NEW DELHI: India is poised to become the third largest market for Marriott International, the world's largest hospitality company, surpassing Mexico and trailing only the United States and China. David Marriott, chairman of the board of Marriott International, highlighted India's growing significance, noting that the company opened its landmark 10,000th property in Ranthambore, India.
Emotional Milestone
David Marriott shared the emotional significance of the milestone. "My father (chairman emeritus J W Marriott Junior) is 94 and he wanted to be around when we reached that landmark. On Wednesday, after the inauguration I called and told him 'it's done'. In India, and that too a JW Marriott — a brand named after his father. He was thrilled. To top it up, this happened on the birth anniversary of my mother Donna Garff Marriott who we lost last December. It was an emotional moment for us both from the company and a personal perspective," David Marriott told TOI on Thursday.
Bullish on India
India's rising economic might and burgeoning middle class have made Marriott bullish on the country. "Almost 40% of people flying to India (and other parts of Asia from the west) do so via the Middle East. That has slowed down inbound. The good news is local travellers are changing their trip destinations and staying largely within the country. They are not staying home but still hitting the road. Except the Middle East, the impact has been manageable," David said.
Impact of Regional Conflicts
Rajeev Menon, Marriott's president for Asia Pacific (excluding China), elaborated on the impact seen in India and neighbouring regions. "Right as the conflict started we saw lot of cancellations as 42% of inbound travel to India comes from somewhere in the Middle East. In March, the first full month, we were projecting double digit revenue per available room (Revpar) growth in India. That turned negative. Then we saw people pivoting. Travel didn't stop and plans got shifted. In April, Revpar growth shifted from flat to marginally positive and last month we were back to double digit growth. This month looks exactly the same and forward bookings are pretty strong," Menon said.
Market Presence and Future Plans
The company currently operates 6,000 hotels in the US, followed by 700 in China, just under 300 in Mexico, and 220 in India. Given the pipeline in India, the country will soon overtake Mexico. With the rising might of outbound travel from India, all hospitality majors are focusing on targeting Indian travellers abroad with tailored offerings such as specialized menus.
India's Hospitality Culture
"India has an incredible hospitality culture, one of the finest in the world. We have taken a large number of professionals from India (to work in properties abroad) and now that we are on our way to have 300 plus hotels here, they are coming back to work here in their home country," David said. When asked about the post-war outlook, he added, "The way we bounced back post the pandemic, travel will be back. And stronger than before."
