Mr Dinesh Rai, General Manager, Crowne Plaza Kochi
Kerala stands out in India’s hospitality and tourism market due to its unique blend of natural beauty, rich culture, and diverse experiences. From the scenic backwaters to its traditional Ayurvedic practices, Kerala has carved a niche in health and wellness tourism. Speaking with Mr Dinesh Rai, General Manager of Crowne Plaza Kochi, offers insights into the state’s potential, challenges, and the way forward for its hospitality sector.
Market Potential: Kerala’s Unique Position in the Hospitality Sector
According to Mr. Rai, Kerala offers a distinct mix of tranquil backwaters, lush hill stations, and vibrant cultural festivals that make it a unique destination in India. “Kerala stands apart because it blends natural beauty with cultural richness, providing diverse experiences that other regions may not offer,” he says. Unlike other Indian states or even international destinations, Kerala’s emphasis on sustainable tourism and wellness sets it apart. Ayurvedic treatments and spa retreats have increasingly attracted wellness travellers, especially post-pandemic when health and well-being have gained even more prominence.
Moreover, Kerala’s eco-tourism and its rich heritage create a niche that many other regions struggle to replicate. The state’s well-preserved traditions and warm hospitality provide travellers with both relaxation and cultural immersion. “Kerala has a rare balance of serenity and cultural vibrancy that appeals to travellers seeking unique and rejuvenating experiences,” notes Mr Rai.
To further Kerala’s appeal to international tourists, Mr Rai suggests increased collaboration with foreign tour operators and airlines, ensuring that Kerala remains a top choice for both wellness and eco-tourism. “Strategic marketing efforts and partnerships with international operators can expand the state’s global appeal,” he adds, foreseeing continued growth in international visitor numbers in the future.
Challenges and Resilience: Adapting to Adversity
Kerala has faced several challenges over recent years, including the 2018 floods, subsequent natural calamities, and the COVID-19 pandemic. When asked how Crowne Plaza Kochi managed to maintain operational efficiency during these tough times, Mr. Rai emphasizes adaptability and innovation. “We negotiated special rates for seafarers and project-based business, which led to a remarkable increase of 27,000 room nights,” he reveals. The hotel also tapped into the local market during festival seasons, adapting its offerings to meet the demand for takeaway services during Onam and Christmas, resulting in record-breaking sales.
A key takeaway from the pandemic period was the importance of maintaining a flexible business model. Crowne Plaza Kochi used the downtime to refurbish its facilities and even launched Skygrill, a rooftop fusion tapas lounge that quickly became a favourite among locals. “We made sure to not only survive the tough times but also prepare for the post-pandemic market by enhancing our offerings,” Mr Rai says. “Skygrill, for example, became a city favourite and placed us among TripAdvisor’s Top 5.”
Ensuring staff morale and welfare was another focus for Crowne Plaza Kochi during the pandemic. “We implemented pay hikes and promotions to keep our employees motivated, and this effort paid off in maintaining high service standards,” he adds.
Manpower Quality: Addressing the Talent Gap
When asked about the availability of skilled manpower in Kerala, Mr Rai acknowledges the challenges in finding quality talent, which is a widespread issue in many tourism-heavy areas. While Kerala has several reputable hospitality training institutions, the consensus is that more industry-focused programs are needed to match evolving standards. “We need improved training programs that align with current industry expectations. Offering better career development opportunities can also help attract and retain local talent,” Mr. Rai suggests.
Despite these challenges, Mr Rai is optimistic about Kerala’s workforce, pointing out that with continuous training and professional development, the state’s hospitality sector can overcome its talent shortage. “Resilience and adaptability is the key for both the staff and the industry itself,” he says.
Government Support: An Area for Improvement
The Kerala government has provided significant support in promoting the destination during challenging periods, with targeted campaigns to enhance the state’s tourism image. However, Mr. Rai feels that more can be done, particularly in streamlining administrative processes and improving skill development programs. “While the government’s promotional efforts have been beneficial, simplifying the approval process and offering more incentives for attracting skilled manpower would go a long way in helping the sector grow,” he says.
Marketing Strategies: Adapting to Modern Trends
In today’s digital age, marketing strategies need to be continually evaluated and adapted. Mr Rai is a firm believer that Kerala should focus on evolving its marketing approach to attract more high-end international tourists. “While Kerala is known for its natural beauty, there’s room to highlight luxury experiences, which could appeal to affluent travellers,” he notes.
Crowne Plaza Kochi has been actively leveraging digital marketing and social media to broaden its reach. “We collaborate with bloggers, and food enthusiasts, and host exclusive events like pop-up bars and fine dining experiences with Michelin-starred chefs. These events create excitement and engage a new audience,” explains Mr. Rai. He also highlights the importance of using user-generated content and feedback to further refine their marketing strategies, helping to keep their offerings aligned with customer expectations.
Operational Efficiency: Opportunities for Improvement
Kerala’s hospitality sector lags behind other regions in some areas of operational efficiency, mainly due to variations in manpower quality and technology adoption. Mr Rai notes that hotels in Kerala often face challenges in recruiting skilled staff and streamlining processes. “Operational efficiency can improve by investing in staff training and adopting modern technologies for better guest management,” he suggests.
By fostering a culture of continuous improvement and collaboration, Mr Rai believes that Kerala’s hotels can set higher standards in service quality. “Sharing best practices and innovations between local hotels can also raise the bar for the industry,” he adds.
Economic Challenges: Navigating High Costs and Seasonal Variations
International hotel brands face unique economic challenges in Kerala, including high operational costs and fluctuating tourist arrivals. Seasonal variations are a particular hurdle, requiring effective management strategies to ensure occupancy during off-peak seasons. According to Mr. Rai, balancing direct bookings with OTA partnerships is critical to maximizing revenue without losing out on profit margins. “While OTAs provide exposure, their commission costs can eat into profits, so it’s essential to find the right balance,” he explains.
Crowne Plaza Kochi has implemented several sustainable initiatives to manage operational costs and improve economic efficiency. From rainwater harvesting to the use of solar energy and plastic reduction, these efforts not only lower costs but also contribute to environmental conservation. “We’ve focused on sustainability measures that improve both our economic efficiency and our environmental impact,” says Mr Rai.
Future Growth Segments: Exploring New Horizons
Looking ahead, Kerala has immense potential for growth in areas like destination weddings, adventure tourism, and luxury tourism. Crowne Plaza Kochi, for example, has seen an 18% growth in destination weddings compared to 2019. “Kerala has emerged as a prime destination for destination weddings, thanks to its scenic backdrops and cultural richness,” says Mr Rai.
To support this growth, infrastructure improvements and policy changes will be crucial. Developing more ultra-luxury options, for instance, could help Kerala compete with destinations like Dubai. “Luxury tourism is an area where Kerala can expand, but it will require significant investment in high-end properties and exclusive experiences,” Mr Rai concludes.
Living in Kerala: A Personal and Professional Journey
Though originally from Pune, Mr. Rai has found living and working in Kerala to be a deeply rewarding experience. “Kerala’s culture of genuine hospitality and its close-knit communities have been incredibly welcoming,” he shares. Professionally, he enjoys working in an environment that values strong relationships with guests and emphasizes sustainability.
In summary, Mr. Dinesh Rai sees Kerala as a state rich with potential, yet not without its challenges. With the right focus on marketing, manpower development, and operational efficiency, Kerala’s hospitality sector is poised for growth in the years ahead.
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