. Not surprising then that in 2010, India has seen an increased supply of international and domestic hotel chains that now volley with independent hotels for market share. Moreover, consumer generated media and mobile technology had yet to hit India in 2000 where the foremost influencer for the customer in making a purchase decision was the brand. The brand was conceptualized by its custodians the internal stakeholders to reflect the persona of the product, which made branding a one-way stream of communication mostly. Hence, Brand 2000 was a product of the internal stakeholders accented with high flying Brand Promises which translated into the Consumer Purchase Decision of 2000. The year 2010 is a different story as the consumer is well educated, travelled, experienced and looks beyond the gloss of the brand to the value proposition and the actual delivery of brand promises. Thus, in the Year 2010, the marketing mantras are differentiation, consistency, customer satisfaction, delivery of brand promises and customer retention. Today, Brand 2010 has evolved from a one-way communication stream to a two-way one that is more flexible and accommodates the customer's needs and wants. Hence, Brand 2010 is a product of the External Stakeholder the needs and wants of the Customers accented by experience led, sustainable Brand Promises which now translates into the Purchase Decision of 2010. Today, the state of economic flux wherein each dollar spent is being analyzed, renegotiated and then minimized, the marketing dilemma of marketing spend vs. incremental revenue assumes more importance. How do marketing resources of the Indian Hospitality sector continue to build their brand and market their product successfully? Consistent delivery of a superior and differentiated product experience that offers a greater perceived value will result in the acquisition and retention of customers. The pressure on consistent delivery of brand promises is further maintained by online customer feedback which impacts the attraction quotient of the product for other prospective customers. Customers in the coming decade will want to 'Find Even Before they Seek' and the advent of social networking has given a new power to customers like none other before. In addition, to make things just a bit harder the new technology paradigm will make customer decisions even more fickle. In this decade, the customer will make purchase decisions based on the entire experience offered, its perceived value and the consumer feedback it has received as against just the brand, brand promises and product offerings alone. The customer of the coming decade will evolve to be the real custodians of the Brand. Key Game Changers:

Broadening of the playing field with entry of many domestic and international hotel chains Well educated, travelled and experienced customer base Evolution of the brand from a one-way communication stream to a two-way one that accommodates customer needs and experiences Consistent delivery of brand promises and customer experiences Marketing equations changing in favour of the customer with online channels like Web 2.0 and social networking

6. Hotel Development Costs

In the past ten years most commodity prices have gone up. Development costs have always been a challenge for anyone looking to build a hotel in India. The land cost has increasingly become a significant portion of the development cost for any project, accounting for 30-50% of the total development cost, while the same equates to about 15-20% internationally. The high density of development within Indian cities and the shortage of vacant land parcels suitable for hotels had led to aggressive bidding wars among prospective buyers and forced prices upwards. With the increased pace of construction activity around the world, especially in the Middle East and China, the price of construction material such as steel and concrete increased steeply in recent years. While this was offset by sourcing furniture and fixtures from China by several recent hotel projects, the additional concern regarding the quality of Chinese goods is one that now needs to be addressed. HVS observes that hotels built in India very often exceed the brand specifications that might exist for these brands internationally and that developers often tend to spend more money on their hotels than required. A typical mid-market business hotel in the US or Europe, thus, does not cost nearly as much to construct as it does in India. The lengthy cumbersome process of obtaining licenses and permits and construction delays serves to increase costs even more. Given the time and expense involved in working through all these issues and finally opening a hotel, developers who managed to do so were not interested in selling their hotels or asked for prices that were far in excess of replacement cost. As we look into the next ten years, we believe that as long as asking prices remain significantly higher than the replacement cost for the product, developers and investors will choose to build rather than buy.

Positioning Luxury Upper Upscale Upscale Mid Market Budget Economy

Typical Development Cost per Key (INR) 12,500,000 and above 8,500,000 to 12,500,000 6,000,000 to 8,500,000 3,500,000 to 5,500,000 2,500,000 to 3,500,000 2,500,000 and below

Key Game Changers:

Likely rationalization of land costs, due to the recent economic conditions Increased import of material from global sources, as long as quality goods are available Expected rationalization of costs, with government intervention in relaxing the license process Expected rationalization of per key development costs, with entry of brands across all positioning

7. The Debt, Equity and Valuation Paradigms

VALUATIONS - Ten years ago, when HVS had just about entered this market, many people had passed silent smirks at the idea of a valuations-related consulting firm's presence in India. Why would anyone need valuations done? No transactions in the industry had ever taken place! Last year, HVS did more valuationrelated assignments than market studies and/or feasibilities. There have been only a few big-ticket transactions in the hospitality world in recent years. The future will, however, see a lot more activity as private equity players and hospitality funds start investing in this space. DEBT - Development of hotels in India was historically undertaken by high net worth individuals who would approach banks for debt to finance a portion of their construction cost and then raise equity through personal resources or from family and friends to cover the rest of the costs. Unlike the US or the UK, where a developer historically could obtain 75-85% of his/her construction costs in the form of debt from banks on a long-term basis (30 years), Indian banks have typically lent only upto 60% of the construction cost and that too for a much shorter duration. Additionally, since the hospitality sector was previously considered a part of Commercial Real Estate (CRE) and was subject to the same risk exposure, the cost of such debt was high. In September 2009, new guidelines on CRE released by the Reserve Bank of India (RBI), asserted that the hospitality sector would no longer be treated as a part of CRE and risk exposure would be based on the profile of the borrower and the nature of the project. These new guidelines will be especially significant for the more established hospitality players who will now benefit from a lower risk weightage and consequently, lower interest rates. While the RBI's decision is a step in the right direction, what is really required is the conferring of infrastructure status to the hospitality, which will make debt financing much cheaper and give further impetus to new hotel projects around the country. EQUITY Given that banks would typically only lend up to 60% of the construction cost, developers were forced to then raise equity by tapping into personal resources to cover the rest of the costs. Such a process was often an inefficient and time-consuming one, with no guarantees that the required amount could be raised eventually. The entry of Private Equity (PE) funds into India has made the task of raising equity for projects much easier, as the major players have access to significant levels of capital and have greater appetite for risk than banks. Availability of PE funds has also enabled existing hospitality players to attract investments at the company level as opposed to a project level, thus giving them the flexibility to use these funds as they deem fit. Over the next ten years, we believe that PE players will become increasingly involved within the hospitality industry and look at opportunities at all market positions, especially in the budget and mid market level. While the Indian hotel industry has not seen much transaction activity in the last decade,

the next ten years will bear witness to a larger number of transactions, especially in the form of mergers and acquisitions, as companies take advantage of the lower costs of debt and easier access to equity capital. Key Game Changers:

Expected rise in valuations and sale / purchase of hospitality assets Strong likelihood of infrastructure status for hospitality Increased possibility of securing debt at reasonable rates and for extended periods Growth of private equity investments and hospitality funds Expected rationalization of asking price of hotel assets

8. Food & Beverage (F&B) Concepts

Ten years ago, when one talked about 'eating out' at a standalone restaurant, for the most part it meant going to Kwality, Gaylords or Nirulas. Today, F&B offerings in India have evolved and are fast making a mark for themselves in the global F&B arena, too. Until recently, five-star hotel restaurants were considered the epitome of fine dining experiences in the country; however, the rapid growth in standalone restaurants is seriously challenging the former for top honours. With a well travelled upwardly mobile consumer, new and trendy food concepts are a rage in the Indian F&B business. Of late standalone restaurants like Indigo, Tote, Olives, Tetsuma, Trishna, Zest, Smoke House Grill, to name a few have raised the bar for the F&B offerings across major metros; each outlet has a unique selling proposition (USP) that has become its claim to fame. However, the concept of standalone restaurants is still in a nascent stage and will benefit immensely if provided the right impetus with regards to ease of acquiring licenses, clearances etc. Standalone restaurants, historically, have been funded by the owning families or by a group of individuals; however, with the entry of restaurant-focused funds, we can expect heightened activity in the standalone restaurant space. All in all, we can rest assure that the Indian F&B industry is in for some exciting and great times ahead. Another aspect of the Indian F&B industry that has witnessed a radical change over the years is the design element. With more emphasis being focused on the aesthetics of the place, the touch and feel aspect is becoming of foremost importance. Restaurant design over the years has evolved from just a touch and feel of the cuisine at offer, but is now focusing on creating an impression which will remain with the customer and will act as product differentiator in the times to come. The element of WOW, and creation of an experience are key focus areas for contemporary restaurant designers. Over the recent years a host of international design firms like Super Potatoes, MIAJA, TID etc. have already put their designs to test in the local arena. A few interesting trends in restaurant design include kitchens moving into restaurants, gigantic wine display walls, bar areas as a focal point, private dining areas and the heightened use of colours and lighting. Key Game Changers:

Rapid growth of standalone restaurants Well-travelled customer open to fine dining experiences Entry of restaurant-focused funds Focus on Interior design, a priority for restaurants

9. Manpower - The Human Element

In the year 2000, Human Resource Managers were gearing up to recruit large numbers of manpower for the ambitious expansion plans that hotel companies had envisioned, post the opening up of the Indian economy. Additionally, managers were also beginning to experience the occurrence of attrition, an event that had been relatively low in frequency in the past. With the opening of the Indian economy, several international companies rushed to establish their base in India. They, however, soon realized that their plans would need to be supplemented by effective and expressive liaisons that were somehow not available in bulk in the market. This created a spate of highsalaried job profiles whose primary function was identical to those of the employees within the hospitality industry service. It was, hence, only natural that hotels saw an increased number of resignations from team members that were digressing from their core competencies to join high-paying jobs in call centres, banks and airlines. Several hoteliers even explored their chances with real-estate firms and infrastructure companies in the then burgeoning Dubai, and the Emirates. The year 2010 is a sea change in these phenomena. The hard-hitting economic recession has forced several of these poaching multinational companies to relook at their staffing requirements and downsize their current teams. This has resulted in the availability of employees who are now being absorbed into the resurgent hospitality sector. The year and the decade ahead are also expected to see oversimplification of job roles. With the advent of new types of accommodation products and need for standardization, hotel companies have considered preparing manuals detailing the procedural handling of every conceivable situation in a hotel operation scenario, thus reducing the reliance on age and experience. This has resulted in younger individuals taking on the helm of operations for a unit. Past HVS Surveys show that the average age of a Unit General Manager has dropped from 45-50 years to 30-35 years. The reduction in age profiles is prominently visible across all positions of the hotel hierarchy. The evergreen area of concern availability of sufficient number of staff has also seen a change with the requirement now being changed to availability of sufficient number of trained and qualified staff. Hotel managers have realized the difference in service levels achieved through trained staff and otherwise and have made a transition for the better. This has created a specific requirement that is currently not being catered to by most of the educational institutions across the country. Key Game Changers:

Continued good-quality talent crunch Increasing growth opportunities for the global Indian to relocate to India Continued hiring from and attrition to related service sectors Expected offerings of Employee Stock Options and Competitive Healthcare plans by more hotel chains Innovative solutions to the continued challenge of attracting and retaining trained employees

10. Technology & Hospitality

Ten years ago, the most popular way of planning a trip was to visit a travel agency to get your itinerary made. Besides direct hotel reservations, the Central Reservation Systems (CRS) and Global Distribution Systems (GDS) thus served as the primary channels of sales for hotel room nights. The growth of the internet since then has played a key role in truly globalizing the sales efforts as well as the marketing opportunities for the hotel industry. The advent of third party travel websites such as Hotels.com, Expedia.com and Travelocity.com as well as a few home grown websites like Makemytrip.com and Yatra.com has also been witnessed in recent years. These channels of distributions quickly gained strength and their contribution to the overall pie of reservations has been growing with every passing year. Additionally, independent hospitality review and opinion websites like Tripadvisor are also very popular with the travelling population of today. While these websites offer the tech-savvy traveller the opportunity to see pictures and read actual guest comments about almost every hotel in every major and minor city of India, they also offer the hotels an opportunity to showcase their products and services to a mass audience. The future of online marketing is now one of consolidation. Hotel brands recognize the strength of the internet as a medium of sales and are increasingly working towards making their Brand.com websites user friendly. Several brands have launched 'Best Rate Guarantee' programmes that promise the consumer the best available online rate on their brand.com website as opposed to the third party online vendor. Seamless integration of Brand.com websites with the latest Property Management Systems (PM Systems) enables better yield management and pricing strategies as well. Companies like HVS also jumped onto the bandwagon and our Web Strategies division has grown faster than any of our other verticals in recent months. This relationship between technology and hospitality will only grow stronger in the years ahead. Key Game Changers:

Continued significant contribution of third party travel websites to hotel reservations Increasing role of Brand.com sites in the overall sales and marketing strategy of all hotel brands Increasing reliance on search engine optimization, web advertising and e-marketing

Conclusion India known the world over as the land of hospitality is today in the defining stages of the business of hospitality. While the possibilities for growth are immense, it will take an earnest effort, both from the industry's key stakeholders in the private sector and the relevant government bodies to truly change the Indian hospitality's landscape in the years ahead. Perhaps, the industry is in need of a champion who will work towards the several reforms and ideas discussed in this article with the same zeal and enthusiasm as is characteristic of our industry's service culture. The ten influencers discussed in this article are but a drop in the ocean. Hospitality India has come a long way since 2000; however, it has a steep climb ahead and HVS looks forward to being an integral part of this journey. About Achin Khanna | Achin began his career with Hilton Hotels in Philadelphia, PA in 1999. He moved to Homestead Studio Suites an extended stay chain of hotels in the United States as Assistant General Manager - Operations in 2000. He further moved to Cendant Corporation and worked at their corporate offices as a Franchise Services Manager from 2002 onwards. In 2004, when Cendant Corp. transformed to Wyndham Worldwide, Achin assumed the role of Regional Director for Business Development. While with

Wyndham, Achin successfully supervised the revenue management & quality management operations for a portfolio of 140 franchised budget hotels. He joined HVS India in August 2007 as a Senior Associate and is now an Associate Director in the consulting side of the business. He holds a Bachleros of Science degree in Hospitality Management from Widener University, Chester, PA and a Masters in Business Adminsitration degree from The University of Phoenix, Phoenix, AZ. Achin has performed several different types of market studies, economic feasibility analyses and large scale portfolio valuations varying from limited-service properties to upscale and luxury hotels. His clients include investment banks, private equity firms, real estate developers, hotel companies, state agencies and management companies.

About Manav Thadani | Manav Thadani, Managing Director, HVS-India, joined HVS's New York office as
a Consultant and Valuation Analyst in 1995. Prior to joining HVS, he gained six years of operational experience in various hotels in New York City. He moved to the London office in early 1997 and then opened HVS New Delhi operations. Manav, with partner Stephen Rushmore owns the New Delhi operations of HVS. In 2001, along with Keith Kefgen and Stephen Rushmore, he launched the HVS Executive Search division in India. Under Manav's guidance, HVS-India now also offers services in Marketing Communications, Web Strategies and Asset Management & Strategic Advisory. He is also responsible for successfully holding Hotel Investment Conference - South Asia (HICSA) since its inception in 2005. He has conducted various feasibility and market studies and performed hotel valuations for many major hotel chains and investment banks around the globe. Manav has a BS degree in Hotel and Restaurant Management, School of Education, New York University and MA in Food Service Management, School of Education, New York University.

3. Travel Guide 21 Tips to Help You Pack for a Trip

Home Packing Tips
We have compiled a great deal of packing tips after years of travelling and together with some members suggestions, we thought we should share them with other travelers setting out.
1. Security and Keeping Details Safe

Scan your passport, passport photos and paper tickets (if not the e type) in. Store this (in an email for e.g.) in your web based email account. You can also store the details of your emergency 'lost card' telephone numbers in your web based email account so you know who to contact if your credit card or ATM card is lost or stolen. This way, even if you lose everything, you have immediate access your all important information. You can even email the details page of your passport to the embassy or consulate when applying for a new one. (Tip from a member) Also consider writing your home and destination address (and mobile number if you have one) on a selfadhesive sticky label to stick INSIDE your luggage in a visible place. If your luggage is lost and the baggage label has come off, at least the airline can still figure out whose luggage it is. (Tip from a member)

2. Split up your valuables

Split up your bank cards, cash, travelers cheques and credit cards as much as possible in different pockets, your bags and wallet when packing. In case you do get robbed, at least you won't be strapped for cash (unless you have all your bags AND your wallet stolen of course!). 3. Nalgene/Small Bottles Use nalgene/small bottles to pack toiletries and other small items. There are several sturdy and (very nearly) waterproof ones, with clear/see through ones being preferable (easier for security purposes post August 2006). You can also use small bottles to repack shampoo or lotions so that you don't have to always carry a big bottle with you. This is especially useful if you normally take these items in your carry-on luggage, which as of early 2007 is much more restricted than before. 4. Backpack Tips When you are packing things into a backpack, place the lighter items at the bottom and the heavier ones on top. Your bag will feel lighter this way as the pack rests on your lower back. It is also smart to place the things you use the most on top. Dirty clothes are perfect to pack at the bottom of a backpack. If you are still trying to decide on the right backpack, have a look at choosing the right Backpack on our Travel Unravelled blog. 5. Plastic Bags It is always handy to have a few plastic bags around certain items, especially toiletries. Not only does it counter any leaking, the bags can also come in useful to keep dirty clothes in, as garbage bags or even as a makeshift umbrella. Ziplock or other airtight plastic bags are the best. 6. Pack in Plastic Pack everything in clear plastic bags (preferably zip lock), divided into items e.g. underwear, t-shirts, shorts etc. before packing in your suitcase or backpack. One plastic bag for each type of clothing. This is extremely useful in various ways. When you unpack your bag you just take out a series of bags and you can see immediately what you want. So an overnight stay somewhere just means taking 1 item out of a bag - no rummaging!! In addition, if you have to unpack at customs etc, instead of having to disgorge all your clothing etc out in front of everybody, you can calmly take maybe 5/6 bags out, the contents of which can be clearly seen by the officials. To repack then is also dead easy. Just be sure not to leave your plastic bags lying around if you are travelling in nature! 7. Clothes Pack only what you know you will use and if you are travelling for more than three weeks, plan to wash on the road. You can cut back on the number of clothes items by packing multi-purpose clothing, for example items that can both be worn during the day and as sleepwear.

8. Split up clothes when travelling with others When you are flying somewhere and especially if you have a few stopovers, divide the clothes between different suitcases/backpacks/bags etc. If one persons luggage doesn't arrive at the destination, they'll still have clean clothes available. Airlines generally don't compensate lost luggage for the first 24-48 hours so this will save you money if it happens to you. (Tip from a member) 9. Separate Beach Bag When packing to head to the beach consider pre-packing whatever you might need at the beach into a beachbag inside your backpack or suitcase. Especially if travelling with kids, this will prove a timesaver! 10. Suitcase lovers For those using suitcases without a divider. A piece of cardboard makes an excellent divider and helps keep your clothes organized and neat as you are able to lay them out flat on the cardboard. It also makes airport inspections a lot less of a hassle as you can lift out your divider with clothes on top easily. 11. Gifts While it is a good idea to take some small gifts with you while travelling, pre-wrapping them can be a waste of time if you are flying and your bags are opened. (Tip from a member) 12. Flashlights or Torches When packing a flashlight or torch (or any other item with batteries for that matter), turn the batteries around so that if the item is accidentally turned on, you won't empty the batteries. Don't forget to turn the batteries back around when using the flashlight. 13. Diaper Bag If you are travelling with babies, then the diaper bag is an excellent place to hide your valuables. This most likely will not be the first thing to be stolen. It's also a great to use as a waste bag (even when not travelling with a child!), especially at places that do not allow you to flush toilet paper. (Tip from a member) 14. Shoes If you want to make sure everything else in your bags stays clean and odor free, place the shoes inside old socks and then inside airtight plastic bags (ziplock). 15. Carry-On Keep any medication and important papers in your carry-on bag. On long flights with multiple stopovers (especially if flying via London, LA or other major airports), packing a fresh change of clothes is a good idea as bags tend to get delayed or lost on long haul, multiple stop flights. You don't want to end up stuck without medication, clothes or your important papers even if it is just for a few days.

16. Roll Technique Somehow it seems that bags will hold more if the clothes are rolled rather than folded. If you roll in tissue paper, the clothes will also get less wrinkled. 17. Travelling to warm destinations? If you appreciate cold drinks think of using a six-pack cooler as a toiletry bag. Once you arrive at your destination and unload your toiletries your 'toiletry bag' guarantees cheap cold drinks on the beach, no matter how remote. 18. Local Tourism Offices The best source of information is usually local. Check out Tourism Offices to find unbiased feedback on the best accommodation to suit your needs. Exercise caution in countries where you feel the information might not be so unbiased! 19. Minimize on toiletries Take only half a tube of toothpaste rolled up tight, store shampoo in small containers, only take half a roll of toilet paper (for emergencies only) and crush it so the middle is folded. 20. Take solid shampoo bars and tooth powder Solid shampoo bars and tooth powder (instead of tooth paste) can be easily located on the internet and make carry-on travel in this age of liquid restriction possible. Places like Beijing now bar all liquids in carry-on bags, and you'll still be able to breeze through without checking. (Tip from a member) 21. Planning on carrying a lot of luggage? While carrying a lot of luggage is not recommendable, sometimes it is necessary in the case of relocations and so on. If you have the possibility, fly via the US as airlines will allow you 64kg (two 32kg bags) instead of the 20kg in the rest of the world. Even if it is just a stopover in the US, you will be allowed to carry the extra weight. Check with your local travel agent for the details.

4. Social media Leveraging Social Media For Your Hotel

The ever-changing social media landscape can be an overwhelming realm to dive into. However as search engines continue make changes to their algorithm to make search more social and personal it is critical for hotels to not only have presence in the

Web Equity (source: Milestone Internet Marketing, Inc.)

The ever-changing social media landscape can be an overwhelming realm to dive into. However, as search engines continue make changes to their algorithm to make search more social and personal, it is critical for hotels to not only have presence in these channels, but be active and engaging as well. This article explains the changes in search and why being a social hotel is more important than ever.

The evolution of social media and how it is impacting search. Why social media? Social media has greatly impacted the way brands and customers communicate with each other. What previously was a one-way communication with the brand throwing messages towards its target market, has now evolved into a two-way conversation with customers and leads. The importance of integrating social media into your hotel's overall internet marketing mix can no longer be ignored as social networking is proven to be the most popular activity online, reaching 82 percent of the world's online population and accounting for 1 of every 5 minutes spent online1. In October 2011, Facebook reached nearly 55% of the world's global audience and accounts for three-fourths of the total time spent on social media sites1. Micro-blogging has also become a worldwide content-sharing phenomenon with sites such as Twitter, which reached 1 in 10 internet users worldwide and saw a growth rate of 59 percent in 2011. Furthermore, as search engines take notice of this online trend and realizing that more users turn to social networks for answers, they now work hard to incorporate social signals/activities into their ranking algorithm, making online search results more social and personalized in nature. For example, Google's recent release of Search, plus Your World allows users (while logged in to their Google accounts) to find the most relevant content on the web based on the user's social activity, including their friends' recommendations, posts, images, etc. alongside results from the web. The Changing Landscape of Hotel Search Engine Marketing is a great article that explains the changes in the way search engines provide content to consumers and how hotels can stay ahead of the competition. Using social media to enhance your online web equity As any knowledgeable internet marketer would tell you, having a presence in social channels alone does not convert fans into bookings. Nor can it drive the best possible outcome for the hotel in terms of online traffic and revenue. Getting the best online results really lies in the hotel's total web equity. A hotel's web equity is based on its overall presence on the Internet including web, local, and social channels and effectively cross-marketing these channels to enhance the hotel's overall internet presence and maximizing return on investments. By taking a global approach to social media and leveraging marketing efforts from different areas such as organic, local, mobile, paid, etc. hotels can focus on directing interactions towards both users and search engines to ensure that its messages have the maximum potential reach so customers can find the hotel on channels they frequently use. Without proper cross-channel marketing and optimization it would be hard for hotels to convert fans into reservations.

THE IMPACT OF SOCIAL MEDIA ON HOSPITALITY & TRAVEL INDUSTRY

Mobile Technology & Social Media Marketing The parallel rise of mobile technology has proven to be a boon for social media marketers. The soaring popularity of android and iphone based applications has seen social media take over from email in mobile communication, so much so that mobile phone companies are vying to outdo each other by offering Social Media browsing as part of their plans to customers. Spotlight on the Travel & Hospitality Industry Several new industries will be spotlighted in 2011 for the innovative use of Social Media. Among these the Travel & Hospitality industry will see a greater use of Social Media Technologies to promote their business. Travel & Hospitality industries will use mobile Social Media platforms as promotional and operational channels to win and retain customers. Creative use of Social Media While it is up to individual travel & hospitality businesses to think of creative ways of using Social Media, one example could be by using a Social Media site such Twitter or Four Square or Facebook (or all) to post updates of special off-season discounts that travellers could take advantage of. Since only followers of the travel business will be notified, this would encourage more customers to follow the business on these sites. A Social Media sites such as Twitter, Four Square or Facebook (or all) could also be used to promote local events by hospitality businesses such as a theme night at a hotel. Instead of spending huge amounts on video tours, hotels can take a video of their hotel and post it on their YouTube channel for a much lower cost. When new features are added, the video can be easily updated, saving time and money. Similarly Flicker updates can be posted by resorts and hotels showing then & now photos, celebrity visits and other attractions. What many tourists seek is assurance that the photographs they see on the hotel website are actually what they will get to see when they travel to the destination. Geotagging and photographs generated by users reassure visitors that they will get what they pay for. Viral Marketing the fast & low-cost option to attract loyal customers Viral Marketing is what makes the internet so special as a marketing tool. By offering incentives such as discount vouchers and frequent flyer points to their loyal customer base for referring customers to a hotel or restaurant, these businesses can increase their sales faster and at a much lower cost than through mainstream advertising. While it may appear that putting such initiatives into place are time consuming and take away from the dayto-day operations of the business, there are a number of automation tools that simplify the task of social media marketing. Seeking out these tools and making use of them makes it easy for employees to optimise their time in using social media for acquiring & retaining customers.

While social media has emerged as a marketing tool that needs to be integrated into the marketing plan, travel and hospitality businesses need to keep abreast of the emerging trends, evaluate the ones that are best suited to their marketing efforts and implement them before they are outmanoeuvred by the competition and lose out on market share.

5. Crme de la crme
Top 10 hotels in the world

Mandarin Oriental Tokyo Peninsula Beijing Mandarin Oriental New York Four Seasons Hong Kong Four Seasons at Sultanahmet Istanbul Park Hyatt Shanghai Four Seasons Miami Peninsula Hong Kong Ritz-Carlton Central Park New York Adlon Kempinski Berlin

Most Luxurious spa in the world

1.

Beau Rivage Palace - Lausanne, Switzerland

The Beau Rivage Palace has views of the lake and the Alps, but the real draw is the Cinq Mondes spa. It's 15,000 square feet and has a private suite with its own hammam (Turkish bath) and Bain Japonais (double Japanese bath for two). Treatments include Balinese massage and Taoist face-care massage; the spa is also introducing a series of packages to entice summer travelers. Through Sept. 30, guests can pay $1,660 for two nights' accommodation, breakfast and five spa treatments each.
2.

Chiva Som - Hua Hin, Thailand

Chiva Som, a luxury health resort facing the Gulf of Thailand, is tucked into seven acres of gardens and provides individual wellness programs for guests. Even basic guest rooms have private balconies and butler service, and the spa has male and female water-therapy suites. Hydrotherapy treatments include aqua skin polish, which uses spearmint and apricot to exfoliate the skin. Room rates start at $340 per person per night.
3.

Como Shambhala Retreat at Parrot Cay - Providenciales, Turks and Caicos

Como Shambhala is known for its guided retreat weeks, which feature the resort's trademark spa cuisine and expert teachers brought in from around the U.S. Five hours of daily instruction are included in the yoga retreats, and meditation, Pilates and pranayama instruction are available year-round as well. The spa is

aimed at couples, who can take advantage of double treatment rooms, outdoor showers and Japanese baths. Nightly rates start at $410.
4.

Four Seasons Resort - Chiang Mai, Thailand

Styled like a Thai temple, the three-story spa villa at the Four Seasons, Chiang Mai, has private aromatherapy steam rooms, open-air treatment terraces and rain shower massage beds. Elemis products are incorporated into every treatment, each of which begins with a warm foot compress to focus the senses. Resort rates start at $425.
5.

Hayman Island Resort - Great Barrier Reef, Australia

Hayman Island Resort is located on a private island in Australia's Great Barrier Reef, accessible via boat, seaplane or helicopter from nearby Hamilton Island. Spa Chakra has 13 treatment rooms, a wet treatment room and two relaxation lounges, and offers exclusive Guerlain Methode treatments, which involve techniques for facial and massage patented by the Champs Elyse Guerlain Institute. Room rates start at $468.
6.

The Island Experience - Ilha Grande, Brazil

Take a 100-square-mile private island; subtract roads, banks and people; and add a rain forest plus a weeklong, intensive detox program. The result is the Island Experience at Ilha Grande, an adventure spa that will introduce an "Alpha Adventures" challenge next winter to get men to detox in the most exciting way possible. Activities include jungle hiking, snorkeling, samba dancing and massage. Rates start at $2,000 for six nights and include meals, yoga classes and various supervised and recreational activities.
7.

Maroma Resort and Spa - Riviera Maya, Mexico

Located on a 25-acre jungle reserve, Maroma Resort and Spa faces the Caribbean Sea and a powder-white beach. The on-site Kinan Spa is decorated in white and cream stucco and has three treatment suites, each one with its own shower, bathroom and treatment tub. A special spa cuisine menu, with specialties like spiced beetroot soup over jicama and yogurt slaw, makes healthy eating more fun. Room rates start at $480 per night.
8.

Soneva Gili & Six Senses Spa - The Maldives

Soneva Gili resort consists of 44 stilted water-villa suites. The spa is set over water as well, and accessible via a long, low wooden walkway. Treatment rooms are simple, open-air affairs which look onto the lagoon. The Soul of Six Senses, a simultaneous massage and facial performed by two therapists, begins with a foot bath and ends with a scalp massage, and costs $360 for 90 minutes. Soneva Gili rack rates start at $1,415 per night.
9.

Taj Mahal Palace & Tower - Mumbai, India

The Taj Mahal Palace & Tower is arguably India's finest luxury hotel, with its manicured interior courtyard, pool, and a wide array of guest suites that accommodate royalty and celebrities alike (Yoko Ono and John Lennon once occupied one, without leaving, for a week). The Taj's branded Jiva Spa chain has classes in

everything from Ashanti yoga to the Art of Breathing, and the Exotic Lime & Ginger Scrub involves body buffing with Indian lime, ginger and salt. Room rates start at $205 per night.
10.

Terme di Saturnia Spa Resort - Saturnia, Italy

This 140-room resort in the hilly Tuscan countryside is about 100 miles from the nearest airport (in Rome), and pays homage to the country's spa-going tradition with a Roman bath lined in Travertine stone and lit from above with a dramatic circular skylight. The spa is devoted to restoring each guest's "psycho-physical balance," and renowned medical packages, which include an age evaluation, anti-aging and rebalancing massage, stone therapy, aqua relaxation and the Saturnia fitness program start at $2,347; regular room rates, including breakfast, start at $235 per night.

Best Food in the World

1. Oysters Strangfor Lough, Northern Ireland 2. Aubergines Ta Kioupa, Athens 3. Hamburgers Little Owl, New York 4. Zabaglione La Cinzianelle 5. Pho Pho 24, Vietnam 6. Macaroons Laduree, Paris 7. Roast Chicken L'Ami Louis, Paris 8. Milkshakes Fosselman's, Los Angeles 9. Texas barbecue Snow's, Texas 10. Steak El Carpicho, Jimenez de Jamuz, Spain

2) Discuss how Red Bus used Twitter and Face book for RedBull Thre3style

2) Red Bull: Red Bull, the energy drink believes, the consumer needs to see red bull as a credible brand and so its important to get associated with right events. In one of the attempts of red bull to build the brand awareness through events around the world and to let consumers know the product better and experience it through repetitive use, Red Bull launched thre3style campaign. The Campaign: The RedBull thre3style campaign was a battle of DJs to compete in the world final in Paris. Red Bull invited DJs to submit a demo of their work which were then judged by professionals and top 3 were chosen. These top 3 submissions were then uploaded on the Facebook page to vote for the favourite submission and so select the final winner. Some of the details of the campaign can be understood by the name of the event, i.e.THRE3STYLE, which is illustrated below:T - Turntablism, as this is the battle among DJs. H Home, since last years winner DJ kArves, was from France, who won in their hometown, Paris. RRegional, DJs need to win over regional finals in their country in order to enter world finals EEighteen, is the number of DJs entering the3style campaign from all over the world for the global finals in Vancouver. 3Three genres, one of the basic requirement of the contest is that the DJs must mix three genres of music

SSelection, of winners is based upon brilliant and best skilled DJ TTwitter, is for tweeting about Red Bull The3style using hashtag @redbull3style. YYoda, DJ Yoda is one of the judges who selected the winner DJ who can control the crowd and keep them dancing throughout the night LLayman, everyone has the equal say over selection of best DJ EEvent, is the one of the most rock and rolling event Media Channels: Facebook Twitter These channels were appropriately chosen because these can be accessed even using mobile phones. Objectives of Using Social MediaFacebook & Twitter 1. Provide opportunity to access live thre3style contest and content 2. Selection of winner through the live and interactive way of using Facebook and Twitter by fans. 3. Increase number of fans in the Twitter and Facebook page of Redbull 4. Increase in the duration of fan visit into Redbull social networking channels. 5. Attracting crowd at the event venue through social networking 6. Attracting fan base through wild card entry at Mumbai Usage of Twitter for Campaign: 1. Use of Hashtag: The two hosts of the show encouraged the crowd to tweet about their favorite DJ using hashtag"#rb3style", to keep the interest alive in the competition. This increased the number of tweets on the twitter page of campaign. Using hashtag tweeps (voters) and followers were tweeting live from each venue. The followers also used @inredbull page for tweeting about the campaign. This increased the traffic both on the campaign page and the Redbull Twitter page.

2. Use of Twitter Chatter Integration App: This app was integrated to Facebook page also in order to integrate multiple feeds relating to key words and phrases, Red Bull 3 style, @redbull3style, @inredbull. These tags were used to engage, interact and vote for winners. For instance, Followers of Red Bull had to use @inredbull and @Djhandle in order to vote for the favorite performances DJs used @inredbull to participate in their regional event so as to enter the final round at Vancouver All of these tweets were also integrated to facebook using Twitter Chatter Integration App in order to offer all contents at both social networking channels. 3. Use of Wild card entry: This special twitter feed was used to attract the DJ fan base by selecting a DJ as a wild card entry for finals in Mumbai Usage of Facebook for Campaign: 1. Landing Page: Use of media channels encouraged fans to visit the3style Facebook landing page and so increase the number of fans. The Landing page ensured that participants were fans of the Red Bull Facebook page before they could access the DJ content.

2. Facebook Video Voting App:The video voting application allowed participants to vote for their favorite DJ as well as make comments.

3. Customized 3style tab: The customized facebook 3style tab stored news and information on the DJs and videos and photos which were refreshed every 40 seconds from the library. 4. Post to Profile: This tool applied fans to post details about the event on the wall of their friends and friends of friends.

5. Invite Friends to vote:This tool was used to send invitation to other friends for visiting thre3style venues. This tool mainly helped in creating awareness about the event and spreading it virally. 6. Integrated Twitter Chatter app:The Twitter chatter app was integrated with Facebook page in order to pull and integrate multiple feeds from fans related to keywords searches if Red Bull.

Results of Using Twitter & Facebook: Some of the results of using Twitter and Facebook are given below:1. 2. 3. 4. Buzz was generated around venue and so was the buzz for booking tickets for show 48 DJs appealed for voting to their followers 1300 voters voted for DJs using Twitter and Facebook Celebrities such as Nikhil Chinappa and DJ Qbert encouraged users and DJs for participation through networking channels 5. Final event day witnessed large amount crowd minute by minute till 4 AM in morning Learnings This campaign gained heavy response from the party circuit It gave amateur DJs a chance to bring forth their talent. Students, elite, socialites as well as artists took part in the final round of the event in India at Mumbai It helped establish the fact that social media network can also help in brand building and creating brand loyalty Use of mobile phone in tweeting which was approx. 50 percent