FHRAI Magazine - Federation of Hotel and Restaurant Associations ...

magazine 

Rs. 50 • November 2011 

Selling Wellness 

A Rejuvenation 

Retreat 

Repositioning 

Identity 

Glimpses 

of the 46th FHRAI 

Annual Convention, Bangkok

Editor 

Deepa Sethi 

Assistant Editor 

Sanjeev Bhar 

Advertising 

Gunjan Sabikhi 

Design 

Alpana Khare 

Neeraj Aggarwal 

Neeraj Nath 

FHRAI REPRESENTAIVES 

ON THE EDITORIAL BOARD 

Hony. Secretary, FHRAI 

Vijai Pande 

Marketing 

S.P. Joshi 

[ Contents ] 

November 2011 

6 

8 

10 

20 

President’s Message 

Secretary’s Message 

Main Story 

Selling Wellness 

News Updates 

52 

54 

56 

Technology 

Negotiating contracts & beyond 

GM Canvas 

Repositioning identity 

Viewpoint 

Hidden opportunities 

FHRAI 

B-82, 8th Floor, Himalaya House 

Kasturba Gandhi Marg 

New Delhi 110001 

Tel: 91-11-40780780 

Fax: +91-11-40780777 

Email: fhrai@vsnl.com 

FHRAI Magazine is published, Edited and 

printed monthly by Durga Das Publications 

Pvt. Ltd. On behalf of Federations of Hotel 

and Restaurant Association of India and 

published from Durga Das Publications Pvt. 

Ltd. 72 Todarmal Road New Delhi 110001 

Email: info@ddppl.com 

Printed at Cirrus Graphics Pvt. Ltd. 

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New Delhi 110028 

30 

36 

40 

45 

Convention 

Glimpses of the 46th FHRAI 

Annual Convention, Bangkok 

Report 

Asia Report Hotel Views 2012 

Outbound 

A Rejuvenation Retreat 

Products & Services 

58 

60 

62 

64 

Chef Talk 

Indian platter with an Italian 

touch 

Online 

Crafting future online 

Taxation 

Elements in PF & the IT Law 

Movements 

For Editorial Feedback 

sanjeev@ddppl.com 

For Advertising 

gunjan@ddppl.com 

Tel : 91-11-23731971 

Fax: 91-11-23351503 

47 

50 

Sales & Marketing 

The bourne identity 

In Conversation 

PHDCCI President 

66 

67 

Environment 

Teri 

Profile 

Navin Kumar Nanchahal 

This issue of FHRAI 

Contains 68+4 pages cover 

68 

Events 

All information in the fhrai magazine is derived from 

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is made to report accurate information. It is passed on to 

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This publication is not meant to be an endorsement of any 

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All advertisements must comply with the Indian and 

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publication, error or failure of an advertisement to appear. 

Request Note: 

Federation of Indian NGOs 

on Drug Abuse Prevention 

(FINGODAP) is a network of 

around 500 Drug de-addiction 

centres. We request members 

to donate used & discarded 

items of the Hotels such as 

furniture, linen, electrical 

items, fixtures etc for which 

you could contact 

Dr. Rajesh Kumar 

Executive Director, 

FINGODAP; Ph: 011 26893872, 

Cell: +91 9891268872, 

Email: spym@vsnl.com 

Cover Pic (L-R): Vivek Nair, Vice Chairman 

& MD, The Leela Hotels; Ram Sachdeva, 

a businessman in Bangkok; Vijai Pande, 

Hon. Secretary, FHRAI; Subodh Kant 

Sahai, Minister for Tourism, Government 

of India; Ratan Marothia, President, 

FHRAI and Subhash Goyal, Chairman, 

Stic Travel Group of Companies. 

Visit FHRAI Website: www.fhrai.com 

FHRAI Magazine november 2011 5

[ Message ] 

President’s Message 

Dear Members, 

As an eventful 2011 draws to a close, it is 

time for me to pass on the baton as FHRAI 

President to a worthy colleague. I look back 

at my tenure with immense satisfaction. It 

was gratifying to have received the full and 

enthusiastic support from all members of 

the Executive Committee, Office Bearers, 

the four Regional Associations and staff 

at the FHRAI Secretariat. With their cooperation, 

I am pleased to report that we 

were able to accomplish a substantial part 

of the ambitious agenda that we had set for 

ourselves last year. I must share with you a few accomplishments that all of us can 

justifiably take pride in. 

The first is the enormously successful FHRAI Convention held in Bangkok in October 

this year. As you are aware, the Convention received an overwhelming response from 

our delegates and has been acclaimed for the high quality of the vibrant debates and 

discussions, which the event facilitated. 

The FHRAI magazine has always been deeply cherished by our members as an 

invaluable resource. After months of meticulous planning, FHRAI recently relaunched 

this flagship publication in a fresh and contemporary format. The response 

and feedback to the new magazine has been extremely positive, which has further 

strengthened our resolve to provide even more new and innovative services to our 

stakeholders. 

A pioneering and visionary initiative of FHRAI has been setting up of the FHRAI 

Institute of Hospitality Management (FIHM), for which we have made a substantial 

investment. FHRAI Institute was set up in 2005 and successfully completed its 6 years. 

Your FHRAI Institute has successfully obtained the approval from AICTE for the year 

2011-12 and boasts of a state-of-the-art campus in Greater Noida, internationally 

experienced faculty and a range of innovative undergraduate, post-graduate and 

professional programmes. Over the next few years, FIHM will evolve into a unique 

global centre of excellence in hospitality education and be FHRAI’s proactive 

contribution in bridging the daunting talent gap, which our industry currently faces. 

FHRAI has continued to be extremely proactive in engaging with the government. 

and top policy makers, both at the Centre as well as state level on the entire gamut 

of issues concerning the Indian hospitality and tourism industry. We have successfully 

represented the industry’s perspective at all available platforms and remained 

dedicated to safe guarding the interest of all our members. 

Please accept my heartfelt gratitude for the affection, respect and support you have 

extended to me. 

With best wishes, 

Ratan Marothia 

President 

6 FHRAI Magazine november 2011 Visit FHRAI Website: www.fhrai.com

[ Message ] 

Secretary’s Message 

Dear Friends, 

The recent advisory issued by five countries 

viz. the USA, Britain, Canada, Australia and 

New Zealand to their citizens against travelling 

to India during the festive season has been 

a dampener for the Indian travel trade. 

Hospitality gets affected the maximum and I 

strongly object to such advisories being issued 

now and then against India. Any country issues 

an advisory against India without considering 

the peaceful approach this country takes in 

every walk of life. The fact is India is promoting its destinations and festivities. I am happy 

that India has shown its serious stand on the issue, as the Foreign Secretary conveyed 

his unhappiness on the language used for the advisories being inappropriate. I also 

thank Shri Subodh Kant Sahai Ji for speaking to Ministry of External Affairs in relation to 

this. Nonetheless, the past few months have otherwise been good in certain terms. In 

the 19th UNWTO General Assembly, India has been recognised as the United Nations 

South Asian Regional Commission for Tourism Chairman for the Region of South Asia 

and this has been a feather in the cap. This is a big achievement for all of us. 

The Executive Committee of FHRAI completes one momentous year and we all 

enjoyed the experience of working together. I am proud of the fact that the association 

has touched upon integral issues pertaining to industry and addressed all concerns 

of its members. FHRAI has always taken initiatives pertinent and would continue to 

remain aggressive for its members’ cause. I hope, the coming year will be fruitful for 

FHRAI and Indian hospitality industry. I am also happy to share that the new look of 

FHRAI Magazine has been well appreciated. I expect that all members will continue to 

share their valuable feedback. I hope you, the backbone of the association, will continue 

to support with your suggestions to take FHRAI ahead in the future. Your positive 

response will help the FHRAI to reduce the problems industry is facing. There is a need 

for the members to be active and promote tourism to a greater height through FHRAI. 

I take this opportunity to thank all members for their consistent support that was 

extended in this year. 

Best Wishes 

Vijai Pande 

Hon.Secretary 

vijaipandit@yahoo.co.in 

8 FHRAI Magazine november 2011 

Visit FHRAI Website: www.fhrai.com

[ Main Story ] 



Whether looking to reduce stress, 

aid injury recovery or simply recharge 

batteries, an increasing number of 

Indians are getting hooked to the spa 

experience. With the advent of the 

affordable spas and short rejuvenating 

packages, the spa industry in 

India is also evolving to include 

a number of different therapies, 

such as reflexology, hydrotherapy, 

aromatherapy, and meditation. A 

number of industry experts believe 

that spa has finally arrived as a good 

business proposition for generating 

revenue and meeting bottomline 

targets 

Megha Paul 

Selling 

Wellness 


FHRAI Magazine november 2011 11 

Spa Pics Courtesy: The Imperial, New Delhi


Abha Dwivedi 

Shekhar Malkotia 

Sandeep Joshi 

Jacqualine Tara Herron 

Dr. Veeresh 

With a budding potential 

in the Asia region and 

especially in China and 

India, the spa industry 

has a bright future here. The industry’s 

strong foothold in terms of performance 

is highlighted by a sustained expansion 

in the travel and tourism industry as a 

result of focussed strategic development 

and targeted investment plans. As the spa 

segment gets increasingly lucrative, more 

and more hotel operators are adding spas 

to their properties. 

Wellness Tinge To Business 

As spa-goers want experiences that are 

customised to their personal needs and 

desires, hoteliers are using spa properties 

as a valuable business proposition. 

Interestingly, despite the fact that a spa 

is better associated with a leisure hotel, 

business hotels are not lagging behind in 

promoting their in-house spas. 

Says Abha Dwivedi, Director of 

Rooms, Courtyard by Marriott, Gurgaon, 

“Although considered a leisure activity, 

the advantage of having a spa, offering a 

bouquet of treatments aimed at business 

travellers, is a pull for those who would 

otherwise feel a constraint in stepping out 

for the same purpose if the facility was 

not available on the site. It has gained 

popularity in terms of the therapeutic 

treatments and corporate gifts, giving it a 

different dimension altogether.” 

Regarding the ratio of walk-in guests 

to its in-house customers in the spa, she 

informs, “At Courtyard by Marriott, 

Gurgaon the basic positioning was done 

keeping the in-house business traveller in 

mind, and on a general note we do have 

more in-house guests using the facility. 

However, the shift towards getting more 

It is time to cash 

in on the lifestyle 

needs of the 

people and hotels 

are gung ho about 

opening their doors 

for the wellness 

segment all set to 

grow further 

non-resident guests to use our spa is a 

definitive one.” 

“The ratio of in-house to nonresident 

guests visiting the spa reverses 

if a promotion or package is launched 

as it attracts non-residential guests,” she 

feels. Jacqualine Tara Herron, Director, 

Imperial Spa, Salon, Health & Racquet 

Club at The Imperial reveals, “The ‘Spa 

Seeker’ traveller has grown by 200 per 

cent in the past 10 years and this allows 

us to expand our marketing horizons to 

include these discerning guests.” 

Discussing about the exclusive services 

for in-house guests at The Imperial, she 

comments, “The Imperial Spa services are 

exclusively accessible only to our in-house 

guests. However, The Imperial Salon is 

open for all, allowing the local customers 

to receive hair and beauty treatments in a 

stylish and peaceful setting.” 

Within a hotel spa exclusive to the 

resident guests, the spa revenues are 

dependent on the occupancy of the hotel at 

any given point of time. Confirms Herron, 

“Business guests often add another day to 

their stay simply to use the spa whereby the 

whole hotel benefits from the longer stay 

revenue. The size of the spa is obviously 

influential in how much revenue can be 

achieved on any given day, along with the 

size of the spa team. However, many hotel 

spas estimate that between four per cent 

and ten per cent of the hotel occupancy 

uses the services of the spa.” 

According to Shekhar Malkotia, 

Director – Spa, The Claridges, Surajkund, 

Delhi NCR, the revenues from the spa 

contribute to around 13 per cent of the 

total earnings by the hotel and this will 

only grow further in the coming years.” 

Speaking about the FOS Spa at Fortune 

Select Excalibur, Gurgaon, Sandeep 

Joshi, General Manager says, “As the spa 

proposition becomes more of a necessity 

than a luxury, it has the potential to be a 

prime revenue churner. Currently, around 

five per cent of the hotel revenue comes 

from the FOS Spa.” 

Dr Veeresh, Spa Manager, Best 

Western Premier-La Marvella, Bengaluru 

claims, “In-house guests account for 60 

per cent and walk-in guests account for 40 

per cent of our spa business at the hotel.” 

“Going forward, spa in a business hotel 

is a value added service and the revenues 

from the segment depend on guest usage,” 

he adds. 

Roadblocks On The Way 

For the time being there is inadequate 

research for the Asian market in the spa 

industry as many hotel operators lack the 

expertise and experience. A great problem 




[ xxxxxx Main Story ] ] 

is the awareness regarding wellness and 

the shortage of therapists. Says Malkotia, 

“Skilled team and awareness among the 

guests is a challenging task. We follow 

a regular training plan and use our 

international product houses to evaluate 

and update our team about new products 

and trends.” 

Says Dwivedi, “In the Indian context, 

spa offerings are extremely unregulated. 

There is no regulatory body to define and 

control the standardisation of various 

kinds of treatments offered. Thus, the 

quality of service not only varies but it 

gives an opportunity to organisations 

beyond the Indian shores to step in and 

make a mark in the Indian hospitality 

sector.” Claims Herron, “The challenge in 

the industry is to maintain a consistently 

high standard and continue educating 

the therapists to enhance their skills, 

confidence and loyalty to stay with the 

hotel. The turnover of the staff can 

be an issue unless you invest time and 

professionalism in caring for the training 

and wellbeing of the therapist. This also 

implies giving the therapist worthwhile 

incentives to sell the spa packages and 

promote them for getting an increasing 

number of repeat guests.” 

She adds, “Competition in the spa 

market with an ever increasing growth in 

the industry also challenges spas to bring 



new packages, products and star therapists 

to the fore.” 

“By ongoing training and personal 

development for therapists, introducing 

constant seasonal speciality treatments, 

cross marketing with other hotel 

departments, increasing web exposure 

and optimisation plus linking with other 

spa search sites is the key answer to 

overcome this hurdle.” 

In Vogue 

Many of the newer Indian spas are 

fashionably designed around Indian 

history, astrology and values and offer 

incredible immersive spa experiences, 

dedicated to indigenous culture, myth, 

materials and design. Indian spas will 

also continue to expand their Ayurvedic 

menus, for both their passionate overseas 

clientele who want to experience authentic 

ayurvedic therapies as well as for local 

enthusiasts who wish to adopt their own 

Indian healing traditions for the first time. 

Articulates Herron, “Nutritional 

awareness and tailor-made spa retreats that 

include yoga, meditation, and special guest 

speakers are a growing trend. A holistic 

approach to spa therapy, where people 

can benefit from the finer elements of a 

treatment that help balance body, mind 

and soul is also gaining momentum. The 

spa has become the new monastery, where 

people go to let go of worldly tensions and 

touch base with the simple joy of feeling 

pure and good, at one with the divine.” 

“Also there is a trend towards creating 

the brand’s own signature products, 

formulated along the line of organic 

ingredients, which are packaged beautifully 

using visual brand elements, offering an 

excellent opportunity to do cross marketing 

by imbibing the philosophy and essence of 

the spa,” she adds. 

In a rush? More spas are adding a 

suite of 15- to 30-minute spa treatments, 

designed to be performed simultaneously 

by multiple therapists, to their menus. 

Also, opening hours are extending to 

meet demand. Says Dwivedi, “The hotel 

spas are shifting towards short and less 

expensive treatments. Hotels are trying to 

increase spa revenue by offering packages 

in which several services are bundled at 

a discount, throwing in bonuses like a 

complimentary manicure when a more 

expensive service is booked, and issuing 

credits that guests can use for treatments 

during their stay. These promotions serve 

the purpose of hiking the spa revenues by 

increased footfall.” It is time to cash in on 

the lifestyle needs of the people and hotels 

are gung ho about opening their doors to 

the wellness segment all set to grow further. 


[ News Updates ] 

Trinayan Homes adds two 

more resorts to its portfolio 

Trinayan Homes has increased its portfolio to three properties with addition of two more 

resorts after gaining success with its first hospitality venture Vimoksha Resort at Majkhali, 

Ranikhet. One is Chestnut Grove Himalayan Lodge in Vijaypur (between Bageshwar and 

Chaukori) and another one is at Corbett National Park. Talking about the new resorts, 

Nikoonz Agarwal, Director of the company revealed, “We’re have recently signed an 

agreement for a standalone resort for its management and would be promoting it under our 

umbrella brand - Trinayan Homes.” The Chestnut Grove Himalayan Lodge will be a cluster 

of cottages, constructed with stone, wood bamboo and thatch. “At present we offer 4 huts 

and 2 rooms furnished with attached washrooms. A separate dining and lounge area has 

been incorporated, both built using wood & large glass windows, overlooking the mighty 

Himalayas,” he added. Next on the cards is a property at Marchula near Durga Devi gate 

of Corbett National Park, which will be on a lease contract as well. Agarwal informed, “It’s 

a resort with 30 rooms. We plan to start operations by February 2012.” The company is structuring its expansion plan based on 

debt and equity. “We have structured our investment plan based on debt and equity. However, emphasis will be mostly on equity, 

while the focus on debt will remain the least. A suitable investment from PE/VC is what we are presently working on and hope to 

close it soon,” he remarked. 

The company’s emphasis is to provide a holiday home experience within the ambit of hospitality. Agarwal explained, “Our 

business model is such that any place that has value proposition for holiday home seekers is potentially attractive for us. We scout 

for places where hospitality can be amalgamated with housing and presented to our prospective buyers. Our endeavour is to 

create a niche for ourselves using best business practice and a consistent approach for enhancing our own brand value.” Though 

city based hotel is not on its cards, the company doesn’t rule out the proposition completely and decision would depend on the 

merit of the opportunity. The company has also acquired a plot of land in Chail in Himachal Pradesh, where another resort will 

come in the later stage of its expansion. “We’ve short listed a land around Nainital also. Apart from these we’re negotiating with 

property owners in Goa to add diversity to our portfolio in our aim to increase our footprint. Further, we are studying possibility to 

put our hands in ‘religious tourism and real estate’, wherein we intend to take off from Vrindavan,” he said. 

Presently, Trinayan Homes is operating Vimoksha Resort that has 18 independent bungalows having 2 and 3 bedrooms with 

attached toilets and a lobby with kitchen. “All our cottages face the snow peaks of mighty Himalayas apart from the vast and 

pristine valley. Nearness to golf course adds a lot of charm for the visitors. We provide the full cottage or a room of these 

cottages depending on the need of our guests. We’re adding more of such bungalows so as to offer a home stay experience for 

‘long stay needs’,” Agarwal said. 



The Orchid Hotel Mumbai 

announces expansion plans 

The Orchid Hotel, Mumbai is expanding its inventory to 400 rooms from the present 245 rooms 

to meet the growing demand of the business traveller in the financial capital. All the rooms are 

fully operational. The company has invested INR 100 crores to fuel this expansion. The luxury 

hotel will have additional three banqueting halls, club floor, rooftop restaurant overlooking the 

airport and spa as part of its expansion. The Orchid Hotel, Mumbai is one of the largest luxury 

hotels in India and Asia’s first certified eco-friendly five-star hotel strategically located adjacent 

to the domestic airport. 

Announcing the developments, Pradipta Biswas, General Manager - Operations, The Orchid 

Hotel, Mumbai says “Mumbai has witnessed a significant rise in the influx of business travellers 

and there is shortage of world class hotels located near the airport with attractive product offerings. We wish to bridge this gap 

by offering never-before-seen amenities to ensure that our corporate guests are in for a thoroughly enjoyable stay. It will be a 

unique experience offering a panoramic view of the airport with an additional butler service. The 74 international awards reiterate 

the efforts of The Orchid for being a pioneer amongst environment friendly hotels.” 

The Orchid Hotel Mumbai presently offers the most unique luxury experience in the city that encompasses well appointed 

environment friendly rooms and suites which are stylishly designed, each boasting of lavishly adorned décor, luxurious ambience 

and modern services. All the guest rooms are fully air conditioned and replete with contemporary elements, Wi-Fi internet 

access, attached bath, telephone and television. The hotel also features a variety of lifestyle activities like an exclusive club floor 

with a private lounge, The Club Privé room, relaxing outdoor Pool, well-appointed business centre, conference rooms and stateof-the 

art banquets. 

It has five specialty restaurants and outlets namely South of Vindhyas (represents a unique culinary concepts from South India), 

Mostly Grills (International fusion open-air barbeque restaurant on the roof top), The Boulevard, (a 24 hour coffee shop located 

on the first floor serves delicious Indian, Continental and Asian cuisine), Merlin’s (Bar with Karaoke and a Bulgarian Band called 

Sparkles) and The Gourmet Shop (For cakes, snacks & sandwiches) that seemingly fit the business travelers needs. 

The Orchid Hotel is a unit of Kamat Hotels (India) Limited (KHIL) that also represents brands like VITS – four-star luxury business 

hotel, Lotus – A luxury resort property, Gadh – Heritage Forts and Vithal Kamats original family restaurants. 




IDS Next to enable Banquet and 

Restaurant content on GDS 

IDS Next a leading provider of integrated, full-service enterprise property management software 

and a comprehensive range of information management systems for the hospitality and leisure 

industry is closely working with a GDS partner to enable banquet and restaurant content online. “We are working with a 

GDS partner to bring on the GDS platform- banquet and restaurant content. It will be a rich tech application, which will offer 

stakeholders in the travel trade an option to even book a particular table of their liking. We will launch it by end of 2011,” said 

Solomon James, Vice President – IDS Networks Group at IDS NEXT. 

“From my experience, I can confidently assert that most of the hotels with property management systems use not more than 40 

per cent applications. PMS is an effective tool for all properties to manage ideal room to manpower ratio and enhance customer 

satisfaction levels and revenues,” he added. 

On their path to creating innovative solutions for the hospitality industry, IDS NEXT in partnership with TTI Technologies has 

recently launched their Passport Scanner for hotels. Hotels will be able to efficiently capture guest information and automatically 

update their hotel’s database thereby enhancing security measures within the property. “The hospitality segment has come 

into the spotlight with the first Indian Grand Prix and festive season. Hotels are working toward maximising on this season and 

achieving full occupancy. As the hospitality sector is largely dependent on guest experience, during the travel season, increased 

activity makes it a challenge for the hotel management to work towards achieving excellent customer experience,” said Solomon. 

“The passport scanners help reduce the time consumed in scanning process from about five minutes to less than 30 seconds. It 

offers great satisfaction to guests when large groups check in at once, especially during MICE events,” he summed. 

Frasers Hospitality to launch a 

second-tier brand 

Luxury serviced apartments company, Frasers Hospitality, has announced its plans to launch 

a second-tier brand in Singapore and Kuala Lumpur. Aimed at shorter stays for the younger 

generation, this brand will then be brought to India in the next two years. Revealing more 

information, Jastina Balen, Director, Group Branding & Communications, Frasers Hospitality said, 

“The brand name will be announced in November after which we will launch twin properties 

simultaneously in Singapore and Kuala Lumpur by the second or third quarter of next year.” 

“This category of serviced apartments would then also be added in our India portfolio in the 

next two years,” she added. Frasers Hospitality is commencing operations in India with Fraser 

Suites – New Delhi at Mayur Vihar, New Delhi. It is their first property in India. Talking about the newly constructed property, an 

optimistic Balen informed, “We witnessed 60 per cent occupancy at Fraser Suites – New Delhi in Mayur Vihar during the F1 event 

as the media and photographers from the US were staying with us. This is an incredible response as we are officially opening only 

in February 2012. Going forward, we have already been booked by the US media team for the next year’s event as well.” 



Aditya Sarovar launches “Zyng” 

Lounge Bar 

Aditya Sarovar Premiere the upscale 5 star business 

hotel launched its new lounge bar Zyng. The lounge 

bar will offer a splendid selection of premium spirits 

and wines with delectable finger foods, to bring a fresh 

new dimension to the city’s life. Zyng is exclusively 

designed with an eye for the young and urban people. 

With esthetically done interiors the place feels modern 

and stylish and is all set to become Hyderabad’s most 

desirable venue. The lounge bar also has a separate Cigar 

Lounge that is completely sealed up and has its own 

ventilation system so you can smoke without affecting the 

rest of the area. 

The Lounge creates a relaxed, contemporary setting 

with dove grey walls and bold splashes of maroon and 

other vibrant colours. The light floored bar offers a 

sanctuary in the heart of the city away from the hustle and 

bustle of the area. There are specially created bar bites 

and finger foods, which are designed to complement the 

various drinks and cocktails at the lounge bar. Speaking 

on the occasion G. Vivekanand, Director International 

Marketing, Manjeera Group said, “We are delighted to 

launch the Zyng lounge Bar at Aditya Sarovar Premiere 

today. Zyng is an experience that translates into a 

mysterious charm stimulating an inner comfort, not for a 

moment intruding into your inner or outer space. With its 

beautiful ambience & eloquent service Zyng will enhance 

the overall offering of Aditya Sarovar Premiere. The bar 

will give more room to our guests to chill and enjoy. 

We think it’s very important to have a venue where our 

customers can unwind and have a relaxed time.” Rajesh 

Ranjan- Director New Properties Sarovar Hotels & Resorts 

said, “We are confident that Zyng will establish itself as the 

ideal venue for customers in the neighbourhood to drop 

in for informal meetings & drinks during the day and to 

enjoy after work get-togethers in modern and comfortable 

surroundings. Our range of premium spirits & cocktails 

provide a point of interest for people to indulge in.” 




Worldhotels reports 29 per cent revenue increase for 

third quarter 

Worldhotels, the exclusive collection of the world’s most unique independent hotels, has reported a year-on-year increase of 29 

per cent on revenue and a 21 per cent increase on its room night bookings for the third quarter of 2011. The group attributes this 

growth largely to increased distribution in all electronic channels, particularly via its products OTA360° and Spider by Worldhotels 

– tools designed to drive indirect and direct online bookings. The introduction of these management tools provides properties 

with the opportunity to enhance international visibility, maximise Internet bookings and ultimately increase profit margins. 

2011 already promised to be a successful year with first quarter results showing an increase of 20 per cent on the group’s 

room night bookings. This continued growth goes a long way in helping Worldhotels achieve its key objectives this year. “2011 

continues to be a great year for Worldhotels; such growth in the current economic climate is excellent news for the group and 

all of its partners,” commented Worldhotels Asia Pacific Vice President Roland Jegge. “Besides growth and ongoing recovery 

in our GDS channels, we have seen a particular increase in bookings through our internet booking engine Resmaster as well as 

OTAs. In addition to the benefits of being part of a strong global brand, we strive to offer our affiliates a range of marketing and 

management tools which have been proven to have a significant impact on their business and profitability.” 

Westin Hotels & 

Resorts announces 

Wellness Programme 

for 25,000 Associates 

around the world 

Westin Hotels & Resorts announced recently 

the launch of a global, brand-wide Associate 

Enrichment Program that will introduce the 

brand’s “Elements of Well Being Platform” to its 

associates around the world through key touch 

points. Borrowing from the brand’s signature guest 

experiences, Westin will now make available special 

programs for associates designed to inspire healthy 

choices and overall well being both in and out of 

the workplace. 

The three main components of the enrichment 

program, SuperFoodsRx, WestinWORKOUT 

and Breathe Westin, will be extended into 

property’s back-of-the-house and a designated 

“Well Ambassador” at the hotel will be charged 

with overseeing all aspects of the programme. 

Expanding on Westin’s recent partnership with 

New Balance, housekeepers at select properties 

will also receive New Balance athletic shoes to 

wear during their shifts. The Associate Enrichment 

Programme will roll out to more than 25,000 

associates at 181 Westin properties worldwide 

throughout 2011. “Westin’s entire brand positioning 

stems from our mission of helping our guests better 

themselves and now we are going to do the same 

for the people who bring our brand promise to 

life everyday – our family of Westin associates,” 

said Brian Povinelli, Global Brand Leader, Westin 

Hotels & Resorts. “We want our associates around 

the world to experience our philosophies firsthand 

which will help them better bring the Westin brand 

promise to life for our guests.” 


[ xxxxxx News Updates ] 

] 

Hilton Hotels & Resorts emerges top ranked 

international brand in India 

Hilton Hotels & Resorts, the flagship brand of Hilton Worldwide, has been ranked the number one international hotel brand in India 

in the Indian Hotel Business Guest Survey. The annual survey is conducted by BDRC Continental, a United Kingdom based market 

research agency. In the survey that tracks the brand performance of 102 hotel brands in India, Hilton Hotels & Resorts has been rated 

ahead of all international hotel brands. Additionally, Hilton Hotels & Resorts retained its position as the number one business hotel 

brand in Asia Pacific in the BDRC Continental Asia Pacific Hotel Guest Survey 2011 that provides an overall regional perspective. 

Dave Horton, global head, Hilton Hotels & Resorts, said, “Our first place ranking in India as we continue our rapid expansion in the 

country is a testament to our team members’ passion and commitment to delivering on our brand promise – to ensure every guest 

feels cared for, valued and respected. We appreciate the high regard and trust that travellers 

continue to place in Hilton both throughout India and around the world.” 

Lenny Menezes, chairman, India, Hilton Worldwide, said, “We are delighted 

with Hilton Hotels & Resorts being ranked the leading international hotel 

brand in India. We are grateful to our guests for this recognition. This 

ranking will give further impetus to our development efforts. We 

have more than doubled our trading estate in 2011 by opening 

five hotels in India this year, and we plan to launch five more 

hotels within the next eight months. At the 

current pace, we hope to triple our presence 

in the country in the next two years.” 

The BDRC Continental Survey is a 

syndicated study that reviews the 

responses of travellers who have 

stayed on business in hotels 

of at least three-star rating 

or equivalent in the 


[ News Updates [ xxxxxx ] 

past 12 months. In order to review the 

performance of brands BDRC Continental 

prepared a hotel Brand Ranking Index. 

This composite measure takes account 

of the following indicators – unprompted 

and prompted awareness, usage in the 

past year in India or abroad, leading 

choice, loyalty and intent to recommend. 

Other BDRC studies this year rank Hilton 

Hotels & Resorts as the number one hotel 

brand in Australia (seven consecutive 

years), Japan (five consecutive years), 

Belgium (two consecutive years), the 

Netherlands (two consecutive years), 

Britain (two consecutive years), Pan 

Europe (two consecutive years), Italy 

(two consecutive years), Germany (two 

consecutive years) the Middle East (three 

consecutive years) and Asia Pacific. Hilton 

was also named leading choice hotel 

brand in Australia (seven consecutive 

years), Japan (five consecutive years), 

Belgium (two consecutive years), the 

Netherlands (two consecutive years), 

Britain (two consecutive years), Pan 

Europe (two consecutive years), Italy (two 

consecutive years), Germany, the Middle 

East (three consecutive years), South East 

Asia and Asia Pacific. 




Lemon Tree Hotels bags the coveted Times Travel 

Academy award 

India’s first and largest chain of upscale hotels and resorts, Lemon Tree Hotels was recently conferred with the prestigious Times Travel 

Academy award - “Best Mid Range Hotel” for 2011. The Academy comprised of over 100 Travel industry CXOs from leading Travel 

and Tourism companies who voted for their favourite brand. 

Rahul Pandit, President & Chief Operating Officer, Lemon Tree Hotels said, “This award is of special importance to us as it signifies 

the appreciation given to us by our peers from the hospitality and travel industry.” He added, “Lemon Tree Hotels has worked 

towards being a pioneer in the upscale/mid range segment and this award encourages us to take our effort up a notch.” Lemon Tree 

Hotels is one of India’s fastest growing hotel chains and currently owns and operates an inventory of more than 1500 rooms across 15 

properties. The brand’s profitable growth has been driven by an end-to-end business model, which has led to a 60 per cent year-onyear 

growth in rooms over the past five years. By 2013, with 2,800 rooms in 20 hotels across 15 cities, Lemon Tree Hotels will own over 

2 per cent of all hotel rooms in the country. 

Salford University & CII sign MoU on Green Building 

initiatives 

A Memorandum of Understanding (MoU) has been signed between University of Salford, United Kingdom and Indian Green Building 

Council (IGBC) of the Confederation of Indian Industry (CII) for a joint partnership to promote cooperation in the fields of training, research 

and enterprise in Green Building initiatives. The MoU was signed during the last day of the 9th edition of Green Building Congress 

2011 organised by IGBC of the Confederation of Indian Industry (CII) at New Delhi. Dr Prem C Jain, Chairman, IGBC, said, “With 100 

new townships coming up between Delhi and Mumbai, the need of the hour is to start building sustainable and green cities right at the 

inception. We cannot afford to waste even a day to start planning and working towards building Green homes and Green cities.” 

Under this Partnership, both the institutions will seek to encourage direct contact and cooperation between their faculty and 

administrative staff, including those of relevant Internet schools and the Universities’ Research Institutes. They will also conduct joint 

research activities and explore areas for display of Green Building Materials that industry in India and UK can offer, apart from joint 

teaching and the development of new Degree and training programmes in the field of Green construction. Prof. Michail Kagioglou, 

Dean, University of Salford said, “India is well-positioned to lead the way in Green Building norms and hoped that the initiative will 

help in better B2B interactions on Green Products in India and United Kingdom.” Dr Kath Williams, Past President, World Green 

Building Council said, “Sustainability is like a three-legged stool standing on environmental, social and economic considerations. All 

three facets need to be developed to get a workable sustainable model.” 


[ Convention ] 

Convention 

K. Syama Raju 

Hony. Treasurer - FHRAI 

President - South India Hotel & Restaurant 

Association 

On The Convention 

A very successful 46th FHRAI Annual Convention was 

conducted by HRAEI at Bangkok from 11- 13 October 

2011. It was certainly a privilege and honour for the 

Association to have very important dignitaries like Shri 

Subodh Kant Sahai, Hon’ble Union Minister for Tourism and Shri Shashi Tharoor, 

Hon’ble Member of Parliament gracing the inaugural function. We were also 

delighted to observe that the Convention was not only well attended but there 

was such enthusiastic involvement and participation by all the delegates. The 

topics for the sessions were meaningful and well chosen. The Convention Hotel 

where most of us stayed was really good and the staff very cordial, helpful and 

cooperative. 

On Hospitality 

Hospitality as if now is going through a recessionary trend in India. Domestic tourism 

though has been able to sustain the business so far. Once the global financial 

condition gets over, tourism will be back on track. In India, hotel prices are reasonable 

enough as lots of supply is coming in, which is resulting in competition leading to 

price stabilisation. FHRAI is doing a lot in terms of road shows and the Ministry of 

Tourism is also supporting the efforts made in order to take the hospitality industry 

forward. I am quite upbeat about the future of hospitality in India. 

Suresh Kumar 

President, Fortune Park Hotels (ITC Group) 


FHRAI Convention was a great occasion for the industry 

to come together, interact and share latest information, 

views and opinions with the peer group. It was an 

excellent platform to discuss the growth and challenges 

faced by the industry. I was glad to be there and be a part 

of the successful event. 


Over the last few years, we have seen a substantial growth in the Indian hospitality 

scenario – both in terms of supply and demand. We have witnessed emergence 

of new brands – both international and domestic, taking us to a completely 

unchartered territory with a mix of superior/international asset quality i.e. sheer 

opulence complemented by effortless luxuries, blended with a global attitude 

through the introduction of international concepts like cuisines, standards, 

branding and marketing. The market for hospitality has also grown manifold with 

India becoming an integral part of the world’s economic map, thus creating an 

additional momentum to the international traffic to India, further supplemented by 

the rise of the Indian domestic traveler, piggybacking on a growing GDP. The future 

looks even more promising with India being recognised as the ‘The Place’ to be for 

all the international brands. The availability of land at affordable prices, along with 

the support infrastructure in terms of road, rail and air network can take us a long 

way ahead. 

S. P. Jain 

MD, The Pride Hotels 


The convention this year was well 

attended from India. Arrangements 

made were really commendable. 

The fact that Ministry of Tourism 

had a presence through our 

Hon’ble Minister and ADG made 

it a worthwhile effort. Mr. Devesh 

Chaturvedi clarified on various 

developments that are taking place. 

Only issue that I would like to bring 

forth is that if the convention takes 

place in India, many government 

officials get the opportunity to 

attend the convention. This way, 

hoteliers and restaurateurs can get 

to know their point of view and 

expand their knowledge, which 

would help in a big way. Though, 

the convention could be held 

outside India in the alternate years 

as many members would like to 

know the hospitality developments 

outside India.. 


In India, hospitality has been 

growing steadily with supply of 

rooms becomes less than demand. 

American and European economy 

is going through a rough patch that 

is affecting India a bit. However, 

the moment world economy 

recovers and moves forward, we 

will bounce back as well. That said, 

India’s domestic tourism growth has 

remained robust and would sustain 

our hospitality growth. 



Feedback 

Garish 

Oberoi 

Hony. Secretary 

HRANI & U. 

P. Hotel & 

Restaurant Association 


The Convention was a wonderful 

effort by HRAEI. It’s proved itself 

as a great platform to interact with 

the entire fraternity. The business 

sessions were interesting and 

informative and so was the evening 

entertainment line up. These have 

to be in sync with the convention 

theme as well as have to address the 

interests of the delegates. 


There is an upswing mood in 

hospitality, as the industry is on a 

rebound path. There is tremendous 

scope on the domestic tourist front 

which at present stands at 740 million 

domestic tourists as against 5.58 

million foreign tourists (year 2010), 

with a growth prediction of 10.7 per 

cent to 15 per cent in next 5 years. 

Disposable income in India has grown 

by 10.11 per cent annually from 2001- 

2006, and much of that is being spent 

on travel. So there is a great future 

lying ahead of us. 


B.K. Gupta 

Past President, FHRAI 


The 46th Annual FHRAI Convention was an unforgettable 

global experience for the members and their families. The 

Convention had a great impact on all delegates that offered 

an opportunity to our industry to promote India in a major 

ASEAN Country both as a captivating tourist destination and 

a lucrative market for foreign investment. 

FHRAI has been able to set a vision 2020 in global perspective and conveyed new, 

benchmarks in India’s various hotel segment chains. In a broader view, this time the 

FHRAI visualised and set an agenda - 2020 for the Indian tourism and hospitality 

industry, in a real sense with a macro perspective, they shared vision to meet the 

future global challenges. 

R Kumar 

CMD, Continental Equipment India 


The convention has been quite impressive. The sessions were 

good and the convention registered a substantial attendance 

even though it took place outside the country. The convention 

becomes a place for interaction. I would have liked an 

exhibition of various products form this market taking place 

as well along with the convention. It would have created competition for me but as a 

company, which closely interacts with the industry and caters to its needs, it would have 

been a learning experience for me too. 


The Indian hospitality is definitely looking positive and cruising ahead. The scope 

is immense and I am optimistic enough to believe that our strengths will pave the 

way for our future. 


M.P. Purushothaman 

President of Honour 

South India Hotel & Restaurant Association (SIHRA) 


It is needless for me to say that the 46th FHRAI Annual Convention held in Bangkok has gone off quite 

well, with Mr. Deepak Puri, and members of the Convention Organising Committee doing an excellent job 

in looking after all the delegates so well during their stay. I am sure they will carry happy memories of the 

Convention. The topics for the Business sessions were good. 

The impact of high interest rate by banks is hurting the hospitality sector. Hotels have a high gestation period i.e. 5 years or more 

and therefore, we are always badly hit by high taxation. World economy is going through a rough patch but Indian economy will 

be able to withstand it and I am hopeful on the hospitality’s future. I hope hospitality gets the infrastructure status soon which will 

end many worries. 




Glimpses of the 46th FHRAI 



Annual Convention, Bangkok



[ Report ] 

Asia Report 

Hotel Views 2012 

Cushman & Wakefield have come out with their first edition of Asia Report 

Hotel Views. Going forward, China and India have seen the most number 

of hotel openings across the globe and continue to show the most robust 

pipelines. Following are the excerpts of Hotel Views 2012 on Indian cities of 

Delhi NCR and Mumbai 

NCR – NATIONAL CAPITAL REGION 

Economy 

The National Capital Region (NCR) in India is a conurbation, 

which encompasses Delhi, Gurgaon, Faridabad, Ghaziabad, 

Noida and Greater Noida. With the resurgence of the Indian 

economy, GDP of the NCR went up by 10.5% as compared to 

10.3% in 2009 to 2010. The major contributors to this growth 

are the tertiary sector, specifically: Real Estate, Hotels, Banking 

and Insurance. The per capita income for 2010 to 2011 was US$ 

2,132, up 7.7% from 2009 to 2010. The per capita income in the 

NCR is three times the national average. The NCR region, as a 

whole has an unemployment rate of only 0.8% compared to a 

national average of 9.4%. This is expected to decline given the 

increased economic activity in the region. 

in 2010 from US$ 178 in 2009. RevPAR also grew 14.9% in 

2010 YOY. According to the latest figures from STR Global, in 

Hotel Performance 

Following the global economic downturn and the negative impact 

on tourist arrivals of the attacks in Mumbai, the performance 

of hotels in the NCR has shown an improvement in 2010. 

Occupancy rates dropped from 74.5% in 2007 to 63.6% in 2009 

before rising to 68.8% in 2010. ADR also increased to US$ 189 

the first half of 2011, occupancy dropped by 2.3% to 65.7%, 

whilst ADR went up by 1% to US$ 183. As new supply enters 

the market, we would expect ADRs to be under pressure and not 

reach pre-2007 levels. However, overall, hotel performances are 

expected to improve steadily YOY. 

Tourism Arrivals 

Due to the global economic slowdown as well as the threat of 

terrorism, tourist arrivals, both domestic and international, 

dropped from 4.4 million in 2008 to 3.9 million in 2009. The 

Commonwealth Games in October 2010 saw 75,000 visitors 

arrive in Delhi. The increased capacity of the Delhi airport 

has also resulted in an increased number of visitors. The total 

number of arrivals rose from 26.1 million visitors in 2009-2010 

to nearly 30 million visitors in 2010-2011. Of current demand, 

nearly 67% are business travellers and 21% leisure travellers, 

whilst the remaining demand is derived from MICE and other 

segments. 

36 FHRAI Magazine november 2011 


[ Report ] 

Hotel Supply 

Currently, of the 21,000 rooms in the 

NCR, Delhi alone holds close to 72% of 

the inventory and Gurgaon 20%. The 

distribution in other areas is minimal, with 

many people staying in hotels in Delhi and 

Gurgaon and travelling to the other areas. 

Segment–wise, the distribution is fairly 

even with mid-scale, upper mid-scale and 

upscale hotels accounting for a little over 

50% of the inventory. In terms of proposed 

supply, of the 15,000 rooms in the pipeline, 

Gurgaon and Noida account for a little over 

50%, evenly split between the two areas. 

Central Delhi does not have many additions 

to inventory due to the prohibitive cost of 

real estate; however the Delhi International 

Airport Area will see 14 hotels completed 

over the next five years. 

Le Meridien New Delhi 

Outlook 

The next three years will witness a large 

increase in room supply in various categories 

(especially in the mid-scale and economy 

segment) and many new brands entering 

the market. Whilst demand will continue to 

grow, albeit at a slower pace compared to 

pre-recession times, this increase in supply 

will outpace growth in demand. This might 

lead to a dip in occupancy and ADR in 

the short to medium term, which should 

consolidate over a period of time. Compared 

to 2011, occupancy might drop in 2012 due 

to new supply entering the market, whilst 

ADR is expected to improve marginally. The 

majority of the developments will be in the 

mid-scale and economy segments. As in all 

recession hit markets, where both FITs and 

business travellers have begun looking for the more affordable 

option, the reduced cost of construction and overheads, paired 

with higher profits, will make these projects more viable. 

MUMBAI 

Economy 

India’s GDP growth rate has experienced a downward trend 

over the last year due to inflation and poor performance by the 

manufacturing and other sectors. The growth rate for 2011 to 

2012 is predicted to be 8.7% as compared to the annual growth 

of 8.45% between 2004 and 2011. Mumbai contributes close 

to 6% of the national GDP. From 2005 to 2011, Mumbai’s per 

capita income grew from US$ 1,271 to US$ 2,879 and the city’s 

GDP grew from US$ 206 billion in 2005 to 2006 to US$ 453 

billion in 2009 to 2010. However, due to the global recession and 

the terrorist attacks in 2008, growth rates dropped between 2008 

and 2010. The unemployment rate in Mumbai is 0.53% against 

a national rate of 9.4%. 



[ Report ] 

domestic and international leisure travellers contributed 30%. 

In 2009 to 2010, the largest number of visitors arrived from the 

US and UK. According to the Ministry of Tourism, over the 

last two years the highest growth rates in terms of arrivals, have 

been from Africa and South America, albeit starting from a low 

basis, whilst arrivals from South East Asia and the Middle East 

experienced a decline. 

Grand Hyatt Mumbai 

Hotel Performance 

The Mumbai hotel industry suffered a severe setback in 2008 

due to the terrorist attacks that all but decimated two of the 

finest hotels in the city. The occupancy levels and the ADR 

dropped sharply as the city saw demand weaken from both 

the corporate and leisure sectors. The ADR in 2007 to 2008 

was close to US$ 270 before dropping by 35% in 2009. The 

occupancy rate fell from 74% in 2007 to 57% in 2009. The 

industry started recovering in 2010 and continued to do so in 

the first half of the year. According to the first half of 2011data, 

occupancy was 65% (5% above the same period in 2010) and 

ADR recorded a marginal increase to US$ 190. RevPAR, 

which dropped by almost US$ 100 in 2009 (from US$ 199 in 

2007 to US$ 104 in 2009) and increased by 11% to US$ 125 in 

the first half of 2011. 

Tourism Arrivals 

Though the impact of the terrorist attacks were felt on tourism 

arrivals in Mumbai in 2009, economic resurgence saw close to 9 

million international arrivals and 20 million domestic arrivals via 

air in 2010 to 2011. The growth in numbers was also attributed 

to the resurgence of Goa as a tourist destination in the winter of 

2010, for which Mumbai is the primary hub. Demand was led 

by the business segment which accounts for roughly 65%, whilst 

Hotel Supply 

Mumbai currently has 18,700 hotel rooms, of which close 

to 8,900 belong to the luxury and upper-upscale segments. 

However, new supply seems to be concentrated in the upscale 

or mid-scale segments. Of the 6,200 rooms in the pipeline, 47% 

are in the upscale and 13% in the upper mid-scale segment. 

This is a trend being driven by both consumers, who are more 

price sensitive post recession, and developers, who are seeing the 

benefits of these segments in terms of increased net incomes. 

Several new brands are poised to enter the city with some of the 

world’s most reputable hotel brands such as W, The Conrad and 

Park Hyatt scheduled to open in the short term. 

Outlook 

The lack of space for new development in central and south 

Mumbai might lead to higher development costs in these parts 

of the city. In addition, the expansion of the city toward the 

north and the east due to relatively cheaper land should attract 

residential and commercial development, thereby leading 

to increased hotel demand and development. The increase 

in supply may not be met with a proportionate increase in 

demand and corporations continue to seek ways to economise 

post-recession. In 2012, ADR is expected to rise whilst 

occupancy will experience a marginal drop as compared to 

2011 levels. However, these KPIs could experience a lower 

growth rate compared to pre-recession levels as occupancies 

and ADRs may drop in the medium term and stabilise in the 

long term. 


[ Outbound ] 


[ Outbound ] 

A Rejuvenation 

Retreat 

If a tired mind, body and soul desires for anything, Grand Resort Bad Ragaz 

promises to provide that in the serene environment of east Switzerland. 

The resort is poised to grow stronger as it tries to touch upon the needs 

of Indian travellers who are looking for a niche holiday experience. 

Sanjeev Bhar 



[ Outbound ] 

Ragaz is a small village situated 

in the beautiful foothills of 

the Alps in Heidiland in 

eastern Switzerland, which is 

approximately one hour by train or car 

from Zurich (110km) and 45 minutes from 

Altenrhein airfield. “The fact is that the 

village has a long history and as a matter 

of fact it is internationally well known for 

its warm and pure thermal water source 

since 800 years. Bad (pronounced as Baad) 

means Bath in German. Hence the village 

gets its name as Bad Ragaz,” explains, 

Carmen Heinrich-Huthoefer, Director of 

Business Development – India Market for 

Grand Resort Bad Ragaz. 

There is a gorge - Tamina Gorge - into 

the mountain where one can find the hot 

water stream source. “It is unique with 

respect to the quality of hot spring water, 

because after physical filtration the water is 

perfect for human consumption. While it 

has healing qualities, it has characteristics 

that are completely different to what is 

generally observed. The water is crystal 

clear and the sulphur content is balanced 

and therefore, there is no smell,” says 

Huthoefer. The water from the gorge has 

been directed to the resort and in one of 

the room categories a traveller can relish 

hot spring water bath right in the hotel 

bathroom. 

Amalgam of Old & New 

In the last decade, she informs, the 

resort went through a transformation. It 

invested a lot in combining the thermal 

water source with wellness, various 

treatments and finally, equated it with 

the medical approach and marketing it 

worldwide. People in the developed world 

seek health oriented rejuvenating holiday 

experiences. “We spent USD 200 million 

during 2007-08 for refurbishing the resort 

keeping the heritage facets intact for 

developed markets looking at this segment 

of holiday,” she says. 

The resort markets its uniqueness 

that lies in its location. Discovered 

accidentally in 1240, the salubrious effects 

of the mineral spring were recognised 

early on. The famous natural scientist, 

physician and philosopher Paracelsus, 

who is regarded as one of the first spa 

physicians in Europe, worked at Ragaz 

in 1535 and wrote an entire book on the 

therapeutic effects of the water, which has 

a temperature of 36.5°Celsius. Huthoefer 

says, “In fact, the oldest part of the resort 

started its operation way back in 1774. In 

this year, building of the palace, the new 

governorship of the Pfäfers Monastery 

Getting There 

Zurich is well connected from many 

international airports. It’s also easy to 

travel from London to Zurich by train, 

taking Eurostar to Paris, then a direct 

Paris-Switzerland high-speed TGV. 

TGVs from Paris to Zurich are run by 

Lyria, which is a consortium of the 

French and Swiss National Railways. 

From Zurich, Bad Ragaz is an easy 

train ride away - it takes about 1 

hour and the trains run about every 

30 minutes. The hotel also offers a 

limousine service with their fleet of 

Mercedes Benz luxury cars. 

Altenrhein airfield – a 45-minute 

drive away – is ideal for private jets. 

The Bad Ragaz airfield for helicopters 

is just 5 minutes away. The hotel 

assists with travel from anywhere in 

Europe including arranging transfers 

with their fleet of Mercedes Benz 

luxury limousines. 

in Ragaz (nowadays an integral part of 

Grand Hotel Hof Ragaz, comprising the 

Prince’s Suite and the gourmet restaurant 

Äbtestube) came into existence.” In 1840, 

on 31st May, a 4 km-long conduit was 

completed to transport the thermal waters 

from the source directly to Hof Ragaz (a 

part of the existing resort). 

Since, Indians know very little about 

the destination and resort, it is positioning 

itself in India among the upscale 

travellers with a promise of value for 

money proposition that provides elegant 

services. “Our room rates vary from Swiss 

Francs 500 for a Double Room to Swiss 


Francs 10,000 for a Pent House Suite. 

The demand for Suites has gone up in 

the upscale market segment, which looks 

for more space and personalised service,” 

Huthoefer remarks. The resort comprises 

of 290 rooms and has three different 

blocks: 

• Grand Hotel Quellenhof & Spa Suites 

with 97 Junior Suites, 8 Suites and 1 

Royal Suite with 200 sqm 

• Spa Suites Tower (opened in May 2009) 

with 56 contemporary designed Spa 

Lofts & Spa Suites and a Penthouse 

Floor with 560 sqm. In this new block 

of the resort, customers can enjoy 

Thermal Spa water coming directly to 

their bathroom tap 

• The Grand Hotel Hof Ragaz consists of 

106 rooms and 21 suites. In this section, 

a comprehensive restoration work has 

been carried out with precision in 2009 

keeping its heritage feel intact 

The resort is internationally known 

for its wellbeing and Spa experience, 

based on the warm and pure thermal 

water source since 800 years - a narrow 

gorge i.e. Tamina Gorge – that is only 

penetrated by a few rays of sunshine in 

mid-day. Earlier, health seekers bathed at 

the source. Today, the gorge (approx. 15 



[ Outbound ] 

minutes from Bad Ragaz) is accessible in 

a more comfortable way than in the past. 

The Wellness Proposition 

The resort is nothing short of a 

rejuvenating zone. It has 20 doctors and 30 

therapists (Physiotherapists, Masseurs and 

other skilled personnel) for taking care of 

special patients who demand post surgery 

treatments as part of their rehabilitation 

programme. “We are looking at the 

market of preventive healthcare and 

rehabilitation/rejuvenation demands post 

treatments or surgeries. The environment 

is such that it does not give a feeling of 

hospital but of luxury. Here we prepare 

a complete personal chart on the patients 

and offer therapy accordingly post 

interaction with the therapy consultant. 

We have incorporated spa cuisine as 

well,” she adds. 

At the medical health centre of 

the resort, specialist doctors ensure 

that comprehensive medical care is 

applied using latest scientific methods. 

“In fact,” Huthoefer adds, “The 

Department of Sports Medicine headed 

by Dr. Christian Schlegel was officially 

accredited as the Swiss Olympic Medical 

Centre in 2004. Dr. Christian Schlegel 

will be accompanying the Swiss Olympic 

team at the 2010 Winter Games in 

Vancouver as Chief Medical Officer. 

The international clientele, among them 

renowned athletes, undergo continuous 

medical treatment and use the services 

provided by physiotherapists and 

masseurs in the Medical Health Centre 

in order to measure and systematically 

improve their health and performance 

capability.” 

Tapping The India Market 

She says, “Our main market is domestic 

and European countries. Six years ago, 

we started marketing the property in 

Russia and two years back we went to 

the Middle East. I have been in India for 

1½ year now to promote the exclusive 

and unique product in this market.” 

The reason, the resort is eyeing the India 

market is the sheer growth of Indians in 

exploring new destinations. Also, Indians 

are well aware about Switzerland, if 

not Bad Ragaz. “The only thing Indian 

travllers are not aware of is the eastern 

part of our country,” Huthoefer asserts. 

There are three fields of action in her 

strategy for the India market. “We want to 

educate the trade about the resort and it is 

taking some time. I have, though, received 

positive feedback and this has given us the 

confidence to take our target forward,” she 

says. In the recent past, the resort worked 

in synergy with Swiss Airlines and Swiss 

Tourism for other parts of the world. She 

adds, “We are now looking for partners 

here who can understand our motto and 

have the passion to promote this product 

and sell the resort aggressively here. In 

fact, keeping that in mind, the resort is 

now offering Indian cuisine and also 3 

Indian TV Channels.” 

On the business front, the resort is 

doing consistent performance. “We have 

an ARR of Swiss Francs 600 across all 

nationalities annually. For India market, 

we have done 400 room nights of business 

in a year and plan to grow it 20 times in 

the next 5-6 years. Since feedback from the 

Indian market has increased of late, I am 

quite hopeful that our performance will 

only head northwards,” Huthoefer sums. 

To B. Wellbeing & Spa 

Spanning 5,500 square metres, the 

resort spa - To B. Wellbeing & Spa 

- has been included in the list of 

“Leading Spas of the World”. It has 

the following features: 

Massages - 9 Luxury massage 

rooms named as Sequoia, Beauty 

Lomi, Thermo Stone, Soglio herbal 

massage, Vinotherapy, Chocotherapy, 

Ayurveda , Klangschalenmassage 

Saunaworld – offers Sanarium, 

Finnish Sauna, Steam bath, Sole 

bath which is World’s first Swarovski 

Crystal Embellished Steam Room, 

Kneipp circuit (a cave-like room full 

of thermal water in which can guests 

walk to stimulate blood circulation), 

Relaxation room with water beds, 

Napshell® Lounge, Ice Cave and 

Garden Area 

Waterworld – has spectacular 

Helenabad swimming pool with 

mineral water (34°C), a Sports pool 

for a more rigorous workout (27°C), 

Garden Pool (27°C) for a refreshing 

dip with a spectacular mountain 

backdrop (open from May – October) 

and Solarium 


International Luxe brand Buck’s 

Luxury enters India 

A renowned English institution – Buck’s Luxury has recently entered the Indian markets. 

Buck’s, the makers of fine and ultra luxe leather handbags, lifestyle products and fashion 

accessories, opened its first outlet in Delhi at the Intercontinental Eros in Nehru Place. 

The boutique has flagged off its ready-to-use leather merchandise that focuses on 

personal routine and travel. 

Buck’s Boutique has been associated with luxury classic products in fine leather, metal and 

fabric since a long time. Buck’s Luxury follows old-school manuals and hand-crafts arts to 

give vintage styling, pedigreed sobriety and understated elegance to all its products. 

Website for hassle-free airport 

pickup & drop 

Gursahani Group of Companies has launched its new initiative 

-MyAirporttransfers.in, a chauffeur driven car rental service that primary 

aims at offering convenience to the air travellers. In addition, it also 

provides similar services for railway station and hotel transportation. “We 

have been observing that one of the biggest concerns of the travellers has 

been the non availability of quick & easy transport facility from places 

like Airports, Railway Stations and Hotels. To address this concern of the 

travelers and to provide a systematic transport service we have launched 

MyAirportTransfers.in,” informed Dharmendra Gursahani, Founder and 

MD, Myairporttransfers.in. 

[ Products & Services ] 

Rational’s new SelfCooking 

Center whitefficiency 

Rational has launched the new SelfCooking Center whitefficiency into the 

Indian market. The core of the product innovation is HiDensityControl, which 

is a quantum leap forward in terms of cooking output and quality. One can 

load 30% more in the same size cooking cabinet. Consumption of resources 

is also reduced by 20% compared to conventional combi-steamers. The range 

of applications has also been greatly extended with HiDensityControl. In 

addition to fresh pasta that can now be prepared using the new regulated and 

powerful steam generation function, baking is another of the strengths of the 

new product. 

Another new feature is Efficient LevelControl. It indicates to the user which 

different products can be cooked at the same time. This speeds up food 

production by up to 30%. In addition, each rack level is individually monitored. 

Efficient LevelControl intelligently corrects the cooking time according to the 

amount of food and how often, and for how long, the door is opened, ensuring 

that everything is cooked to perfection – every time. 

Matrix Data Solutions on Smartphones 

Matrix Cellular has introduced new services to its bouquet of international telecommunication solutions, addressing the innate need 

of people to stay connected at all times. Now all Indians travelling abroad can use their data services along with voice calls with a 

Matrix SIM card on their Smartphones at one-tenth the cost of International Roaming. “Our business model allows people to share 

images and videos as soon as they are captured; to share thoughts and feelings as soon as they are created even when they 

are far away from 

home,” said Gagan Dugal, Managing Director, Matrix. 

The new service allows travellers to be constantly accessible on mail, talk on phone 

and surf the internet at the same time, schedule and coordinate appointments 

in the middle of meetings, raise approval request, log in orders, update business 

databases and stay connected to colleagues, friends and family through Facebook 

and Messenger Services – from anywhere, anytime without worrying about 

inflated bills. 



[ Products & Services ] Luxury Coach Intercity 

Surface Transport 

The Blue Hill Group, promoted by the Directors of the Nilgiris, a 

renowned supermarket chain since 1905, today, announced the launch 

of The North India operations of Asia’s most Premium and only Uber 

Luxury Coach services called “OLIVEA”. The luxury coaches , in multi 

axle chassis of Volvo and Mercedes Benz has been converted and made 

into dream coaches by DC Designs ( owned by Mr.Dilip Chhabria ). 

These coaches are never been produced or brought on road ever in Asia. 

Prabhu Ramachandran, Managing Director, Blue Hill Group while 

making the announcement said, “With the launch of this novel travel 

concept we with a first mover advantage believe that we have already 

revolutionized the Indian Ground transportation sector.” 

The OLIVEA’s are designed to give first class luxury & comforts at 

far lower prices than any Airlines, providing high-grade near flat 165 

degrees leather reclining ergonomic seats from best of Aircraft seat 

manufacturers with electronically operated calf support, lumbar support, 

multi level head rests, and Finest on-board Entertainment because of 

the individual High definition DTH for each seat screening movies and 

music on demand plus live satellite television. 

Cabernet Sauvignon Red Wine by 

Nirvana Biosys 

Nirvana Biosys has announced the launch of LUCA Cabernet Sauvignon. A well structured oak matured wine that has 

a taste of a true classics, displays distinctive aromas of berries and oak, with a medium body and well-integrated tannins. 

This wine goes well paired with mildly spicy meet curry dishes and kebabs as well as tandoori preparations and all sort 

of cheese. On the launch of LUCA Cabernet Sauvignon, elated M.K. Rustagi, Joint Managing Director, Nirvana Biosys 

said “For the lovers of red wines, aroma of berries and oak jumps from the glass poured with Luca Cabernet Sauvig 

non which delivers the more subtle mineral notes.” With alcohol content-12.5% v/v that is to be served at 17-18°C, the 

wine comes from the first ever state-of-the-art Winery in the North India region, Nirvana which is extensively producing 

quality wines. 

Hush Super Soft Mattress 

Topper 

The Hush Super Soft Mattress Topper improves the quality of sleep by cushioning 

the bed surface and adding to the sleeper’s comfort level. As an added benefit, 

the topper also prolongs the life of the mattress. Filled generously with lush, slowrelease, 

virgin microfiber, this product gives a soft and buttery feel. Additionally, 

the inner fibers are pocketed to avoid uncomfortable lump formation. The outer 

casing is designed with specially treated water repellent fabric. The Hush Super 

Soft Mattress Topper offers the sleeper sublime comfort, and lends a plush, sinkin 

feel to the mattress, ensuring a smooth journey to dreamland. 


[ Sales & Marketing ] 

The bourne 

identity 

International tie up with hotel management & marketing companies is a fad 

these days. Though, one has to decide between the two paths of marketing: 

either by reaching international markets through prominent branding 

association or by remaining unique by not sacrificing individual entity as a 

stand-alone property. 

In the age of symbiotic relationships, 

businesses can emerge stronger and 

profitable only when they imbibe the 

scope of possibilities which allows 

revenue to shoot up consistently. The target 

to proliferate capabilities is the need of 

modern day business and hence everyone 

seeks to achieve it by various means. For 

example, a hotel on its own might not be 

able to reach out to many markets. But 

with a wise decision of associating with 

a company that escalates its marketing 

functions can help the hotel in a big way to 

increase its brand visibility. This has been 

evident in the Indian market for quite some 

time now, though the phenomenon started 

way back. ITC Hotels’ property in New 

Delhi is one of the cases where the hotel 

tied up with Starwood Hotels & Resorts 

to become ITC Maurya Sheraton (now 

ITC Maurya, The Luxury Collection) for 

generating an international appeal and 

global reach. 

An Established Platform 

In the present scenario, there are many 

home based stand-alone properties or 

those having a countable number of 

properties that are taking their unique 

offerings to the international travellers 




coming to India. The question that arises 

is, whether a tie-up with any international 

marketing chain is helpful or the benefits 

can be realised by also going solo? Raman 

Tuli, Managing Director of Parfait 

Hospitality says the company is a firm 

believer in 3Ps of ‘Profitability for owners’, 

‘Perfection in delivering a delightful stay’ 

and ‘Persistence in Sales and Marketing’. 

According to him, there are immediate 

benefits of tying up with international 

brands. “A stand-alone on tying up with an 

international chain immediately gets an 

international platform to market its brand 

and reach to international market through 

OTAs. We have been able to maintain our 

mantra for various property owners by 

giving them an edge in their business.” 

With properties in Kolkata, Varanasi, 

Bengaluru and Bhubaneshwar, the 

Hotel Hindustan International (HHI) 

Group of Hotels is charting a positive 

roadmap. In relation to tying up with 

international chain, Vishvjeet Singh, 

General Manager - Sales & Marketing, 

Hotel Hindustan International has a two 

way opinion. He says, “There are both 

advantages and disadvantages of going 

in for international hotel tie-up. One 

does get the benefits of brand building, 

wide coverage, building confidence in this 

market and highlighting the operational 

standards. Disadvantages are the revenue 

that is shared and loss of identity to an 

extent.” Carnival Hotels offers marketing 

and management services to seven standalone 

properties with its main focus on 

Rajasthan. Aman Ratra, GM Operations, 

Carnival Hotels informs, “Our idea is 

to provide marketing support for standalone 

properties mainly in the inbound 

tourism circuits.” The hotel group, having 

five properties in Rajasthan and two 

in Karnataka that offer uniqueness as 

stand-alones, is slowly looking at domestic 

holiday circuits also. “Stand-alone 

properties enable us in selling different 

products in different geographies giving 

boost to local market,” adds Tuli. The 

international tie-ups give leverage to the 

brands but not its properties. 

According to Ratra, inbound leisure 

market in India is growing. There is an 

ever increasing domestic and corporate 

segment too which hotels are looking at as 

potential revenue segment. He elaborates, 

“To view the scene in hospitality, we have 

to go back to the 1900s when the first 

hotel came into existence in India. Later, 

big domestic chains in India entered the 

domain of hospitality. So, it is from time 

to time that strategies have been changed 

by hotel companies and accordingly 

steps were taken to meet market needs.” 

Hence, international branding for a 

stand-alone property, he adds, in today’s 

competitive and dynamic environment, is 

a vital need. “It is needed for management 

and/or marketing. We have seen a lot 

of international brands entering into 

Indian hospitality space but justice to the 

uniqueness of properties has not been 

done,” Ratra remarks. 

The Unique Proposition 

The perception points to the fact that 

international branding might have brought 

global touch to the hospitality but has not 

been able to give what customers have 

been looking for. Many hoteliers, especially 

of stand-alone properties, say that when 

the inventory is limited, there is not much 

pressure on occupancy. Also, in that case, 

stand-alone hotel somehow commands a 

different edge of ‘being different’. Like the 

HHI which aims to reveal the uniqueness 

of Indian hospitality to the travellers. But 

is this only possible in stand-alone venture? 

Reverting on the query, Singh says, “For 

stand-alone properties like ours, we can 

offer personalised approach with a distinct 

identity which is preferred by lots of 



travellers. Heritage properties can offer a 

unique dimension of their own.” 

“Somehow,” adds Ratra, “I feel the 

personalisation factor has been forgotten in 

the race to achieve better ARRs, bottomlines, 

occupancy and international brand image.” 

His feeling stems from the fact that many 

hotels are increasingly looking same in their 

outlook. The work approach, décor and 

various other facets that complete the term 

hospitality, has to be taken into consideration 

to make hospitality unique. According to 

him, the focus should be towards a trained 

staff, personal attention to one guests, etc. 

which is sorely missed in majority of cases 

when we talk of the standard of the Indian 

hospitality. “While the supply of rooms 

is increasing, the equivalent manpower 

required is not getting filled in the system. 

The focus of international brands is very 

much on the commercial ambitions that 

are associated with managing or marketing 

a property.” In this context, Tuli says, 

“International tie-ups help in branding, but 

being a stand-alone property, one can carry 

out amendments as per guest requirements, 

decision making becomes imperatively 

quick and the execution can be looked and 

reviewed at the earliest.” His company aims 

to perform and manage hotels and resorts 

ensuring highest levels of superiority and 

service to guests, keeping the sanctity of the 

stand-alones. 

It is also expected that the marketing 

of a hotel has to be well defined to attract 

travellers. According to Ratra, when it 

comes to marketing tie-ups, financial 

return is important for the investors but the 

most important thing is to offer guests the 

convenience of quality accommodation. 

“It should encompass services that are 

affordable, safe & hygienic and quality 

based. For me, it is the software part 

that matters the most, which is the grit 

of rofessionalism to offer good service at 

all times. Today, pricing is a critical issue 

especially for 4-5 star hotels. So if one goes 

for a marketing tie-up, a hotel comes under 

the fold of a chain property giving a higher 

visibility and corporate acceptance.” 

Thanking Stars 

Apart from just resorting to tie-ups, being 

classified is also rated as one of the critical 

elements that enables to sell a hotel even 

if it doesn’t reflect a reputed hospitality 

brand, domestic or international. Tuli 

explains, “Classified Star rated hotels have 

become a virtue but that does not really 

boost sales as such. The economy travellers 

in the dynamic environment are looking for 

5-star hotels at 3-star prices. Here comes 

an opportunity for the new generation 

boutique hotels (stand-alone ones) which 

can offer luxury at an affordable price with 

a dash of uniqueness.” 

On the other hand, Ratra feels, 

“Classification these days has an effect on 

the choices made by the customers while 

selecting hotels. There is always a demand 

and supply issue when it comes to luxury 

and upscale properties. But star identity 

does offer a level of comfort to the travellers 

while selecting their accommodation 

choices, especially in the budget segment.” 

The fact is when it comes to branded 

hotels, no one finds out star classification 

for quality’s sake at least. It only becomes 

a parameter to judge the pricing. Whereas, 

when it comes to an unclassified property, 

star classification in terms of guarantees 

the customers quality and service standard 

that they can expect from the hotel. Singh 

feels, star classifications enhance the sales 

pitch for a property, as people relate the 

same with quality accommodations and 

identify so easily. “They get a sense of 

assurance on the quality to be expected 

from a property, which is the first step 

towards delivering service,” he adds. 

Based on various parameters, presenting 

uniqueness of a hotel property with an 

assurance of the quality can actually be 

a good way to approach India’s growing 

domestic market. This approach is creating 

a league of brands which may not be well 

known world over or for that matter in the 

Indian hospitality corridors. 



[ In Conversation ] 

“Travel advisories have 

created panic that could 

scare tourists away” 

Recently, Australia, Canada, UK, USA and 

New Zealand have issued travel advisories 

to their citizens regarding travelling to 

India, citing country’s festive season and 

possible chances of terrorist attacks. 

Salil Bhandari, President PHD Chamber of 

Commerce & Industry (PHDCCI) speaks 

out his mind on the critical issue and talks 

on the situation, which should be tackled 

for a better future of India’s tourism 

industry. By Sanjeev Bhar 

In the scenario where travel advisories by various 

countries are issues now and then, how do you 

perceive it in light of tourism fallout for the country? 

Tourism is a significant sector of the Indian economy and 

contributes significantly to the country’s gross domestic product 

(GDP) and foreign exchange earnings (FEE). The Indian tourism 

sector is also linked with important sectors such as transportation, 

infrastructure and handicraft, which further helps in the growth 

and development of the country. The Ministry of Tourism is 

making efforts to expand the tourism infrastructure at various 

destinations in India. These efforts are a judicious blend of 

traditions, legacy, religion and Eco-Tourism projects that intend 

to offer tourists a holistic experience. In my opinion issuing of 

travel advisories by some countries like UK, USA, Australia, etc. 

will definitely have a negative impact on the growth of India’s 

tourism industry and the industry has started facing the impact 

as there have been cancellation of trips and postponement of 

visits during the past festive weeks. 

Does this kind of advisory really affect the tourism 

sector in a big way? What could be done about this as 

festivity is one of the most important facets that India 

sells to the outside world? 

Visitors get scared when there are advisory warnings of terrorist 

attacks. As per feedback from the industry, around five per 

cent of visitors from the respective countries have cancelled 

their bookings and similar percentage of travellers would have 

postponed their visits. Advisories at the beginning of the peak 

period are likely to impact bookings for the entire season. So, 

in my perception these travel advisories have created panic that 

could scare tourists away. These should either be revoked or 

the language used in these advisories should be impartial and 

carefully modulated. 

Also, in July 2011 Germany became the first country 

in the European Union to have revoked its travel 

advisory to Kashmir after two decades. Do you think 

that it would lead to a positive outcome whereby, 

the step could be pushed to other countries to follow 

suit? How would it impact the tourism sector in India 

and especially, Kashmir? 

In my opinion such travel advisories will definitely have a big 

negative impact on the growth of tourism sector in a country 

because these advisories generally create an environment of 

distrust and fear among the tourists that force them to either 

cancel their visits or postpone their visits, even though the Diwali 

week, in itself, is not a major occasion that draws travellers to 

the country, however it marks the beginning of the peak season. 

Advisories at the start of the season are likely to impact bookings 

for the entire season. 

Moreover if we combine the effect of the financial crisis 

in the US and Europe, these warnings could make us lose at 

least 20 per cent of travellers during the peak season. We can 

tell the embassies of these respective countries that their travel 

advisory warning of possible terrorist attacks in India during 

the festive season is ‘disproportionate’ and they should revoke 


[ In Conversation ] 

their respective advisories for India or they should use language 

that is proportionate and carefully modulated so that tourists 

visiting India or going to visit India do not get scared. It has been 

noticed that some countries seem to have based their advisories 

on the basis of reports published in the press, so here comes the 

responsibility of the press also not to magnify any news to a level 

that it starts creating fear and panic in the minds of people inside 

and outside our country. 

Definitely the move taken by Germany to revoke its travel 

advisory to Kashmir is a welcome move and this will help in 

promoting and enhancing tourism not only in Kashmir but 

throughout the country as this will create an environment of trust 

and safety and will project India as a safe and secure destination 

to visit. We can also push other countries to follow suit. In this, 

PHD Chamber can play a vital role by associating with the 

Ministry of Tourism. Together we can organise roadshows and 

conferences in western countries and make people aware about 

various policies and strong steps taken by the Indian Government 

and state governments for the safety of foreign tourists as well as 

to counter terrorism like formation of Tourist Police especially 

for the foreign tourists so that they feel safe and secure and can 

enjoy the legacy of Incredible India to a fuller extent. 

Removal of the travel advisory to Kashmir by Germany after 

two decades will definitely help in promoting tourism in the 

Valley as now the big tour operators will put Kashmir – which 

is called ‘Heaven on Earth’ on their map. Moreover, this step 

taken by the German Government will help Jammu & Kashmir 

get away from the image of a terror region to some extent, thus 

greatly help in raising the tourism inflow. 

Together we can organise 

roadshows and conferences 

in western countries and 

make people aware about 

various policies and strong 

steps taken by the Indian 

Government and state 

governments for the safety of 

foreign tourists as well as to 

counter terrorism 



[ Technology ] 

Negotiating 

Contracts and Beyond 

The financial downturn highlights myriad issues on 

contracts that hotels sign on the dotted line. The 

purpose of contracting accounts is to create a winwin 

situation for both parties involved. Technology 

can play an important role in balancing access to 

inventory, price and a long-term outlook to growing 

the share from the most profitable accounts of the 

hotel. 

Sivaprasad Gangadharan 

For those operating in the Indian 

hotel sector, any financial 

downturn or recession is a 

frightening experience. Hoteliers 

seek to safeguard their future with 

long-term contracts designed to lock in 

guaranteed income and help weather 

the storm. However, in a bid to make 

the contract as attractive as possible to 

similarly beleaguered businesses, hoteliers 

can find themselves drastically underpricing 

their offering before quickly 

realising that a poorly negotiated deal 

will take the shine off the contract the 

moment the going gets good. In fact, if we 

delve deeper, there is more to negotiating 

contracts than just smooth talking. 

The lesson to be learnt is that while a 

recession is felt by industry and individuals 

alike, it is essential that during periods of 

economic crisis hoteliers delve deeper 

to discover the reality of their situation 

before doing anything reckless. The 

factors affecting each element of a hotel 

operator’s offering are so dynamic and 

diverse that a ‘one size fits all’ approach 

simply will not cut it and while a high 

volume of long-term contracts may prove 

the right way to go at one location, it may 

be more financially sound to reduce them 

at others. 

Equally, it is critical that when entering 

into a contract, the terms are set with rates 

and conditions which are beneficial to all 

parties. Ultimately, hotels are preparing 

for a period of anywhere between 12 

and 18 months of trading, so if a hotel 

doesn’t get it right now, it may never have 

the chance to buy back time and make 

amends. 

Keeping A Watchful Eye 

A thorough analysis of the macroeconomic 

environment should always be a priority 

for any smart hotel operator in India. 

This effectively means understanding 

anything outside of a hotel’s immediate 

control. This can encompass anticipated 

levels of demand based upon expected 

tourism rates and trends in corporate 

travel, along with shifts in client demand 

or changes to the competition landscape. 

Keeping a watchful eye on competition 

in the industry will inform hoteliers on 

how comparable their businesses are 

and therefore, how aggressive they can 

afford to be with their pricing. Equally, 

it can uncover a need to move with the 

times and make some vital adjustments to 

products and services in order to remain 

in the game. 

Economic trends will usually have a 

direct influence on the call for demand, 

as well as impacting on any significant 

alterations in what a client comes to 

expect from an hotelier. By remaining 

plugged in to what’s happening in the 

world at large, a hotel operator can see 

two steps ahead of anyone else, preferably 

before the competition realises the score 

and calculates its next move. 

Inward reflection is equally essential 

when reviewing whether keeping 

an account on will be worthwhile. 

Determining the overall revenue 

contribution achieved during the 

most recent contracting period and 

measuring this against the revenue that 

has been displaced as a result of taking 

on the account, is absolutely essential in 

establishing its value. 

A good method of measurement for 

assessing this is to total the revenue from 

room nights booked during days when 

hotel occupancy exceeded 95 per cent and 

to estimate a percentage of this amount 

as displacing other revenues. This process 

is easily achievable with the application 

of a revenue management system. The 

alternative is to use manual evaluation or 

sort through data feeds from the property 

management system. If the hotelier has 

data and analytical capabilities, profit 

contribution per account should also be 

evaluated. Matching revenue streams 

against overall costs to establish a net 

profit provides an accurate overview and 

insight into an account’s worth. 

Critical to the negotiation process is a 

full understanding of a client. Matching 

the estimated revenues from 2011 to 

next year’s forecast will supply expected 

figures for demand which can then be 

measured against overall demand for the 

hotel. Using figures you already have at 

your fingertips in a more analytical way 

will provide you with priceless intelligence 

that will help you make a more informed 

decision about which clients are your most 

profitable. 


[ Technology ] 

From Static To Dynamic 

Pricing 

With a rise in demand comes the necessity 

for the account with which a hotel holds 

a contract to guarantee some access to 

the hotel’s room inventory. This usually 

takes the form of an insistence that last 

room availability is included as part of 

the contract. This level of access should 

come at an additional cost to the client. 

A considered analysis of the amount of 

revenue the account displaced (as already 

outlined) will produce an average amount 

per room per night, which can then be 

used as the premium charged for the 

privilege of last room availability. 

Choosing the most appropriate pricing 

structure will be the ultimate determinant 

in whether a negotiation strategy will sink 

or swim. In the past, fixed rate pricing has 

been the mainstay of the hotels industry, 

transparent pricing has changed the 

methods of negotiation and this has led to 

a shift away from static to more dynamic 

pricing. While this has many advantages for 

both hotels (pricing aligned with demand) 

and clients (easier RFP process, Last Room 

availability is no longer an issue and pricing 

changes quickly with demand), there has 

been push-back from many companies, 

especially as dynamic pricing makes it 

difficult to forecast travel budgets. 

There are a range of different factors 

that need to be taken into consideration 

when determining how to best implement 

dynamic pricing strategies. The positioning 

of key products to key market segments 

is a vital aspect of dynamic pricing. 

While gaining an understanding of the 

competition, both existing rival and future 

competitors and what they are offering 

consumers, is also necessary to gain a strong 

competitive advantage. Dynamic pricing 

is not without its challenges, as one could 

expect with such a complex programme. 

One of the most inherent and common 

challenges with the installation of dynamic 

pricing is a lack of clarity and consistency 

through companies at different times. 

The InterContinental Hotels Group 

expects that almost a quarter of its 

corporate clients (including those in India) 

will use “some form of dynamic pricing” 

in 2012. As a rule, hoteliers and buyers 

are now finding the middle ground, 

adopting hybrid programmes that utilise 

both dynamically priced and fixed priced 

rate systems. Essentially, the more flexible 

hoteliers are able to be, the more likely it 

is that they are going to succeed. 

The purpose of contracting accounts 

is to create a win-win situation, where 

both the hotel and the client are clearly 

benefiting. For Indian hoteliers, corporate 

accounts are an important segment of 

business that no hotelier can risk losing. 

However, the right balance between 

access to inventory, price and a long-term 

outlook to growing the share from the 

most profitable accounts, will be crucial in 

ensuring long-term success. 

(The writer is Regional Director 

Subcontinent Sales for IDeaS) 



Repositioning 

identity 

Alain Leflon, General Manager, The Royal Plaza, New 

Delhi talks about reinstating confidence and increasing 

the awareness about this property to reposition The 

Royal Plaza in the 5-star hotel segment of New Delhi 

Megha Paul 


[ GM Canvas ] 

hotel has been completely finished after its 

rechristening. So the crucial challenge is 

to promote this property now.” 

“For the same purpose we just went 

to World Travel Mart to make the travel 

agents and the tour operators familiar 

with the new hotel in Delhi,” he informed. 

The newly rechristened hotel – 

The Royal Plaza – is all geared 

up to manage the property 

independently. Talking about 

the development, Alain Leflon, General 

Manager, The Royal Plaza, New Delhi 

said, “My main objective is to reinstate 

confidence and increase the awareness 

about this property.” 

“We will focus on re-establishing The 

Royal Plaza in the 5-star hotel segment of 

New Delhi,” he added. 

Removing Roadblocks 

Regarding the challenges faced when 

the hotel was renamed, very soon after 

its inception, the GM said, “Last year 

while this hotel was still named Ramada 

Plaza when the owners had tied-up with 

Wyndham, interestingly the property was 

not complete. It is only this year that the 

Towards Greener 

Pastures 

The hotel is planning to cash in 

on its central location. Leflon 

said, “We are located right in 

the middle of the city. Going 

forward, in order to tackle the 

competition from the hotels 

in our vicinity, our USP 

would be the reasonable 

rates offered.” 

“Despite being a 5-star 

property, we would be a ‘good 

value for money’ hotel.” In 

addition, the decor and interiors 

of the hotel The Royal Plaza have 

been inspired by the Renaissance 

period, with an ambience of 

Victorian grandeur. “The lobby 

boasts of French frescos and is 

adorned with decorative onyx 

pillars, embellished with 24 carat 

gold leaf work, stunning crystal 

chandeliers and an exclusive 

inlay work of semi precious 

stones,” the GM added. 

Visit FHRAI Website: www.fhrai.com FHRAI FHRAI Magazine Magazine november October 2011 55 

2011 55

[ Viewpoint ] 

Hidden 

opportunities 

Ecological challenges have actually given scope to find out simple 

dimensions within the organisation that, if emulated, can take hospitality 

a long way towards environment sustainability 

Niranjan Khatri 

The mix of cross cutting ecological 

challenges being faced by 

humanity on a global scale is new, 

sometimes bewildering & complex 

and often simple to resolve if we only 

change the lens through which we look. 

This article attempts to frame the ‘buffet’ of 

environment issues, hidden opportunities 

in the unknown territory through ITC 

Hotels’ case studies that have traversed in 

this unknown realm through self learning, 

introspection, conceptualisation, pilot 

projects and finally scaling our journey 

towards offering responsible luxury. 

The reason, I feel, why many 

individuals and organisations are unable 

to grasp these challenges is because most 

of us are living in our comfort zones and 

are unable to comprehend the larger 

challenges, which appear to be in the 

distant horizon. Someone has rightly 

said, “That it is always difficult to see 

distant clouds on a clear day.” 

The challenges of climate change, 

energy, security, water management and 

material efficiency, cannot be addressed 

by using ‘yesterday’s tools’ to solve ‘today’s 

problems’ and hope to be ‘in business 

tomorrow’. Some architectural changes 

need to be done so that transformational 

changes can take place in society. 

Eliminating Waste 

The question we confront is where to 

begin with transformational changes. To 

that I feel if existing financial architecture 

is tweaked to accommodate the concerns 

of environment, sustainable development 

will take root faster. The accounting 

language has beautiful terminologies 

like principles of prudence, principles 

of growing concerns and precautionary 

principles. 

If the concept of internalising 

environmental externality is introduced, 

which means taking into account the 

social cost of enterprise, it will then help 

retard/eliminate waste from the design 

stage in many industry processes. 

Water is steadily becoming scarce 

and is likely to become a more sought 

-after resource in the next decade. Poor 

management of water is primarily due 

to it being treated as a free resource, or 

making it available at a low price leading 

to sub-optimal use of water in most 

organisations, world over. The land 


Nobody looses 

eye sight by 

looking at things 

positively 

footprint of sewage treatment plants has 

come down in size, due to innovative 

technology. There are now many known 

low cost methods of optimising use of 

water starting with rain water harvesting, 

use of dual flushing systems, use of water 

less urinals and low flow showers, to name 

a few. 

Saving Resources 

A simple example of water frugality being 

practiced in the ITC Green Centre can 

be seen in the men’s urinal, which does 

not deploy water for flushing and instead 

uses bio-blocks for eliminating the use of 

water. In the bargain we have reduced 

our water consumption by 300 kilo litres 

p.a. Similarly the flow rate per minute in 

the wash basin has been brought down to 

2 litres per minute as opposed to 6 litres 

earlier. It is imperative to keep in focus the 

fact that when water is saved, energy too 

is being saved! 

There is a great need for using different 

forms of renewable energy, especially solar 

technologies, as the sun shines universally 

and has the capacity of generating power 

in a decentralised fashion for a large 

number of the population who are off-grid. 

Now there is a thrust for developing 

solar technologies with higher output 

and lower cost coupled with feed-in tariff, 

which helps in accounting the high cost of 

technology. Over a period of time such 

innovative subsidies have helped to create 

economies of scale to bring down the cost 

of new technologies - as the cost of fossil 

fuel is rising sharply and availability is 

declining. In 1996, a solar lantern with a 

solar panel used to cost INR 5,000. Today 

with the help of LED lights the cost has 

come down to INR 1,500! 

Material Management 

Material resource management is another 

area of great opportunity where there is 

head room for improvement in reducing 

consumption. The so called waste can 

be converted into wealth by developing 

industrial clusters with complementary 

needs, as has been done at the Kalundborg 

industrial cluster in Denmark. Ecodesigned 

tools can be employed by all 

stakeholders for re-thinking their design 

and for de-materialisation. 

In addition to the above issues, it is 

imperative that inequity in the society 

need to be bridged by social innovation 

through large and small industries, so 

that we may avoid social upheaval and 

restlessness among the youth on account 

of paucity of opportunities, as is being 

seen in different parts of the world today. 

ITC Hotels as part of its Responsible 

Luxury philosophy has been working 

constantly to enhance the use of green 

energy, reduce waste, water and material 

consumption. ITC Hotels is taking 

steps to provide vocational training to 

underprivileged sections of society by 

employing people with disabilities and 

has published a book on ‘how to employ 

people with disabilities’, as information 

for the rest of the industry. 

Such simple practices if emulated by 

other organisations will help in turning 

the tide towards positive and inclusive 

growth covering economy, environment 

and uplift the fabric of society in general. 

I will end my viewpoint with a quote by 

Rober Schuller, who said, “Anyone can 

count seeds in an apple, but only God can 

count the number of apples in the seed.” 

(The writer is General Manager, 

WelcomEnviron Initiatives, ITC 

WelcomGroup) 



[ Chef Talk ] 

Indian platter 

with an Italian touch 

Q. From northern Italy to India’s growing hospitality 

market and political power centre Delhi, how have 

you evolved through food? 

Cooking for me is a passion that runs in the family. I grew up in 

Merano where food is a deep part of our culture. The culture 

of a city and the country plays a vital role in determining the 

food habits. After obtaining my culinary degree from a hotel 

school in Merano and thereafter polishing my skills at several 

fine dining restaurants in Italy, I realised there is nothing more 

divine than cooking palatable food for people. While Italy has 

its own palate, India has diverse cuisines and customs. I have 

travelled to many countries in order to learn diverse techniques 

of cooking. However, serving the vivid taste buds in India has 

been an experience. 

Q. Hilton Janak Puri New Delhi was your first pitstop 

in India. How was the experience? Which critical 

aspects did you learn about India and Indian food that 

is coming handy in your stint at the new hotel? 

After 17 years of experience with Hilton, I took up the 

opportunity at Hilton New Delhi/Janakpuri which was my debut 

in India. The experience at Hilton Janakpuri has been extremely 

enriching and worthy. The assortment of Indian spices, herbs 

and vegetables represents the diverse ethnic demographics. The 

most fascinating part of Indian cuisine is the availability of a 

wide variety of vegetarian food items. 

Q. Kindly share the kind of food outlets that you have 

developed for Doubletree by Hilton New Delhi Mayur 

Vihar? 

From Pasta land to Parantha land for Theodore Rudiferia, 

Executive Chef, Doubletree by Hilton New Delhi Mayur 

Vihar, it’s been an exciting culinary journey till now. Having 

perfected the classic Italian dishes, this phenomenal chef 

has now ventured out and created many classic cult Indian 

dishes. Swearing by the mantra of adapting to Indian 

ingredients, flavours and concepts, the Chef tells Megha Paul 

& Sanjeev Bhar about his role in preparing food, developing 

recipes, determining serving sizes, planning menus, ordering 

food supplies and overseeing kitchen operations to ensure 

uniform quality and presentation of meals. 

After my stint in Janakpuri, I fell in love with the country and 

chose to take on the challenge of handling the twin properties 

in Mayur Vihar -- DoubleTree by Hilton New Delhi-Noida- 

Mayur Vihar and Hilton New Delhi-Noida-Mayur Vihar as the 

Executive Chef. 

At Hilton we have a multi-cuisine restaurant called Infinity. 

The DoubleTree by Hilton offers an American diner called 

Roadhouse Bar and Grill and 24-hour cafe called Café on 3. 

Another North Indian restaurant called S.P.I.C.E is also on the 

anvil here. The restaurants here have been placed keeping in 

mind the people around the area and footfall of the global guests. 


[ Chef Talk ] 

Q. In recent times, chefs are expected to be more creative 

and detail-oriented while maintaining complete control over 

the flavour, presentation and the whole dining experience. 

Will these challenges erode the simplicity and elegance 

factors in a dish? 

In my opinion, cooking traditional dishes with the best ingredients and the 

best cooking techniques specific to its country is the best form of cooking. 

Creativity should not hamper the taste of the dish. Rather it is meant to 

raise the standards in terms of presentation. I believe the elegance and 

simplicity is best displayed when the chef understands the herbs and 

spices of the particular country and serves the same to the guests with his 

personal twist, which would add to the value of the dish. 

Q. In hotels, menus are standardised. Yet food cooked by 

different hands taste differently. Do you think chefs are 

handcuffed in terms of creativity in a hotel environment? 

Well, menus are standardised for a reason. However, I have a huge role in 

deciding the dishes that would be part of the menu in our restaurants. In 

fact to provide variety and best of the dishes to our guests, we keep changing 

our menus. My personal gastronomic philosophy is to offer guests a cuisine 

in which the flavours of the ingredients are given paramount importance. 

The outcome is a cuisine that is remarkably natural, yet luxurious and 

created with passion. 

Q. What has been the most challenging aspect for you after 

being in different geographies and thereby, shifting from one 

work culture to another? 

I won’t say challenging but the most endearing aspect of shifting between 

geographies of the world has been to blend my techniques of cooking with 

that particular country and adapt to its culture accordingly. 

Q. What is the trend you foresee taking shape in the Indian 

diet pattern/cuisine culture? 

I see a lot of healthy cuisine, low fat/low cholesterol cuisine, organic 

products’ cuisine that is gradually developing and would be the 

future trend. 

Chef’s Choice 

This dish is one of my personal favourites and has 

been specifically prepared keeping the Indian 

palate in mind. 

Porcini Mushroom and Roasted 

Garlic Soup 

Ingredients: 

• Fresh Porcini Mushrooms or 30 gms dried 

Porcini – 3 pieces 

• Garlic – 2 bulb 

• Onion chopped – ½ piece 

• Dry white wine – 50 ml 

• Vegetable stock – 750 ml 

• Fresh cream – 100 ml 

• Olive oil – 10 ml 

• Butter – 20 gms 

• Spring fresh Thyme – 1 piece 

• Flour – 10 gms 

• Parsley chopped 

• Salt and white pepper powder to taste 

Method: 

• Peel the outer layers of the garlic bulb, cut in 

half and sprinkle with salt and olive oil. Roast 

in the oven at 180°C for about 30 minutes. 

Allow to cool down and with a small knife take 

the roasted garlic cloves out of their skin. 

• Clean the Porcini Mushrooms and cut into 

small pieces. If you use dried Porcini, soak 

them in warm water for 15 minutes and use 

that water for the soup. 

• Saute onion and Porcini Mushrooms in butter 

until the Porcini Mushrooms are soft. Season 

with salt and pepper, dust with flour and add 

a dash of dry white wine. Allow the wine to 

evaporate, add the vegetable stock and the 

Thyme and let simmer for 20 minutes. 

• Remove the spring of Thyme, add the cream 

and the roasted garlic and simmer for another 

5 minutes. Blend with a hand mixer, adjust 

seasoning if necessary and serve with freshly 

baked Tuscan white bread. 



Crafting 

future online 

Online MBA in hospitality enables managers to continue with their job 

and simultaneously allowing them to broaden their managerial skills to 

take their career forward. Recently, Glion Institute of Higher Education 

Switzerland launched its online MBA programme. 

Sanjeev Bhar 

Glion Institute of Higher 

Education (GIHE) Switzerland 

launched its online MBA 

programme in August 

2010 with an aim to offer a platform to 

those working professionals in mid to 

senior management level, in hospitality 

industry, for higher education that they 

always aspired for. This year, the institute 

embarked on its journey to India and in 

the form of an association with Taj Hotels, 

Resort and Palaces, has launched in India 

an online course. Speaking about the 

launch of this new avenue for the Indian 

hospitality working professionals, Anouk 

Tenten, Partnership Manager, Glion 

informs, “25 Taj managers have joined the 

online MBA Programme of 2011 following 

our association with the hotel group.” 

As with most educational programmes, 

MBA lessons have traditionally been 

delivered face to face in the classroom and 

there are good reasons why this should 

continue. According to Glion, the MBA 

qualification is strongly associated with 

quality lectures from top professors and 

active discussion and debate in the classroom 

among, preferably, more experienced and 

relatively mature professionals. However, 

the demand for MBA has for many years 

prompted greater supply and the desire to 

have more flexible and less expensive options 

has led many educational institutions to 

offer first part-time programmes and then 

distance learning programmes and now 

online programmes. 

This trend has therefore increased 

both the supply and diversity of delivery 

modes for the MBA qualification, which 

suits an increasingly growing and diverse 

population of managers. Tenten says, 

“India receives over five million visitors and 

has a base of 562 million domestic travellers. 

Tourism contributes INR 3680.4 billion to 

India’s GDP. In future it is only going to 

contribute more to India’s economy and 

more importantly, tourism’s contribution to 

employment generation which is immense. 

In such a scenario, it is vital that managers 

are trained to take care of hospitality and 

other related fields who can then take 

over as leaders. Sarosh Daruwalla of KIC 

Hospitality, that represents GIHE in India 

says, “Today, managers’ role has changed to 

becoming asset managers with critical focus 

on ROI. The demands have broadened 

where the managers have to take more 

responsibilities, financial risks, manage in a 

better way the available resources & people 

and become innovative & competitive in 

overall operations.” Hence, he adds, they 

need to address the various management 

roles and through right knowledge, the 


existing professionals can be given the 

opportunity to take the leadership role and 

be prepared for future responsibilities. 

Corporates have been included in 

the programme. There are seven core 

courses and three specialised courses. 

Glion has also introduced a 2½ years 

part time course. “We have developed the 

curriculum in association with corporates, 

hotel chains, etc. after understanding their 

needs. We are presently enrolling for 2012 

batches that will begin from January 23, 

April 23 and June 11.” Daruwalla informs 

that the institute is looking at those 

professionals having an average of 5-8 

years on the job training as the minimum 

requirement in mid-management. 

The standard of courses is very high, 

according to Arti Jain, Manager Business 

Excellence, The Taj Mahal Hotel, New 

Delhi and current online MBA student via 

the partnership. She says, “The fact that I 

get to interact with lots of students from 

the hospitality industry from different 

countries online, give a perspective, vital to 

my growth. It allows one to communicate 

with other students through Internet and 

get a refreshing perspective for the study 

as different students react differently and 

offer solutions accordingly, which is a 

learning process for me.” 

“All programmes emphasise on the 

development of generic thinking skills, 

the understanding of contemporary 

management theory and the integration 

of theory and practice. The ‘Glion 

Spirit’ and GIHE’s academic 

programme prepare for rapid progress 

to international managerial positions,” 

says Tenten. In the core courses, students 

have to go through an applied business 

project that can focus on solving a real 

problem faced by the organisation the 

student is working with. 

Why Go Online? 

Tenten suggests, younger managers 

Sarosh Daruwalla 

who can afford to leave the workplace 

to upgrade their professional profile by 

doing a full-time MBA programme have 

different needs than the many more 

executives who may not want to give up 

their jobs and careers and may even have 

domestic or financial obligations which 

do not allow them to travel or relocate for 

study reasons. 

The online student body at Glion 

comprises of over 150 students with 48 

countries represented and students bring 

between 5-15 years’ industry related 

work experience into the learning forum. 

There are 21 dedicated faculty members 

teaching online, with student to teacher 

ratio of 15:1. However, all managers 

still want to be assured that their MBA 

programme and qualification are worthy 

of their name and price. 

There is in fact no official ranking of 

MBA programmes but the Press often 

produce their own (conflicting) rankings 

and good business schools would assure 

the quality of their programmes through 

independent accreditation schemes, 

according to the institute. Additionally, 

some educational institutions or MBA 

programmes would simply become 

known for their quality through other 

mechanisms, such as the reputation 

of their alumni members, their host 

universities, their teaching faculty, or 

through their research output, their 

accreditations, or even graduates post- 

MBA salaries. There are in fact many 

ways that a potential MBA applicant 

can review their options, with - in reality 

- a plethora of choices, though such an 

investment for any manager does need 

careful consideration. Daruwalla informs, 

“Glion’s online course has already 

gathered momentum within a year with 

more than 150 students enrolling from 

over 40 countries. 40 Indian students 

have enrolled overall including that from 

Taj Hotels.” 

Anouk Tenten 

Academic Programmes 

Offered 

Glion Institute of Higher Education is 

accredited at university level by the 

New England Association of Schools 

and Colleges (NEASC) in the USA. It 

offers a range of academic programmes 

on campus in Switzerland and five 

academic and professional online 

programmes through its partnership 

with Laureate Online Education. 

Online Programmes: 

Programme 1 

• Online MBA in International 

Hospitality & Service Industries 

Management with General 

Management for Service Industries 

(starts 5 times/year) or Online 

MBA in International Hospitality 

& Service Industries Management 

with Marketing and Innovation 

(starts 5 times/year) or Online 

MBA in International Hospitality 

& Service Industries Management 

with Asset and Revenue 

Management (starts 5 times/year) 

• Duration - 2.5 years (Part time) 

• Language - English 

Programme 2 

• Online Post Graduate Diploma in 

International Hospitality & Service 

Industries Management (starts 5 

times/year) 

• Duration - 2.5 years (Part time) 


Programme 3 

• Online Post Graduate Certificate in 

International Hospitality & Services 

Administration (starts 5 times/year) 

• Duration - 15 months 


Programme 4 

• Online Professional Development 

Diploma in International Hospitality 

& Services Administration (starts 2 

times/year) 

• Duration - 2.5 Years 


Programme 5 

• Online Professional Development 

Certificate in International 

Hospitality & Services 

Administration (starts 2 times/year) 

• Duration - 15 months 


[ Online ] 



[ Taxation ] 

Subhash Lakhotia 

Tax and Investment Consultant 

Director, M/s. R.N. Lakhotia & Associates & 

The Strategy Group 

Elements in PF & the IT Law 

Many a times a question that arises in the minds of the salaried 

employees relating to the circumstances in which the employee 

may withdraw the amount from Recognised Provident Fund 

Account especially before retirement. In this context, it may 

please be noted that the Income-tax Law as per Rule 68 of 

Income-tax Rules there are some of the important circumstances 

where the employees may be allowed by the Trustees of the 

recognised Provident Fund to withdraw the money: 

• To pay expenses incurred in connection with illness of the 

employee or member of his family 

• For meeting the cost of higher education of dependent 

children 

• Expenses in connection with marriage, funeral or other 

ceremony as per the religion of the employee 

• To meet the expenditure on building a house or purchasing 

a site or a house 

• For repayment of the loan previously raised for construction 

or purchase of the house 

• To meet household expenses especially if the factory or 

the place where the employee is working is locked up or 

closed down 

All those persons who would like to avail the facility of 

withdrawing the money from the recognised Provident Fund 

should carefully go through Rule 68 of Income-tax Rules, 1961 

so that by taking advantage of the provisions mentioned in the 

above rule, one can take the benefit of withdrawing the money 

from the Recognised Provident Fund. It may also be noted that 

for the purpose of this Rule ‘family’ means any of the following 

persons who are wholly dependent on the employee, namely the 

employee’s wife, legitimate children, step children, parents, sister 

and minor brothers. In case the employee has taken interest on 

loan specially at higher rate for making investment in the house 

property, then it really makes sense to withdraw the money from 

the Recognised Provident Fund and make payment of high 

interest debt relating to house property. 

A question that arises in the minds of the salaried employees 

relating to taxability or otherwise of the money received by 

them from the Recognised Provident Fund. In this connection, 

the employees may kindly note that generally speaking as per 

section 10(12) of the Income-tax Act, 1961 the accumulated 

balance due and becoming payable to an employee participating 

in a recognised Provident Fund is exempt under the Income-tax 

Law. However, the extent to which it is exempted is mentioned in 

greater detail in Rule 8 of Part A of the Fourth Schedule to the 

Income Tax Act. Once we screen the provisions contained in the 


[ Taxation ] 

said Rule 8, we find that the accumulated balance received 

from the Recognised Provident Fund would be tax free in 

the hands of the employee but only in certain circumstances 

the same would be liable to be included in income of the 

employee. These are some of the important situations and 

circumstances in which the accumulated balance will be 

liable to be taxed as income of the employee: if the employee 

has not rendered continuous service with his employer for 

a period of five years or more. However, this condition will 

not be applicable if the service of the employee has been 

terminated by reason of the employee’s ill health or by the 

contraction or discontinuance of the employer’s business. 

Likewise, due to cessation of employment for a period 

of less than five years if the employee obtains employment 

with any other employer and the amount of accumulated 

balance due and becoming payable to him is transferred to 

his individual account in another Recognised Provident Fund 

maintained by another employer, even then the amount will 

be excluded. In brief the employees may kindly remember 

that if they leave the job in less than five years time and 

withdraw the money accumulated in a Recognised Provident 

Fund, the same will be liable to tax as income of the year. 

However, if the employment is left within short period, 

always try to ensure that you take the accumulated balance 

in the Recognized Provident Fund to another Recognised 

Provident Fund and thus save your tax. 

Another important point which the employees in particular 

should remember about the Recognised Provident Fund is 

The employees may 

kindly remember that if they 

leave the job in less than 

five years time and withdraw 

the money accumulated in a 

recognized Provident Fund, 

the same will be liable to tax 

as income of the year 

has a family, such nomination shall be treated as invalid. But 

the employee may be allowed to make a fresh nomination 

in favour of one or more persons belonging to his family. 

Please note that the nomination change can be reflected by 

filling up Form No. 40B. Finally, if the nominee pre-deceases 

the employee, the interest of the nominee shall revert to the 

employee who shall now make fresh nomination. The above 

mentioned important points should always be kept in mind 

by the salaried employees to enjoy investment in Recognised 

Provident Fund in the most befitting manner. 

In certain situations the 

accumulated balance will be 

liable to be taxed as income 

of the employee if the 

employee has not rendered 

continuous service with his 

employer for a period of five 

years or more 

with reference to nomination rules and regulations. Well, 

Rule 67A of the Income-tax Rules contain clear cut specific 

provisions concerning nomination under the Recognised 

Provident Fund. Generally the nomination for the purpose 

of Recognised Provident Fund may be made in Form No. 

40A of Income-tax Rules. In case the employee nominates 

more than one person as his nominee, then he shall specify 

the amount or share payable to each of the nominees so that 

the full amount can be distributed accordingly. Likewise, if an 

employee has a family, at the time of making the nomination, 

the nomination shall be in favour of one or more persons 

belonging to his family. Hence, any nomination made by the 

employee having a family in favour of a person not belonging 

to his family shall be invalid. Finally, if at the time of making 

a nomination, the employee has no family, the nomination in 

favour of any person is valid but if the employee subsequently 



[ Movements ] 

Movements 

Fumiko Yasuda 

Complex Japanese Business Development Manager 

The Westin Gurgaon, New Delhi and The Westin Sohna, 

Resort and Spa 

The Westin Hotels & Resorts is delighted to announce 

the appointment of Fumiko Yasuda as the Complex 

Japanese Business Development Manager for The 

Westin Gurgaon, New Delhi and The Westin Sohna, Resort and Spa. Fumiko brings 

a comprehensive understanding of the Japanese business culture to the Westin. 

Prior to joining the Westin she was closely associated with Japan Airlines and 

travelled extensively to Milan, Amsterdam and Singapore. 

Fumiko Yasuda on being part of The Westin, said, ”Westin is already a popular 

traveller’s destination with its strategic location and world-class service. I am 

confident I can contribute positively to take it a notch ahead.” Fumiko enjoys Yoga 

in her leisure time and is passionate about wines, travelling and cooking. 

Tapan Nanda 

Additional GM Sales 

Jaypee Hotels 

Salvatore De Vincentis 

Executive Italian Chef 

The Imperial New Delhi 

Chef Salvatore De Vincentis is the newly 

appointed Executive Italian Chef at 

Mezzo Mezzo, the Italian restaurant 

at JW Marriott Mumbai. He has over 

23 years of experience having worked 

in various countries across popular 

restaurants and hotels around the world. 

Before joining JW Marriott Mumbai, 

Chef Salvatore worked as the Executive 

chef of Paparazzi, located at Edsa 

Shangri-La Hotel since June 2009. 

During his tenure, he was responsible 

for revamping the restaurant into a 

luxury dining destination. Prior to 

working at the Edsa Shangri-La Hotel, 

in 2008 Chef Salvatore worked in 

Grand Hyatt, Dubai and in 2007 at 

the Sheraton Amman, Jordania as the 

Specialty Italian Chef. 

Since 1988 when he started 

working as a chef at a restaurant in his 

hometown, Chef Salvatore has worked 

in various capacities in famous hotels 

and standalone restaurants across 

Bahamas, Florida, Jamaica, Italy and 

Spain and as well as Tajikistan. 

P Ramachandran 

Hotel Manager 

Le Meridien Coimbatore 

Keeping up with its legacy of bringing the finest talent 

onboard, Jaypee Hotels announced the appointment of 

Tapan Nanda as Additional General Manager – Sales, 

Jaypee Hotels. 

Tapan Nanda, a hotelier with 18 years of enriching 

experience in many aspects of the hospitality industry, has 

hands on experience with international hotel brands like Holiday Inn, Hilton and 

the InterContinental Hotels Group. 

With an enormous experience of handling the Asia Pacific market, Nanda 

embarks on his association with the Jaypee Hotels. Driven by a strong will to 

perform, he is entitled to oversee Travel sales business for Jaypee Hotels and 

ultimately develop business for the division. 

Le Meridien Coimbatore has recently appointed 

P Ramachandran as the Hotel Manager. With an experience 

of more than a decade in the hospitality industry, his expertise 

lies in F&B management, facility planning of F&B spaces 

and in-flight catering. Prior to Le Meridien Coimbatore, 

Ramachandran was the F&B Director at Le Royal Meridien 

Chennai. He has also worked at ITDC as a Regional Executive Chef and at the Grand 

Ashok as a Senior Executive Chef. He was the first to complete 3 Six Sigma Projects 

with the Le Meridien Hotels in India and holds a green belt in Six Sigma. He has been 

recognised for vocational excellence by the Rotary Club Bangalore and rendering 

service par excellence in catering. Ramachandran will play a critical role in setting 

service standards for the overall guest experience at Le Meridien Coimbatore. 


[ Movements ] 

Thomas Guss 

General Manager 

JW Marriott Mumbai 

Thomas Guss is the newly appointed General Manager of JW Marriott Mumbai. With over 

24 years of experience, Thomas has worked with renowned brands across the world such as 

Starwood, Movenpick, Renaissance Group and Marriott Group Hotels. 

Thomas joined Marriott in 1998 as Director Food and Beverage at the first Courtyard by 

Marriott in Neuilly sur Seine, during Nicolas Sarkozy’s term as Mayor of the city. After spending 

more than three years here Thomas moved to Egypt as Director Food and Beverage and 

managed Marriott’s biggest international hotel operation at Marriott, Cairo with an inventory of 

1250 rooms, 16 Food and Beverage outlets and a Casino. He was elevated as General Manager 

in 2004 at the Renaissance Alexandria. He relocated to Berlin thereafter where he managed Marriott, flagship hotel in Europe 

sharing the same location and team with Ritz Carlton. In the kitchen of Paris is where Thomas began his career before he 

achieved his culinary professional certificate. He started working at the Renaissance Group under a management training 

programme and moved across many countries including France, UK, Egypt and Germany. 

Sandit Shah 

New Director of Revenue & Marketing 

Swissôtel Kolkata 

Sandit Shah has been appointed the 

new Director of Revenue and Marketing 

of Swissôtel Kolkata, the internationally 

renowned Swiss hospitality chain’s 

maiden property in India. With a 

career spanning 17 years with various 

prestigious hotel companies across 

India, Sandit Shah brings with him 

extensive experience and strong 

networks with the corporate and travel 

trade. His career began with Bass 

Hotels & Resorts and until recently he 

was with Holiday Inn Cochin as Director 

of Sales & Marketing. 

Sandit Shah’s previous expertise in 

Business Development, Operations 

Management and Guest Services will 

place him well in this role, to head 

the Sales & Marketing, Revenue and 

Reservation departments in Swissôtel 

Kolkata. 

V Shyam Sunder 

F&B Manager 

Novotel Hyderabad Convention Centre and Hyderabad 

International Convention Centre (HICC) 

Novotel Hyderabad Convention Centre and 

Hyderabad International Convention Centre (HICC) 

has recently announced the appointment of V. Shyam 

Sunder as F&B Manager. Sunder has been a part of 

the Accor family since 2006, when this 5-Star property 

opened in Hyderabad. He was associated with 

NHCC & HICC in the capacity of Executive Chef and now has been promoted as 

F&B Manager. Sunder comes to Novotel Hotel with a wealth of experience. He 

joined this property in February 2006 as the Executive Sous Chef and has been 

associated with Accor for more than five years now. As a chef he has played a very 

instrumental role during the pre-opening stage of the property. Heading a team 

of more than 100 culinary professionals, now he not only brings good food to the 

table but creates drama and experience in all the Food & Beverage outlets. 

Sunder has also contributed towards opening of F&B outlets of Accor properties 

across Andhra Pradesh. Apart from launching some of the popular outlets in 

Novotel Hyderabad Convention Centre, like The Square & La Cantina, he has 

also had experience in handling national and international events being part of 

Hyderabad International Convention Centre. 

Paul Gomes 

General Manager 

Sarovar Portico Rajkot 

Paul Gomes has been appointed General Manager of 

the recently launched Sarovar Portico in Rajkot. 

A Hotel Management Diploma holder, Paul brings 

with him over a decade of professional experience 

in the hospitality sector. He started his career with 

the ITC WelcomGroup as front office supervisor in 

Mughal Sheraton Agra and thereafter moved to the Intercontinental Group. His 

last assignment was with Hotel Heetal Plaza, Kabul as General Manager. 

As the General Manager of Sarovar, Portico Rajkot, Paul will be responsible for 

the day-to-day operations. 



[ Environment ] 

TERI organises National 

Conference on renewable 

energy for hospitality 

The conference was organised to officially launch the online tools developed by TERI for the 

hospitality sector. These simple and user-friendly tools will help hoteliers and hotel personnel 

to assess the pre-feasibility of installing renewable energy systems at their facilities 

A 

National Conference on 

‘Campaign on Solar water 

heating and other Renewable 

Energy technologies in the 

hospitality sector’ was organized by TERI 

at India Habitat Centre, New Delhi, 

on 21 October 2011. The conference 

was organised to officially launch the 

online tools developed by TERI for the 

hospitality sector. These simple and userfriendly 

tools will help hoteliers and hotel 

personnel to assess the pre-feasibility of 

installing renewable energy systems at 

their facilities. The technologies covered 

by the tool include – solar water heating, 

solar photovoltaics, solar steam generation, 

biogas from kitchen waste, and energy 

conservation measures. 

The conference was inaugurated 

by Mr. Tarun Kapoor, Joint Secretary, 

MNRE. He delivered the inaugural 

address and launched the online tools that 

have been developed for users to do the 

prefeasibility assessment of various RE 

technology and ECM measures. Mr. Amit 

Kumar, TERI, delivered the welcome 

address and discussed the importance of 

this project. Mr. M. D. Kapoor, Secretary 

General, FHRAI, briefed the participants 

on the importance of adoption of 

renewable energy by hospitality sector. 

Dr. A.K. Singhal, Director, MNRE 

apprised the participants on various 

policies and programmes by MNRE to 

support renewable energy technologies. 

Dr. S.N. Srinivas, UNDP discussed the 

global importance of this project. The 

functionality of the online tools was 

demonstrated by TERI and discussed 

in detail with a very active audience. 

Representatives of the hotel industry (ITC 

Maurya, LeelaKempinski, and Green 

Leaf Hotel) presented their experience 

in using solar hot water systems. Industry 

representatives from Intersolar, SolPower, 

Nogginhaus Energy India Pvt. Ltd, and 

TERI explained the nitty-gritties of 

using renewable energy systems. All the 

presentations were very well received 

and enthusiastically deliberated. The 

conference was attended by about 50 

participants from hotels, renewable energy 

industries, and other organisations. 

The project has been jointly carried out 

by TERI and Federation of Hotels and 

Restaurants Associations of India (FHRAI) 

on behalf of Ministry of New and 

Renewable Energy (MNRE), Government 

of India. It is part of the Global Solar 

Water Heating Project of United Nations 

Development Programme – Global 

Environment Facility (UNDP-GEF). 


[ Profile ] 

Taking FIHM towards 

self sustenance 

Navin Kumar Nanchahal has taken over the charge of FHRAI Institute of Hospitality 

Management (FIHM) as Director and aims to take the institute to a new high. 

The AICTE approved 

FHRAI Institute 

of Hospitality 

Management (FIHM) 

Greater Noida has appointed 

its new Director, Navin Kumar 

Nanchahal. He has taken 

charge on November 1st, 2011. 

Nanchahal is a Gold 

Medalist in Bachelor of 

Commerce and has to his credit 

a Master’s Degree in Business 

Administration, a Certified 

Hospitality Educator (CHE) 

by AH&LEI and a qualified 

Cost Accountant. He has a glorifying and valuable experience 

of almost four decades of industry and academia. 

He worked as a Sr. Lecturer for Management & Law subjects 

in Institute of Hotel Management – Pusa, New Delhi from 1974 

– 1989, where he held various positions and also extended his 

services in National Council (NCHMCT), Ministry of Tourism, 

Govt. of India. He was then assigned responsibility to take 

charge of Food Craft Institute – Udaipur, Rajasthan as Principal 

from 1989 – 1998, where under his stewardship the institute was 

given a State award for outstanding achievement in bringing 

up the standards of hospitality education. Nanchahal was then 

given a challenging role to play at Dr. Ambedkar Institute of 

Hotel Management, Chandigarh, for stabilizing the institute as 

a Principal from 1998 to Oct 2011. 

He has been a role model for various IHMs across the country 

for pro-founding the idea of self reliance and initiated various 

regular & short term courses along side supporting the noble 

cause of the Govt. of India’s initiative of Mid Day meal scheme 

and served around 25000 pax per day. 

He has to his credit of generating surplus of Rs. 15.5 crores 

at IHM Chandigarg during his tenure, and was thus given a 

State award and was even felicitated with a National award for 

his undoubted contribution to the Indian hospitality education 

under the Best Administrative Performance category. He has 

conducted various training programmes and done consultancy 

projects for organizations of repute, like SIDCO. 

Nanchahal, in his inaugural address on the eve of 7th Founder’s 

Day of the FHRAI Institute of Hospitality Management on Nov 

3rd, 2011, shared his vision and mission of making the institute 

‘Self Sustainable’ and bringing it to the international standards 

in imparting hospitality education. 



[ Events ] 

United Breweries launches Sahara Force 

India commemorative Kingfisher cans 

India’s best selling beer, Kingfisher 

launched limited edition Sahara Force 

India commemorative Kingfisher 

Premium & Kingfisher Strong cans 

to celebrate the sport. These limited 

edition packs were unveiled by Sahara 

Force India drivers Adrian Sutil and 

Nico Hulkenberg. The unveiling 

was done amidst celebration and 

cheer as both Sutil and Hulkenberg 

were ushered in with the beats of a 

scintillating percussion performance. 

Commenting on the launch, Samar 

Singh Sheikhawat, Senior Vice 

President Marketing, United Breweries 

Ltd. said, “We are anticipating a 

thrilling weekend of racing and 

Kingfisher will spread ‘cheers’ via the 

exclusive beer at this ‘most coveted 

event’ of the year. The Kingfisher 

commemorative cans are a way of 

demonstrating our commitment to the 

sport and renewing our promise to our 

patrons.” 

The Leela Palace New Delhi 

and Ferrari host eminent 

Ferrari pilots 

The Leela Palace New Delhi in association with Ferrari India hosted an exclusive 

gathering to celebrate the sporting spirit of the Formula 1 mania gripping Delhi. The 

reception was organised in the honour of welcoming the eminent Ferrari pilot, Felipe 

Massa, to India. The event took place on October 25 at The Leela Palace New Delhi 

over drinks and canapés amidst much fanfare. Tamir Kobrin, General Manager, The 

Leela Palace New Delhi was pleased to Massa to for the Formula 1 Grand Prix and 

was sure that the cars showcased prior to the event would generate the required 

adrenalin boost for the mega event. 


Taj Hotels revives forgotten traditions 

through its uniforms 

Recently, Taj Palace Hotel and The Taj Mahal Hotel staff donned the wonderful new creation of Benares weaves. Benares, a 

city where the threads of culture are woven into the fabric of history today known as Varanasi, situated on the banks of the holy 

Ganges. It is one of the oldest Hindu living cities in the world, having provided succor and hope to millions of believers. In many 

ways, the story of Varanasi is the story of sustenance. 

The tradition of the hand-woven fabric has been replaced by power-looms, where prints have replaced the finesse and intricate 

beauty of the master craftsman’s weave, as against the days when each weave was a work of customised, individual art to be 

treasured and preserved. Till a while back the master-weavers of Benares were facing neglect and penury, however today The 

Taj has ensured a livelihood for these master weavers 

FCML Store 

awarded 

FCML’s flagship store, The FCML Store, Sultanpur, New Delhi has 

been awarded the ‘Best Showroom Award 2011’ at Cersaie, the 

most important ceramic tiles and bathroom furnishings fair in the 

world. The Award has been rated by: AIPi, Angaisa, Assobagno, 

Bathroom Design, Cersaie, Confindustria Ceramica and FEST. 

Abhinav Khandelwal, Managing Partner, FCML Projects said, “It 

is only thanks to your support, encouragement and trust that 

we have been able to invest, create and give such standards of 

excellence back to the industry.” The FCML Store recently also 

added a very futuristic dimension to our Luxurious Bathrooms 

space that brings in elements of art and lifestyle. 

Abhinav Khandelwal, Managing Partner, FCML Projects 

receiving the award at Cersaie 2011 



[ Events ] 

Le Meridien New Delhi 

hosted Master Barista 

Fritz Storm 

GITM held 

successfully in Goa 

Le Meridien held an event titled ‘A New Perspective Event’ 

on the November 2, 2011 at their Caffe e Chocol’art. ‘A New 

Perspective’ event series at Le Meridien highlights artists for 

an interactive experience exploring a cultural specialty and 

allows guests to gather new insights and stimulate dialogue. 

Fritz Storm, Master Barista and LM 100 Member provided 

the secret of presenting better coffee experience, from the 

quality of the coffee bean to the ambience and surroundings 

in which the coffee is drunk. 

Goa International Travel Mart - GITM, held in October 

21-23, 2011 at the Grand Hyatt to make international travel 

trade aware of the new products, unique itineraries and the 

way the state is promoting itself as a refreshing new brand. 

Ratan Marothia, President, FHRAI was one of the speakers 

during the business sessions of the mart. 

Topmost F1 

drivers at Jaypee 

Greens Golf & 

Spa Resort 

During the recently concluded First Indian Grand Prix 

2011 in October, Jaypee Greens Golf & Spa Resort, 

Greater Noida hosted the F1 stars and who’s who of 

the world. Built on 9 acre lush green abode on the 

Greg Norman designed championship Golf Course, 

located amidst 450 acres of lush greenery, Jaypee Greens Golf and Spa 

Resort has been the centre stage of activities for the country’s maiden 

Indian Grand Prix. Splurging the Speed Machines – Sebastian Vettel, 

Michael Schumacher, Felipe Massa, Fernando Alonso, Mark Weber, 

Nico Rpsberg, Karan Chandok, Narain Karthikeyan, Paul Di Resta and 

many more enjoyed the Indian hospitality. Manju Sharma, Director – 

Jaypee Hotels, remarked, “The unparalled experience at the Jaypee 

Greens Golf & Spa Resort has been etched forever in our guests’ minds 

and much appreciated by one and all. It has been a proud moment for 

the entire Jaypee Group. It has further strengthened the meaning of 

Indian hospitality, i.e. ‘Atitho Devo Bhava’ on the global map.” 


RNI No. DELENG/2000/1230 

Posting Date 15-21/08-2011 

Reg. No. DL-(C)-01/1294/09-2011 at MBC-1

FHRAI Magazine - Federation of Hotel and Restaurant Associations ...

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