The heavy reliance of hotels on seasonal packages is gradually waning away. Reema Sisodia finds out why...

Traditionally, in the hospitality business, seasons have been a major player in the bottomlines of properties. Season time meant higher rates, off-season was a time for discounts. Targets were met, matched or undone depending on the manner in which the property juggled between these parameters. That is why it is a little surprising to find that the old model is slowly giving way.

To sum it up, the hospitality business is becoming increasingly an all-seasons business.

Lemuel Herbert, general manager, The Park, Bangalore, explains, "Things have changed drastically. Now, there is nothing called on and off-season. It is just an opportunity wherein the hotel tends to use its unutilised capacity to its maximum capacity. Business is now being perceived as a continuous process and there is so much business happening around, that no one waits for a particular time or weather."

Business hotels

One of the major reason behind this phenomenon is the emergence of the phenomenon called ‘business hotels’.

Sushil Gupta, managing director, Asian Hotels Ltd says, "Selling hotel rooms is market-driven. The prices, like any other commodity, vary as per demand. Since hotel rooms are a highly perishable product, the objective remains to fill up the empty beds. Naturally, during lean season, any leisure property is forced to bring down prices as a strategy because the competition is tough. These discounts are given to perk sales. However, hotels, which get a mix of both leisure and corporate, are not much affected by seasons. For instance, occupancy is good and the market is buoyant even now for us because business travellers are moving. So for such hotels it is hard-core selling throughout the year." This is mainly because business travellers rarely travel
‘season-wise’.

Says Anuraag Bhatnagar, operations manager andexecutive assistant manager, Le Royal Meridien, Mumbai, "Business travellers are moving all through the year. The traditional seasonal peak and drop have thus levelled over time. For metro hotels and corporate hotels, seasonal deals have lost their importance. It’s the business environment and not necessarily, summer or monsoon, that dictates marketing and sales strategies."

Changing strategies

In fact, most hoteliers agree that strategies are based, not on a package-wise formula, rather it depends on what specific influences the hotel is under.

Says Jaya Joshi, marketing communications manager, The Hyatt Regency, Mumbai, "Seasons, whether off-season or peak season and climatic phases, such as summer, monsoon etc, as parameters for designing packages does exist, but it is no more the only reason which may dictate marketing strategies. New changes and an extremely volatile environment and marketing condition has influenced strategies to a large extent. Today brands sell rooms and F&B services keeping in view a number of other variables apart from just the seasons. It is a mix of both, both seasonal and social."

For example, there is the changing character of cities like Bangalore which, having become metros, see year-round traffic.

Explains, Arif Said Khan, sales manager, Taj Residency, Bangalore, "Bangalore has over a period of time become the hotspot for companies all over the world to set base in. The city is growing at an alarming speed. Traditionally, the hospitality industry here experienced a low from April to September. These days we see it changing because of the image the city has developed around the globe. With so many corporate companies around, there is no more any distinct difference between on and off-seasons. The gap seems to have been bridged to a great extent."

From a broad perspective, instead of depending on seasonal packages, every brand is trying to tap new markets and business groups, to work on yield management strategies and to convert first time business into a regular client. Small business is also important as long as the money comes in.

Bindu Panicker, marketing communications leader, ITC Hotel Grand Maratha Sheraton, Mumbai, says, "Packages designed to attract business will continue irrespective of the season. Seasons have their influence, but there are other parameters that have gained importance. We have a series of promotions and packages designed that run throughout the year. Some may be designed keeping the season in mind, but it is not the paramount factor that dictates the strategy."

And as J P Menon, general manager, St Mark’s Hotel, Bangalore, echoes, "Monsoon or no monsoon, it is business as usual for a business hotel like us. I feel such packages and special deals are apt for resorts. In fact our property in Mumbai, The Resort, offers monsoon packages."

Vivek Pathiyan, vice president and general manager, The Orchid, Mumbai gives the example of how a phenomenon like SARSmakes hotels completely revamp their plans. "The Iraq war and the outbreak of the SARS epidemic, both affected the inflow of guests. It was a clear indicator to the industry about what is in store. Therefore, we at The Orchid went into a contingency plan by reducing costs, working on domestic clients, continuing to maintain quality and standards. Even though the business was low, we increased value added service. Overall, this has maintained a steady occupancy for us and helped us pull through this slack period. We will continue to maintain the same strategy till there is more demand in the hospitality industry."

Packages have moved beyond having that ‘seasonal’ tag attached to it. Weekend packages are an instance of packages breaking out of the confines of seasons. Usually, in most hotels, there is a fall in business during weekends and the focus immediately shifts from the corporate to the leisure client. Amitabh Mishra, regional director - sales and marketing, The Oberoi, Bangalore, says, "We concentrate more on weekend conferences, special promotions on GDS (Global Distribution System) etc. We also have special weekend stays and value-added packages."

Adds Khan of Taj Residency, Bangalore, "We usually promote the weekends to get more of family crowd since there is a dip in corporate travel."

Plus there are packages now targeted towards the domestic traveller who has emerged as one of the most important business sources, especially with the turbulent international scenario. Exclusive designer packages are being floated keeping the interest of the domestic business traveller in mind.

Seasonal packages are not out yet

The concept of seasonal packages, though on the wane, is not over yet, especially in certain niche categories like resorts and properties located in areas where the weather plays a major role.

Says Dinesh Khanna, director, Eastern International Hotel Ltd, "Though seasonal packages do not make much of a difference, especially to corporate hotels and hotels based in the metros, seasonal deals just cannot be ignored. Hotels, especially in cities that receive heavy rainfall, have to depend on them to generate further business. Similarly, hotels based in regions with high mercury levels will have a different set of strategies."

In a state like Kerala which experiences heavy downpour from April to October, hotels necessarily have to face the situation by providing innovative packages to attract clients. This would include organising monsoon mood festivals, rain dances, and monsoon specific festivals.

According to Ajay Sharma, director, business development, Le Meridien, Kochi, "The onset of the monsoon will bring in more tourists. We are targeting the leisure segment, both in the domestic and international markets."

Likewise for a place like Chennai where a number of summer deals are doing the rounds. Says a source from Chola and Park Sheraton, Chennai, "Such packages work as successful value add-ons for regular clients and guests."

Concurs Meena Bhatia, director marketing, Le Meridien New Delhi, "The seasonal packages that we float not only helps to increase volume, but increase database as well. Definitely, it perks up sales for a perishable product like ours."

Conclusion

The broad view prevailing among hoteliers is that seasonal packages are down but it still retains a place in the marketing strategy of the property.

In categories like resort properties where nature plays a predominant part in the appeal of the place, seasonal packages have a heavy weightage while for business hotels, they would not be as important.

As Taposh Chakraborty, vice president, The Chancery, Bangalore, puts it, "Promoting seasonal packages are just a part of the business plan."

(With inputs from Anindita Chattopadhyay and Jyoti Koul in New Delhi, Susan George in Chennai and Vyas Sivanand in Bangalore)