MYSTIC EAST ...an unexplored horizon A bi-monthly magazine by HRAEI | Vol 2 | Issue 5 | September - October 2016

COVER STORY THE GREAT MRP DEBATE 3 COURT VERDICTS: HOTELS AND RESTAURANTS CAN SELL WATER AND BEVERAGES ABOVE MAXIMUM RETAIL PRICE AT TABLES

DIRECTOR'S NOTE September - October 2016

Dear Fellow Members, When some of our members signed up with hotel MYSTIC EAST aggregators — such as Oyo rooms—little did they A BI-MONTHLY MAGAZINE BY HRAEI know the move would impact their business or Vol 2 | Issue 5 | September - October 2016 goodwill. Deep discounting and unrealistic promise made by these entities to customers often put ho- tels in trouble. The aggregators, however, quickly EDITORIAL BOARD 'downgrades' a hotel through a questionable 'star SUDESH PODDAR system rating’ whenever a guest posts a nasty feed- PRESIDENT, HRAEI back on the hotel. The customer is impressed by RAVINDRA KUMAR KASHUKA the aggregators' 'efficient' action but the hotel loses MANAGING COMMITTEE MEMBER, HRAEI trust in the market. SUBORNO BOSE This is a reason why over 200 hotels backed out MANAGING COMMITTEE MEMBER, HRAEI of deals with OYO Rooms and Zo Rooms shifting to GOPAL DAS AGARWAL rival camps (say, Wudstay and Vista Rooms). The VICE PRESIDENT, HRAEI trend proves the hotel owners, on principle, are okay with the concept of aggregation but irked by EDITORIAL CONSULTANT SUSMIT BARMAN the high-handedness of specific operators. Rather than deep Apart from imposing the odd rating system, CHIEF DESIGNER members do not receive timely payments from SOMU DUTTA discounting, some aggregators. Also customers booked by them hotel aggregators often fail to show up. As a result rooms pledged by ‘Mystic East’ magazine is printed the hotels stay unsold, depriving loyal customers. and published by Atikram Gupta on behalf of Hotel must have solid Rather than deep discounting, these new age and Restaurant Association of Eastern India. processes in entities must have credible processes in place. It’s Printed at CDC Printers Private Limited, No.45, time they grow up fast. Only the fittest is going to Radha Nath Chowdhury Road, Tangra Industrial place survive the tough competition in the new domain. Estate-II, Kolkata, West Bengal 700 015

Hotel and Restaurant Association of Eastern India, 18A/1, Everest , 18th Floor, 46C, Chowringhee Road, Kolkata- 700 071; 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, The recent incidents of credit and debit card fraud across the country make hotels and restaurants extremely vulnerable to financial heist. The threat comes from identity thieves who use legitimate an individual’s personal infor- mation to fraudulently apply for credit cards. According to hospitality fraud prevention consultants, the only truly reliable way for the front desk personnel to prevent these crimes is to request all guests checking in to keep more than one identity card ready (say, a driver’s license) in case of card transaction. Unfortunately, few hotels require this proce- dure, or if they do, enforcement is lax. For added security, the front desk staff should carefully tally the name on the arriv- To prevent card frauds ing guest’s alternative ID card with that on the the front desk must credit card and the reservation information stored in the hotel’s system. request all check Credit card criminals will sometimes claim in guests to keep that they don’t have an additional form of identification. If this occurs, the best policy multiple identity cards for hotels is to decline the credit card and ac- ready cept cash only. In addition, it is essential that all employ- ees carefully follow the credit card companies’ transaction processing procedures—to avoid being stuck with fraudulent charges for failing to take adequate precautions against guests bearing stolen or counterfeit cards. Better safe, than be sorry later.

Pranav Singh Secretary, HRAEI

4 | MYSTIC EAST INSIDE September - October 2016

Cover Story 34 September - October 2016 GREAT MRP DEBATE Court orders allow hotels and restaurants to sell beverages and packaged water above MRP because they add elements of service and ambience to their patrons along with the drinks

NEWS IINTERVIEW 8 Ms. RANJU ALEX, 9 the General Manager of JW Marriott Kolkata speaks to Mystic East in an exclusive interview

FSSAI checks up on hotels, restaurants; 12 inspector raj thrives JW Marriott Kolkata aims Kerala liquor ban hits to make the city a top MICE business and MICE and wedding 14 tourism in the state; destination Sri Lanka is the gainer

MYSTIC EAST | 5 Inside

19 ECO HOTELS 39 With huge growth in the CHEF-GUEST hospitality sector in big cities and smalltown India, CHATS the need of the hour is the The trend of chefs interacting with creation of sustainable the restaurant’s guests has some property key advantages 26 FESTIVE CUISINE 44 CLASH OF CLANS Restaurants conduct food Not all hotel owners are happy with fests during religious how hotel aggregators offer deep occasions to attract a discounts and unreasonably large number of footfalls downgrade certain properties

INTERVIEW 32 Pranay Kumar Singh, Exceutive Chef 50 at Swissotel STATE SURVEY Kolkata, Political stability, bountiful flora and reveals his fauna, rich tribal culture and formula to pilgrimages make Jharkhand an crack food fests attractive tourism destination

6 | MYSTIC EAST

NEWS

JW MARRIOTT KOLKATA AIMS TO MAKE THE CITY A TOP MICE AND WEDDING DESTINATION

OPING to come up with five more H properties across India by the year end, US-based hospitality chain JW Marri- ott threw open its first property in east In- dia in Kolkata on November 3. The property with a 13,000 sq ft banquet -largest in their existing eight properties across India -is be- ing positioned as their best wedding desti- nation in the country. Marriott is also coming up with anoth- er property -Fairfield in Kolkata's eastern fringes New Town alongside Courtyard in Siliguri. Coming up with one of their mod- erate tier brands in Guwahati is also on their expansion radar. Bullish about the eastern India market, the Kolkata launch is just a stepping stone for Marriott to spread the brand in the east. “Kolkata has been having a good market growth and did not have too many new options. But with the government's stabil- ity and eastern India being the gateway to northeast India and Asian countries, we are upbeat about the market here,“ said Neeraj Govil, area vice president, South Asia, Mar- riott International. Every Marriott property in the country will be incorporated with a bridal studio. The Kolkata property is already booked with 35 weddings scheduled to take place at the premises between November and March. Targeting high-end corporates, the average room tariff at the hotel ranges between Rs 8,000 to Rs 10,500. The 281-room property would be launched in three phases, with the first phase having 191 rooms which will be launched next month. The other phases will be launched by the end of the fiscal year.

Source: The Economic Times

8 | MYSTIC EAST September - October 2016

Breaking the glass ceiling

US-based hospitality chain JW Marriott recently threw open the doors of its luxury property in the metropolis -- the first in the eastern region. Ranju Alex, the General Manager of JW Marriott Kolkata, and Multi Property Vice President East India, successfully executed the colossal project well before its deadline. Before getting into the shoes of GM in the Kolkata hotel, she had been the GM of the the Goa Marriott Resort & Spa.. An alumnus of IHM Kolkatta, she joined Marriott International in the year 2010 after being the officiating GM at the Oberoi Grand Hotel, Kolkata. She is also a keen advocate of women in leadership in all spheres of life and commerce. She spoke to Mystic East in an exclusive interview. Excerpts:

Q. JW Marriott finally begins its Q: Where does it stand in com- journey in eastern India. How does parison to the other competitors it feel after successful planning in the category in Kolkata? Will and execution? the opening of the new hotel start It is a very heady feeling with excite- a price war among the five star ment , euphoria , optimism and a rush hotels? of adrenalin. I am extremely proud With the largest banquet hall in the city of the fact that we delivered on time , we can now expect Kolkata to be a and that too with a lot of style. We are MICE destination . This will attract a lot now Kolkata’s and West Bengal’s only of business and keep the hotels busy super luxury destination and hope . In my opinion , it is not always true that we will enjoy a lot of support and that an increase in supply decreases patronage. the demand . At times , an increase in supply generates additional demand ! Q: Marriott Kolkata opens its doors at a crucial moment when Q: You are back in Kolkata after the Marriott-Starwood surpassed some time. How does it feel now? the Taj group (IHCL) to be the larg- Kolkata has always been home for me. I have a knack of returning to est hotel chain? Any comments the city every time I leave it. I am on this? completely in love with Kolkata and It is a matter of pride for each of us nothing can ever change that . I love to be associated with a company the people , the food , the warmth and which is the world’s biggest name [in the sentiment of this city the hospitality sector] . We now have 5700 hotels spread over 110 coun- Q: You have been born and tries . It is a win- win situation for both brought up in Bengal. Does this There used to be a taboo the guests as well as the associates. offer you an advantage while in our country regarding We are extremely buoyant about these working in Kolkata? joint forces in the market. A: It definitely helps that I can speak women working in hotels. A , read and write fluent Bengali . I can lot has changed and we are Q: What is the USP of your hotel? speak about Bengali food and culture The USP of the hotel is the team with a passion which comes only if now waking up to the need to coupled with an exemplary product. It you have lived in that society. I always is a very ‘lethal’ combination and we maintain that though I am a Bihari by have more women working hope that we become market leaders birth , I am a Bengali by heart , soul in the hospitality sector because that is what we deserve ! and mind !

MYSTIC EAST | 9 NEWS

Q: According to news reports your hotel has special focus International has very stringent brand standards which need to be on wedding receptions. Is this strategy working? followed . That leaves very little ambiguity during execution and It is working extremely well . With a banquet as large as 38000 makes the project experience much easier square feet , it is only natural that we cater to large weddings and that is exactly what is working with us. Q: Why are there too few women in your profession in In- dia? What would you do to inspire more women to join? Q: What are you planning to do to cater to the MICE cate- Hotels demand long hours because our guests are arriving at gory? all hours . This specially happens when you are just starting out Marriott International is extremely strong with this segment of in your career and that is when most women drop out into their business. We have a service design which caters to the MICE home keepers or an alternate career. Moreover there used to be a segment very well. The product of tis hotel is extremely conducive certain taboo in our country regarding women working in hotels. A to the MICE business lot has changed in the past two decades and we are now waking up to the need to have more women working in hotels. Women Q: What were the challenges you faced while executing have a natural charm and grace which fits well for this profession . this project? Marriott International has taken a lot of steps to ensure that more To be very frank it has been a very smooth ride for us. Marriott women join our workforce !

10 | MYSTIC EAST

NEWS

FSSAI checks up on hotels, restaurants

ally revoked. Nestle maintained at the time that the product was safe. “After the Maggie issue, FSSAI has become really active. There are a lot of surprise audits and raids being conducted at five-star restaurants with food safety officers visiting to check inventory, processes, hygiene levels and the licence to operate. A lot of hotels and QSRs (quick service restaurants) are under the scanner of the regulator,” said Vinay Garodiya, executive director — fraud investiga- tion and dispute services at EY. FSSAI, which operates under the health ministry, is required to regulate and monitor the manufac- ture, processing, distribution, sale and import of food so as to ensure safe and wholesome food. Its tasks include the licensing and registration of food business. The regulator did not immediately respond to an email from ET. “There can be massive adulteration in the packaged products that we buy and it’s in everybody’s interest to comply with these checks,” said a restaurateur on condition of anonym- ity. “Large hotel players were never this worried about food safety until ONTROVERSIES such as the of their restaurants, hoteliers and now, but going ahead, they will have C temporary ban on Nestle’s Maggi restaurateurs said, in a report by The to think aloud on this. Till now, food instant noodles appear to have had Economic Times. safety has been managed by a partic- a bearing on the hospitality sector, “The number of checks has gone ular chef in a facility and there needs with the food regulator stepping up up. We have had recent surprise to be a central team which monitors inspections of hotels and restaurants checks in our hotel in Gurgaon and end-to-end food safety compliance to assess compliance with safety east Delhi and even in locations such and standards,” Garodiya added. norms. as Hyderabad and Indore to check Somnath Dey, Executive Assis- The Food Safety and Standards the quality of food,” said Rajeev tant Manager - F&B, Hyatt Regency Authority of India (FSSAI) has in- Janveja, Corporate Chef, Lemon Tree Delhi, said FSSAI has always been a creased its surprise checks and audits Hotels. vigilant and well respected body that on hotels, restaurants and caterers to Food safety has been in public focus checks regularly on food quality and check hygiene levels and food quality. since last year, when FSSAI banned ensures the highest of standards in Even five-star hotels are under the the sale of Nestle’s Maggi noodles in its kitchens. scanner and have had food safety of- the country for containing contami- ficials carry out surprise inspections nants, although the order was eventu- Source: The Economic Times

12 | MYSTIC EAST

NEWS

Kerala liquor ban hits MICE business and tourism in the state

S feared by the tourism industry A stakeholders selling their varied products at the prestigious Kerala Travel Mart, the major concern of buyers has turned out to be the re- strictions on consumption of alcohol in tourism destinations. A majority of the buyers, who have been to Kerala and the KTM on several occasions, wanted to know whether there's any shift in the liquor policy . The 2016 edition of the biannual KTM is the first after the implementation of new excise policy. Though the operators here cited the new government's tourism-friendly stance, this is not enough to rescue the MICE business, which has been severely hit. have a drink with dinner," said Gary "It's a concern, and people, especial- "Promises are not enough. If the Tree, from Kerala Connections Limit- ly the foreigners, are asking whether government does not do it, Kerala, ed, a UK-based tour operator, which they would be lifted," said E M Na- will definitely lose out completely to has Kerala as its main destination. "If jeeb, president of the Confederation of other destinations like Sri Lanka," you are on a holiday you might want Kerala Tourism Industry . However, said Ranjini Nambiar, CEO of Benga- to relax with a drink, especially if you the newcomers are not aware of such luru-based Footloose Yatra Consul- are in a remote beach area. We now restrictions. "They will come to know tants. Ranjini, who handled a huge advise our clients to check whether only when they start sending people volume of MICE business to Kerala the property has alcohol license before here and get the feedback. They are from the IT sector in Bangalore in the they go, as most of them don't like to here in search of new products and past, no more looks at the state as a go to hotels, which doesn't have such new destinations," he added. meetings and incentives destination. options. If the state is going to be dry The KTM, of course, is witnessing a "Inbound tourism in Gujarat has , tourism is going to be affected," he mix of newcomers and old-timers on been hit by prohibition. I used to added. almost an equal proportion, and many bring conferences and meetings to It's not just the restrictions on hard in the former group, do not consider Kerala before but the liquor restric- liquor in several properties that's such restrictions can affect tourism in tions have now put an end to it," said affecting tourism, according to Jaison Kerala. "I can understand the reasons Arpan G, a tour operator from Guja- Anithanam, the general manager of and social issues behind liquor restric- rat, who has shifted his MICE busi- Karma Group, which has a boutique tions here. It might slightly affect ness to places like Goa and Coorg. property in Kumarakom. "Our guests inbound tourism, but not in a big way, Though the foreign operators do are mainly foreigners, and they are as you have very good products," said not have much to do with MICE not coming for holidays to get drunk. Alex Skafi from Germanybased AMS business, the lifestyle of their clients But that's part of their meal, and they Sportsmarketing. who enjoy a drink with dinner or would like to get it served by poolside Jagoda Jedrzejowska of Planet Es- meals often at spots outside the `bar or in their room or other scenic spots cape, a first-timer from Poland, holds counter limits' is worrying them. inside the property . But restrictions Yoga and Ayurveda as better alter- "We have been to the KTM twice put them off and it's difficult for us to natives to drinks for relaxation here. before, and we have been aware of the explain and make them understand "People can still travel and explore, current liquor policy . We are worried, about such petty restrictions," he and any ban on liquor will not affect because our people on holidays like to pointed out. my clients," she asserted.

14 | MYSTIC EAST A.V.HOTEL

SITUATED IN THE HEART OF THE COMMERCIAL HUB OF KOLKATA 1.5 KMS FROM THE TWO MAJOR RAILWAY STATIONS HOWRAH AND SEALDAH OF KOLKATA 2 KMS FROM ESPLANADE – THE MAJOR BUS TERMINAL 15 KMS FROM AIRPORT BOTH SINGLE / DOUBLE OCCUPANCY AND A/C - NON A/C AVAILABLE. ALL AMENITIES AVAILABLE AT THE PRICE OF BUDGETARY HOTEL LUXURIOUS BAR CUM RESTAURANT SITUATED ON THE 10TH FLOOR WITH AMAZING AERIAL VIEW OF THE CITY. JAIN FOOD ALSO AVAILABLE ON REQUEST.

1, SAMBHU MULLICK LANE, KOLKATA – 700007. NEAR BURRA BAZAR P. S. PH: 033 2268 7741/ 46. FAX: 033 2268 8199 NEWS

94% Indians prefer free Wi-Fi at hotels

XPEDIA, a full service Online lers while booking a hotel. According to earn and redeem reward points E Travel Agent (OTA), released the to the survey, the most preferred on their bookings as important,” results of the 2016 Hotel Etiquette medium of booking a hotel amongst said Manmeet Ahluwalia, Marketing Report, an analysis of behavior and 35% Indians is a desktop/laptop/ Head, Expedia India. preferences of Indians while book- computer followed by mobile app The survey was conducted ing hotels highlighting that 94% of on smartphone/tablets used by 29% amongst the males and females of Indians obsessed with social media while 14% travellers book through India and highlights interesting prefer a free Wi-Fi connection at a mobile web using smartphone/ findings regarding their preferences hotel, while 37% are unwilling to pay tablets. It is interesting to note that while booking a hotel of their choice. for the same. 89% Indians consider hotel reviews The survey was conducted online in “The Hotel Etiquette survey as very/somewhat important while the month of August by GFK Custom highlights some interesting facts choosing a hotel. As Indian travellers Research, North America on 1,014 about preferences of Indian travel- are evolving, 77% consider the ability randomly selected adults.

16 | MYSTIC EAST

July - August 2016

ECO HOTELS TOUCH OF GREEN With huge growth in the hospitality sector in big cities and smalltown India, the need of the hour is the creation of sustainable designs and construction of green hotels

MYSTIC EAST | 19 ECO HOTELS

As more and more ly conducive products in day-to-day international hotel operations. Here, we aim to focus on chains foray into the design and construction of green the Indian market hotels. the Indian hos- pitality industry The inclusion of Sustainable design has witnessed several revolutionary It is vital to ensure eco-conservation concepts. One idea deals with the green modifications in hospitality projects. According to awareness to construct eco-friendly needs to be an a General Manager of an upcoming hotels with the use of sustainable de- five-star hotel in Kolkata, the devel- signs and environment-friendly raw intrinsic part of the opment of an eco-friendly hotel be- materials. However, not many ho- hotel’s design — gins from the stage at which the land tels across India have adopted such for the hotel is selected. “It is essential eco-friendly measures within their right from the point to conserve the surrounding land and property’s basic elements. when the blueprints its vegetation while developing the An eco-friendly hotel’s develop- hotel. One classic example in this cat- ment needs to begin from the moment are designed to egory is a property in Eastern Bypass of conceptualisation (of the property) when they are in Kolkata,” he says. to the incorporation stage, when the The inclusion of green modifica- eco-friendly items are included in the implemented tions needs to be an intrinsic part of hotel’s construction. Beyond this, ho- the hotel’s design — right from the tels can implement environmental- initial stage. Thus, from the point when the blueprints are designed to when they are implemented, every stage needs to employ green designs. “The designing of an eco-friendly ho- tel begins from day one of the hotel’s design,” states a leading developer of hotels in Bhubaneswar. In hotels, the biggest load on ener- gy consumption falls upon the public areas and kitchens. Thus, care should be taken when designing these spac- es. Hotels can use a common kitchen for all its F&B outlets. This will re- duce the energy consumption. About 70 per cent of energy is consumed in the hotel’s public areas. These areas should be designed to ensure mini- mum technology usage. Today, hotels implement high ceilings and dou- ble glaze ceilings in the lobby areas, which help to maintain a steady tem- perature within the hotel. This helps bring down the energy consumption, as well. The hotel façade can be treat- ed similarly. On the other hand, sustainable de- signs should not be restricted only to the hotel building; they should cover the area around the building, as well. Eco-friendly hotels use environment-friendly materials Developers need to maintain the eco-

20 | MYSTIC EAST

ECO HOTELS

Engineered wood, cane furniture and double glaze glasses are often used

logical balance in the surrounding pets, engineered wood, cane furni- materials utilised in environmentally environment. It is essential to protect ture, double glaze glasses and efficient friendly (sustainable) designs are re- the natural and agricultural vegeta- light fixtures for the Marriott hotels,” cycled content carpeting and carpet tion around the property. Besides, it says the manager. pad; recycled content ceramic tile; is essential to ensure access to pub- Green designs, which begin from sus- pervious paver systems for outdoor lic transportation systems around tainable design and use of eco-friendly areas; vegetative roofs (Green roofs); the hotel. This will reduce the use of raw materials, also include the appli- rapidly renewable materials such as automobiles. Creation of alternative cation of various eco-friendly systems cork and bamboo; low VOC products transport is an efficient measure that like efficient sewage systems, cooling for sealants and paints; recycled con- can be implemented by hotels. systems, energy conservation, rain wa- crete used as aggregate and high effi- After the hotels are effectively de- ter harvesting and the use of bio-de- ciency glazing, etc. signed, eco-friendly raw materials can gradable materials in the rooms. The Other items that contribute to a be used in the hotel’s development. use of eco-friendly paints and fabrics sustainable design include regionally Eco-friendly bricks and autoclaved is also on the rise. These often depend produced materials (materials made aerated concrete (for external wall on the property’s location. “City hotels within 500 miles from the building); structure), reusable laundry bags and usually face additional hurdles when it covered parking; proximity to public wooden hangers can be used in the comes to using eco-friendly materials, transportation; a shuttle bus to the hotel’s construction and its interiors as compared to resort properties,” he transportation line; parking for hy- to aid eco-friendly practices within says. brid cars or carpools; recycling rooms the property. “Concrete and steel are According to a leading US based to sort trash; low water use shower substances that cannot be replaced. architecture firm specialising in the heads and toilets; use of energy ef- Hence we use materials like jute car- hospitality industry , some of the ficient compact fluorescent fixtures

22 | MYSTIC EAST September - October 2016

Getting Leed The LEED certification process can be tedious, time-consuming, and costly, but the benefits of this certification outweigh the costs tenfold when you look at the long term effects on the environment, the human health element, and your hotel’s bottom line. Let’s take a look at the steps towards becoming LEED certified: • Step One: Begin the process by reg- istering your LEED project online and submitting an application fee. • Step Two: After you are registered, the hotel must assemble a project team to demonstrate the sustainability of its property through documentation. The USGBC provides forms to enter in the information about the hotel’s eco-ini- tiatives, procedures and characteristics. The hotel itself decides on the time frame that it would like to use to gather the documentation and put together the full application. This process can take anywhere from six months up to two years. • Step Three: Once all of the documen- tation has been collected and the forms completes, the LEED application can be submitted online along with a second fee that is reflective of the size and com- plexity of the property and project.

and LED light, and capturing rainwa- ter for irrigation. Initiatives to ensure green hotel con- struction should come from the gov- ernment, as well. In the US, it is com- pulsory for every hotel building (like any other building) to be ‘Leadership in Energy and Environmental Design’ (LEED) certified. Under this certifi- cation, hotel buildings are required to meet strict standards for every aspect; from recycling to water efficiency. Awareness about such certification seems to be increasing among the In- dian hotels. Most of the upcoming ho- It is essential to conserve the surrounding land and its vegetation tels seek LEED certification. Several

MYSTIC EAST | 23 ECO HOTELS

Natural greens are an added advantage to a green property

LEEDS projects across India are un- facturers has increased. This has re- der construction, states the US Green sulted in the reduction of prices. Categories Building Council website. Also, with limited service ho- There are seven different categories in tels and business hotels observing which your hotel has the opportunity to Cost of construction a growth spurt, the construction of earn points. These categories are as follows: One of the major blocks before green eco-friendly materials will have an • Sustainable Sites hotel developers is the increase in upper hand. “Limited service hotels • Water Efficiency overall project cost. According to the help to conserve energy. However, • Energy & Atmosphere US architecture firm, the construc- it is difficult to maintain this conser- tion of an eco-friendly hotel increases vation in hotels associated with ser- • Materials & Resources development costs by up to eight to vice and luxury,” opines an expert. • Indoor Environmental Quality twelve per cent. However, the sav- Although this construction form has • Innovation in Operations ings of the energy bills in the long not gained considerable ground in the • Regional Bonus Points run makes the investment eventually Asian market, it is soon expected to Source: USGBC cost-effective. grow. Several hotel chains are looking The availability of raw materials re- to introduce such designs to match in- mains another primary concern. Easy ternational norms. With Government availability of construction materials initiatives pushing the need for such will ensure that additional hotels are development, real estate developers built under this segment. Five years and hoteliers can come together to ago, access to such raw materials was develop sustainable designs, and thus rare, but today, the number of manu- ,contribute to society at large.

24 | MYSTIC EAST

SPECIAL STORY

26 | MYSTIC EAST CELEBRATING CUISINE Due to its diversity in culture, India has several religious festivals. Restaurants usually conduct food festivals during these religious festivities to target a large section of the audience.

ITCHEN emanates the decision to exhibit a particular the aromas of a dif- cuisine during a food festival needs ferent cuisine from to be made after conducting thor- the one that it usual- ough market research. The restau- ly cooks. The restau- rant has to be aware of the target cli- rant decks itself up, and the service entele. It is also essential to keep the staff don a different appearance. One time of the year in mind, when de- does not have to delve deep into the ciding to conduct a food festival. For mystery, since it simply means that Every food festival instance, one cannot conduct a food the restaurant is busy conducting festival which serves hot and spicy a food festival. However, a layman requires a minimum cuisine, during the summer season. may well ask as to what is the process of two months Thus, one needs to adapt the cuisine involved, and why the restaurant according to the weather conditions. feels the need to conduct a food fes- planning. The first Due to its diversity in culture, In- tival? Is it just a marketing gimmick, step in the planning dia has several religious festivals. or does it really help the restaurant These are good occasions to conduct staff as well? of a food fest is the food festivals. Restaurants usually type of cuisine to conduct food festivals during reli- Pre-event planning gious festivities to target a particu- Every food festival requires a mini- be served, and the lar segment of the audience. “People mum of two months planning. The duration of food usually like to eat out and celebrate first step in the planning of a food during festive occasions. It is the ripe fest is the type of cuisine to be served, promotion time to conduct food festivals of that and the food promotion’s duration. region. For instance, one can con- The choice of a cuisine is pivotal, and duct a Bengali food festival during

MYSTIC EAST | 27 SPECIAL STORY

Durga Puja is the best time to start a Bengali food festival

Durga Puja,” says Madhumita Mo- it is essential to understand the hanta, Executive Chef, The Lalit market before deciding on the food Great Eastern. “However, we are festival’s cuisine.” Mr Punj organ- among those few five-star hotels ises Jharkhand Food Festival on a that has a strong focus on regional regular basis to attract local peo- cuisine. Unlike most other five star ple. He says, “People of Jharkhand hotels you’ll see four pages of our are passionate about their local menu card dedicated to 'Regional cuisine, so we offer them a variety Speciality'. And during Durga Puja of local platter during regional fes- you’ll find a platter full of long lost tivals.” delicacies of undivided Bengal— A food festival in It is also necessary to decide on the east and and the west.” the duration of the festival, which No wonder, Puja nights are sold a small city with usually ranges from a week to a out at The Lalit Great Eastern. Japanese cuisine month, as well as the rate of the The market’s maturity to accept food that the restaurant aims to a particular cuisine is also an im- may not work at all. serve. Generating responses from portant factor to be considered, Thus it is essential guest comment cards and tele- while conducting a food festival. marketing can also help in the re- “Different promotions work for to understand the search. They may also cash in on different markets,” informs Ajai market before the success (or failure) of nearby Punj, Genreal Manager, Radisson restaurants who may have tried the Blu Ranchi. “A food festival at a deciding on the food festival’s cuisine. tier two city for a Japanese cuisine festival cuisine Restaurants also work towards may enjoy less success than that of changing the restaurant’s ambi- an Indian regional cuisine. Thus, ence to create the feel of the region

28 | MYSTIC EAST that the cuisine represents. How- Besides the ingredients, the the local guests and our own local ever, the promotion’s intensity restaurants also need to bring in cuisine as foreigners guests also also depends upon the represented expert Chefs in the particular cui- want to taste the local cuisine,” cuisine. For instance, during the sine, while conducting a food fest. informs Pranay Kumar Singh, Durga Puja the restaurant and the This may also extend the planning Executive Sous Chef at Swissotel adjoining areas must be decorated stage of the food festival. While Kolkata. with themes of the puja. Similar- conducting the fest with a cele- On the other hand, most Chefs ly, during the Diwali lamps and brated or an international Chef, and food and beverage managers other key elements must be dis- restaurants may need to schedule now find niche raw materials eas- played to create an authentic ambi- the food fest in accordance with ily accessible due to the increase ence. However, strong on-the-face the dates given by the Chef. Thus, in the number of suppliers and themes with creation of monu- restaurants may sometimes need their distribution network. There ments and structures are passé. to schedule the food fest about are several suppliers today, who Every cuisine has a unique defin- six months in advance. Often, the can readily provide raw materials ing element, which is the use of es- restaurant may decide on conduct- to conduct the food festivals. It re- sential local ingredients for the cui- ing a food festival on a cuisine that quires around a week for acquisi- sine’s preparation. Today, guests may not be familiar to the in-house tion and imports. are also knowledgeable about the Chefs. Hence, it becomes essential A close co-ordination between cuisine’s authenticity. This means for the hotel to bring in the talent the Executive Chef of the hotel or that restaurants need to take spe- specialising in the cuisine. Food the restaurant and the guest Chef cial note of this fact. Thus, hotels festivals also provide an opportu- helps in the creation of a successful and restaurants need to source for nity for the restaurant’s staff to ex- menu. The restaurant usually pro- the right ingredients to ensure the periment. vides a brief to the guest Chef on quality of the cuisine. “One must not to forget about the requirements and expectations from the food fest. It also provides the guest Chef with a thorough market study. This co-ordination is essential to ensure a perfect blend of the guest Chef’s expertise with the Executive Chef’s market knowledge.

Marketing One of the main reasons for con- ducting food festivals is to establish a strong brand value for the restau- rant. An effective food festival also ensures creation of a client base for the restaurant. While conducting a food festival targeting a particular segment or religious element of the society, the marketing team focus- es on extensive promotions in the areas of the city which have people from that segment. Effective use of the media, as well as marketing to the hotel’s in- house guests help increase footfalls in the restaurant during a food fest. Placing in-room tents and flyers Few five-star hotels have a strong focus on regional cuisine along with the restaurant’s bills

MYSTIC EAST | 29 SPECIAL STORY

Among popular Indian regional cuisines Rajasthani is a clear winner

are some of the methods used by well as from the consumer’s per- conducting food festivals, their lev- restaurants to increase awareness spective. This encourages new en- el of complexity strongly depends about the food festival. While inter- trants in the industry to safely con- on each individual market. nal marketing begins about 15 days duct food festivals that showcase “Italian cuisine has been in Delhi prior to the festival, marketing to these cuisines and gain efficient for a considerable period of time. the regular clientele usually takes branding. On the other hand, it is relative- place for a week or two days. The According to the industry, ly new for the Amritsar market. success of a food festival’s market- among the popular cuisines which Hence, a basic Italian food fest ing strategy is not only calculated prove to be successful amongst the might work better in Amritsar, by the revenue generated by the Indian regional cuisines, Rajas- but while conducting it in Delhi, hotel, but also with the publicity thani emerges as a clear winner. it is essential to bring in exclusive received by the hotel. Besides, one can also conduct a aspects in the food or the promo- Hotels and restaurants conduct food fest serving the region’s lo- tions. For instance, one can call a food festivals on a regular basis ex- cal cuisine. On the other hand, the Michelin Star Chef,” suggests an perimenting with the cuisines and market for international food fes- expert in international cuisine. the market. Over a period of time, tivals is of a very uneven nature. some of the cuisines have become Though Italian, Continental and Boons extremely popular in the Indian Asian cuisines appear to be some Conducting a food festival can turn market from the restaurants’ as of the most popular cuisines, while out to be a valuable experience for

30 | MYSTIC EAST the staff of the restaurant. Primar- of the cuisines and their tastes. With festivals. Such food festivals may ily, working with an external Chef an increase in the number of well display a concoction of cuisines usually helps nurture the in-house travelled Indians, restaurants are from across the world in the menu; Chefs’ talent. This helps bring in constantly trying to deliver some- original or developed recipes of the new ideas as well as innovative thing unique to the consumers. This guest Chef, or mainly display cui- experimentation with the cuisine. makes them delve deeper into the sine from his area of expertise and It also makes the restaurant staff intricacies of a cuisine, and present region. To conduct a sushi pro- aware of the developing trends that to the guests. Thus, restaurants motion, restaurants can bring in a within the industry. This can then are conducting food festivals focus- Japanese Chef who specialises in be incorporated by the hotel them- ing on one particular region of the that segment of the cuisine. Thus, selves. Working with an interna- international cuisine, and present- skill based importance enhances tional Chef also brings in the per- ing rare dishes from that area. On the food festival’s motive. spective of the international F&B the other hand, restaurants are also Often, the restaurants also look segment and style of operations. experimenting with new cuisines to beyond presenting a particular cui- Some hotels also conduct training conduct food festivals. sine. Restaurants conducting food sessions with the Chefs for their festivals of Far Eastern or Continen- staff members prior to the promo- Guest Chef food festivals tal cuisine are strongly gaining pop- tion. This ensures familiarisation Food festivals are also conducted ularity within the Indian market. and bonding of the guest Chef and to showcase the cuisine, essen- internal staff, aiding smooth oper- tially focussing on the guest Chef. Beverage festivals ations during the food festival. Here, the centre of attraction is the Going beyond cuisines, restaurants Besides, having an effective food invitee Chef who displays his culi- shift the centre stage to beverag- fest can also earn brownie points nary skills during the festival. This es. For example, varieties of beer, for the restaurant. A successful also helps the hotel staff to learn wine, single malts, vodka and rum food fest helps in the creation of from celebrated Chefs. Hotels are are now showcased along with the new clientele for the restaurant, now trying to bring in celebrity cuisines that are most likely to be besides establishing its brand val- and award winning Chefs within paired by it. This may sometimes ue. Though a food festival may the restaurant to conduct these be restricted to appetisers, or it incur a considerable amount of may present several courses of investment, the footfalls that the cuisines. This format is particular- restaurant receives (as well as the ly popular at wine dinners where mileage generated through public- a range of wines are introduced, ity), helps generate revenue for the each to be served with a different restaurant. Food festivals are course of meal. Today, food festivals have gone an effective way of Food festivals remain an ef- beyond showcasing the cuisines fective way of testing the market with new trends developing within testing the market acceptability of a cuisine. It also the industry. The concept of food acceptability of a helps to educate the market as well festivals has grown exponentially as the industry about the cuisine, according to the market. Hotels cuisine. It helps to besides generation of revenue and and restaurants are constantly educate the market footfalls for the restaurant. Besides striving to introduce new promo- just serving a cuisine at a food fest, tions to attract new guest clien- and the industry restaurants focus on marketing a tele as well as offering something about the cuisine; total experience of the region being different to the existing clientele. showcased to the guests — one of Some of the developing trends also generates the main reasons for the concept’s within the industry are: revenue and popularity. “People may not be able to visit the region of the cui- Niche cuisine increases footfalls sine’s origin, and thus get driven to Globally (as well as in India), con- experience an element of it in the sumers are becoming more aware food festivals,” states Ajai Punj .

MYSTIC EAST | 31 INTERVIEW

‘We must keep on adapting new trends’

What inspired you to be chef? tition, an annual contest organized I had seen a chef cooking roomali roti by IHMCTAN, New Delhi (Ministry in the television when I was in school. of Tourism, Government of India). It was so fascinating and started taking There were three of us responsible interest in things culinary. My first at- for continental cuisine. tempt at cooking something happened a few years later when I made I made What was the first meal you onion fritters or Pyaz Ke Pakode at cooked had at Swissotel? home. However, I had no clue about That was the day when I had just hotel management until I was in Class relocated from Cochin, Kerala. I 11. My elder brother told me about it cooked Kozhi Kurumulagu--chicken and I thought of joining a course in the cooked with freshly ground black early 1990s after I finished Class 12 peppercorn and shallots. Also I board exams. cooked Prawn Moilee (an Anglo-In- dian side dish),Lime and Dijon Where did you study your art? smeared sea bass with vegetable I completed my diploma in hotel spaghetti and caper beurre blanc. management from IHM Bhu- baneswar followed by postgraduate Where have you eaten out in diploma in Kitchen Management Calcutta? Do you have any from prestigious Oberoi Centre of favourite? Learning and Development. Definitely in most of the star hotels Mr Pranay Kumar Singh, compared to standalone restau- Executive Chef at Swissotel What was your first rants. However, Bodega (a Mexican Kolkata, has been at the assignment? restaurant in Park Street) and The helm of kitchen affairs at the In my first assignment I participated Grid (a continental hotel in Topsia) in All India Students Chefs Compe- is the current favourite. Kolkata hotel since 2011. Courtesy his job and exten- sive travels, he is always looking to try something new. The Executive Chef started his culinary journey with Indian food and now loves to explore interna- tional cuisine. He spoke to Mystic East in an exclusive interview which includes his plan for an elaborate menu for the upcoming festival season. Excerpts

32 | MYSTIC EAST September - October 2016

Name a star chef you look up to. The challenge is to and a set menu at our Indian special- Chef Robin Gill at The Manor(UK), ty restaurant –Durbari. Chef Grant Achatz at Alinea(U- serve excellent food, SA), Chef Virgilio Martínez Véliz at provide best personal This year we shall be serving the central restaurant (Lima, Peru). I dishes in terracotta pots. Usually the admire them for their innovation and service keeping guest menu consists of Lamb, Fish, Prawn, presentation of dishes which inspires expectations in mind Chicken ,vegetables, cottage cheese, me and always motivate to do more . potatoes and selection of desserts. and maintain your We offer welcome drinks at the You’re in Calcutta at a time position on the top coffee shop whereas it is included in when the next two years will meal at Durbari. see new star hotels opening up… do you have a vision with Following is a sample menu: that in mind? Kacha aamer ros (roasted raw mango The challenge is to serve excellent drink with freshly ground spices) food, provide best personal service keeping guest expectations in mind about the local guests and our own Vegetarian: Kumro phuler bora and maintain your position on the local cuisine as foreigners guests also (fried pumpkin flower), Mocha nar- top. We have to keep on adapting want to taste the local cuisine. koler chop (deep fried banana flower new trends, changing dynamics of with coconut), Chana aam kasundi the industry and keep us active and What is you plan for the upcom- paturi (Cottage cheese marinat- alive. It also gives you an opportuni- ing festival season? ed with raw mango and mustard, ties to learn and grow with them. Since Durga Puja is the biggest fes- steamed in banana leaf) tival, the menu was created keeping Do you think star hotels should this fact in mind. This is time we Non vegetarian: Topse bhaja focus more on traditional cuisine? focus on our regional local cuisine (Fried topse fish dusted with poppy There is nothing as such. We should and comes out with a plan to offer seed and semolina), Jamindari murgi focus on both regional and continental our best to our diners so that it is a fry (Herbs marinated pan fried chick- the cuisines (regional as well as conti- memorable experience for them. We en), Kakra chingri bhapa (Steamed nental). We do both regional Indian as are planning the vegetarian menu crab and prawn meat well as international food promotions. with equal enthusiasm as we make As we have guests from different na- the non vegetarian menu. We decide Chef's touch: Spiced quail; Poppy tionalities, we must take care of their something new every year. We offer seeds crusted beetroot galette; Spiced requirements. Definitely not to forget buffet at Cafe Swiss (our coffee shop) mackerel

MYSTIC EAST | 33 COVER STORY

34 | MYSTIC EAST September - October 2016

COVER STORY WATER WOES Hotels and restaurants do not sell just a bottle of water or beverage, but service and ambience to their patrons. Hence three court orders allow hotels to sell water and drinks above MRP at tables

MAGINE this. It’s an afternoon instrumental music and the air-con- bience —not just the product. Also at the peak of summer in the ditioned inside soothe your body and the cost of storage and chilling is outskirts of a city in the coun- mind. You admire the tastefully done added to this. tryside. The mercury’s crossed embroidery on the upholstery while The MRP plus service debate in the I48 degrees and there’s an acute water you sit on the tender sofa and stretch hospitality business is a longstanding shortage. You are a travelling sales- your weary legs. one that surfaces time and again in man looking for some decent water to The waiter comes to your table. You the news media. The latest episode drink in the heat and dust. curse the weather outside to open up opened when the Consumer Affairs An hour’s search reveals a small a chat. He chips in with notes on the Minister Ram Vilas Paswan said, kirana shop where the ageing Lala local news. When you order a bottle “Charging above MRP is violation of shows you a ray of hope. Not only of mineral water mentioning your fa- the law. But we still see at airports, does he nod to say ‘yes’ but rummag- vourite brand he replies in an affirma- multiplex and hotels, that packaged es around for a mineral water bottle tive. Then he asks whether you need water is sold at more than the MRP. of some obscure brand in a heap of your water super-chilled or slightly This needs to be stopped.” The grocery items. But then you find the chilled. You opt for the second option minister seems to have said this at an water is far from chilled. Also the as your body is yet to cool down. He event commemorating 47th World’s ‘best before’ date on the bottle looks brings you the bottle and then pours it Standards Day. According to one smudged. in a beautiful glass. You take a sip and news report the minister apparently You are also suspicious of the seal it feels like heaven. also said, “We have sufficient power of the bottle. Fnally, when you take You order lunch impressed by the to take action against violators and we a sip from the bottle it tastes odd. As service and ambience in the hotel. You will take action if consumers file com- you have already broken the seal the savour your meal and ask for the bill. plaints in this regard. There is penalty shopkeeper refuses to entertain any Among other things the price of water and even jail term for violators.” complaints regarding its quality. You is mentioned on it. You almost ignore leave the place with a nasty experi- the fact that you’ve been charged Rs An old debate and the law ence and a bitter taste in mouth and 50 for the bottle of water. The report created a big confusion take the dusty road. Yes it’s more than double the ‘max- as many customers at hotels and A few hours later, as you step inside imum retail price’ (MRP) mentioned restaurants started demanding soft the periphery of the city, you spot a on the crimp of the bottle. But you drinks and bottled water at MRP. star hotel. As you get into the restau- don’t mind at all because you know Says T.S. Walia, a past President at rant the food and beverage staff greets you are paying for the service—the Federation of Hotel and Restaurant you with a smile. The piped tune of waiter's service and the pleasing am- Associations of India (FHRAI), the

MYSTIC EAST | 35 COVER STORY

To remove ambiguity hotels must keep an option of serving non-bottled water

apex body of hotels and restaurants ported in (1972) 1 SCC 472.To similar of the SWM Act as this does not con- in the country, “The confusion seems effect is the Supreme Court decision stitute a sale or transfer of these com- to have surfaced because report was in the case of Northern India Caterers modities by the hotelier or restaura- run without appropriate verification. v. Lt. Governor of Delhi reported at teur to its customers.” As per the present law, there is no 1979 (1) SCR 557. Likewise the Delhi High Court too such legal stricture that can prose- There was a second case at the Ker- in the case of Delhi Gymkhana Club cute a hotel or restaurant for the sale ala High Court (KHC). Specifically Ltd. v. Union of India, reported in ILR of either packaged drinking water or on the issue of charging higher price (2009) V Delhi 169, following intera- aerated drinks or any such commodi- than MRP by a restaurant/hotel/club lia the aforementioned judgments of ty above the MRP while being served on packaged commodities, the Kerala the Hon’ble Supreme Court, allowed in the premises i.e, inside Hotels and High Court in the case of Taj Kerala the writ petition holding that the pro- Restaurants.” Hotels and Resorts Ltd.Vs.Union of visions of the SWM Act and the SWM The law of the land clearly men- India &Ors. reported in 2013 (3) KHC Rules were not applicable to the pro- tions that as regards the packaged 149, quashed the notices issued under visions of refreshments and beverag- drinking water is concerned, the cus- the Standards of Weights and Mea- es by the Delhi Gymkhana Club to its tomers/patrons to hotels and restau- sures Act 1976, hereinafter referred to members and guests. rants are served with the food, soft as “SWM Act” as well as the Standard In addition, the Legal Metrolo- drinks and packaged drinking water of Weights and Measures (Packaged gy Act, 2009 and the Rules framed as per their requirement. The nature Commodities) Rules 1977, a predeces- thereunder do not cover the supply of of the transaction between a hotelier sor to the Legal Metrology Act, 2009 food and drinks, served by the Hotels or restaurateur and his customer is and the rules framed thereunder and Restaurants to their customers/ one essentially of service and not that holding that “charging prices for soft patrons/guests. of sale and purchase. This has been drinks in excess of MRP printed on It is also seen from the rule 18 of held by a Constitution Bench of the the packaging, during the service of the Legal Metrology (General) Rules, Hon’ble Supreme Court in State of customers in hotels and restaurants 2011 that the same applies only to H.P. v. Associated Hotels of India re- does not violate any of the provisions “any saleof any commodity in packed

36 | MYSTIC EAST September - October 2016

members to rely on 2007 judgement. Senior counsel Harish Salve argued that charging prices for mineral water in excess of MRP during the service does neither violate the provisions of the Standards of Weights and Measures Act/ the Packaged Commodities Rules nor the new law. “There is an element of service, so MRP can’t apply,” he said.

Archaic MRP rule The fixed MRP is an archaic and dys- functional mechanism in India that hurts both retailers and the consum- ers it seeks to protect. The maximum retail price that is printed on all packaged commodi- Hotels offer you an ambience, not just just packaged drinking water ties that consumers purchase was in- troduced in 1990 by the Ministry of Civil Supplies, Department of Legal Metrology, by making an amendment to the Standards of Weights and Mea- form at a price exceeding the retail in any case even if the concerned pro- sures Act (Packaged Commodities’ sale price thereof” [Emphasis sup- visions of the old (repealed law) and Rules) (1976). It was meant to pre- plied]; it does not rightly cover a the new law were identical. vent tax evasion and protect consum- transaction, the nature of which is not The HC bench’s order had nullified ers from profiteering by retailers. Be- a sale but a service. the binding effect of Justice Vikram- fore the amendment, manufacturers jit Sen’s 2007 order that ruled that could print either the maximum re- Apex court's response hotels and restaurants in the Capital tail price (inclusive of all taxes) or the Last year the Supreme Court had can sell bottled mineral water over retail price (local taxes extra). When sought response from the Centre on and above the MRP to customers who producers opted for the latter meth- whether a hotel or a restaurant can visit them and enjoy their other ser- od, it was found that retailers often charge for a bottle of drinking water vices facilities. Sen had observed that charged more than the locally appli- more than the maximum retail price “the customer does not enter a ho- cable taxes. Thus, the amendment (MRP) marked on the container with tel or a restaurant to make a simple was made to introduce the compul- reference to the issue raised before purchase of the bottled water. It may sory printing of MRP on all packaged the apex court by the FHRAI. well be that a client will order nothing commodities. A bench headed by Justice Dipak beyond a bottle of water or a bever- While the intention to protect con- Misra issued notice to the Department age, but his direct purpose in doing sumers in a pre-liberalised India can of Consumer Affairs, Controller of so would clearly be to enjoy the ambi- be lauded, continuing the system Weights and Measures, and others on ence available therein and to ordering today does not make any sense. The an appeal filed by the Association seek- of any article for consumption.” practice of MRP in India is unique, ing setting aside of the division bench of The Association told the apex court archaic and dysfunctional. India is the Delhi High Court’s February order. that the HC bench’s decision had perhaps the only country in the world The HC bench while disposing of “grossly undermined the sanctity and to have such a system, where it is pun- the appeals filed by the government integrity of the judicial/adjudicatory ishable by law to charge a price high- had kept the question of law, which process. er than the printed maximum retail was decided by its single judge, open It said that irreparable harm and price. In most countries, the system for adjudication in any fresh proceed- injury will be caused to its members if of having a universally enforceable ings under the new law. It had also the Centre is permitted to commence printed price is viewed as being akin held that the single judge’s March proceedings under the Legal Metrol- to price fixing and is thus prohibited 2007 order “shall not be a precedent” ogy Act 2009 without allowing its as being anti-competitive.

MYSTIC EAST | 37 COVER STORY

Dysfunctional system presently dictates. Eventually, see- More often than not, the rule of MRP is ing that there is a demand for these breached rather than honoured. First, KEY VERDICTS products and that a retailer is making the MRP applies only to commodities 1. The nature of the transaction between a hotelier super-normal profits, more shops will and not services. Second, most essen- or restaurateur and his customer is one essential- open up in that area. When the de- tial commodities are not packaged mand from retailers increases, whole- ly of service and not that of sale and purchase. and, thus, do not fall under the MRP salers and manufacturers will create rule. Fruits, vegetables, rice, pulses, (1972) 1 SCC 472 and 1979 (1) SCR 557 better facilities for distribution. and so on are always sold ‘loose’ and 2. Charging prices for soft drinks in excess of MRP Another important defence for the retailer thus has the freedom to printed on the packaging, during the service of maintaining the MRP system is that choose the price, based on his costs it eliminates information asymmetry customers in hotels and restaurants does not and the demand and supply for those and provides a benchmark to illiterate commodities. Third, even packaged violate any of the provisions of the Standards consumers. However, with increasing commodities are not usually sold at of Weights Measures (SWM) Act, 1976, as this penetration of Internet-enabled smart MRP. It is not uncommon to pay a does not constitute a sale or transfer of these phones, it is not hard to imagine an price much higher than the MRP in commodities by the hotelier or restaurateur to its app that can collate different retail movie theatres, high-end restaurants, customers. 2013 (3) KHC 149 prices from a particular location. In tourist locations, airports and railway the beginning, the government can stations. Fourth, many shops charge 3. The SWM Act and the SWM Rules were not devote some of the huge resources it for ‘services’ that are not covered by applicable to the provisions of refreshments and currently spends on enforcing MRP to the MRP, for instance, you often have beverages in hotels, restaurants and clubs ILR develop a mechanism for dissemina- to pay a premium, a ‘cooling charge’, (2009) V Delhi 169 tion of information. Gradually, given when you buy cold bottled water or its utility, many private players will soft drinks. Fifth, producers some- develop apps that will provide infor- times print an MRP so ridiculously mation on different retail prices. high that the product can be sold at Finally, it has to be asked wheth- an actual price that is up to 90 per One justification that is often given er it should be the right, or even the cent discounted, thereby making the in defence of MRP is that it is meant duty, of manufacturers to set the price printed MRP redundant in its ability to protect consumers in remote lo- at which a product will be sold to the to signal value. Firecrackers and au- cations who do not have the choice end user. In doing so, the manufac- tomobile spare parts are the most ob- to go to different stores in search of turer gets to decide the profit margins vious example of this. the right price. While MRP aims to of the retailer, which is essentially establish uniform prices, irrespective contradictory to a free market system. Crackdown offices of whether it is in a commercial urban Just as a consumer has the right to The onus of checking whether prod- area or a remote village in the West- buy a product at a particular price, the ucts are being sold at a rate higher ern Ghats, the result is often damag- retailer should have a right to sell his than the printed MRP lies with the ing to both retailers and consumers. product at any price. If he charges a state legal metrology department of- Retailers in remote locations and in higher price, the customer is free to ficials. There have been a few instanc- villages often have to bear high trans- go to another store. Retail density es of much-publicised crackdowns in portation costs, which they cannot in India is high enough for the mar- various cities, but normally, it leads pass on to the end consumer, since ket mechanism to function properly, to rent-seeking among these officials. they are legally not allowed to charge as the OECD 2007 Report on India a price higher than the MRP. They, notes. Even in places that do not have Unfair rule therefore, end up making losses. In high retail density, if retailers charge The MRP, by providing a focal point order to avoid this, they choose not to very high prices in the absence of an for retailers, becomes a de facto uni- stock many products, thereby reduc- MRP, other retailers will soon enter form price and creates retail price ing the choice available to consumers the market and the resulting competi- collusion. Thus, MRP often ends up in these locations. If, however, they tion will eventually reduce prices. hurting the very consumers it sought were allowed to determine their own The MRP system has existed in In- to protect. price, they would factor in the trans- dia without being questioned for too “More often than not, the rule of MRP portation costs and charge a slight- long now. It is time to give free mar- is breached rather than honoured.” ly higher price than what the MRP kets a chance.

38 | MYSTIC EAST September - October 2016

INTERACTION Hello, what's cooking? Today, it's very common to see chefs interacting with the restaurant’s guests. As the practice becomes prevalent in India we track its advantages to the restaurants

MYSTIC EAST | 39 INTERACTION

Ensuring chef-guest interaction has become an important criteria while recruiting new chefs

ITH the constantly evolv- interaction between the Chef and the to the kitchens. Due to this, most of ing nature of Indian hos- guest. India’s hospitality players have the interaction with guests was done W pitality, the Chef’s role has inculcated this practice as an essen- by the waiting staff. This resulted in also undergone a makeover. Today, tial part of in the training process of misunderstandings. Thus, it became the Chef is more proactive. He comes Chefs. essential for the Chef to interact di- over to the table, speaks with the Today, employers have also made rectly with the guests to ensure that guests, understands their priorities, note of bringing in more proactive the guest’s requirements were cor- comes up with suggestions and pres- and extrovert Chefs into the team to rectly met. ents a meal. help initiate the practice among em- With the emergence of the trend of The phenomenon is encouraged ployees. Ensuring Chef-guest interac- Chef-guest interaction, most guests by hotels as well as the standalone tion has become an important criteria directly communicate their require- restaurants. More particularly, food while recruiting new chef employees ments to the Chef, who with his own and beverage managers encourage within organisations. expertise customises the menu to suit their restaurant chefs to interact with their needs. “Rather than a steward or guests. It is an interesting fact that Rewriting the Chef’s role a manager convincing the guest to try the industry is becoming extremely Prior to the implementation of this a particular food, suggestive selling conscious of the need for this direct practice, most Chefs were confined practiced by the Chef has more effect

40 | MYSTIC EAST September - October 2016

on the guests,” says Pranay Singh, Ex- courage my Sous Chefs to visit the ecutive Sous Chef, Swissotel, Kolkata guests. Once the practice is inculcat- . This also adds an extra ‘wow factor’ ed, it will help them to manage both to the food and service, adds Chef jobs efficiently.” This exposure is very Singh. “The Chef can also answer essential for the Sous Chefs who can questions put forth by the guest that Chef-guest then use it to their advantage when the waiter or the steward staff can’t interactions adds they progress in the industry. answer,” adds Nisar Ahmed, Corpo- rate Chef, Mayfair Hotels & Resorts, that extra ‘wow This also proves to be very helpful Bhubaneswar. factor’ to the for the restaurant, as the guest saves time deciding on his choice of food. Interactions food and service The Chef proves to be more helpful While it is difficult for Chefs to inter- section of a than the menu card, since the guest act with guests during peak hours, can discuss his likes and dislikes. most Chefs try to find a way to solve restaurant “The Chef helps in setting the the problem. As a chef at a five-star restaurant’s image and standards,” hotel in Kolkata says, “I always en- says T.S. Walia, a former President,

MYSTIC EAST | 41 INTERACTION

FHRAI. “He can also befriend the Contemporary cooking styles have “This also helps in showcasing the guest, make him feel comfortable in helped in the growth of this practice. Chefs’ professional skills,” says Singh. the restaurant and help him have a Most Chefs also believe that with good meal.” Besides, most Chefs be- more interactive culinary practices The F&B perspective lieve that the uniform being primary, emerging in the industry, the scope It is often observed that the restau- it is also their knowledge about the for Chef-guest interaction has gained rant or the food and beverage (F&B) food being served that instills confi- a boost. “Flambé, tandoor and teppa- manager encourages Chefs to speak dence in the guests. This in turn aids nyaki prepared in front of guests also to the guests. This is primarily done the restaurant’s growth. The practice helps in maintaining transparency,” to boost the restaurant’s sales. This also helps meet the clients’ diverse says Ahmed. He feels that this can brings up queries such as why this needs. be also considered as a form of Chef- role can’t be filled in by the restaurant guest interaction. In addition, such manager. The new-age food activities helps in boosting the Chefs’ “The Chef and the restaurant go Today, eating out has become more of confidence. Besides boosting sales, hand in hand. The Chef represents an experience for guests rather than this also helps provide a memorable the food and thus, when the Chef asks merely a necessity. Restaurants strive experience to guests. or suggests the guests to try out some- hard to make this experience an en- Display kitchens were earlier con- thing different, the guest agrees to it,” riching one to help the restaurant’s fined to just the display of food. To- says a General Manager, of a five-star growth. Initiating Chef-guest interac- day, the trend in display kitchens is hotel in Calcutta. tion is an essential tool for the same. about how Chefs explains the food’s “The hospitality industry is all about intricacies, which helps provide an Boost sales catering to people. Unless the Chef overall experience. This can also be There are several pros to this inter- interacts with his guests, he will not extended to buffet meals, where the action. Suggestive styling of the food realise the needs and desires of the Chefs can spend time explaining the and repeat clientele are the main out- guests,” adds Walia. meals’ essentials to inquisitive guests. comes of this phenomenon, which leads to increase in sales. It can help the guest have an enriching experi- ence in the restaurant. This will in turn make him eager for his next visit. Successful Chef-guest interactions will ensure a good number of repeat clientele to the restaurant and can help build a loyalty base for the restaurant. This will also help establish the brand image of both the restaurant and the Chef. Thus it elevates the overall im- age of the restaurant. Chef-guest interaction also proves to be of great help for the Chefs and the restaurant as a whole to learn about the guests’ preferences. This helps cre- ate a database to record the likes and dislikes of the guests, which could later help ensure customised service to the guests during consecutive visits. Ground reality Feedback derived from Chef-guest in- teraction also proves to be extremely helpful in making necessary changes in the restaurant’s menus. Changes An effective interaction can boost the chef's confidence include the introduction of new dish-

42 | MYSTIC EAST September - October 2016

Feedback from guests helps the chef refine his recipes and change the restaurant’s menus

es in the menu as well as redesigning the Indian guests,” informs a Kolk- the menu. ata-based chef of foreign origin. He However, the practice is yet to at- also adds that efficient training is es- tract the attention of most restaura- Successful chef- sential to make the Chefs more con- teurs in the country. With the evolv- guest interactions fident in interacting with the guests. ing hospitality industry, it is also This will help raise the bar as well as essential for the industry to adapt will ensure a good help in the emergence of more ce- these measures to help in the growth number of repeat lebrity Chefs and Indian signature of the restaurant’s popularity. “As a restaurants in the global market. customer in restaurants, I have rare- clientele to the Today, the Indian guest is more ly observed Chefs talking to guests, restaurant and aware of Indian hospitality than ever discussing the menu and making sug- before. He is well travelled and more gestions. Indian Chefs are not as ex- can help build a open to changes and innovative strat- trovert as they should be,” mentions loyalty base for the egies. Thus, after watching the ex- Walia. tensive Chef-guest interaction taking “Strangely, I have observed that restaurant place worldwide, it’s but natural that Asian Chefs find it much easier to he’ll expect the same from Indian interact with foreign clientele than Chefs as well.

MYSTIC EAST | 43 CONTROVERSY CLASH OF CLANS

Not all hotel owners are happy with budget hotel aggregators like Oyo Rooms. As the love-hate relationship between the two entities continue these 'new age booking agents' are undergoing a course correction. Hoteliers are also learning to co-exist with them September - October 2016

T the recently concluded An- an aggregator. “This shows that some nual General Meeting of Ho- of our members are not happy with A tel and Restaurants Associa- some particular operators and their tion of Eastern India (HRAEI) many high-handedness meted out to them.” of the members expressed dissatis- Another grouse of members is over faction over the tie-ups with the some the fact that aggregators often do not hotel aggregators. pay hotel owners in time. Some rooms “When some of our members signed pledged by them sometimes remain up with budget hotel aggregators unsold, depriving a genuine and loyal -- such as, Oyo rooms-- they did not customers. This leaves a deep impact realise that this move would impact on loyalty of old customers. their business and goodwill,” says According to another report in ET Sudesh Poddar, President, HRAEI. in June this year a Mumbai-based ad- “And all these have happened because visory firm has dragged OYO Rooms of high-handedness if these new age to the Delhi High Court for failing to operators.” make a payment. Noesis Capital Advi- “Deep discounting (actually under- sors, a hospitality advisory firm, has cutting), introduction of day/hour filed a winding-up petition against use segments and unrealistic prom- Oravel Stays, the company that owns ises made in their websites and apps OYO Rooms, on April 26 this year. A often jeopardise normal operation of winding-up petition is filed to recover hotels,” added T.S. Walia, a senior dues by forcing an insolvent company member of HRAEI. into compulsory liquidation. “The aggregators, however, discov- The petition - a copy of which has ered a devious way to solve the prob- been reviewed by ET - claims that OYO lem. Whenever customers express Rooms failed to pay Rs 1,50,39,575 to their dissatisfaction or post negative Noesis. The petition asks "why the reviews they quickly 'downgrade' the company be not wound up". The hos- hotels through a suspicious 'star sys- pitality advisory firm has claimed that tem rating,” adds Poddar. When a the $400-million startup has failed to hotel loses stars it affects its business make the payment despite using their and also impacts its reputation, but services during the scaling-up phase least affects the aggregator. On the of the venture. contrary, the unsuspecting custom- "OYO availed services of Noesis Whenever er is impressed by the aggregators' through an exclusive, noncompete customers express 'stringent' system. contract. Mid-way through the term According to a report in The Eco- of the agreement, we found evidence their dissatisfaction nomic Times over 200 properties that Noesis was in breach of agree- or post negative signed out of OYO Rooms and Zo ment and terminated their services. Rooms dissatisfied with the service We also sent them a legal notice to reviews on a across the country. Even though it recover dues paid in good faith. That hotel's service, may sound just a small proportion matter is presently sub-judice," a among thousands of hotels, it may just spokesperson wrote in an email re- aggregators quickly be the beginning of a mass exodus un- sponding to a questionnaire from ET, 'downgrade' the less the loopholes are plugged in time. which could not independently verify However, according to the ET report, the contents of OYO's notice. hotels through a some of those who snapped ties with Noesis' website says that it is into suspicious star Oyo and Zo shifted to rivals such as hospitality advisory and helps with Wudstay, Vista Rooms or Treebo Ho- entry strategy, site selection, feasi- rating system tels. The trend proves that these hotel bility and equity finance. The firm of- owners haven’t stopped believing in fers "a complete cycle of broad-based the benefits of being associated with services across a wide range of hospi-

MYSTIC EAST | 45 CONTROVERSY

esting is a similar graph that Soft- Bank had inserted in an earlier report where Oyo was said to have grown a mind-boggling 34X times year-on- year with 895,000 rooms per quar- ter (approximately 10,000 rooms per night) for the Oct-Dec 2015 quarter. But this graph is interesting for one more reason — rather than “booked room nights”, it speaks of “used room nights”. Therein lies the tale of how Oyo is, in all probability, the startup equivalent of a Ponzi scheme! This post was followed by a second one after it evoked a number of re- actions with dozens of hotel owners, former Oyo employees and partners 15X year-on-year growth sounds too good to be true writing in to share their own experi- ences with Oyo. Although some of the posts were really shocking, the author tality, retaining the specialist skills, What, a website that tracks the devel- refrained from using the public reac- attention to detail, and quality of ser- opment of startups in India, raised tions as he didn't have the means to vice." An email questionnaire sent to a question whether Oyo Rooms is a corroborate them. Noesis by the newspaper did not elicit startup equivalent of a Ponzi scheme. Quite expectedly Ritesh Agarwal, any response. The article was also posted on the the CEO of Oyo Rooms, too reacted. OYO Rooms, which is one of the social site LinkedIn. The question However, Ritesh didn't answer any fastest growing startups in India and was raised after investor SoftBank of the questions raised in Sumanth’s the biggest one in the hospitality released its quarterly report that con- first post. Providing data would have space, is on an expansion spree. The tained an update summarizing the definitively answered the doubts and hotel room aggregator recently part- state of state of Oyo Rooms, the In- questions posed. Instead the response nered with multi-service payment dian startup in which it had famously resorted to righteous indignation as solutions company ItzCash. Addition- invested $100m late last year. Ritesh wrote "When someone ques- ally, OYO Rooms has started offering The slide contained the a graph tions our intent and integrity, it infu- holiday packages to its customers, claiming that Oyo has grown 15X year- riates us". Sumanth found this reac- which include local sightseeing and on-year in the last one year. Ritesh tion a bit surprising because it was not transportation. Agarwal, the CEO of Oyo Rooms, re- the first instance of someone asking According to the Linkedin profile of leased a statement claiming that this tough questions of Ritesh. There was people working with Noesis, the advi- 15X growth implied that the compa- already a long list of former partners, sory was instrumental in OYO Rooms' ny has delivered 2.3 million booked vendors, employees and even main- pan India expansion. room-night transactions in the first stream media journalists who had ac- "(Noesis) Approached clients and quarter of 2016 - this translates to cused Ritesh and co of far worse. pitched (OYO Rooms') benefits, suc- more than 766,000 rooms a month. He accused the post of containing cessfully signed properties in about "All of this would have been fine if "half-baked theories and insufficient 16 cities, added more properties to not for one little fly in the ointment," data...We have always seen ourselves the existing portfolio in south India wrote Sumanth. A little less than a as a hotel chain". and ensured proper servicing and year back, Oyo had released a similar This is surprising because until after-sales support," says a Linkedin statement claiming that it was book- May this year Oyo had been a hotel profile of a business development ex- ing “400,000 rooms a month”! So Su- aggregator and service provider rath- ecutive at Noesis. manth, claimed, Oyo was either “ex- er than a hotel chain in any sense of aggerating” the numbers then or they the term. The filings made by Ritesh Allegation are doing so now. in RoC and contrast that to his pub- An allegation by Sumanth in NextBig- What makes this even more inter- lic pronouncements. In the statement

46 | MYSTIC EAST September - October 2016

it’s not mentioned that it’s a hotel has already paid for to their direct tory value! If a night passed without chain but indicates it’s an aggrega- customers! While in theory Oyo mon- being used, the entire Rs.1,999 was tor like its competitors Zo Rooms, itored inventory usage, in practice, down the drain with nothing to show Stayzilla, Wudstay, Ziprooms, Treebo they had close to zero visibility. This for it. and so on. would often lead to situations where But if they could sell a room even In other words, the principal (and customers who would book rooms for Rs. 1 per night, they could at least only) business activity of the company on Oyo finding the hotel refusing to count this as a “used room night”. Of is providing booking services related honor the booking by claiming that course, this wouldn’t make much of to tourism - specifically functioning they were overbooked. Again, one can a difference to their revenue figures as a travel agent. see numerous examples of customer but what if they could bandy this as a According to Sumanth a look at complaints of this nature on the hotel metric that is shown growing up and its latest financial statement where review sites. to the right? the only items listed as operations is This essentially meant that both the This imperative kicked off the fire "sales of services", nothing related to benefits— standardized room quality sale — not only did Oyo offer rooms hotels in any form or manner. Yet it and predictability — that Oyo touted at severely discounted prices (losing flummoxes him why Ritesh wants to as its core value propositions were as much as Rs. 1,000 on each room portray Oyo as a hotel chain when it is completely frittered away. Oyo had night as per some estimates), they nothing of the sort and misrepresent- basically shot itself in the foot. literally gave away rooms for next to ing this to all and sundry? While this was a bad thing, there free! There are well-traveled stories was something even worse. that Oyo grew so desperate to shore Minimum guarantee Oyo would buy rooms at say Rs. up this metric that their representa- When the hotel owners were delighted 1,999 per night — the only way it could tives went out to local colleges and to get an upfront minimum guaran- make any money was if it sold the handed out coupons in the parking tee from OYO Rooms — not only were same room to a customer for Rs.2,000 lot to any student couple who could they derisked from unused inventory, or more. Not only did Oyo discover use the room for as little as one hour they got paid in advance which greatly that this was easier said than done, for a session of “joint studies”! This helped working capital requirements. especially during lean and off-peak one-hour type of booking also meant But it created two specific types of seasons where uptake was very low that they could potentially turn over perverse incentives for hotel owners. but they also realized (rather belated- multiple bookings per day and further Firstly, now that they were paid in ly?) that these rooms have zero inven- boost their used room nights count (of advance, they were under no press- course, some hotels refused to honor ing obligation to maintain the hotel such bookings while others weren’t so to the standards that Oyo aspired puritanical). towards — after all, even if they gave Now, if you are thinking that all of poor-quality rooms to Oyo’s custom- The principle this is fine (maybe unethical on multi- ers, what is the worst that Oyo could (and only) ple fronts but not illegal) but how ex- do? They couldn’t terminate the actly does it constitute a Ponzi? agreement or even if they did, they business activity Let’s take a step back and revisit wouldn’t get their investment back. of the company what the metric “booked room night” So, a cursory search of any of the ho- means. It implies a transaction where tel review sites will show you a great is providing a hotel room night was booked. But number of complaints from consum- booking services nowhere does this guarantee or ex- ers who got stuck with pathetic rooms plicitly say that the room was booked that they booked through Oyo. related to tourism by an actual customer. So a minimum Secondly, the minimum guarantee - specifically guarantee paid upfront is also techni- was an unexpected bonus in another cally a room booking in itself! way. Since Oyo rarely picked up the functioning as a So we have a potential situation entire inventory of a hotel and be- travel agent; not as where Oyo could be selling zero rooms cause the hotels themselves hardly but could still tout a huge count for had any type of dashboard that would a hotel chain booked room nights because…they show details of walk-ins, hotel own- are buying the rooms! This essential- ers could give out rooms that Oyo ly means that they could be touting

MYSTIC EAST | 47 CONTROVERSY

Quick profits or customer loyalty? A difficult choice indeed

traction not on the basis of SKUs that no time in reacting to the two-part se- pain and many sacrifices from all of they sell but those that they buy — a ries posted by Sumanth. Even though us to get OYO to where we are today. bizarre turn of events that gives the the post went viral in hours, Ritesh’s We have amazing customers who love phrase “buying traction” a completely rebuttal came in time to reverse the us, a great technology platform, one new spin! This also means that forget tide of negative comments. He wrote of the best teams in the start-up eco- about having negative gross margins, a letter to his colleagues that was system, loyal partners who work with we could potentially be looking at a posted on the Internet by daze.info. us side by side, strong investors and situation where a product has a neg- a business that’s growing month on ative selling price! Dear Friends, month with positive take rates and a Admittedly, there is no way to know Many of you have expressed your an- clear path to profitability – calling all for sure whether the numbers reported ger and frustration since a post about this a ‘Ponzi scheme’ is just preposter- by Oyo fall in this hoary category but OYO appeared on LinkedIn last eve- ous! the point is that Oyo is now reporting ning. We have been criticized before We are here to solve a really difficult vanity metrics that can stage-man- and I am sure we will face criticism problem for the Indian budget travel- aged and gamed in any which way they again in the future. However, by ques- ers, and we are proud of what we have choose and quite easily at that. While tioning our integrity and intent using achieved already. OYO has started a vanity metrics are bad for a number of presumptive half-baked theories and revolution – from the largest OTAs reasons, in most cases, they are at least insufficient data the author has in- to more than 20 start-ups across the directionally correct but in this case, sulted more than 2,200 of us who are globe, there are many who are trying there is hardly any correlation. working day and night to realize our to build another OYO. Rebuttal shared dreams. Our customers love our product It was good that Ritesh Agarwal took It has taken a lot of sweat, a lot of and our services. They love us be-

48 | MYSTIC EAST September - October 2016

cause we take end-to-end responsi- ing hurts us more than a guest under- bility for guest experience. Starting going a bad experience. We have al- from selecting hotels, standardizing ways stood up to take responsibility the infrastructure, training staff and and then worked tirelessly to build using technology to drive ease of use, OYO, one great experience at a time. we have always seen ourselves as a Many times I have personally apolo- hotel chain. More than 600 of our gized to the customer. Each mistake colleagues are working incessantly hurts me, but I am not ashamed of to shoulder this responsibility in the my mistakes, as I am yet to hear of an 179 cities we operate in. “I enjoyed my entrepreneur who can claim to have stay at OYO” or “I booked an OYO” succeeded without making mistakes. are common references these days. As a company, we are always open And this is what brings each one of us to constructive criticism but when to the office every day! someone questions our intent and in- Not only are we growing fast, we tegrity, it infuriates us all. Your reac- are also growing strong! Our take tion is a reminder of how passionate rates have improved significantly and we are about OYO and how closely we are now positive across the network are bound together in our mission. including minimum guarantees (less If there is one thing I know, it is that than 3% of our business now). Our naysayers and detractors increase pricing team is continuously improv- our resolve to create the world’s most ing algorithms to maximize revenues loved hotel brand. Keep building while driving target take rates. Only team! ignorance or a strong desire to ma- lign can lead to the use of a term like Cheers, Ritesh “Ponzi scheme” in the above context. So now it’s upto the readers to decide Our consumer app is game-chang- what’s true. However, as we go to press ing – a simple three-click booking we learnt that Oyo as well as other new process, relevant content, turn by aggregators,however, are learning turn directions, in-app ordering ser- from the mistakes of the big players vice, choice of hotels at almost every and going for course correction. location and so on. This app is funda- For hotel aggregators the new It goes without saying that for small mentally changing consumer behav- business is akin to tightrope walking hotels, for whom filling up several ior – our customers are now booking unoccupied rooms was a constant more and more OYOs closer to check- struggle, fortunes have changed al- in time, a trend earlier seen only in most overnight after the arrival of of the taxi aggregator space. aggregators. Now rooms fill up, of- More than 99.5% of our guests ten with the same customers making get exactly what they book. This is They are realising a repeat appearance, and business is made possible by our partner hotel sometimes grow manifold. However, mobile app that ensures real-time that rather than under-cutting and deep discounting synchronization of room inventory. deep discounting, often take them back to square one. Our partners also are making more Occupancy doesn't convert into even money and are getting better returns having solid thin profits. on their assets because of OYO. With processes in place However, now the aggragators are more than 5,700 OYOs on our net- introducing better procedures that work now, we have lost fewer than is more important benefit both the customer and the 2% hotels ever – most let go after for surviving the hotel owner. Says Poddar, “They are consistently failing to deliver a pre- realising that rather than deep dis- dictable guest experience. competition counting, having solid processes in Like any evolving start-up, we have place is more important for surviving made our fair share of mistakes. Noth- the competition in the long run."

MYSTIC EAST | 49 STATE SURVEY: JHARKHAND

THE LAND OF FORESTS Political stability, bountiful flora and fauna, rich tribal culture and pilgrimages make Jharkhand an attractive tourism destination for both domestic and foreign travellers

HE state of Jharkhand regis- most popular destination for tour- tered more than 385 per cent ists is the city of Ranchi, famous for T increase in foreign tourist vis- its waterfalls, but growing numbers its between 2012 and 2014, revealed a of travellers are making the sacred recent Union tourism ministry’s data. ascent of Parasnath Hill, crowned Jharkhand’s foreign tourist growth by a temple marking the spot where was unprecedented, particularly 20 of the 24 Jain tirthankars (divine when arrivals in Bihar declined by 24 teachers) are said to have achieved per cent and West Bengal witnessed moksha, or liberation from the cycle an increase of just 12 per cent. of death and rebirth. Betla (Palamau) Though Jharkhand is blessed with National Park in the west of the state immense natural and cultural beauty, is also seeing growing numbers of vis- political instability, Maoist threat and itors for its healthy population of wild poor budget allocation were major elephants and rarely-seen tigers. obstructions to tourism growth, ex- perts said. Nonetheless, a steady rise History in foreign tourist visits is being wit- The state of Jharkhand was carved The state has an nessed since 2011. Merely 3,111 for- out of the southern part of Bihar on eign tourists had visited Jharkhand in November 2000. The state compris- unparalleled beauty 2001. That number rose to 1.54 lakh es 24 districts Chhotanagpur Plateau with majestic hills, in 2014. Similarly, arrival of domestic endowed with bountiful nature and tourists also increased 73 times in the mineral resources. The Land of For- scenic waterfalls, last 15 years. Around 4520 domestic ests, as Jharkhand is famously called, rich greenery and tourists visited Jharkhand in 2001, is heaven for nature lovers. The state which increased to 3.30 lakh in 2014. has an unparalleled beauty with ma- colourful culture According to travel guide book jestic hills, scenic waterfalls, rich of various ethnic Lonely Planet the exact reasons for greenery and colourful culture of var- Jharkhand’s growing popularity are ious ethnic communities. communities unclear, but one likely factor is the Given the number of scenic spots improving security situation. The the state has tourism is gradually

50 | MYSTIC EAST July - August 2016

Road to Hazaribagh: Tourism sector in the state needs aggressive marketing to publicise its bountiful scenic beauty

turning into a major revenue earner. So BaidyanathDham the famous tem- of the hills, a group of hillocks that It also provides income generation ple of Lord Shiva and Parasnath the attracts crowds loving hiking and ad- opportunities in primary, secondary seat of Jain TirthankarParshwanath venture seeking trekkers in big num- and tertiary sectors. It may be point- were the two most celebrated tour- bers. ed out that in a short duration after ist attractions that attracted largely For the families, too, the place has the formation of the state, the govern- religious crowd. Baidyanath Dham tremendous attraction. So from tran- ment of Jharkhand has taken some for the Hindus and Parasnath for quility and divine peace to mundane concrete steps to promote and devel- the Jains. There was no attempt to pleasure, the place is a hot spot. With op tourism in the state. promote pleasure or vacation tour- some effective marketing it can be- The strengths and assets of ism. In fact, few were aware that the come an internationally acclaimed Jharkhand clearly are pilgrimage, cul- region had tremendous potential for tourist attraction. tural tourism, heritage, eco-tourism, eco-tourism, the in thing today. Baidyanath Dham, the famous adventure tourism and wellness. With the formation of the new state abode of Lord Shiva, is also well Land locked by Bihar, Orissa, West the founders of the new state focused known with the seat of one of the Bengal, Madhya Pradesh and on tourism as a potential revenue twelve jyotirlingas of the Hindu god. Uttar Pradesh, the state has a to- earner. They gradually realised that This is situated in Deoghar town tal area of 79,714 square kilometers the tourism sector in the state needs which is well connected with rail as which is dominated by villages. an aggressive marketing strategy to well as road. However, apart from When Jharkhand was a part of Bi- publiciseit’s bountiful scenic beauty. pilgrimage, it is a beautiful place for har, the region its rich mineral depos- pleasure tourism. its were exploited by the then state Pilgrimages Galore There are two very famous abodes administration. Little attempt, what Parasnath situated some 45 kilome- of the Goddess Kali in the state that so ever, was made to promote the ters from the industrial township of attract devotees from all over India. natural beauty that was so bountiful Dhanbad attracts Jain devotees from Maithan near Dhanbad and Rajrappa here. The rich forests, the beautiful the entire globe. However the inter- near Ramgarh are two very important hills, the lush green ambience, the esting fact is that it is a fantastic site pilgrimages that have a tremendous pleasant weather and the variety in for pleasure tourism as well. The seat potential for pleasure tourism. vegetation. of famous Jain Tirthankar Parshwa- Near Dhanbad, around a distance What ever tourism was taking nath, the place has temples of all the of 25 kilometers there is a small town place it was in the name of religion. Jain Tirthankars situated at the top Nirsa. In Pandra village of this town

MYSTIC EAST | 51 STATE SURVEY: JHARKHAND

Parasnath, the seat of Jain Tirthankar Parshwanath, draws thousands of pilgrims from India and abroad

there is Kapileshwar temple that has ing this place can be developed in to a tourist attraction. Tourist attractions a history of thousands of years. This popular site. sites of the state can be classified into temple of Lord Shiva is also called In fact, there are several such plac- six categories in Jharkhand. Panch Pandeshwar temple as it is sup- es, which have a long history and were Some of the key destinations of the posed to be built by Pandavas (famous built by legendary rulers. state are as following: five brothers of the epuc Mahabharata Basukinath, near Baidyanath Dham 1. Religious Places – Baidyanath- according to Hindu Mythology). The is another important place that at- Dham, Parasnath, Rajrappa, Mai- legend goes that the Pandavas spent tracts pilgrims who come to Baidya- than, Basukinath, Lilori sthan, Shakti some time here during their forced nath Dham. This also is a temple of Mandir, etc. exile after the famous defeat in the Lord Shiva. In fact, Shiva and Durga 2. Pleasure or Sightseeing Sites – great gamble with Duryodhana. This temples are more common in the re- Parasnath, Basukinath, Trikut hill, temple has five Shiva lingas estab- gion and the erstwhile rulers built Nandan hill, Maithan Dam, Pan- lished by the five Pandava brothers. these temples taking into account the chet Dam, Tilaiya Dam, Rajrappa, There is another important Pilgrim popular psychology of the people. The Ramgarh, Hundru falls, Jonha falls, site near Topchachi some 30 kilome- interesting thing is that these sites are Usri falls, GautamDhara, Dimna ters away from Dhanbad. situated in remote areas and can be- Lake, Dasham falls, Topchanchi, Ma- This is the Mazar (Grave) of a Pir come important centers for pleasure sanjore Dam, etc. (saint) called Baba Hazrat Abdul tourism given the ambience. Most of 3. Health resorts/retreats – Netarhat, Shah. Many people flock here seek- the famous temples are surrounded Ramgarh, Ghamaria, Parasnath, An- ing boon from the deceased saint. by beautiful hills or are atop a hill or gada, Ghatshila, Hazaribagh, etc. Though Baba was a muslim the dev- near a river or in a forest. 4. Wild life/forests – Ghatshila, Haz- otees who throng here every day cut With a lot of packaging and market- aribagh, Koderma, Chaibasa, Gumla across religion. With a bit of market- ing they can easily become centers of etc.

52 | MYSTIC EAST September - October 2016

etc. Most of the sites in Jharkhand are of this category. Apart from these sites for differ- ent classes of tourists, Jharkhand, contrary to popular belief is not just barren, hilly and fruitless forests. It is culturally very rich and if the right packaging is provided the state can be an attractive destination for cul- tural tourism. In addition heritage sites depicting life and styles of indig- enous people, the tribals, can be de- veloped. Folk songs and Folk dances of Jharkhand are significant cultur- ally and can compete with the other popular dances like Kathakali And Bharatnatyam, etc., of Southern In- dia. The ‘Chhou’ Dance ceremonially inaugurated on the last day of Chaitra (a month in the Hindu Calender coin- ciding with March-April) is a case in point. This dance is performed at the open courtyards attached to shrines of village Gods. The state has some thing to offer to the historians, the naturalists, the an- Jonha Falls, near Ranchi, is fascinating after monsoon thropologists as well as theIndologist. The region is extremely important from anthropological point of view. 5. Eco-tourism – Netarhat, Hazarib- The basic population comprises four agh, Chaibasa, Ghatshila, Rajmahal principal groups, viz., the Bhumij, hills etc. who call themselves Sardar, the Mura, 6. Miscellaneous – Central Mining generally known as Mundas, the Research Station, Indian School of Santhal, and, the Kurmi, known also Mines, Indian Lac Research Institute, as Mahato or Kurma Kshatriya. BIT Mesra, BIT Sindri, Coal Mines, They are all independent groups of Forests etc. people who in most cases show cul- The places mentioned above are tural affinities. already popular and with aggressive The Mura worship the Sun God in marketing these can grow into well- the name of Sing Bonga, the same known national tourist sites. Apart When Jharkhand God who is worshipped as Dharam from these there are lesser-known was a part of Bihar, by the Bhumij. Sing Bonga is the Su- sites that can be developed into im- preme God with the Mura. There are portant sites with the help of custom- the region's rich other Gods like Marang Buru, the ized marketing. mineral deposits Mountain God. Generally, it is effective to market a The state government is taking particular site as a package i.e. offer- were exploited concrete steps to capture discerning ing different things to different class by the then state tourists. The boom period of tour- of tourists. For example, Parasnath. ism is here and it is trying to catch This hill complex can be packaged administration up with the mood and wallet of the as a site for pilgrimage, heritage, middle class whose propensity for eco-tourism, health resort, adventure fun and enjoyment, pleasure and ad-

MYSTIC EAST | 53 STATE SURVEY: JHARKHAND

to make arrivals easy and a pleasur- able experience.

Need For A Thrust For years, Jharkhand was projected as a land of Jungle, tribals, minerals, ancient temples, and backward cul- ture. It is time to redesign the tourism packages and explore new areas. But the important point is that the policy makers will have to consider a variety of approaches to ensure that the state is showcased properly. The state needs to be positioned properly and in this endeavour the support of travel agents, tour operators, travel writers, representatives of travel and hospitality industry associations, ex- perts in the tourists and cultural sec- tors, diplomats, journalists and other Pilgrim's trail: Rajrappa is prominent religious place opinion leaders is crucial. Effective positioning depends on a number of factors that together determine the at- venture is growing by the hour. • Enhancing image and popularity, tractiveness of the tourist destination. etc of tourism destinations. Positioning must promise the benefit What Needs to be Done So the government’s focus is on the customer will receive, create the The tourism product is different from marketing to a well-defined group of expectation and offer a solution to the other products. A tourism product is the potential customers. Identifying them customer’s problem. combination of tourism services and of- and then positioning its tourism des- The state government needs to go ferings being provided by the different tinations to them is the strategy that for development of new sites, facelift constituents of the tourism industry. is being followed. of existing sites and sprucing up the The landscape, lush greenery, wildlife hospitality arrangement. Attempts adventure, stay in hotel, traveling, fes- Action areas are on in this regard but lot more tival, tradition and culture of the host The following ground realities should needs to be done. Already country/destination, etc. constitute the be kept in mind about the state. the state government has initiated invisible and intangible structure of the • Inadequate & poor quality of infra- steps to develop a beautiful park at tourism product. These must be identi- structure the mining town of Kiriburu fied and properly classified. • Carrying capacity by air, road and in West Singhbhum on the lines of The government of Jharkhand has railways the famous Jubiliee Park of Jamshed- been studying the prospects of tour- • Clean and comfortable lodging fa- pur. Similarly Akarshani ism in a scientific way. The cilities at reasonable prices Devi temple at Saraikela in following issues are important : • Trained guides and Tourist Ameni- Kharsawan district is being developed • Understanding the tourist needs, ties of international standard on lines of Vaishno Devi temple. wants, tastes and attitudes • Adequate entry points These efforts are going to pay rich • Achieving sustainable growth in • Positive image building abroad dividends. However, careful planning tourist arrivals • The need to preserve the heritage and organizing is required • Increasing tourist traffic during and natural resources for effective management and ex- lean seasons • Safe and secure tourism. ploitation of tourism potential is to be • Attempting to increase the length of The future action programme achieved. stay of tourist should revolve around creating ade- Acknowledgement: DrSaumya • Dispersing tourist to new destina- quate infrastructure of international Singh and Namrata Pathak Jharkhand tions and standard Journal of Social Development

54 | MYSTIC EAST