Top five-star hotels tap into food delivery to generate income
At Indian Hotels Company’s Taj hotels in five cities and at the Hyatt Regency in Delhi, take-out and restaurant deliveries are open respectively.
The Oberoi Bengaluru began home delivery on April 1, as did the Park Hyatt Hyderabad.
Park hotels in Bengaluru, Chennai, Hyderabad, Kolkata, Navi Mumbai and Delhi have also started reaching out to their customers through social media.
The Andaz Hotel in Delhi has started deliveries within a 15 km radius.
Hotels continue to offer popular dishes, but some dishes from their restaurants in the wake of the Covid-19 virus outbreak have resulted in the ongoing 21-day nationwide lockdown.
Last month, ET announced that revenues for Indian branded hotels are expected to be 10-15% lower in February. After the lockdown, however, as India’s largest cities close, incomes are expected to drop more sharply.
“It has been difficult for our customers to use the hotel’s services as the catering operations of all restaurants have been closed due to government guidelines. We receive orders from our regular customers and manage deliveries ourselves. “said Julian Ayers, General Manager, Hyatt Regency Delhi.
The hotel is also in the process of partnering with third-party aggregators to increase its delivery radius.
A recent report from hospitality consultancy HVS suggests that hotels should focus on diversifying revenue through non-core functions like gyms, restaurants and spas.
The report titled “Covid-19: Impact on the Indian Hotel Sector” states that hotels should provide services that were traditionally not part of their core offerings, such as food delivery through online platforms or rental of kitchens for cloud cooking needs.
The overall room occupancy rate in the branded hotel segment is expected to decline 16.7 to 20.5 percentage points in 2020 compared to the previous year, according to the report.
The next quarter will be worse, according to the report. Hotels will not be able to increase rates and may even be forced to attract customers with deep discounts.
The Oberoi Group property in Bengaluru, when contacted by ET, said it had run out of delivery windows and was taking orders in advance. An official request sent to the group went unanswered until press time on Sunday.
The park’s offering starts at Rs 250. The hotel group, in an unusual move for five-star properties nationwide, has teamed up with food delivery majors Swiggy and Zomato.
“We are getting a reasonably good response in Navi Mumbai, Kolkata, Bangalore, Hyderabad and Kolkata. We get around 10 to 15 orders a day and it is gradually increasing, ”said a spokesperson for the group.
“From our kitchen to your home,” read a brochure from Taj Palace New Delhi featuring select dishes from the Capital Kitchen and Spicy Duck restaurants for take-out only. The Ambassador’s Yellow Brick Road Kitchen in New Delhi also offers a selection of take-out options.
“We have received several calls from our regulars asking if we can deliver to home. Currently the hotel is still operational with a limited number of internal guests and we have our kitchens open to make sure they are as comfortable as possible. “said a spokesperson for Park Hyatt in Hyderabad.
However, the hotel said it would not make bulk deliveries.
“Currently, we manage with our internal logistics. The aim is to reach our loyal and regular customers and not to make wholesale deliveries through third-party aggregators,” the spokesperson added.