Sunjae Sharma, Managing Director, Hyatt (India and South West Asia)
Hyatt Hotels is on the brink of a significant transformation in India’s hospitality landscape as it prepares to introduce its all-inclusive resorts to the country. This venture marks a groundbreaking move in the branded hospitality segment that, until now, has primarily focused on traditional bed and breakfast models. In India, most established hotel brands offer complimentary access to amenities like pools and gyms, but guests still need to budget separately for meals and drinks.
With the all-inclusive model, Hyatt aims to redefine guest experiences by including accommodation, food, beverages, and a variety of activities and events under one umbrella. The concept is already popular in numerous regions around the world, particularly at Hyatt’s existing properties in locations such as Mexico, the Caribbean, and Europe. Recent expansions into this segment include the $2.6 billion acquisition of Playa Hotels & Resorts, illustrating Hyatt’s commitment to growth and innovation.
Sunjae Sharma, the Managing Director of Hyatt (India and South West Asia), passionately believes that “India is ready for the all-inclusive model. It resonates with the Indian mindset.” His vision involves not only introducing the Ziva and Zilara resort brands but also forming partnerships to facilitate their launch within the country. This strategic move comes in response to a growing demand for leisure travel as well as a shift in consumer preferences towards more inclusive vacation experiences.
### Expanding the Portfolio
In addition to the introduction of all-inclusive resorts, Hyatt Hotels has set its sights on broadening its overall presence in India. The company plans to grow its offerings in the luxury, leisure, and lifestyle segments. Among these efforts is the expansion of the Alila brand and the anticipated introduction of the Standard brand in the Indian market. This diversification reflects a keen understanding of evolving customer desires and the need for new experiences in hospitality.
### Industry Growth and Domestic Demand
The timing of these developments is significant, as Hyatt has been experiencing impressive double-digit growth in India. This surge is largely fueled by strong domestic demand, particularly as the country begins to recover from the pandemic. With an insufficient number of hotel rooms available in key markets, and prices on the rise, the hospitality sector is witnessing a fruitful rebound. Notably, about 70-80% of Hyatt’s guests are domestic travelers, indicating that inbound tourism has yet to return to pre-pandemic levels.
Looking ahead, Sharma optimistically anticipates that the upcoming years will be fruitful for Hyatt in India, citing a higher number of auspicious wedding dates and an increased demand for meetings and events as positive indicators. The hotel chain signed agreements for 21 new hotels across the nation in the previous year and currently operates 52 properties. With plans to open seven additional locations—six in India and one in Nepal—Hyatt is poised to bolster its regional portfolio to 59 hotels, totaling around 11,500 rooms.
### Enhancing Customer Engagement
Alongside its expansion strategy, Hyatt Hotels is focusing on enhancing customer loyalty and brand engagement. The company is launching marketing initiatives to create exclusive experiences for its loyalty program members, including privileged access to events at the Nita Mukesh Ambani Cultural Centre in Mumbai, as well as tailored reward programs for event planners.
To further enhance its brand presence, Hyatt has introduced an Instagram page dedicated to its Indian audience. Since its launch in December, the page has rapidly gained traction, amassing over 500,000 followers and surpassing competitors in the market. This digital strategy aims to strengthen brand loyalty and create lasting connections with potential guests, showcasing the vibrancy and hospitality that Hyatt embodies.
By embracing an all-inclusive approach while simultaneously expanding its luxury offerings, Hyatt Hotels is not only reshaping its brand in India but also setting the stage for a new era in the country’s hospitality sector.