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November to December Bi-Monthly Magazing Mystic East 2016 MYSTIC EAST ...an unexplored horizon A bi-monthly magazine by HRAEI | Vol 2 | Issue 6 | November - December 2016 COVER STORY BYE BYE CASH TRANSACTIONS DEMONETISATION HAS HIT THE HOSPITALITY INDUSTRY FOR THE TIME BEING BUT IT WILL BOUNCE BACK SOON DIRECTOR'S NOTE November - December 2016 Dear Fellow Members, Until last November, the hospitality industry MYSTIC EAST had been doing brisque business in these parts A BI-MONTHLY MAGAZINE BY HRAEI of the country. However, the gains got somewhat Vol 2 | Issue 6 | November - December 2016 reversed after the demonetisation drive. Over the short and medium terms, this will have varied effects on sections of the hospitality industry in EDITORIAL BOARD the country, but in the long-term, it will positively SUDESH PODDAR impact the growth of the hospitality sector. PRESIDENT, HRAEI Often, the strong season for the hospitality sector MR. RAJIV S. KOTHARI in the country extends from October to March, MANAGING COMMITTEE MEMBER, HRAEI which to a large extent, defines the success for the MR. S. H. RAHMAN industry in any given year. The lack of available MANAGING COMMITTEE MEMBER, HRAEI currency forced some hospitality customers to MS. RANJU ALEX either postpone or cancel their travel and accom- GENERAL MANAGER, JW MARRIOTT KOLKATA modation or to use hospitality products that easily There is a silver allow the use of the other modes of payments. EDITORIAL CONSULTANT SUSMIT BARMAN lining across Smaller businesses, F&B, QSRs and home deliv- eries bore the brunt, as there has been a tremen- CHIEF DESIGNER the dark clouds. dous loss of opportunity. SOMU DUTTA The vibrant and Despite the early setback, there is a silver lining innovative hospitality across the dark clouds. The vibrant and innovative ‘Mystic East’ magazine is printed hospitality industry is expected to bounce back and published by Atikram Gupta on behalf of Hotel sector is expected with creative ways to deal with the impact, from and Restaurant Association of Eastern India. electronic payment modes to value additions, to Printed at CDC Printers Private Limited, No.45, to bounce back special offers and shifts in spending patterns. Radha Nath Chowdhury Road, Tangra Industrial with creative ways Estate-II, Kolkata, West Bengal 700 015 to deal with the Hotel and Restaurant Association of Eastern India, demonetisation 18A/1, Everest , 18th Floor, 46C, Chowringhee Road, Kolkata- 700 071; impact Telephone- +91 33 2288-1742/43, 40035993. Sudesh Poddar E-mail: [email protected] President, HRAEI Website: www.hraei.co.in THIS ISSUE OF MYSTIC EAST CONTAINS 56 PAGES INCLUDING COVER AND BACK COVER All information in Mystic East magazine is derived from sources we consider reliable and a sincere effort is made to report accurate information. The publisher regrets that he cannot accept liability for error and omissions contained in this publication that might have crept in inadvertently. Similarly, opinions/views expressed by third parties are not necessarily shared by the magazine. However, we wish to advise our readers that one or more recognised authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific advice before acting on information contained in this publication which is provided for general use, and may not be appropriate for the readers’ particular circumstances.. No part of the magazine may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing. The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extract used for the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publications reproducing material either in part or in whole, without permission could face legal action. The publisher assumes no responsibility for returning any material, solicited or unsolicited, nor is he responsible for material lost or damaged. MYSTIC EAST | 3 SECRETARY’S MESSAGE Dear fellow members, So, what will this year's trends in hotel guest experience bring? This is a question many of us in hospitality industry must be facing at the moment. Well, when it comes to our in- dustry, trends can be both ephemeral and everlasting. Some are just a flash in the pan; others have a staying power that last for decades. LEAN LUXURY: The new trend in luxury is about of- fering travelers a more authentic, genuine luxury experience unfettered by specific brand or quality standards. It’s per- sonalized service, craftsmanship and a story to tell. They just need to have a story behind their brands to communicate to travellers. THE SMART HOTEL EMERGES: That’s simply a giv- en, especially as hotels continue to make large investments in beacon technologies, messaging, streaming in-room en- tertainment, and other smart hotel concepts. MORE BRANDS: Maybe Marriott won’t be adding any the hospitality more brands to its portfolio of 30 anytime soon, but when industry needs to be it comes to its peers, Hilton included, there’s certainly room to grow. In 2017 we should also expect to see even more prepared for even non-traditional hotel brands entering the hospitality space. more disruptions MINE THE DATA: Now that we’ve advanced enough to know how to collect or mine data, it’s up to the industry to that lie ahead. And know what to do with that information. We need to get really to be prepared, it’s smart around data science. It helps us personalize choices as you have personal access with mobile now. clear hotels need In 2017, it’s clear that the hospitality industry needs to be to look beyond the prepared for even more disruptions that lie ahead. And to be prepared, it’s clear hotels need to look beyond the boundar- boundaries of their ies of their own industry to take stock of what’s happening, own industry to not only in travel, but the greater world beyond it take stock of what’s happening Pranav Singh Secretary, HRAEI 4 | MYSTIC EAST INSIDE November - December 2016 Cover Story November - December 2016 26 THE GREAT 8/11 KNOCK Demonetisation has surely affected the hospitality and tourism sectors in the short term. But eventually the industry is expected to bounce back and flourish NEWS Despite good business, hospitality and aviation 8 12 stocks fall since November Service charge advisory will create chaos Domestic traffic in India Stayzilla strengthens could grow by nearly partnership with tourism 10 25% in 2018 14 boards in the East MYSTIC EAST | 5 Inside 18 ROOMS APLENTY 34 WOMEN'S RISE ON TOP Today women form an intrinsic With demand for space for part of the hospitality enterprise's hosting MICE travellers operations. Now they are breaking there's a huge out of the paradigm 22 WALK THE TECH 39 WATCHDOG ON A ROLL After cracking down on noodles and Technology is playing a milk, central food safety watchdog key role in powering the FSSAI is now turning alcoholic housekeepers' jobs beverages INTERVIEW 32 Bengal is showing the way, says Pramode 50 Bhandari, STATE SURVEY GM, The Mizoram has a huge potential in Park, tourism and hospitality industry that Kolkata waits to be tapped 6 | MYSTIC EAST HRAEI CORNER November - December 2016 MYSTIC EAST | 7 NEWS SERVICE CHARGE ADVISORY WILL CREATE CHAOS HE apex body of hotels and restaurants in India the FHRAI said in its letter that service charges are “consid- T Federation of Hotel & Restaurant Associations of In- ered a beneficial payment since it is meant for the bene- dia (FHRAI) has written to the Department of Consumer fit of the staff of the establishment…The service charge is Affairs, asking it to withdraw an advisory making service disclosed in advance and the same is clearly included as a charges optional, saying there was nothing illegal about separate heading in the bill as a charge not as a tax. Thus, levying the fee. there is complete transparency with regard to the amount, Making service charges discretionary will create chaos the rate and the purpose of the charge.” and disrupt the smooth functioning of restaurants across Citing previous rulings, FHRAI said the practice of col- the country and lead to unnecessary litigation between lecting service charges has been upheld by the National them and consumers, said FHRAI. Consumer Disputes Redressal Commission. “We request The department said on Monday that service charges you to kindly withdraw the subject mentioned press note billed by restaurants are optional and it is up to customers as there is nothing illegal or unlawful – much less unfair to pay them. The department cited complaints that hotels – in an establishment collecting a service charge from its and restaurants are levying an additional 5 to 20% in bills guests,” it added. in lieu of tips, regardless of the kind of service provided. Industry officials said the practice was critical to incen- In its letter to the department, FHRAI said service tivise staff. The guidelines from the government should be charges – an amount paid to the staff of a restaurant or clear with the processes that need to be followed. Custom- other establishment by customers and guests – are lawful ers and hotels should have clarity on how we reward service and that it is up to an establishment to decide whether and by the staff. It’s a huge motivation for the staff and makes how much to collect. FHRAI members met officials in the the staff put in extra efforts rather than being transactional. department on Tuesday and were told the matter would be Also levying service charge is an established practice of sev- looked into, said Pradeep Shetty, chairman of FHRAI’s le- eral years and it has even been upheld in the court of law.
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