Focus East: How ibis Kolkata is fortifying its position in hospitality with innovation

The hotel industry has led to the creation of around 15 million jobs in the past few years, employing nearly 8% of the total population, and becoming one of the foremost industries in terms of Foreign Direct Investment. As per industry estimates, the net worth of the hotel industry is pegged at around $247.31 billion in 2024 and is estimated to reach around $475.37 billion by the year 2029. Some of the factors contributing to this growth are the rise in disposable incomes in the past decade, the visit by a large number of business leaders and international visitors to the country between 2018 and 2019. Moreover, many political events in Europe have also led to a surge in travel in India. The increase in discretionary incomes can be attributed to several factors such as an expanding middle class, increasing urbanization, high domestic revenues, a large population as well as cost-friendly airfares, government policies supporting international, domestic tourism and government programs such as Digital India, e-Visa, Make In India.

The hospitality sector in Eastern India has been witnessing a surge in the last few years. In West Bengal, hospitality sector has been granted industry status. This is in recognition by the government of the important role played by the industry in steering the economic growth of the state, providing greater opportunities to the industry for further growth, and helping in the reduction of the operational expenses and improvement of FAR or Floor Area Ratio. The increase in the number of tourists in West Bengal will contribute to the advancement of local businesses, transportation, and others, offering more opportunities to exhibit and support the artistic, and cultural heritage of West Bengal leading to the empowerment of communities.

In an exclusive conversation with Adgully, Amita Mishra, General Manager, Accor, speaks about the current consumer trends in the hotel industry in the East markets, the performance of ibis Kolkata in 2023, growth projections/ expansion plans for 2024, the marketing/ media mix strategy of ibis Kolkata, focus areas for 2024, the roadmap for the next three years, and more.

Current consumer trends

Commenting on the current consumer trends in the East market, Amita Mishra discussed several notable trends that have surfaced in the East markets:

Demand for Authentic Experiences: Consumers are increasingly inclined towards authentic and distinctive experiences rather than standardized accommodations. This shift has given rise to boutique hotels and properties that offer personalized services and immersive local experiences to travelers.

Preferences for Digital Connectivity: With the advent of technology, consumers now expect seamless digital experiences throughout their hotel stay. This encompasses easy online booking systems, mobile check-in/out options, high-speed Wi-Fi, and personalized digital concierge services.

Wellness and Health-Consciousness: There is a discernible movement towards wellness-focused travel, with consumers placing importance on amenities and services that promote health and relaxation. Hotels are responding to this trend by integrating spa facilities, fitness centers, healthy dining options, and tailored wellness programs into their offerings.

She observed, “Overall, the buying behaviour in the Eastern markets has shifted towards prioritizing experiences over material possessions, sustainability over excess, and convenience over complexity. Hotels that align with these consumer preferences and offer personalized, digitally integrated, and sustainable experiences are poised for success in this evolving landscape.”

Performance of ibis Kolkata & growth projections

Speaking about ibis Kolkata’ performance in 2023, Mishra said, “In 2023, ibis Kolkata showcased robust performance, boasting steady occupancy rates and receiving positive feedback from guests. The hotel implemented strategic initiatives to elevate guest experiences and operational efficiency, resulting in improved profitability.”

She further added, “Looking ahead to 2024, ibis Kolkata has set ambitious growth projections and expansion plans.” These include:

Enhanced Guest Experience: The hotel remains committed to delivering exceptional guest experiences through personalized services, upgraded amenities, and innovative offerings.

Market Expansion: ibis Kolkata aims to explore new market segments and deploy targeted marketing strategies to attract a diverse range of guests, including business travelers, tourists, and event attendees.

Operational Excellence: Continuous efforts will be made to optimize operational processes and implement cost-effective measures to enhance efficiency and maximize profitability.

Sustainable Practices: ibis Kolkata plans to integrate sustainable practices across all aspects of its operations, including energy conservation, waste management, and community engagement.

Digital Innovation: Embracing digital technologies and platforms will be a priority for the hotel, aimed at streamlining operations, enriching guest interactions, and staying ahead of evolving consumer preferences.

“Overall, ibis Kolkata is well-positioned for continued growth and success in 2024, with a strong focus on delivering outstanding experiences, expanding market reach, and embracing innovation and sustainability. Our B2B efforts further strengthen this position, as we actively pursue strategic partnerships and collaborations to enhance our market presence and drive mutual growth and success,” Mishra informed.

Key focus areas for 2024

Speaking about the focus areas of ibis Kolkata for 2024 as well as its marketing/ media mix strategy, Mishra shared, “In 2024, ibis Kolkata will prioritize the following focus areas:

Guest Experience Enhancement: The hotel will focus on continuously improving guest experiences through personalized services, upgraded facilities, and innovative offerings to ensure guest satisfaction and loyalty.

Market Penetration: ibis Kolkata is expanding its market reach through targeted campaigns to attract business travelers, tourists, and event attendees. We are also engaging influencers, pursuing collaborations, hosting Ibis music events, and offering diverse F&B options to enrich guest experiences.

Sustainability Initiative: The hotel is committed to implementing sustainable practices across its operations to reduce environmental impact and enhance corporate social responsibility, aligning with the growing demand for eco-friendly accommodation options.

In terms of its marketing and media mix strategy, ibis Kolkata is increasingly investing in digital channels to reach and engage with its target audience. This includes online advertising, social media marketing, email campaigns, brand offers, F&B-centric campaigns, and promotions. While traditional advertising methods such as print and television may still have a presence in the marketing mix, the majority of resources are allocated to digital platforms due to their cost-effectiveness, wide reach, and ability to track and analyze performance metrics effectively.

Mishra further added, “ibis Kolkata’s advertising expenditure primarily occurs at the brand level, with a significant focus on digital advertising through targeted campaigns across online channels. This reflects the hotel's recognition of the growing importance of digital marketing in effectively reaching and engaging modern consumers.”

Leveraging digital media, technology, influencer & social media marketing

Mishra shared that Ibis Kolkata is harnessing digital media, technology, and influencer/ social media marketing in the following manner:

Online Booking System: The hotel enables guests to make seamless reservations through dedicated booking platforms, enhancing convenience and accessibility for customers.

Social media engagement: ibis Kolkata actively engages with its audience through the brand page of ibis India.

Influencer Marketing: To expand its reach and enhance brand visibility, ibis Kolkata collaborates with influencers and bloggers who resonate with its target audience. These partnerships help the hotel reach new audiences and build credibility through authentic endorsements and reviews. Additionally, ibis Kolkata actively engages in PR efforts to further amplify its brand presence and establish strong media relationships.

Future roadmap

Elaborating on the comprehensive roadmap for ibis Kolkata for the next three years, aimed at achieving several key objectives, Mishra mentioned the following:

Enhanced Guest Experiences: The hotel plans to elevate guest experiences by offering personalized services and introducing innovative offerings that cater to the evolving needs and preferences of its guests.This includes initiatives to improve customer service, upgrade facilities, and enhance overall satisfaction.

Market Expansion and Penetration: ibis Kolkata is dedicated to expanding its presence in the Kolkata market and its feeder markets by implementing targeted marketing strategies and forming strategic partnerships. By identifying and targeting new market segments and leveraging partnerships with key stakeholders, the hotel aims to attract a diverse range of guests and drive occupancy rates.

Sustainability Initiatives: As part of its commitment to corporate social responsibility, ibis Kolkata will continue to focus in line with the brand, implementing sustainable practices across its operations. This includes initiatives to reduce environmental impact, conserve resources, and promote community engagement, aligning with the growing demand for eco-friendly and socially responsible hospitality services.

Digital Innovation: ibis Kolkata plans to embrace digital innovation to streamline operations and enhance guest interactions. This includes the adoption of technology-driven solutions for processes such as booking, and guest communication, as well as the integration of digital platforms for marketing, customer engagement, and feedback management. Additionally, ibis Kolkata places a strong emphasis on loyalty programs to enhance guest retention and foster long-term relationships with its patrons.

Mishra concluded by saying, “Looking ahead, the journey for ibis Kolkata is characterized by a commitment to sustained growth, innovation, and excellence in hospitality. By focusing on enhancing guest experiences, expanding market reach, implementing sustainable practices, and embracing digital innovation, the hotel aims to position itself as a leader in the hospitality industry and deliver exceptional value to its guests and stakeholders. Overall, ibis Kolkata is well-positioned for continued growth and success in 2024, with a strong focus on delivering outstanding experiences, expanding market reach, and embracing innovation and sustainability. Our B2B efforts further strengthen this position, as we actively pursue strategic partnerships and collaborations to enhance our market presence and drive mutual growth and success.”