Ibis and Ibis Styles India had 10% YoY growth, and Tejus Jose thinks the country’s prospects for the next quarter and fiscal year are still favorable

According to Tejus Jose, Director of Operations, ibis and ibis Styles India, ibis Hotels, a joint venture between InterGlobe Enterprises and Accor Asia Pacific, has grown by 10% over the previous year. Improved rates have played a major role in this increase. The company’s revenue numbers for 2023 are expected to be surpassed, demonstrating the efficacy of its strategic efforts and its response to the market. In an interview with FinancialExpress.com, Tejus Jose stated, “Looking ahead, the growth outlook for the next quarter and the entire financial year remains optimistic as the company continues to leverage its strengths and capitalize on market opportunities to sustain and potentially exceed this positive trajectory.”

Since its launch, the ibis brand has grown to become a network of 23 hotels spread over 14 Indian cities. The brand has more than 2200 hotels worldwide in more than 70 countries. The goal of the 2004-founded joint venture between InterGlobe Enterprises and Accor Asia Pacific is to build a network of “ibis” hotels in Bangladesh, Nepal, India, and Sri Lanka. Through this cooperation, Accor’s worldwide hotel portfolio and InterGlobe’s hospitality experience are combined. As a result of this joint venture, Accor now runs 61 hotels throughout India and South Asia under ten different operating brands, including ibis, ibis Styles, Grand Mercure, Novotel, Pullman, Raffles, and Fairmont.

Since its groundbreaking introduction at the Gurgaon Golf Course in 2008, ibis hotels have become a mainstay of Indian hospitality. Accor launched the ibis brand in a joint venture with InterGlobe Hotels (IGH), and it has grown to be a network of 23 hotels spread across 14 energetic Indian cities, exhibiting an impressive development trajectory. The core of ibis is about establishing an atmosphere that is friendly, cool, modern, attentive, and proactive for our guests—it’s not simply about giving them a place to stay. We are proud to uphold these ideals in each of our more than 2200 hotels spread across more than 70 nations.

Our hotels are situated in the most convenient locations possible, making it easy for visitors to go about and take in the surroundings. Our rooms are also carefully planned to be Instagram-worthy, providing our visitors with a visual feast and ensuring that their stay is both comfortable and beautiful.

In Goa’s Vagator, you just opened your newest Ibis resort. What is its unique selling point? How is it doing in terms of foot traffic, reservations, etc.?

The 23rd ibis hotel in India and our newest addition, ibis Styles Goa Vagator, is distinguished by its prime position in North Goa and offers a delightful combination of modern architecture, a lively atmosphere, and first-rate service. Its handy location among well-known nightclubs and cafés makes it ideal for people looking for both a quiet and exciting evening. Enjoy a comfortable stay with contemporary conveniences mixed with historical charm.

The resort is unique in that its handpicked items showcase its emphasis on modern art and culture. Travelers have responded well to ibis Styles Goa Vagator, as shown by consistent foot traffic, reservations, and excellent feedback from visitors since its inception. There was a lot of demand in December, with pricing going beyond Rs 10k during the New Year season. The hotel is now ramping up and hopes to attain 60% occupancy by the end of its first year. Rates are anticipated to stable at about Rs 6000 for the whole year.

What is the current state of the hotel industry? How many more reservations are you receiving at your hotels now than you did the year before and throughout the Covid-19 pandemic years? In the next months, what type of growth are you anticipating?

The hotel business is forecast to expand at a rate of 11–13 percent in revenue for the fiscal year 2024–25, which is a significant improvement from the 15–17 percent growth predicted for the current financial year. Crisil Ratings attributes this upward tendency to both rising international traveler numbers and steady local demand.

Because of the strong demand dynamics and the mild infusion of new supply, the sector is projected to continue to operate at a healthy level in the foreseeable future. By the end of 2022, the industry had bounced back from the Covid-affected years with resilience and strong momentum. Looking forward, we see further growth in the next months, driven by the continuing improvement in travel trends and a favorable business climate.

The industry had a strong year in 2023, with most facilities seeing an astounding 45–50% increase in RevPAR over pre-Covid 2019 levels. Rates and occupancy both showed signs of increase, with all hotels reaching 2019 levels in all categories. Since occupancies have already above 75%, the sector is expected to develop at a rate of growth in 2024. This indicates a robust rebound and a healthy trajectory.

Which areas or cities are presently seeing the most reservations?

Delhi is now seeing the biggest demand for hotels, especially in the thriving Aerocity sector where we are seeing an exceptional increase in reservations that is hitting all-time high demand. Mumbai maintains continuously strong occupancy rates in spite of the recent development of new hotels in the airport area, demonstrating the destination’s tenacity and ongoing appeal to tourists.

Which kind of reservations—family stays, lone travelers, groups, short stays, staycations, biscations, etc.—are you seeing at your properties?

Our hotels cater to a wide variety of requirements and interests, drawing in a broad array of visitors. Although we are a popular option for small parties like birthdays and anniversaries, and we also organize corporate MICE events, families make up the majority of our clientele. This includes giving millennial couples and parents of Gen-Z children a relaxing and enjoyable stay. In addition, we serve visitors on quick weekend excursions, singles looking for a tranquil haven, and those looking for a soothing staycation.

What kinds of promotions and marketing techniques are you doing to increase reservations? Are you anticipating a spike in demand for the impending holiday and wedding seasons?

ibis Styles often achieves excellent occupancy levels throughout the busiest holiday and extended weekend times, drawing a wide variety of visitors. We make use of Accor Live Limitless, our lifestyle loyalty program, which provides exclusive perks and one-of-a-kind events, to improve the visitor experience. We’ve just launched a “2X Reward Points Dining” promotion at our pubs and restaurants in India and Sri Lanka to give customers even more reasons to choose our establishments.

As part of our commitment to meeting the diverse requirements of our guests, we provide incentives and status points to Accor members who book events at any hotel in the area, from bachelorettes to weddings. Our current promotion offers visitors who reserve their stay a free drink at the bar and a one-way airport shuttle as further incentives.

We anticipate a sharp boost in demand along with a commensurate increase in foot traffic as we approach the wedding season. During these joyous and happy times, we want to not only meet but also beyond our customers’ expectations with our smart marketing campaigns and customized offerings.

What is the current average room rate (ARR) looking like? In the next months, do you intend to raise the rates?

Currently, the average cost of a room is around Rs 5500. In terms of the future, we predict rate stability in Q2 and perhaps rate growth in Q4. Notably, a number of cities are seeing all-time high rates, including Hyderabad, Kochi, Mumbai, and Delhi, partly due to noteworthy events. Any decision to raise rates in the next months will be carefully considered to make sure it is in line with the changing demand and economic circumstances, even though we will continue to be watchful and attentive to market dynamics. If a rate increase is applied, the amount will be decided upon using a strategic method to maintain a competitive and fair pricing structure.

Lastly, how do you see the expansion of the tourist industry in India? What policies are facilitating the expansion and what more is needed from the government, the hospitality sector, or both?

The travel and tourism industry in India is expected to increase significantly and reach $23.72 billion in revenue by 2024. With Package Holidays emerging as the biggest market, reaching $10.48 billion in 2024, the market volume is expected to reach $34.25 billion by 2028 at a projected annual growth rate (CAGR 2024-2028) of 9.62 percent.

Promising projects have been made possible by the Union Budget 2023, which rightly acknowledged the travel and tourism sector’s enormous potential. There is hope in the tourist scene due to the intention to create 220 airports by 2025, the allocation of Rs 2.4 lakh crore for capital expenditure by Indian Railways, and the initiatives to boost coastal shipping along both the eastern and western sea lines. In addition to drawing NRI visitors, initiatives like Swadesh Darshan 2.0, Dekho Apna Desh, and the Vibrant Village Programme seek to encourage local travel by highlighting India’s many and varied travel options.

With only 160,000 branded hotel rooms in the organized market, India’s hospitality industry still lags behind those of its Asian peers despite these encouraging developments. China, in contrast, has nine times more hotels available, which indicates that India’s hospitality sector has a great deal of room to expand and flourish. The existing state of affairs emphasizes the need of further growth and investment to close this gap and establish India as a formidable competitor in the world of hospitality. In order to fully realize the potential of India’s tourism and hospitality sector and ensure continuous development and increased competitiveness on the global arena, cooperation between the government and industry participants would be essential.