Team Name: Jynx

Post Covid 12 month plan for Maharaj Grand, Mumbai

CASE-TRIX 2020
Team Members: Arghya Gupta, Ayananta Deb, Dibyendu Patra
The Problem
Company Primary Issues Problem statement

Maharaj Grand, Mumbai ● Maharaj Grand is running A comprehensive

at below 50%
is one of the flagship analysis which contains
occupancy.
hotels of Maharaj Hotels ● The revenues have taken
the measures to handle
Pvt Ltd situated in the a big hit due to the primary issues that
financial capital of the COVID-19. are currently being faced
country. ● The employees at by Maharaj Grand.
Maharaj Grand are low
on morale due to
pay-cuts and other cost
cutting measures.
 R.P.A.S.R 2020-21

Recalibrate demand indicators Prepare to win Addressing key concerns

Reimagine loyalty Support workforce

 Source: BCG’s Travel Recovery Insights Portal

RECALIBRATION OF DEMAND INDICATORS TO

UNDERSTAND HOW, WHEN AND WHERE
BOOKINGS WILL RESUME

From a survey conducted by JLL, we

can fairly estimate that the RevPAR
levels of hotels will return to 2019
levels by the next 24 months.

Source: JLL.co.in
Since the estimated time period is 24 months, we will have to recalibrate the demand indicators. Maharaj
Grand needs to analyze granular information such as travel data (see graph on the right side of the slide),
epidemiological information and consumer behavior. This information needs to be broken down by
demographic segment, brand, etc. These demand indicators span the entire customer journey, starting
with guest’s ability to travel and proceeding through their intent, search, and booking behaviour. (see
exhibit 2).
A) Ability to Travel: Looking at the Flight data, we can infer that International flights
are at a near zero. But, as of late August, the domestic flights have started to
bounce back. It can be fairly estimated that by the end of the first quarter of
2021, the domestic flights will return to pre covid times barring a resurgence of
the virus.
B) Intent: In the post-covid scenario, consumers will be less likely to travel for
leisure. Right after all government restrictions are lifted, the millennial segment
is most likely to restart travelling. Maharaj Grand needs to attract the millennial
demographic for the same reason.

C) Search: Maharaj Grand needs to look out for destination searches to Mumbai
and initiate targeted advertisements for the same.

D) Book: Maharaj Grand also needs to look at bookings, airline bookings and
cancellations in Mumbai and analyse as to why, when and where these tasks are
being performed by consumers; and plan the services accordingly.
PREPARE TO WIN WITH LOCAL, DOMESTIC
TRAVELERS AMONG SHIFTING DEMAND POOLS
According to a poll conducted by BCG, consumers will fly less and
drive more. Travellers in China and Europe show a similar pattern. As
the government restrictions are gradually lifted, consumers will
counterbalance their pent up desire to travel, with tentative behavior
caused by a need to feel safe and by recessionary concerns that will
limit leisure spending. (Notably, consumers rank leisure travel as the
activity they miss the most.) In the same BCG poll, about one in four
respondents said that they would spend “a lot less” on hotels even if
the virus were under control in three months, an indication that
continued concerns about economic uncertainty will restrain
travelers’ willingness to spend.
To win among these shifting demand pools, Maharaj Grand must
optimize its channels and messaging to simplify the booking process
and promote new forms of local escape. Marketing should cater to
local consumers, and add-ons such as local activities and services
which are easy to bundle up.
To look at a few of the opportunities Maharaj Grand can take up, we
have listed them on the right of this slide:-
A) Maharaj Hospitality at Your Doorstep: Maharaj Grand
can release bundles such as Bakery Bundle, Gourmet
Bundle, Wellness Bundle, etc.
B) Work Like a Maharaj: Maharaj Grand must offer
services wherein customers can avail private rooms from
which they can attend their offices and along with that
enjoy the unparalleled amenities provided at the Grand.
C) Restaurant Delicacies at Your Doorstep: Maharaj
Grand must open its restaurant services to food delivery
platforms for the Mumbai locals to enjoy at the safety of
their homes.
D) Family Getaways: Maharaj Grand must market its
leisure activities and organize family events for Mumbai
locals. As the Government Protocols subside, the hotel
must bank in on this opportunity and offer its services for
the consumers who are looking to step out of their
homes and at the same time, do not want to compromise
on their safety.
 ADDRESSING KEY TRAVELLER CONCERNS

Once Maharaj Grand has a clear understanding of the nature of

demands within a market, it must take steps to uniquely position its
properties to appeal to new traveller expectation. This includes
having to flex outside its natural demand pools to offer different
amenities and features. For example, enforced social distancing,
increased hand sanitizer use, and regular antiviral cleaning. Maharaj
Grand can leverage trust as an asset by ensuring that the hotel is not
only cleaned but sanitized and safe.

Other services such as touchless check-in and check-out, automated

room service ordering, conducting temperature checks, sensor lights
and gesture toilet control must be added to Maharaj Grand’s arsenal
to successfully address guests’ key concerns.

The left side of the slide contains actions that could protect the
guests from the virus and in turn act as a point of differentiation that
may boost demand for the Grand.

Source: Mckinsey Consumer League Survey

SUPPORTING THE FURLOUGHED WORKFORCE REIMAGINING LOYALTY IN THIS NEW
AND REVENUE MANAGEMENT TACTICS ECOSYSTEM

The hotel staffs are the backbone of the industry. The only way to In a survey conducted by BCG, around 66% of the respondents said
earn some revenue during these tough times is by keeping the staff that they are less likely to stay in hotels over the next few months.
motivated. Maharaj Grand must incorporate a staff rotation policy. This is on par with the current trends of reduced air travel. Maharaj
Other than the irreplaceable staff, rest may be put to work on monthly Grand must find ways to engage with the people. One measure that
basis or terms. can be adopted is launching loyalty programs through digital
Although, the need to furlough staff is required, the hotel must be marketing channels.
prepared for the coming rebound. The management should develop Maharaj Grand must forge partnerships with retail chains that allow
an internal information platform to communicate with the employees members to redeem number of points by shopping. Another is to
and provide them with emergency safety supplies or training on virus foster goodwill by enabling members to donate points to relief
prevention measures to keep them connected with the company and organizations. Streaming apps, games, and other means of driving
keep their morale high. traffic to brand apps and sites will be key to maintaining engagement
during this period.
The management must apply best in class data science to forecast
volatile demands as the historical booking patterns and trend are
losing relevance. With the help of data analysis, new price elasticities
that reflect post COVID market conditions can be derived.
Recalibrating the revenue management systems and setting up
revenue management teams to adopt an agile test and learn
approach can help Maharaj Grand to effectively identify and
capitalize on early trends. Maharaj Grand should also bargain the
share of revenue with hotel booking companies such as MakeMyTrip,
booking.com, etc.

Adopting revenue management
NOV’20 tactics and cost cutting by
furloughing 50% of all personnel.
Addressing key traveller concerns
mentioned earlier. Attracting local
consumers by launching services
like “Work Like Maharaj”,
DEC’20 “Hospitality at your door“ and food
delivery.
This marks the later stage of
JAN’21 UNLOCK which implies higher
number of domestic flights and
surge in occupancy rate.
Maharaj Grand must market it’s
safety measures to gain the trust
FEB’21 of the guests who have recently
started traveling.
Launching of loyalty programs to
beat the competition and get a
MAR’21 major share of the new travelers is
the key during this period.
With better occupancy rates, the
furloughed employees should be
APR’21 called back to work to avoid the
risk of being understaffed.
Studying demand indicators
to understand the shift in
required services.
Forging partnerships with
retail chains to pave a way
for reimagined loyalty
programs.
With the subsiding COVID-19 crisis,
corporate events will restart. MAY’21
Maharaj Grand should bank on this
opportunity, giving them better
deals.
With situation getting better, the
services adopted earlier should be
gradually redacted.
JUN’21
Expected occupancy rate to reach
above 50%. JUL’21
Maharaj Grand must take the aid
of data analysts to calibrate the AUG’21
revenue management system and
new price elasticities must be
derived.
A surge in the revenue and a
profitable scenario is expected by
SEP’21
the Last quarter of 2021.
Maharaj Grand should not
discount on customer satisfaction,
quality and traveller concerns. OCT’21
 3. Hotels must address key traveller concerns and look after their safety
to gain the trust of the customers. These include enforced social
ADDITIONAL OBJECTIVES IN THE POST COVID distancing, increased hand sanitizer use, and regular antiviral cleaning.
ERA A task force that understands the gravity of medical issues and trained
to take measures in such situation.

4. Hotels must re-imagine their loyalty point systems wherein guests

POST-COVID STRUCTURE OF THE HOTEL can gather loyalty points by shopping at partner retail chains and use
INDUSTRY those loyalty points to avail services at the hotel themselves.

1. The restaurants in the hotels should adopt “Alfresco” style in courtyards,

lawns or open terraces since fresh air and ventilation goes a long way in FUTURE OPPORTUNITIES FOR THE HOTEL
curbing the spread of the virus. Contemporaries in Europe and USA have
already adopted this method.
INDUSTRY
2. The design of entrances must incorporate disinfection similar to the 1. In the future, hotels will have to incorporate various
rigorous screenings at airports.
technological advancements in the hospitality sector.
3. Zero-maintenance buildings, touch-free interactions, and technology based
sanitisation must be incorporated.
Investments in R&D for hospitality services will provide
4. There must be more cost allocated to technological advancements in opportunities of growth via technology which will attract
hospitality which will ensure minimum human interaction. millenials as well.
5. Sensor based lighting in common areas, sensor taps and gesture 2. Sustainability is the future. 55% of global travellers say that
controlled flushing in public washrooms must be incorporated. they are more inclined to choose sustainable accomodation
6. Carpet areas must be decreased and use of stone/tiles must increase. but lack of appealing options make it harder to put into
practice and 87% of millennials believe that the success of a
STRATEGIES THAT THE HOTEL INDUSTRY CAN business should be measured by its impact on the world. The
hospitality industry must remove plastic-use from its
LOOK AT TO INCREASE THEIR CURRENT restaurants, monitor use of water and procure food from local
REVENUE farms.
3. A strong recovery post Covid times is just like a hanging fruit
1. Win local and domestic travellers among the shifting demand waiting to ripen. With State and Central governments
pools by introducing services such as private rooms with promoting tourism, domestic travel will see a surge and
amenities for officer goers, luxury bundles delivery, restaurant hospitality sector can capitalise on this.
delicacies delivery, etc.

2. Hotels should update their cancellation policy, making it

flexible for more bookings.