Sector: Hospitality: Hotels
Client: India's leader in the environmental hospitality segment, with two brands and 24 hotels, growing to 50 by 2015.
Promoter's Dream: To expand throughout India and South Asia, and create sustained, profitable, growth by entering new hospitality segments.
The Avenues of Opportunity Recommended by OPENMIND
Go Beyond South Asia: OPENMIND MD, Mr. Richard Rothman pointed out that the client has no global competitors in the environmental hospitality segment. Yet its current strategy is to limit expansion to South Asia. OPENMIND recommended that the client first expand to those countries that most value environmentalism, i.e. the developed world. By expanding to countries that already cherish his brand's environmental values, the client can quickly disconver abundant opportunities for sustained, profitable growth.
Go Beyond Green: Only 30% of the client's customers say that they care about the environment. OPENMIND recommended become more relevant to the remaining 70% of the market, by also creating and operating mainstream hotel brands. The client must consider how it sees itself – is it first an environmentalist, or a hotelier? By considering all hotel consumers as potential customers, the client will recover significant opportunities for sustained, profitable growth.
Number One is Contract Management: The client operates all its hotels under management contract – it is an expert in this area. OPENMIND recommended that the client position itself to become the #1 contract management specialist in the world. If his world revolves around mangement contracts, the client's opportunities for sustained, profitable growth expand geometrically into new areas such as services apartments, banquet halls, catering, clubs, senior citizens' communities, meeting facilities, convention centers, schools, hospitals – the possibilities are endless.
Actions Taken: The client appreciated and accepted the OPENMIND recommendations and now into the implementation phase. There was promoter involvement in the entire process and decission-making.
The OPENMIND Advantage
Industry: The hospitality industry is projected to grow at a Compounded Annual Growth Rate of 8-10% over the next five years.