Marriott's go-local game plan

On what Marriott has done different from the incumbents
The large Indian chains have been driven by owning and developing assets themselves, but in recent times, they have become aggressive about the management model. A few had taken a big hit [under the earlier model] and were forced to shift gears. Others are making progress in coming back into the black. Marriott stuck to a management model, which has helped our 28 hotels in India do better than the other chains. Our revenue per available room (RevPAR) is 26% higher
than the rest.

On the years past and how he reads the next three
There has been a steady decline over the past five years but for the past four months, I see the industry clocking a 3% rise in RevPAR. In the next three years, I expect that to be in the high single digits. For us, this year has seen a stellar start, with RevPAR growth in double digits because of interest in India for investments.

On Marriott’s customers
Our business in 2006 was 70% foreign inbound and about 30% domestic. Today, it’s almost reversed. We have 28 hotels now vs. six then, but we have taken a call to go after corporate Indian customers.

On why Marriotts have more features here than those overseas
Each time we brought a brand to India, we researched what the consumer wanted, unlike peers who would bring what worked in another country, to which Indians were expected to adapt. We believed that if we could satisfy an Indian guest, we would satisfy the international consumer. The Fairfield in India has a bar, restaurant, banquet space, and a pool because research shows that Indians want these things. We also found that guests wanted room service. There’s nothing like that in the U.S. Later, our competitors introduced room service as well.

On the culture at Marriott
We take care of our people, they take care of our customers, and customers keep the business going. Almost 99% of our staff across the country are Indians. Attrition is at 10%, which is less than the industry average [of 30%]. Most of our general managers have been with us for seven to 15 years.

On the slow start at Delhi’s Aerocity hotel
The hotel was supposed to open in April 2013 but security agencies refused permission and sealed rooms overlooking the runway. We were the first to open in that region but were delayed by about six months. The hotel is now fully operational.

On his one big mistake
We started the franchise model in the early 1990s with two hotels in Goa and Delhi. When we realised they were not helping the brand, we exited.

On Marriott’s secret weapon
Our loyalty programme drives a lot of business. We have 50 million members globally and about a million in India. Almost 50% of business comes through loyalty customers. Also, our sales and marketing teams in Delhi and Mumbai play a key role.