With MICE and F&B emerging as a good contributor for Delhi-NCR hotels, hotels in the region is now increasingly focused on these segments. “MICE indeed has become one of the key contributors for hotels across Delhi & NCR. For Shangri-La’s – Eros Hotel, New Delhi, MICE contributes approximately 13 per cent to the overall hotel business and our focus remains to only cater to chic MICE business where we can help offer personalized, creative and thematic meetings that truly reflects luxury,” Parmeet Singh Nayar, General Manager, Shangri-La’s – Eros Hotel, New Delhi.
According to Nayar, creative F&B has been a DNA for success of hotels. “Our key focus has been to offer authentic cuisine curated by the expat chefs from the region that we wanted to showcase. We have a good mix of MICE, business travel and leisure business,” Nayar added.
MICE and F&B also contribute significantly for The Park New Delhi. “MICE segment is showing an annual growth around 20 per cent year on year and as of now it stands at 9 to 10 per cent of our total room bookings,” Rohit Arora, Area General Manager, The Park New Delhi said and added that MICE contribution towards F&B is around 25 per cent and business and leisure traveller contributes 20 per cent each in hotel’s overall business.
For Crowne Plaza Greater Noida which is closer to the India Expo Centre, Greater Noida, MICE contributes almost 1/4th of the hotel’s revenue. “As a leading business and conferencing hotel in Delhi NCR, MICE is a major contributor for Crowne Plaza Greater Noida with 25 per cent contribution to total revenue. F&B including conferences and events contributes about 29 per cent to total revenue of Shangri-La. “Off this 65 percent is contributed by conferences and events segment and 25 per cent contribution from MICE and approx. five per cent contribution is from leisure segment,” Vaibhav Sagar, Director of Sales & Marketing, Crowne Plaza Greater Noida, said.
Jaypee Vasant Continental, New Delhi also gets a good business from MICE and F&B segments. “MICE is one of the major revenue generating streams and the steady growth of business has helped us in capitalizing on this growing segment of business. The MICE sector is growing over the last one year as a significant part of the overall business and we expect this to continue in the coming years as well. MICE contributes almost 10-15 per cent of the total market share. F&B is the backbone in terms of revenue contribution. It has a constant share of 50 percent in the overall business. As far as MICE & Business Travel go, one third of the business is derived from these segments,” said Dilawar Singh Nindra, General Manager, Jaypee Vasant Continental, New Delhi.
However, The ARR was constant for FY 17-18 and 18-19 for Jaypee Vasant Continental, New Delhi whereas the occupancy and RevPar both saw a marginal dip. Shangri-La’s – Eros Hotel, New Delhi witnessed an increase in ARR, occupancy, RevPar and customer satisfaction in 2018 over 2017. The Park New Delhi also witnessed a growth in performance in 2018. “The ARR and RevPar overall has seen an about 5 per cent to 7 per cent increase as compared to year 2017. In fact, the industry has seen an upward trend in the past 2 years with 2018 showing a greater increase. Our strong brand appeal and our Anything But Ordinary experiences have definitely caught the eye of the consumer,” Arora said. Crowne Plaza Greater Noida witnessed double digit growth in ARR, occupancy and RevPar in 2018.
ARRs could have grown up more but the massive growth in mid-market hotels hindered the growth. “We can observe that the ARRs have started to increase, however to reach its actual expected stage one has to be patient for the next 2 to 3 more years at least. The current ARR patterns are still 30 to 40% lesser in comparison to statistics from 10 years back,” Nindra said.
Nayar, however, does not see much impact on ARRs due to the growth in mid-market segment. “The mid-market segment is growing fast on account of heavy demand coming in recent times. The price point and target audience for mid-market segment and luxury segment are completely different hence there is not much of impact on the ARRs for luxury hotels like us,” Nayar opined.